BMO earnings highlights

Q1 net income (adjusted): $2.3 billion (-12% Y/Y)

Earnings per share (adjusted): $3.22

- “The quarter-over-quarter increase in embedded PCL is consistent with the expected normalization trend in delinquency rates in unsecured consumer loans and credit cards, which still remain below pre-pandemic levels,” said Piyush Agrawal, Chief Risk Officer. “For real estate secured lending, we continue to view the risk from higher rates as modest, given a high credit quality borrower base and low LTVs.”

- “The total provision for credit losses was $217 million or 15 basis points, down $9 million or 1 basis point from prior quarter,” Agrawal added. “Impaired provisions for the quarter were $196 million or 14 basis points flat to the fourth quarter. The strong impaired loan performance is due to low formations, which continue to be below pre-pandemic levels. We do expect impaired provisions to return to more normal levels over time.”

- “The riskier segment renewing over the next 12 months is nominal given our portfolio quality,” Agrawal said.