Bank of Montreal 1997 Annual Report Download - page 61

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Bank of Montreal 180th Annual Report 1997 55
Table 6 Volume/Rate Analysis of Changes in Net Interest Income
($ millions)
1997/1996 1996/1995*
Increase (decrease) due to change in: Increase (decrease) due to change in:
Average Average Average Average
For the year ended October 31
balance rate Total balance rate Total
Assets
Canadian Dollars
Deposits with other banks 14 (40) (26) 7 (33) (26)
Securities 78 (328) (250) (40) 242 202
Loans
Residential mortgages 296 (289) 7 228 (145) 83
Non-residential mortgages 9 (18) (9) 3 (12) (9)
Consumer instalment and other personal loans 72 (162) (90) 47 (134) (87)
Credit card loans (19) (41) (60) 20 5 25
Loans to businesses and governments
(a)
401 (384) 17 61 (135) (74)
Total loans 759 (894) (135) 359 (421) (62)
Change in Canadian dollar interest income 851 (1,262) (411) 326 (212) 114
U.S. Dollar and Other Currencies
Deposits with other banks 345 29 374 209 (56) 153
Securities 303 (30) 273 202 (19) 183
Loans
Residential mortgages 37 (3) 34 29 (3) 26
Non-residential mortgages 27 (1) 26 (11) 2 (9)
Consumer instalment and other personal loans 66 3 69 25 1 26
Credit card loans (22) 11 (11) 14 (1) 13
Loans to businesses and governments
(a)
506 191 697 219 (201) 18
Total loans 614 201 815 276 (202) 74
Change in U.S. dollar and other currencies interest income 1,262 200 1,462 687 (277) 410
Total All Currencies
Change in total interest income 2,113 (1,062) 1,051 1,013 (489) 524
Liabilities
Canadian Dollars
Deposits
Banks 30 (40) (10) 0 (55) (55)
Businesses and governments 255 (500) (245) 58 (164) (106)
Individuals (16) (548) (564) 112 (241) (129)
Total deposits 269 (1,088) (819) 170 (460) (290)
Subordinated debt and other interest bearing liabilities 371 (169) 202 41 564 605
Change in Canadian dollar interest expense 640 (1,257) (617) 211 104 315
U.S. Dollar and Other Currencies
Deposits
Banks 191 (4) 187 (15) (69) (84)
Businesses and governments 217 324 541 117 (101) 16
Individuals 143 22 165 122 (27) 95
Total deposits 551 342 893 224 (197) 27
Subordinated debt and other interest bearing liabilities 299 1 300 198 (163) 35
Change in U.S. dollar and other currencies interest expense 850 343 1,193 422 (360) 62
Total All Currencies
Change in total interest expense 1,490 (914) 576 633 (256) 377
Change in total net interest income 623 (148) 475 380 (233) 147
*Reclassified to conform with the current year’s presentation.
The above table shows changes in net interest income, on a taxable equivalent basis,
due to changes in either average daily balances, that is volume, or average rates.
The taxable equivalent (TEB) adjustment increases interest income on tax-efficient
assets to the amount that would result if the income were fully taxable (and increases
the tax provision by the same amount). This adjustment results in a better reflection of
the pre-tax economic yield of these assets.
(a) Includes securities purchased under resale agreements.