In the first quarter of 2024, which covers the period from Nov. 1, 2023 to Jan. 31, 2024, BMO Financial Group posted reported net income of $240 million for its Wealth Management business.

Compared with the same period in 2023, this net income was up 52 per cent or $81 million.

In more detail, first-quarter reported net income for Wealth and Asset management was $187 million, down 7 per cent or $15 million compared with the same period in 2023.

Insurance net income from insurance activities stood at $53 million in the first quarter, up $96 million over the same period a year prior, when the loss was $43 million.

The financial institution explains the difference primarily by the market-related impact of the transition to IFRS 17.

Assets under management increased by $38.8 billion, or 12 per cent compared with the same period in 2023, and now stand at $360.3 billion.

Assets under administration fell by 20 per cent to $331.6 billion, mainly due to the exit from the US institutional trust business. 

Revenues income 

Net of insurance claims, commissions and changes in policyholder benefit liabilities (CCPB), BMO Wealth Management's net amounted to $1.3 billion in the first quarter of 2024. This is an increase of $200 million or 18 per cent compared with net revenues of $1.1 billion reported in the same period of 2023.

Revenues generated by the Asset and Wealth Management subsidiary reached $1.2 billion, up $67 million or 6 per cent over the same period last year.

Insurance income totalled $81 million in the first quarter of 2024, up $133 million over the same period of 2023. This difference is also due to the market-related impact of the transition to IFRS 17. 

Report to shareholders  

In its report to shareholders on its main business segments, namely personal and commercial banking in both Canada and the United States, BMO highlighted an increase in the provision for credit losses. In both cases, accounting net income was down in the first quarter of 2024.

Provisions for credit losses rose from $217 million in the first quarter of 2023 to $627 million in the first quarter of 2024, including $585 million to cover needs in the personal and commercial banking sectors.

Reported net income from all activities amounted to $1.3 billion, up from $133 million in the first quarter of 2023.

The bank points out that 12 per cent of its $17.6 billion mortgage lending portfolio will have to be renewed over the next 12 months, according to notes presented to financial analysts.

Among the loans renegotiated during autumn 2023, holders of variable-rate mortgages saw their monthly payments rise by an average of 22 per cent, while the average increase was 21 per cent for fixed-rate mortgages.