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BMO Financial Group BMO Financial Group Reports First Quarter 2021 Results EARNINGS RELEASE BMO's First Quarter 2021 Report to Shareholders , including the unaudited interim consolidated financial statements for the period ended January 31 , 2021 , is available online at www.bmo.com/investorrelations and at www.sedar.com . Financial Results Highlights First Quarter 2021 Compared With First Quarter 2020 : • Net income of $ 2,017 million , an increase of 27 % ; adjusted net income¹ of $ 2,038 million , an increase of 26 % • Reported EPS² of $ 3.03 , an increase of 28 % ; adjusted EPS 1/2 of $ 3.06 , an increase of 27 % • Provision for credit losses ( PCL ) of $ 156 million , compared with $ 349 million • Reported net efficiency ratio³ of 56.7 % , compared with 60.8 % ; adjusted net efficiency ratio¹³ of 56.3 % , compared with 60.3 % • ROE of 15.7 % , compared with 13.3 % ; adjusted ROE¹ of 15.8 % , compared with 13.5 % • Common Equity Tier 1 Ratio of 12.4 % , an increase from 11.4 % in the prior year Toronto , February 23 , 2021 - For the first quarter ended January 31 , 2021 , BMO Financial Group recorded net income of $ 2,017 million or $ 3.03 per share on a reported basis , and net income of $ 2,038 million or $ 3.06 per share on an adjusted basis . " We had a very strong start to the year , continuing to build on clear and consistent operating momentum to deliver first quarter adjusted net income of over $ 2 billion , earnings per share of $ 3.06 , and pre - provision , pre - tax earnings growth of 16 % from last year and 13 % from last quarter . We achieved solid revenue growth of 6 % , compared with the prior year and the prior quarter , and continued to effectively manage expenses and strategically invest for future growth , with operating leverage above 7 % and an efficiency ratio of 56.3 % . Credit performance was very strong , reflecting both the credit quality of our loan portfolio and our commitment to superior risk management . All businesses performed well , particularly in our U.S. segment , which remains a key driver of diversified earnings growth now and in the future , " said Darryl White , Chief Executive Officer , BMO Financial Group . " In addition to our strong financial results this quarter , we were proud to be named as the top North American bank in Corporate Knights ' 2021 Global 100 Most Sustainable Corporations in the World and are pleased to be an early signatory to the United Nations Principles for Responsible Banking . We remain resolute in the support of our customers and communities in the face of ongoing challenges related to the pandemic and are focused on helping them recover stronger as the economy rebounds . " " We have a diversified and resilient model , a strong capital position and good momentum across our businesses that are well - positioned for the evolving environment . We are executing against a strategy to accelerate long - term growth and deliver top - tier shareholder value , " concluded Mr. White . Reported net income increased 27 % and adjusted net income increased 26 % from the prior year . Adjusted results exclude the amortization of acquisition - related intangible assets and acquisition integration costs . The increase in net income was driven by net revenue³ growth of 6 % , with increases across all operating groups , a decrease in expenses and lower provisions for credit losses . Return on equity ( ROE ) was 15.7 % , compared with 13.3 % in the prior year , and adjusted ROE was 15.8 % , compared with 13.5 % . Return on tangible common equity ( ROTCE ) was 18.2 % , an increase from 15.7 % in the prior year , and adjusted ROTCE was 18.2 % , an increase from 15.8 % . Concurrent with the release of results , BMO announced a second quarter 2021 dividend of $ 1.06 per common share , unchanged from the prior quarter and the prior year . The quarterly dividend of $ 1.06 per common share is equivalent to an annual dividend of $ 4.24 per common share . ( 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 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 deducting total dividends on preferred shares and distributions payable on other equity instruments . ( 3 ) On a basis that nets insurance claims , commissions and changes in policy benefit liabilities ( CCPB ) against insurance revenue . Note : All ratios and percentage changes in this document are based on unrounded numbers .