Bank of Montreal 1998 Annual Report Download - page 75

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BANK OF MONTREAL GROUP OF COMPANIES
TABLE 21 QUARTERLY FINANCIAL MEASURES
Oct. 31 July 31 April 30 Jan. 31 Oct. 31 July 31 April 30 Jan. 31
As at or for the three months ended 199 8 19 98 1998 1998 19 97 19 97 19 97 19 97
Information per Common Share ($)
Dividends declared 0.44 0.44 0.44 0.44 0.44 0.40 0.40 0.40
Earnings
Basic 0.77 1.32 1.34 1.29 1.05 1.34 1.13 1.17
Cash EPS (a) 0.82 1.40 1.40 1.36 1.12 1.41 1.20 1.24
Fully diluted 0.76 1.31 1.32 1.27 1.04 1.31 1.11 1.16
Book value 32.71 32.41 31.01 30.34 29.18 28.54 27.66 26.71
Market price
High 73.750 84.400 87.000 74.000 61.600 58.200 55.800 46.750
Low 51.750 73.600 67.600 57.250 51.900 50.500 45.400 39.050
Close 63.100 73.650 78.000 67.100 60.850 57.450 50.700 46.600
Common stock information
Number of common shares outstanding (thousands):
as at 264,433 262,925 262,475 261,647 261,436 260,439 260,361 260,162
average – basic 263,778 262,742 261,964 261,541 260,916 260,415 260,253 260,050
– fully diluted 269,331 269,155 268,961 268,847 268,801 268,809 268,765 267,621
Price-to-earnings ratio (%) 13.4 14.7 15.5 14.0 13.0 12.2 11.4 10.8
Market-to-book value ratio (%) 1.93 2.27 2.52 2.21 2.09 2.01 1.83 1.74
Number of shareholders 51,387 51,781 52,489 53,336 53,651 54,238 54,746 55,261
Primary Financial Measures (%)
Five-year return on common
shareholders’ investment (b) 23.3 27.0 30.6 30.2 26.1 24.3 23.7 21.0
Return on common shareholders’ equity (c) 9.4 16.7 18.0 17.3 14.5 19.1 17.2 17.7
Fully diluted earnings per share growth (d) (26.9) 0.0 18.9 9.5 0.0 22.4 13.3 11.5
Revenue growth (13.2) 2.6 10.1 7.3 15.7 20.9 12.9 10.8
Expense-to-revenue ratio (e) 76.1 63.8 63.2 64.1 68.2 61.5 64.4 63.3
Provision for credit losses as a % of average
loans and acceptances (f) 0.09 0.13 0.14 0.14 0.22 0.22 0.23 0.25
Gross impaired loans and acceptances as a
% of equity and allowance for credit losses (g) 6.66 5.67 6.11 6.26 7.65 8.86 11.46 13.33
Tier 1 ratio* (h) 7.26 7.32 7.16 6.67 6.80 6.96 6.71 6.58
Cash and securities-to-total assets (i) 28.4 31.5 32.9 33.6 35.6 34.1 32.9 33.4
Credit rating (j) AA- AA- AA- AA- AA- AA- AA- AA-
Other Financial Ratios (%)
Return on average total equity (k) 8.8 14.8 16.2 15.9 13.4 17.3 16.0 16.6
Return on common shareholders’ investment (l) 6.4 23.9 31.3 13.5 55.0 46.3 29.3 19.1
Return on average assets 0.39 0.66 0.70 0.64 0.58 0.72 0.66 0.70
Return on average assets available
to common shareholders 0.34 0.61 0.65 0.60 0.53 0.68 0.62 0.66
Net income growth (21.2) 1.8 20.0 12.0 2.3 23.7 11.9 8.8
Cash ROE (m) 10.9 19.1 20.6 20.0 16.9 22.1 20.3 20.9
Expense growth (3.2) 6.5 8.0 8.7 17.9 17.5 16.0 15.8
Net impaired loans as a % of net loans and acceptances (0.25) (0.36) (0.36) (0.38) (0.30) (0.22) 0.00 0.13
Total capital ratio* 10.38 10.50 10.10 9.35 9.66 9.34 9.05 9.07
Equity-to-assets ratio 5.0 4.8 4.9 4.3 4.4 4.5 4.3 4.3
*
As at April 30, 1998, January 31, 1998 and July 31, 1997, the capital ratios reflect the
inclusion of $250 million Class B preferred shares issued May 15, 1998, $400 million
Class B preferred shares issued February 26, 1998 and $450 million Series A
Medium Term Notes issued on August 25, 1997 respectively. Excluding these issues,
the Tier 1 ratios as at April 30, 1998, January 31, 1998 and July 31, 1997 would be
6.97%, 6.38% and 6.96% respectively. The total capital ratios would be 9.91%,
9.06% and 8.96% respectively.
(a) Cash EPS is earnings per share as reported adjusted for the after-tax impact on
earnings of non-cash goodwill and other valuation intangibles.
(b) Five-year compounded return for one bank common share invested at the
beginning of the period, including dividend reinvestment.
(c) Annualized quarterly net income less preferred dividends divided by average
common shareholders’ equity (which includes common share capital plus retained
earnings).
(d) Percentage change in fully diluted earnings per share for the quarter over the
corresponding quarter of the previous year.
In the opinion of Bank of Montreal management, information that is derived from unaudited financial information, including information
as at and for the interim periods, contains all adjustments necessary for a fair presentation of such information. All such adjustments are of
a normal and recurring nature. Financial ratios for interim periods are stated on an annualized basis where appropriate, and such ratios, as
well as interim operating results, are not necessarily indicative of actual results for the full fiscal year.
(e) Non-interest expense divided by total revenue (TEB).
(f) Annual provision for credit losses divided by average net loans, acceptances and
loan substitutes.
(g) Gross impaired loans divided by total equity and allowance for credit losses.
(h) Tier 1 capital divided by risk-weighted assets as defined by the Superintendent of
Financial Institutions Canada.
(i) Cash and securities divided by total assets (cash and securities includes pledged
assets in Table 20).
(j) Composite of Moody’s and Standard & Poor’s debt ratings.
(k) Annualized quarterly net income divided by average total equity.
(l) Annual compounded return for one bank common share invested at the beginning
of the period, including dividend reinvestment.
(m) Cash ROE is return on common shareholders’ equity as reported adjusted for
the after-tax impact on earnings and common shareholders’ equity of non-cash
goodwill and other valuation intangibles.