Bank of Montreal 1999 Annual Report Download - page 26

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Financial Performance and Condition
at a Glance
Shareholder Value
■Five-year annualized total shareholder return
(TSR) decreased 1.3% to 22.0%
.
■
Share price declined 10.2%, from $63.10 at
October 31, 1998, to $56.65
at October 31, 1999.
■
Dividends paid per share in 1999 increased $0.09
to $1.85.
Net Economic Profit Growth
■
Net economic profit (NEP) decreased 13.5% from
$464 million
in 1998 to $401 million in 1999. This
reflected growth in earnings, outpaced by the
growth in average common shareholders’ equity.
■Before one-time charges, NEP was
$514 million*.
9998979695
23.3 22.0
26.1
22.2
23.1
34.9
102.7
36.5
(4.7) (13.5)
9998979695
0.9 1.3
11.9
22.2
13.8
9998979695
15.2 14.1
17.1
17.0
15.4
9998979695
1.4
9.0
15.1
9.9
9.0
9998979695
65.8 66.7
63.7
62.8
63.7
9998979695
Earnings per Share Growth
■
Earnings per share (EPS) increased 1.3% to $4.72
from $4.66 in 1998. Before one-time charges,
EPS
was $5.14 and EPS growth was 10.3%
*
.
■
Earnings of $1,382 million were 2.4% higher than
1998. This reflected business growth and improved
capital market conditions, offset in part by a
return to a higher, more normal level of provision
for credit losses and by one-time charges*.
Profitability
■Return on common shareholders’ equity (ROE)
was 14.1% compared to 15.2% for 1998.
■
Before one-time charges, ROE was 15.4%*.
Revenue Growth
■Revenue growth in 1999 was 9.0% compared to
1.4% in 1998. Before the one-time revenue charge,
revenue
growth was 9.8%*.
■
Revenue growth reflected a 12.6% increase in
other income from higher trading revenue and
fee-related services, and a 6.4% increase in net
interest income primarily from volume growth.
Expense-to-Revenue Ratio
■
The expense-to-revenue ratio in 1999 was 66.7%,
compared to 65.8% in 1998. Before one-time
charges, the expense-to-revenue ratio was 64.5%.
■
Expense growth was driven by ongoing business
operations, continued investment in
strategic
initiatives, higher revenue-driven com
pensation
and the one-time expense charge*
.
Five-Year Total Shareholder Return (%)
More information can be found on
page 24.
Net Economic Profit Growth (%)
More information can be found on
page 25.
Return on Common Shareholders’
Equity (%)
Return on Common Shareholders’
Equity Objective (1995–1997
–
14%–15%, 1998/1999
–
15%–17%)
More information can be found on
page 28.
Revenue Growth (%)
More information can be found on
page 29.
Expense-to-Revenue Ratio (%)
More information can be found on
page 32.
Fully Diluted Earnings per
Share Growth (%)
Earnings per Share Objective
(at least 10%)
More information can be found on
page 26.
*Please refer to page 27 for more information on the one-time charges.
22 Bank of Montreal Group of Companies 1999 Annual Report