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72 Bank of Montreal Group of Companies 1999 Annual Report
Supplemental Information
Table 20 Quarterly Financial Measures
Oct. 31 July 31 April 30 Jan. 31 Oct. 31* July 31* April 30* Jan. 31*
As at or for the three months ended 1999 1999 1999 1999 1998 1998 1998 1998
Information per Common Share ($)
Dividends declared 0.47 0.47 0.47 0.47 0.44 0.44 0.44 0.44
Earnings before goodwill
Basic 0.91 1.42 1.30 1.29 0.80 1.37 1.38 1.33
Fully diluted 0.90 1.41 1.29 1.28 0.79 1.35 1.36 1.31
Earnings
Basic (j) 0.87 1.38 1.26 1.25 0.77 1.32 1.34 1.29
Fully diluted (j) 0.86 1.37 1.25 1.24 0.76 1.31 1.32 1.27
Cash EPS 0.93 1.44 1.32 1.32 0.82 1.40 1.40 1.36
Book value 34.87 34.91 33.53 33.09 32.71 32.41 31.01 30.34
Market price
High 56.700 61.300 69.000 69.600 73.750 84.400 87.000 74.000
Low 49.350 52.550 60.300 55.800 51.750 73.600 67.600 57.250
Close 56.650 54.900 60.800 66.750 63.100 73.650 78.000 67.100
Primary Financial Measures (%)
Five-year total shareholder return (a) 22.0 22.6 23.4 21.6 23.3 27.0 30.6 30.2
Return on common shareholders’ equity (b) 9.8 16.2 15.5 15.1 9.4 16.7 18.0 17.3
Fully diluted earnings per share growth (c) 13.2 4.6 (5.3) (2.4) (26.9) 0.0 18.9 9.5
Revenue growth 24.2 5.8 2.7 5.6 (13.2) 2.6 10.1 7.3
Expense-to-revenue ratio (d) 74.8 63.4 64.8 63.7 75.5 63.1 62.6 63.5
Provision for credit losses as a % of average
loans and acceptances (e) 0.23 0.22 0.23 0.22 0.09 0.13 0.14 0.14
Gross impaired loans and acceptances as a % of
equity and allowance for credit losses (f) 8.53 8.56 8.36 7.28 6.66 5.67 6.11 6.26
Tier 1 ratio** (g) 7.72 7.87 7.73 7.41 7.26 7.32 7.16 6.67
Cash and securities-to-total assets (h) 29.2 28.6 28.3 28.6 28.4 31.5 32.9 33.6
Credit rating (i) AA
-
AA
-
AA
-
AA
-
AA
-
AA
-
AA
-
AA
-
Equity-to-assets ratio 4.9 5.1 5.1 4.9 5.0 4.8 4.9 4.3
*Restated to give effect to presentation changes.
**
As at April 30, 1998 and January 31, 1998 the capital ratios reflect the inclusion of $250 million
Class B preferred shares issued May 15, 1998 and $400 million Class B preferred shares
issued February 26, 1998 respectively. Excluding these issues, the Tier 1 ratios as at April 30,
1998 and January 31, 1998 would be 6.97% and 6.38% respectively. The total capital ratios
would be 9.91% and 9.06% respectively.
(a) Five-year compounded return for one bank common share invested at the beginning of
the period, including dividend reinvestment.
(b) Annualized quarterly net income less preferred dividends divided by average common
shareholders’ equity (which includes common share capital plus retained earnings).
(c) Percentage change in fully diluted earnings per share for the quarter over the corre-
sponding quarter of the previous year.
(d) Non-interest expense divided by total revenue (TEB).
(e) Annual provision for credit losses divided by average net loans, acceptances and loan
substitutes.
(f) Gross impaired loans divided by total equity and allowance for credit losses.
(g) Tier 1 capital divided by risk-weighted assets as defined by the Superintendent of
Financial Institutions Canada.
(h) Cash and securities divided by total assets.
(i) Composite of Moody’s and Standard & Poor’s debt ratings.
(j) On July 16, 1999, the CICA Emerging Issues Committee issued for prospective application
an Abstract setting out requirements for the accounting for corporate transactions costs,
including proposed mergers. Had the requirements of the Abstract been retroactively
applied to the costs of the proposed merger with Royal Bank which were charged to
retained earnings, net income would have been reduced by $25 million to $337 million
for the quarter ended January 31, 1999 and $1,357 for the year ended October 31, 1999.
Earnings per share would have been reduced by $0.09 per share to $1.16 basic and $1.15
fully diluted for the quarter ended January 31, 1999 and $4.67 basic and $4.63 fully
diluted for the year ended October 31, 1999.
In the opinion of Bank of Montreal management, information that is derived from unaudited financial information, including infor-
mation as at and for the interim periods, contains all adjustments necessary for a fair presentation of such information. All such
adjustments are of a normal and recurring nature. Financial ratios for interim periods are stated on an annualized basis where
appropriate, and such ratios, as well as interim operating results, are not necessarily indicative of actual results for the full fiscal year.