Bank of Montreal 1997 Annual Report Download - page 35

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Bank of Montreal 180th Annual Report 1997 29
To summarize expense
growth in traditional
non-interest expense
categories, salaries and
employee benefits grew
by 14.7% in 1997 due
largely to higher variable
compensation as well as
staffing increases as a result of business expansion activities. Premises and equipment increases reflect the addition of
the 54 new Household branches in Harris Regional Banking. Communications expenses increased as a result of increased
volumes of point-of-sale transactions and investments in technology. The increase in other expenses largely reflects
third-party payments as a result of the managed futures product.
In 1996, the increase in salary and employee benefits was directly related to revenue generation in Investment and
Corporate Banking. Premises and equipment increase of 6.9% was due to our commitment to providing customers with
cost-effective channels of banking, such as automated banking machines, telebanking, and point-of-sale terminals.
Communications expenses increase of 5.6% was due to the increase in volume of alternate channel transactions. Other
expenses, which increased 4.4% relative to 1995, reflected investment spending including costs related to Symcor, as
well as mbanx research, advertising and promotion costs.
Non-Interest Expense
(year-over-year % increase)
For the year ended October 31
1997 1996 1995 1994 1993
Salary and employee benefits 14.7 10.6 11.3 7.9 7.4
Premises and equipment 26.0 6.9 13.3 3.4 4.4
Communications 12.4 5.6 15.5 9.1 (1.1)
Other expenses 15.6 4.4 17.3 27.7 2.7
Total non-interest expense 16.8 8.3 13.1 10.5 5.5
Note: For more information see Table 8 on page 57.