Bank of Montreal 1999 Annual Report Download - page 25

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Canadian Bank
Peer Group Comparison
1999 1998 Five-Year Average
Bank of Six Bank of Six Bank of Six
Montreal Bank Montreal Bank Montreal Bank
Performance Rank Average* Performance Rank Average* Performance Rank Average*
Financial Performance Measures (%) (a)
Five-year total
shareholder return
(TSR) 22.0 322.5 23.3 221.8 22.0(b) 322.5(b)
Net economic
profit (NEP) growth (13.5) 375.7 (4.7) 3(31.2) 31.2 5nm
Fully diluted
earnings per share
(EPS) growth 1.3 329.6 0.9 4(14.8) 10.0 421.5
Return on common
shareholders’
equity (ROE) 14.1 416.8 15.2 314.2 15.8 316.0
Revenue growth 9.0 413.5 1.4 67.9 8.9 510.9
Expense-to-revenue
ratio (c) 67.3 564.6 66.5 466.4 65.2 463.8
Provision for credit
losses as a % of
average loans
and acceptances 0.22 20.43 0.09 10.34 0.22 10.38
Financial Condition Measures (%)
Gross impaired loans
and acceptances
as a % of equity
and allowance for
credit losses 8.53 211.56 6.66 212.44 8.53(d) 211.56(d)
Cash and securities-
to-total assets 29.2 328.6 28.4 225.1 29.2(d) 328.6(d)
Tier 1 Capital Ratio 7.72 58.33 7.26 47.38 7.72(d) 58.33(d)
Credit rating AA
–
2AA
–
AA
–
3AA
–
AA
–
(d) 2AA
–
(d)
*The six banks used to calculate the average were: Bank of Montreal, The Bank of Nova Scotia, Canadian
Imperial Bank of Commerce, National Bank of Canada, Royal Bank of Canada and The Toronto Dominion Bank.
(a)
Ratios shown are based on actual reported results adjusted to conform with Bank of Montreal accounting
methods. For ranking purposes, the base period is normalized by excluding
non-recurring items.
(b) Reflects five-year TSR for the period ending October 31, 1999.
(c) Amortization of goodwill and other intangibles is included in non-interest expense for all banks.
(d) Condition ratios are as at October 31, 1999.
nm
–
not meaningful
1999 Comparison
Our five-year total shareholder return ranking was third, which was marginally below aver-
age, compared to a second place ranking in 1998.
In the remaining six performance measures we ranked second or third in three measures
and fourth or fifth in three measures. This compared to three first or third place rankings
and three fourth or sixth place rankings last year. Overall our ranking was approximately
mid-range in both years. Comparing our performance in 1999 to the average, we were below
average in five of these six measures primarily due to non-recurring items for all banks,
which had a favourable impact on the peer group averages. In addition, the return to more
normal provisioning levels had a negative impact on our results.
In the condition measures we ranked second or third in three measures and fifth in one
measure. In 1998 we ranked second or third in three measures and fourth in one measure.
Overall our ranking was third in both years. Comparing our 1999 results to the average, we
were above average with the exception of the Tier 1 Capital Ratio. While our Tier 1 Capital
Ratio was below the peer group average, it was above the seven percent minimum OSFI
requirement and we continue to consider our capital position to be strong.
Five-Year Average Comparison
In the six performance measures, excluding five-year TSR, we ranked first in one measure,
third or fourth in three measures and fifth in two measures. This compared to two first or
second place rankings, one fourth place ranking and three fifth or sixth place rankings in
1998. Our five-year average performance was below average in five of these six measures.
Our rankings under the condition measures, which are as at October 31, 1999, and the
five-year TSR measure are discussed above under 1999 Comparison.