Bank of Montreal 1999 Annual Report Download - page 27

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Bank of Montreal Group of Companies 1999 Annual Report 23
Financial Performance and Condition
at a Glance
■Gross impaired loans and acceptances as a
percentage of equity and allowance for credit
losses was 8.53%, compared to 6.66% at the
end of 1998.
■
The increase was primarily due to higher levels of
gross impaired loans, principally due to ongoing
weakness in the energy sector. The general provi-
sion increased by $85 million to $970 million.
Liquidity Ratio
■The liquidity ratio increased to 29.2% at
October 31, 1999 from 28.4% at October 31, 1998.
■Liquid assets included $39.9 billion of pledged
assets at October 31, 1999.
Capital Adequacy
■Tier 1 Capital Ratio was 7.72% at October 31,
1999 compared to 7.26% at October 31, 1998.
■The increase was due to retained earnings
growth, and an overall reduction in risk-
weighted assets through prudent balance
sheet management.
Credit Risk
■Provision for credit losses as a percentage of
average loans and acceptances was 0.22%,
compared to 0.09% for 1998.
■The increase was due to 1998 provisions being
unusually
low as a result of non-recurring
benefits
related to collection activity on commer-
cial real estate loans.
Credit Rating
■
The
credit rating composite remained unchanged.
6.66 8.53
7.6 5
15.71
20.48
9998979695
63,195 67,309
74,034
60,796
53,336
28.4 29.2
35.6
35.8
35.1
9998979695
7. 2 6 7.72
6.80
6.71
7.02
9998979695
0.22
0.09
0.23 0.23
0.30
9998979695
Gross Impaired Loans and
Acceptances as a % of Equity and
Allowance for Credit Losses
More information can be found on
page 33.
Cash Resources ($ millions)
Securities ($ millions)
Cash and Securities-to-Total Assets (%)
More information can be found on
page 34.
Tier 1 Capital Ratio (%)
More information can be found on
page 35.
Provision for Credit Losses
as a % of Average Loans
and Acceptances
More information can be found on
page 33.
AA-
Composite Credit Rating
The credit rating represents a composite
of Moody’s and Standard & Poor’s
debt ratings.