| Operating Segmentation |
Note 12: Operating Segmentation Operating Segments We conduct our business through four operating segments, each of which has a distinct mandate. Our operating segments are Canadian Personal and Commercial Banking (Canadian P&C), U.S. Banking, Wealth Management and Capital Markets, along with a Corporate Services unit. For additional information refer to Note 25 of our annual consolidated financial statements for the year ended October 31, 2025.
Our results and average assets, grouped by operating segment, are as follows: | | | | | | | | | | | | | | | | | | | | | | (Canadian $ in millions) | | | | | | | | Canadian | | Wealth | Capital | Corporate | | | For the three months ended April 30, 2026 | P&C | U.S. Banking (1) | Management | Markets (1) | Services (1) (2) | Total | Net interest income | $ | 2,425 | | $ | 2,217 | | $ | 301 | | $ | 510 | | $ | (185) | | $ | 5,268 | | | Non-interest revenue | 672 | | 642 | | 1,229 | | 1,604 | | 152 | | 4,299 | | | Total Revenue | 3,097 | | 2,859 | | 1,530 | | 2,114 | | (33) | | 9,567 | | | Provision for credit losses on impaired loans | 477 | | 237 | | 1 | | 15 | | 4 | | 734 | | | Provision for (recovery of) credit losses on performing loans | 42 | | (53) | | 6 | | 14 | | (4) | | 5 | | Total provision for credit losses | 519 | | 184 | | 7 | | 29 | | – | | 739 | | | Depreciation and amortization | 178 | | 222 | | 67 | | 78 | | – | | 545 | | | Non-interest expense | 1,180 | | 1,445 | | 901 | | 1,140 | | 119 | | 4,785 | | | Income (loss) before taxes and non-controlling interest in subsidiaries | 1,220 | | 1,008 | | 555 | | 867 | | (152) | | 3,498 | | | Provision for (recovery of) income taxes | 336 | | 218 | | 127 | | 229 | | (42) | | 868 | | | Reported net income (loss) | $ | 884 | | $ | 790 | | $ | 428 | | $ | 638 | | $ | (110) | | $ | 2,630 | | | Non-controlling interest in subsidiaries | $ | – | | $ | 4 | | $ | – | | $ | – | | $ | – | | $ | 4 | | | Net income (loss) attributable to bank shareholders | $ | 884 | | $ | 786 | | $ | 428 | | $ | 638 | | $ | (110) | | $ | 2,626 | | Average assets (3) | $ | 347,502 | | $ | 244,279 | | $ | 57,484 | | $ | 596,933 | | $ | 277,978 | | $ | 1,524,176 | | | | | | | | | | Canadian | | Wealth | Capital | Corporate | | | For the three months ended April 30, 2025 | P&C | U.S. Banking (1) | Management | Markets (1) | Services (1) (2) | Total | Net interest income | $ | 2,359 | | $ | 2,240 | | $ | 251 | | $ | 474 | | $ | (227) | | $ | 5,097 | | | Non-interest revenue | 594 | | 574 | | 1,012 | | 1,305 | | 97 | | 3,582 | | | Total Revenue | 2,953 | | 2,814 | | 1,263 | | 1,779 | | (130) | | 8,679 | | | Provision for credit losses on impaired loans | 476 | | 248 | | 1 | | 28 | | 12 | | 765 | | | Provision for (recovery of) credit losses on performing loans | 132 | | 91 | | 2 | | 73 | | (9) | | 289 | | Total provision for (recovery of) credit losses | 608 | | 339 | | 3 | | 101 | | 3 | | 1,054 | | | Depreciation and amortization | 157 | | 256 | | 52 | | 79 | | – | | 544 | | | Non-interest expense | 1,134 | | 1,458 | | 782 | | 1,017 | | 84 | | 4,475 | | | Income (loss) before taxes and non-controlling interest in subsidiaries | 1,054 | | 761 | | 426 | | 582 | | (217) | | 2,606 | | Provision for (recovery of) income taxes | 290 | | 160 | | 106 | | 148 | | (60) | | 644 | | | Reported net income (loss) | $ | 764 | | $ | 601 | | $ | 320 | | $ | 434 | | $ | (157) | | $ | 1,962 | | | Non-controlling interest in subsidiaries | $ | – | | $ | 5 | | $ | – | | $ | – | | $ | (3) | | $ | 2 | | | Net income (loss) attributable to bank shareholders | $ | 764 | | $ | 596 | | $ | 320 | | $ | 434 | | $ | (154) | | $ | 1,960 | | Average assets (3) | $ | 343,799 | | $ | 261,552 | | $ | 53,082 | | $ | 564,033 | | $ | 281,217 | | $ | 1,503,683 | |
(1) Operating segments report on a taxable equivalent basis (teb). Net interest income, revenue and the provision for income taxes are increased on tax-exempt securities to an equivalent before-tax basis to facilitate comparisons of income between taxable and tax-exempt sources. The offset to the groups’ teb adjustments is reflected in Corporate Services net interest income, revenue and provision for income taxes. (2) Corporate Services includes Technology and Operations. (3) Included within average assets are average earning assets, which comprise deposits with other banks, deposits at central banks, securities borrowed or purchased under resale agreements, loans and securities. Total average earning assets for the three months ended April 30, 2026 are $1,342,662 million, including $345,907 million for Canadian P&C, $225,426 million for U.S. Banking, and $771,329 million for all other operating segments including Corporate Services (for the three months ended April 30, 2025 - Total: $1,308,774 million, Canadian P&C: $341,885 million, U.S. Banking: $240,016 million and all other operating segments: $726,873 million). Certain comparative figures have been reclassified to conform with the current period’s presentation. | | | | | | | | | | | | | | | | | | | | | | (Canadian $ in millions) | | | | | | | | Canadian | | | | Corporate | | | For the six months ended April 30, 2026 | P&C | U.S. Banking (1) | BMO WM | BMO CM (1) | Services (1) (2) | Total | | Net interest income | $ | 4,948 | | $ | 4,484 | | $ | 591 | | $ | 1,210 | | $ | (322) | | $ | 10,911 | | | Non-interest revenue | 1,407 | | 1,271 | | 2,439 | | 3,116 | | 247 | | 8,480 | | | Total Revenue | 6,355 | | 5,755 | | 3,030 | | 4,326 | | (75) | | 19,391 | | | Provision for credit losses on impaired loans | 974 | | 439 | | 3 | | 44 | | 13 | | 1,473 | | Provision for (recovery of) credit losses on performing loans | 60 | | (36) | | 2 | | (7) | | (7) | | 12 | | | Total provision for credit losses | 1,034 | | 403 | | 5 | | 37 | | 6 | | 1,485 | | | Depreciation and amortization | 351 | | 452 | | 130 | | 159 | | – | | 1,092 | | | Non-interest expense | 2,444 | | 2,949 | | 1,868 | | 2,383 | | 347 | | 9,991 | | | Income (loss) before taxes and non-controlling interest in subsidiaries | 2,526 | | 1,951 | | 1,027 | | 1,747 | | (428) | | 6,823 | | | Provision for (recovery of) income taxes | 694 | | 419 | | 247 | | 452 | | (108) | | 1,704 | | | Reported net income (loss) | $ | 1,832 | | $ | 1,532 | | $ | 780 | | $ | 1,295 | | $ | (320) | | $ | 5,119 | | | Non-controlling interest in subsidiaries | $ | – | | $ | 2 | | $ | – | | $ | – | | $ | 1 | | $ | 3 | | | Net income (loss) attributable to bank shareholders | $ | 1,832 | | $ | 1,530 | | $ | 780 | | $ | 1,295 | | $ | (321) | | $ | 5,116 | | | Average assets (3) | $ | 346,933 | | $ | 244,240 | | $ | 56,813 | | $ | 595,325 | | $ | 274,849 | | $ | 1,518,160 | | | | | | | | | | Canadian | | | | Corporate | | | For the six months ended April 30, 2025 | P&C | U.S. Banking (1) | BMO WM | BMO CM (1) | Services (1) (2) | Total | | Net interest income | $ | 4,744 | | $ | 4,562 | | $ | 489 | | $ | 1,173 | | $ | (473) | | $ | 10,495 | | | Non-interest revenue | 1,252 | | 1,216 | | 2,094 | | 2,679 | | 209 | | 7,450 | | | Total Revenue | 5,996 | | 5,778 | | 2,583 | | 3,852 | | (264) | | 17,945 | | | Provision for credit losses on impaired loans | 967 | | 560 | | 2 | | 63 | | 32 | | 1,624 | | Provision for (recovery of) credit losses on performing loans | 183 | | 193 | | 1 | | 84 | | (20) | | 441 | | | Total provision for credit losses | 1,150 | | 753 | | 3 | | 147 | | 12 | | 2,065 | | | Depreciation and amortization | 310 | | 508 | | 107 | | 164 | | – | | 1,089 | | | Non-interest expense | 2,274 | | 2,958 | | 1,610 | | 2,183 | | 332 | | 9,357 | | | Income (loss) before taxes and non-controlling interest in subsidiaries | 2,262 | | 1,559 | | 863 | | 1,358 | | (608) | | 5,434 | | | Provision for (recovery of) income taxes | 621 | | 323 | | 215 | | 335 | | (160) | | 1,334 | | | Reported net income (loss) | $ | 1,641 | | $ | 1,236 | | $ | 648 | | $ | 1,023 | | $ | (448) | | $ | 4,100 | | | Non-controlling interest in subsidiaries | $ | – | | $ | 5 | | $ | – | | $ | – | | $ | 1 | | $ | 6 | | | Net income (loss) attributable to bank shareholders | $ | 1,641 | | $ | 1,231 | | $ | 648 | | $ | 1,023 | | $ | (449) | | $ | 4,094 | | | Average assets (3) | $ | 342,623 | | $ | 263,649 | | $ | 52,812 | | $ | 571,616 | | $ | 282,046 | | $ | 1,512,746 | |
(1) Operating segments report on a taxable equivalent basis (teb). Net interest income, revenue and the provision for income taxes are increased on tax-exempt securities to an equivalent before-tax basis to facilitate comparisons of income between taxable and tax-exempt sources. The offset to the groups’ teb adjustments is reflected in Corporate Services net interest income, revenue and provision for income taxes. (2) Corporate Services includes Technology and Operations. (3) Included within average assets are average earning assets, which comprise deposits with other banks, deposits at central banks, securities borrowed or purchased under resale agreements, loans and securities. Total average earning assets for the six months ended April 30, 2026 are $1,338,456 million, including $345,378 million for Canadian P&C, $225,130 million for U.S. Banking, and $767,948 million for all other operating segments including Corporate Services (for the six months ended April 30, 2025 - Total: $1,314,247 million, Canadian P&C: $340,584 million, U.S. Banking: $241,860 million and all other operating segments: $731,803 million). Certain comparative figures have been reclassified to conform with the current period’s presentation.
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