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Bank of Montreal Full Year 2022 Earnings: Beats Expectations

Bank of Montreal (TSE:BMO) Full Year 2022 Results

Key Financial Results

  • Revenue: CA$33.4b (up 23% from FY 2021).

  • Net income: CA$13.3b (up 77% from FY 2021).

  • Profit margin: 40% (up from 28% in FY 2021). The increase in margin was driven by higher revenue.

  • EPS: CA$20.04 (up from CA$11.60 in FY 2021).

BMO Banking Performance Indicators

  • Net interest margin (NIM): 1.62% (up from 1.59% in FY 2021).

  • Cost-to-income ratio: 55.8% (down from 56.5% in FY 2021).

  • Non-performing loans: 0.36% (down from 0.47% in FY 2021).

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earnings-and-revenue-growth

All figures shown in the chart above are for the trailing 12 month (TTM) period

Bank of Montreal Revenues and Earnings Beat Expectations

Revenue exceeded analyst estimates by 20%. Earnings per share (EPS) also surpassed analyst estimates by 31%.

Looking ahead, revenue is forecast to stay flat during the next 3 years compared to a 5.6% growth forecast for the Banks industry in Canada.

Performance of the Canadian Banks industry.

The company's shares are up 1.7% from a week ago.

Risk Analysis

We don't want to rain on the parade too much, but we did also find 2 warning signs for Bank of Montreal (1 doesn't sit too well with us!) that you need to be mindful of.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.

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