Bank of Montreal 2002 Annual Report Download - page 67

BMO FINANCIAL GROUP ANNUAL REPORT 2002 63
TABLE 20 Risk-Weighted Assets ($ millions, except as noted)
As at October 31 2002 2001
Credit Risk Risk- Risk-
risk weighting weighted weighted
Balance equivalent % balance balance
Balance sheet items
Cash resources 19,305 3,689 0–20 3,689 3,184
Securities 43,715 17,178 0–100 6,771 7,705
Mortgages 51,912 15,300 0–100 15,300 14,838
Other loans and acceptances 97,684 71,268 0–100 71,268 72,798
Other assets 40,248 7,534 0–100 7,534 8,272
Total balance sheet items 252,864 114,969 104,562 106,797
Off-balance sheet items
Guarantees and standby letters of credit 11,902 10,292 0–100 8,251 6,841
Securities lending 580 67 0–100 38 319
Documentary and commercial letters of credit 642 128 0–100 84 63
Commitments to extend credit:
Original maturity of one year and under 72,723 ––––
Original maturity of over one year 21,765 10,883 0–100 9,787 10,155
Derivative financial instruments 1,919,431 19,901 0–50 5,994 5,708
Total off-balance sheet items 2,027,043 41,271 24,154 23,086
Total risk-weighted assets – credit risk 128,716 129,883
Total risk-weighted assets – market risk 2,362 5,885
Total risk-weighted assets 131,078 135,768
Total risk-weighted assets – U.S. basis 132,730 139,060
TABLE 21 Capital Adequacy ($ millions, except as noted)
As at October 31 2002 2001 2000 1999 1998 1997 1996 1995 1994 1993
Tier 1 – Common shareholders’ equity 10,377 9,632 10,260 9,313 8,650 7,629 6,729 6,174 5,678 4,834
Non-cumulative preferred shares 1,517 1,050 1,681 1,668 1,958 1,274 857 858 860 852
Innovative Tier 1 capital 1,150 1,150 350 –––––––
Non-controlling interest in subsidiaries 32 32 20 27 40 80 101 121 144 66
Goodwill and excess intangible assets (a) (1,547) (798) (447) (430) (494) (521) (557) (411) (450) (159)
Tier 1 Capital 11,529 11,066 11,864 10,578 10,154 8,462 7,130 6,742 6,232 5,593
Tier 2 – Subsidiary preferred shares (b) 377 397 – – – – – – – –
Subordinated debt 3,171 4,133 4,550 4,522 4,670 3,582 3,179 2,268 1,999 2,248
General allowance for credit losses (c) 1,147 1,180 1,007 970 873 775 – –––
Tier 2 Capital 4,695 5,710 5,557 5,492 5,543 4,357 3,179 2,268 1,999 2,248
Less: First loss protection 192 325 511 315 323 113 na na na na
Investment in non-consolidated
subsidiaries/substantial investments –– 821 1,010 858 697 625 –––
Total capital 16,032 16,451 16,089 14,745 14,516 12,009 9,684 9,010 8,231 7,841
Risk-weighted assets 131,078 135,768 134,360 136,964 139,782 124,348 106,267 96,075 86,589 76,074
Risk-weighted capital ratios (%)
Tier 1 8.80 8.15 8.83 7.72 7.26 6.80 6.71 7.02 7.20 7.35
Total 12.23 12.12 11.97 10.77 10.38 9.66 9.11 9.38 9.51 10.31
U.S. basis Tier 1 8.32 7.87 8.47 7.42 6.95 6.35 6.26 6.82 6.91 7.13
U.S. basis total 11.60 11.69 12.50 11.34 10.86 9.92 9.81 9.97 10.07 11.14
Assets-to-capital multiple 15.8 14.2 14.8 16.3 16.0 18.0 19.0 17.6 17.7 15.6
Equity-to-assets ratio (%) 5.3 5.1 5.4 4.9 5.0 4.4 4.6 4.7 4.8 4.9
(a) In addition to goodwill, intangible assets in excess of gross Tier 1 capital are deducted from Tier 1
capital as required by OSFI guidelines.
(b) Reflects the qualification of existing preferred shares of a subsidiary as Tier 2 capital.
(c)
General allowance included with the approval of OSFI beginning in 1997. OSFI approved the inclusion
of the lesser of the balance of our general allowance for credit losses or a percentage of risk-
weighted assets (0.875% in 2002).
na – not applicable