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BMO Financial Group BMO Financial Group Reports Third Quarter 2021 Results REPORT TO SHAREHOLDERS BMO's Third Quarter 2021 Report to Shareholders , including the unaudited interim consolidated financial statements for the period ended July 31 , 2021 , is available online at www.bmo.com/investorrelations and at www.sedar.com . Financial Results Highlights Third Quarter 2021 Compared With Third Quarter 2020 : • Net income of $ 2,275 million , an increase of 85 % ; adjusted net income¹⁄4 of $ 2,292 million , an increase of 82 % • Reported EPS² of $ 3.41 , an increase of 89 % ; adjusted EPS 1,2,4 of $ 3.44 , an increase of 86 % • Recovery of credit losses of $ 70 million , compared with a provision for credit losses ( PCL ) of $ 1,054 million • • Reported net efficiency ratio³ of 56.0 % , compared with 57.4 % ; adjusted net efficiency ratio¹ , 3,4 of 55.7 % , compared with 56.8 % Return on equity ( ROE ) of 17.5 % , an increase from 9.4 % ; adjusted ROE 14 of 17.6 % , an increase from 9.6 % Common Equity Tier 1 Ratio of 13.4 % , an increase from 11.6 % in the prior year Year - to - Date 2021 Compared With Year - to - Date 2020 : • Net income of $ 5,595 million , an increase of 59 % ; adjusted net income ¹ , 4,5 of $ 6,425 million , an increase of 79 % Reported EPS² of $ 8.35 , an increase of 61 % ; adjusted EPS 1,2,4,5 of $ 9.63 , an increase of 82 % • PCL of $ 146 million , compared with $ 2,521 million • Reported net efficiency ratio³ of 60.6 % , compared with 60.8 % ; adjusted net efficiency ratio 1,3,4,5 of 56.2 % , compared with 60.2 % • ROE of 14.5 % , an increase from 9.3 % ; adjusted ROE 1,4,5 of 16.7 % , an increase from 9.5 % Toronto , August 24 , 2021 - For the third quarter ended July 31 , 2021 , BMO Financial Group recorded net income of $ 2,275 million or $ 3.41 per share on a reported basis , and net income of $ 2,292 million or $ 3.44 per share on an adjusted basis . " Operating momentum across our diversified businesses continues to drive strong financial performance . We recorded third quarter adjusted earnings per share of $ 3.44 , with strong pre - provision pre - tax earnings of $ 2.9 billion , up 12 % year - over - year , driven by revenue growth of 10 % , " said Darryl White , Chief Executive Officer , BMO Financial Group . " We are executing strategies and investing in our businesses to deliver strong returns and efficiency improvements , which this quarter , delivered positive operating leverage of 2.1 % , an efficiency ratio of 55.7 % , a 110 basis point improvement from last year , and return on equity of 17.6 % . Our leadership in risk and balance sheet management remains a key differentiator and contributed to continued strong credit metrics and a robust capital position with a CET1 ratio of 13.4 % . " " Our consistent financial performance enables us to deliver on our vision for a sustainable future . This quarter , we continued to advance our work to address the impact of climate change and champion inclusivity , and made a long - term pledge to supporting the development of affordable housing . With the economic recovery continuing to take hold , and as communities adapt to the most recent pandemic developments , we are committed to helping our clients make real financial progress and supporting their growth ambitions . " 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 excluded 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 ) Q3-2021 reported net income included expenses of $ 18 million ( $ 24 million pre - tax ) from the impact of divestitures related to the announced sale of our EMEA Asset Management business and the sale of our Private Banking business in Hong Kong and Singapore , offset by a partial reversal of restructuring charges recorded in Q4-2019 related to severance of $ 18 million ( $ 24 million pre - tax ) , all recorded in non- interest expense , in Corporate Services . ( 5 ) 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 , a $ 22 million ( $ 29 million pre - tax ) net gain on the sale of our Private Banking business in Hong Kong and Singapore , 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 .