Bank of Montreal 1998 Annual Report Download - page 80

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72
BANK OF MONTREAL GROUP OF COMPANIES
For the Year Ended October 31 (Canadian $ in millions except per share amounts) 1998 19 97 19 9 6
Cash Flows from Operating Activities
Net income $ 1,350 $ 1,305 $ 1,168
Adjustments to determine net cash flows
Provision for credit losses 130 275 225
Amortization of premises and equipment 318 348 234
Amortization of goodwill and intangibles 83 85 66
Future income tax expense 16 (116) 80
Net (gain) on sale of investment securities (97) (52) (71)
Change in accrued interest
(Increase) in interest receivable (387) (318) (48)
Increase (decrease) in interest payable 137 (66) (66)
Net increase (decrease) in deferred loan fees 50 (1) 7
Net (increase) decrease in unrealized gains and amounts receivable
on derivative contracts (5,897) (6,569) 95
Net increase in unrealized losses and amounts payable on derivative contracts 5,687 6,446 –
Net (increase) decrease in trading securities 4,066 (3,813) (5,794)
Net increase (decrease) in current income taxes payable (391) 71 (200)
Changes in other items and accruals, net (2,119) 669 (500)
Net Cash Provided by (Used in) Operating Activities 2,946 (1,736) (4,804)
Cash Flows from Financing Activities
Net increase (decrease) in deposits (229) 24,950 9,657
Net increase (decrease) in securities sold but not yet purchased (2,461) (3,412) 4,527
Net increase in securities sold under repurchase agreements 8,369 5,866 4,052
Net increase (decrease) in liabilities of subsidiaries (1,166) 570 (974)
Proceeds from issuance of subordinated debt 1,090 1,000 725
Repayment of subordinated debt (235) (535) –
Foreign currency translation of subordinated debt 105 52 (6)
Proceeds from issuance of preferred shares 650 400 –
Foreign currency translation of preferred shares 34 17 (1)
Proceeds from issuance of common shares 76 30 22
Stock options granted on acquisition of an interest in an associated corporation ––22
Common shares purchased for cancellation –– (162)
Dividends paid (575) (510) (455)
Net Cash Provided by Financing Activities 5,658 28,428 17,407
Cash Flows Used in Investing Activities
Net increase (decrease) in interest bearing deposits with banks (12,826) 8,753 2,435
Purchases of investment securities 55,474 45,803 86,264
Maturities of investment securities (21,746) (18,310) (20,738)
Proceeds from sales of investment securities (28,081) (26,161) (68,316)
Net increase in loans and loan substitute securities 15,548 14,327 6,712
Proceeds from securitization of assets (9,650) (2,000) –
Net increase in securities purchased under resale agreements 9,003 4,436 3,576
Premises and equipment – net purchases 571 539 401
Goodwill and valuation intangibles acquired –– 411
Acquisition of an interest in an associated corporation –– 423
Net Cash Used in Investing Activities 8,293 27,387 11,168
Net Increase (Decrease) in Cash and Cash Equivalents 311 (695) 1,435
Cash and Cash Equivalents at Beginning of Year 2,651 3,346 1,911
Cash and Cash Equivalents at End of Year $ 2,962 $ 2,651 $ 3,346
Represented by:
Cash and non-interest bearing deposits with Bank of Canada and other banks $ 1,478 $ 1,681 $ 1,698
Cheques and other items in transit, net 1,484 970 1,648
$ 2,962 $ 2,651 $ 3,346
Supplemental Disclosure of Cash Flow Information
Amount of interest paid in the year $ 9,960 $ 7,523 $ 6,947
Amount of income taxes paid in the year 942 793 887
Cash Income Per Common Share (note 16) 4.98 4.97 4.44
The accompanying notes to consolidated financial statements are an integral part of this statement.
CONSOLIDATED STATEMENT OF CASH FLOW