Bank of Montreal 1999 Annual Report Download - page 57

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Bank of Montreal Group of Companies 1999 Annual Report 51
exclude the exchange rate impact, net income as well as revenue increased 14.8%, and
non-interest expense increased 15.2%. The exchange rate impact was not significant i
n
the 1999 versus 1998 comparisons.
Personal and Commercial Client Group
–
Harris Regional Banking ($ millions except as noted)
As at or for the year ended October 31 1999 1998* 1997*
Net interest income 815 761 652
Other income 377 299 203
Total Revenue 1,192 1,060 855
Provision for credit losses 45 36 13
Non-interest expense 714 668 543
Income before taxes, non-controlling interest in subsidiary and goodwill 433 356 299
Income taxes 150 129 118
Non-controlling interest in subsidiary 16 11 0
Goodwill, net of applicable tax 9912
Net Income 258 207 169
Average assets 33,706 29,598 24,779
Average current loans 18,693 17,052 14,123
Average deposits 21,716 18,933 16,321
Full-time equivalent staff 5,689 5,925 5,815
Expense-to-revenue ratio (%) 59.9 63.0 63.5
*Restated to give effect to the current year’s organization structure and presentation changes
Personal and Commercial Client Group
–
Bancomer
Net income of $114 million increased $90 million from 1998. The increase was due to
significantly higher net interest margins, combined with higher fee income, increased
deposits, lower loan losses and the absence of trading losses as experienced by
Bancomer in the Mexican equities market in 1998.
Net income and revenue from Bancomer declined $53 million from 1997 to 1998,
primarily due to unsettled global economic conditions and slower growth in the
Mexican economy.
Personal and Commercial Client Group
–
Bancomer ($ millions except as noted)
As at or for the year ended October 31 1999 1998* 1997*
Net interest income 119 29 82
Income taxes 555
Net Income 114 24 77
Average assets 730 722 668
*Restated to give effect to the current year’s organization structure
Outlook
The Mexican economy has experienced an improved currency outlook, and both recent economic
growth and a decline in inflation are expected to continue through 2000. As a leading Mexican bank,
Bancomer is well-positioned to take advantage of market opportunities in the coming year.
Outlook
Despite expected spread compression in the United States, Harris Bank’s Community Banking franchise
is expected to sustain profitable growth in 2000 through a balanced growth and pricing strategy,
while improving productivity. Our Mid-Market Corporate Banking franchise will serve its clients through
a relationship advisory approach with a particular emphasis on delivering investment banking and
capital markets solutions.