BMO Financial Group reported net income of $2.9 billion for the first quarter of 2022, which ran from November 1, 2021 to January 31, 2022. Income soared by 45.4 per cent or $916 million from the first quarter of 2021, when it was $2 billion.
Wealth management and insurance
Four out of BMO's five operating groups advanced. The only downturn was seen in BMO Wealth Management, which reported net income of $315 million in the first quarter of 2022, compared with $336 million in Q1 2021. Income thus declined by 6.2 per cent or $21 million.
BMO Wealth Management is made up of two businesses: Insurance and Traditional Wealth. Their results contrasted sharply.
In its Insurance business, net income plummeted to $54 million in the first quarter of 2022 from $80 million in Q1 2021. This decrease of 32.5 per cent or $26 million is “primarily due to less favourable market movements in the current quarter relative to the prior year.”
In contrast, BMO’s Traditional Wealth business garnered net income of $261 million in the first quarter of 2022, compared with $256 million in Q1 of 2021. This represents an increase of 1.9 per cent or $5 million.
BMO Wealth Management’s net revenue, for both lines of business combined, was $1.3 billion in the first quarter of 2022, compared with $1.7 billion in Q1 2021, net of insurance claims, commissions and changes in policy benefit liabilities (CCPB). This result amounts to a decline of 3.8 per cent or $52 million.
Both of BMO Wealth Management's businesses saw revenue decrease:
- Insurance revenue, net of CCPB, was $93 million in Q1 2022. This decline of 29 per cent or $38 million from the first quarter of 2021 is “primarily due to less favourable market movements in the current quarter relative to the prior year.”
- Traditional wealth revenue, net of CCPB, was $1.2 billion in Q1 2022. It slipped by 1.1 per cent or $14 million compared with Q1 2021.