Bank of Montreal 3Q16 Earnings Call Notes

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Bank of Montreal’s (BMO) CEO Bill Downe on Q3 2016 Results

Digitalization of information makes compliance more reliable

” Contrary to any suggestion that investment in the future has moderated, I would say that the regulatory and supervisory agenda which has being big for all banks, it’s being complementary to the things I just spoke about because the digitalization of information and process makes compliance more reliable and brings down the costs and I would say that there is some repurposing, if you like, of investment dollars that we’re really focused on getting to a high level of capability now being more available to apply to both customer experience and then contributing to the flow through in efficiency.”

Surjit Rajpal

Credit quality is good

“As Bill said, overall credit quality is good. For the quarter both the GIL ratio and the delinquencies remain stable.”

Don’t have any reason to believe that 30 day early stage delinquency tick up is more than a temporary thing

“Some of it could be attributed to that, but I’m not sure at this point in time. But nothing with the quality. From a quality perspective in fact when I look at the rates that we’ve had from the loss perspective this quarter our PCL rates have gone down and I don’t see the 30-day early stage delinquency as anything other than an indicator of perhaps the first point I made which is the weekend ”

Problems caused by $35-$40 oil are behind us

” We’ve gone to our portfolio, now we are well past the stress test days and we actually know every part of our portfolio and see how it performs in a low oil price environment. And with the slowdown in our formations to the level it is, that should give you — point to the fact that we, I think a lot of the issues that the $35-$40 oil would have indicated are behind us. But it also depends on how long the prices remain depressed.”