-- Net income of $975 million, down 5%; adjusted net income(1) of $997 million, up 2%-- EPS(2) of $1.42, down 6%; adjusted EPS(1,2) of $1.46, up 1%-- ROE of 14.2%, compared with 16.2%; adjusted ROE(1) of 14.5%, compared with 15.4%-- Provisions for credit losses of $145 million, compared with $195 million; adjusted provisions for credit losses(1) of $110 million, compared with $151 million-- Basel III Common Equity Ratio is strong at 9.7%
Year-to-Date 2013 Compared with Year-to-Date 2012:
-- Net income of $2,023 million, down 5%; adjusted net income(1) of $2,038 million, up 4%-- EPS(2) of $2.95, down 6%; adjusted EPS(1,2) of $2.97, up 4%-- ROE of 14.6%, compared with 16.7%; adjusted ROE(1) of 14.7%, compared with 15.2%-- Provisions for credit losses of $323 million, compared with $336 million; adjusted provisions for credit losses(1) of $206 million, compared with $242 million
For the second quarter ended April 30, 2013, BMO Financial Group reported net income of $975 million or $1.42 per share on a reported basis and net income of $997 million or $1.46 per share on an adjusted basis.
"BMO's second quarter reflects solid operating performance," said Bill Downe, President and Chief Executive Officer, BMO Financial Group. "Our wealth, capital markets, and U.S. personal and commercial banking businesses each had a good quarter. We saw continuing volume growth in Canadian personal and commercial lending as a result of new business opened. P&C Canada is taking share and is confident in its ability to convert new customers into multi-product relationships.
"We continue to have strong performance in commercial banking. The core U.S. commercial and industrial portfolio is up 17 per cent year over year, marking the sixth quarter of sequential growth. In Canada, where we have the number two market share in small and medium-sized commercial loans, both commercial loan and deposit balances increased 12 per cent year over year.
"Management's focus on organizational efficiency is a multi-year commitment. Our first priority is sustainable revenue growth - and the disciplined management of expense is an ongoing dimension of profitable growth. Our strong capital position continues to give us flexibility. During the quarter, our Basel III Common Equity Tier 1 Ratio increased, while we also purchased four million shares under our normal course issuer bid.
"Looking forward, we have an advantaged business mix and are well-positioned for the current environment given our footprint in an improving U.S. Midwest economy, combined with our strength in commercial banking, capital markets and wealth. These are important differentiators. At the same time, we continue to focus on what's necessary to support future growth, and are confident that the value we create for customers will translate into financial performance for the bank," concluded Mr. Downe.
(1) Results and measures in this document are presented on a GAAP basis. They are also presented on an adjusted basis that excludes the impact of certain items. Adjusted results and measures are non-GAAP and are detailed in the Adjusted Net Income section, and (for all reported periods) in the Non-GAAP Measures section, where such non-GAAP measures and their closest GAAP counterparts are disclosed.(2) All Earnings per Share (EPS) measures in this document refer to diluted EPS unless specified otherwise. EPS is calculated using net income after deductions for net income attributable to non-controlling interest in subsidiaries and preferred share dividends.Note: All ratios and percentage changes in this document are based onunrounded numbers.