BMO Financial Group reported net income of $362 million for its BMO Wealth Management operations in the third quarter ended July 31, 2024. This represents a 9 per cent decline compared to $396 million reported for the same quarter in 2023. 

In the third quarter of 2024, net income from the Wealth and Asset Management business reached $300 million, up from $209 million in the same period in 2023 – a 44 per cent increase. 

As in the previous quarter, the company attributes this growth to higher revenue stemming from growth in client assets, including stronger global markets. However, this gain was partially offset by a decline in net interest income and a reduction in expenses. 

Net income from insurance operations stood at $62 million in Q3 2024, down from $187 million in Q3 2023. Once again, BMO cites the transition to IFRS 17 and the corresponding portfolio adjustments as the primary reasons for this drop. 

Assets 

Assets under management totaled $409.6 billion as of July 31, 2024, compared to $340.1 billion a year earlier. This 20 per cent increase over 12 months is attributed to the strengthening of global markets, growth in client net assets, and favorable currency fluctuations. 

Assets under administration were $359.2 billion at the end of Q3 2024, down from $432.8 billion a year earlier. This 17 per cent decrease is primarily due to BMO's exit from institutional trust services in Q1 2024, although this was partially offset by the strengthening of global markets and favorable currency fluctuations. 

Revenue 

After accounting for claims, commissions, and changes in policy benefit liabilities (CCPB), BMO Wealth Management's net revenue was $1.4 billion in Q3 2024, down $86 million or 6 per cent from the same quarter in 2023. 

Revenue from Wealth and Asset Management operations amounted to $1.3 billion in Q3 2024, up $82 million or 7 per cent from the same quarter the previous year. 

Net income from insurance operations stood at $62 million in Q3 2024, down from $187 million in Q3 2023. This is a decline of 66.8%. Once again, BMO cites the transition to IFRS 17 and the corresponding portfolio adjustments as the primary reasons for this drop.

Shareholder report 

As was the case in the second quarter, BMO had to increase its provision for credit losses in the quarter ending July 31, 2024. This provision totaled $906 million, compared to $492 million a year earlier. 

Provisions for credit losses on impaired loans amounted to $828 million in Q3 2024, an increase of $495 million year-over-year. BMO notes that provisions have risen in the personal and commercial banking segments, both in Canada and the United States, as well as in its BMO Capital Markets subsidiary.