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BMO Financial Group BMO Financial Group Reports Second Quarter 2021 Results EARNINGS RELEASE BMO's Second Quarter 2021 Report to Shareholders , including the unaudited interim consolidated financial statements for the period ended April 30 , 2021 , is available online at www.bmo.com/investorrelations and at www.sedar.com . Financial Results Highlights Second Quarter 2021 Compared With Second Quarter 2020 : • • • • • Net income of $ 1,303 million , an increase from $ 689 million ; adjusted net income 14 of $ 2,095 million , an increase from $ 715 million Reported EPS² of $ 1.91 , an increase from $ 1.00 ; adjusted EPS1,2,4 of $ 3.13 , an increase from $ 1.04 Provision for credit losses ( PCL ) of $ 60 million , compared with $ 1,118 million Reported net efficiency ratio³ of 69.3 % , compared with 64.4 % ; adjusted net efficiency ratio ¹ , 3,4 of 56.6 % , compared with 63.8 % Return on equity ( ROE ) of 10.2 % , an increase from 5.3 % ; adjusted ROE¹4 of 16.7 % , an increase from 5.5 % • Common Equity Tier 1 Ratio of 13.0 % , an increase from 11.0 % in the prior year Year - to - Date 2021 Compared With Year - to - Date 2020 : • • Net income of $ 3,320 million , an increase from $ 2,281 million ; adjusted net income¹⁄4 of $ 4,133 million , an increase from $ 2,332 million Reported EPS² of $ 4.93 , an increase from $ 3.37 ; adjusted EPS 1,2,4 of $ 6.19 , an increase from $ 3.45 PCL of $ 216 million , compared with $ 1,467 million • Reported net efficiency ratio³ of 63.0 % , compared with 62.5 % ; adjusted net efficiency ratio 1,3,4 of 56.4 % , compared with 62.0 % • ROE of 13.0 % , an increase from 9.2 % ; adjusted ROE 14 of 16.3 % , an increase from 9.4 % • Common Equity Tier 1 Ratio of 13.0 % , an increase from 11.0 % in the prior year Toronto , May 26 , 2021 - For the second quarter ended April 30 , 2021 , BMO Financial Group recorded net income of $ 1,303 million or $ 1.91 per share on a reported basis , and net income of $ 2,095 million or $ 3.13 per share on an adjusted basis . " This quarter , we continued to deliver very strong results with all of our businesses performing well . For the first half of the year , adjusted pre- provision pre - tax earnings of $ 5.5 billion increased 27 % from a year ago , driven by revenue growth of 11 % reflecting the benefits of our diversified business model , and very strong operating leverage . We enter the second half of the year with strong momentum , " said Darryl White , Chief Executive Officer , BMO Financial Group . " We are continuing to build a strong , competitive bank , allocating capital to businesses that are positioned to grow and deliver strong returns , and we are highly focused on continuously improving our performance . Return on equity increased to 16.7 % , we improved our efficiency ratio to 56.6 % and strengthened our CET1 ratio to 13.0 % , all underpinned by our strong balance sheet and differentiated risk and credit performance . " " In addition to strong financial performance , we are delivering on our commitments for a sustainable future . This quarter , we declared our ambition to be our clients ' lead partner in the transition to a net zero world and we are supporting key organizations that are helping reduce health care disparities , including global emergency COVID - 19 relief efforts . " " We are executing against a consistent , purpose - driven strategy – which for us means winning together with our customers , our communities , our employees and our shareholders , " concluded Mr. White . ( 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 . ( 4 ) Q2-2021 reported net income included a $ 747 million pre - tax and after - tax write - down of goodwill related to the announced sale of our EMEA Asset Management business to Ameriprise Financial , Inc. , a $ 22 million ( $ 29 million pre - tax ) net gain on the sale of our Private Banking business in Hong Kong and Singapore to J. Safra Sarasin Group , and $ 47 million ( $ 53 million pre - tax ) of divestiture - related costs for both transactions . The net gain on the sale was included in revenue with the goodwill write - down and divestiture costs included in non - interest expense , all recorded in Corporate Services . Note : All ratios and percentage changes in this document are based on unrounded numbers .