Bank of Montreal 1999 Annual Report Download - page 70

Table 8 Non-Interest Expenses and Expense-to-Revenue Ratios ($ millions except as noted)
For the year ended October 31 1999 1998* 1997* 1996* 1995* 1994* 1993* 1992* 1991* 1990*
Non-Interest Expense Summary
Total non-interest expense 5,288 4,785 4,567 3,913 3,612 3,208 2,897 2,749 2,590 2,437
Less: Amortization of intangible assets 21 24 28 18 15 16 11 20 21
Less: Charges/non-recurring items (a) 141 075236071 01824
Total operating non-interest expense 5,126 4,761 4,464 3,872 3,537 3,121 2,886 2,711 2,545
Year-over-year growth (%)
Total 10.5 4.8 16.7 8.4 12.6 10.7 5.4 6.1 6.2 4.6
Operating 7.7 6.6 15.3 9.5 13.3 8.1 6.5 6.5 7.7
Non-Interest Expense Detail
Salaries 2,532 2,370 2,284 1,972 1,758 1,567 1,455 1,348 1,277
Employee benefits 288 204 251 238 241 228 209 201 167
Total salaries and employee benefits 2,820 2,574 2,535 2,210 1,999 1,795 1,664 1,549 1,444
Premises and equipment
Rental of real estate 145 147 149 139 136 125 123 114 101
Premises, furniture and fixtures 275 256 234 215 206 188 177 170 179
Property taxes 52 51 40 40 41 39 40 37 40
Computers and equipment 651 518 493 333 296 248 240 234 215
Total premises and equipment 1,123 972 916 727 679 600 580 555 535
Communications 268 266 246 219 208 180 165 167 174
Other expenses
Business and capital taxes 129 134 128 116 110 95 92 82 64
Professional fees 343 320 250 173 141 112 64 63 55
Travel and business development 227 234 238 199 161 144 122 112 156
Deposit insurance premiums (b) 48 75 73 94 84 76 62 55 48
Other 168 186 153 157 155 119 137 146 93
Total other expenses 915 949 842 739 651 546 477 458 416
Amortization of intangible assets 21 24 28 18 15 16 11 20 21
Special charge 0000071000
Business process improvement initiative charge 0000600000
Total non-interest expense
before restructuring charge 5,147 4,785 4,567 3,913 3,612 3,208 2,897 2,749 2,590 2,437
Restructuring charge 141 00000000
Total non-interest expense 5,288 4,785 4,567 3,913 3,612 3,208 2,897 2,749 2,590 2,437
Government Levies and Taxes (c)
Government levies other than income taxes
Payroll levies 127 128 123 109 106 95 88 83 72
Property taxes 52 51 40 40 41 39 40 37 40
Provincial capital taxes 121 120 104 89 84 71 71 59 42
Business taxes 814 24 27 26 24 21 23 22
Goods and services tax and sales tax 118 125 114 101 88 70 64 61 49
Deposit insurance 48 75 73 94 84 76 62 55 48
Total government levies other than income taxes 474 513 478 460 429 375 346 318 273
Provision for income taxes reported in:
Statement of income
– Provision 736 810 845 758 662 560 487 416 384
– Amortization of goodwill (6) (6)(5)(1)00000
Statement of retained earnings 158 (237) (92) 10 9 (23) (46) (70) 37
Total income taxes 888 567 748 767 671 537 441 346 421
Total government levies and taxes 1,362 1,080 1,226 1,227 1,100 912 787 664 694
Total government levies and taxes as a %
of net income before taxes and
government levies 52.6 40.5 46.7 51.4 53.0 51.8 51.1 48.3 55.4
Productivity Analysis
Expense-to-revenue ratio (%) 66.7 65.8 63.7 62.8 63.7 61.7 59.6 61.9 64.8 66.7
Non-recurring revenue (29) 1000006(8)
Adjusted expense-to-revenue ratio (%) (d) 64.4 65.5 62.3 62.2 62.4 60.1 59.4 61.1 63.6
*Restated to give effect to presentation changes.
(a) The charge/non-recurring item in 1999 is a one-time restructuring charge, in 1997 is a
charge for accelerated depreciation related to technology changes and credit process
efficiency improvements, in 1996 is the Harris Savings Association Insurance Fund (SAIF)
charge, in 1995 is the business process improvement initiative charge and in 1994 is the
Harris special charge.
(b) Includes the SAIF charge.
(c) Government levies are included in various non-interest expense categories.
(d)The adjusted expense-to-revenue ratio excludes non-recurring expenses and
other
valuation intangibles from expenses and non-recurring revenues from total revenue.
NA – Not available
Supplemental Information
64 Bank of Montreal Group of Companies 1999 Annual Report