Bank of Montreal 2004 Annual Report Download - page 121

BMO Financial Group Annual Report 2004 117
Notes
Our results and average assets, grouped by operating group and geographic region, are as follows:
Corporate Total Teb Total United Other
(Canadian $ in millions) P&C PCG IBG Support (1) (teb basis) adjustments (GAAP basis) Canada States Countries
2004
Net interest income $ 3,444 $ 499 $ 1,305 $ (187) $ 5,061 $(139) $ 4,922 $ 3,441 $ 1,450 $ 170
Non-interest revenue 1,470 1,351 1,527 203 4,551 – 4,551 3,199 1,200 152
Total Revenue 4,914 1,850 2,832 16 9,612 (139) 9,473 6,640 2,650 322
Provision for credit losses 302 2 138 (545) (103) – (103) (1) (46) (56)
Non-interest expense 3,084 1,500 1,430 143 6,157 – 6,157 4,079 1,964 114
Income before taxes and non-controlling
interest in subsidiaries 1,528 348 1,264 418 3,558 (139) 3,419 2,562 732 264
Income taxes 524 117 408 98 1,147 (139) 1,008 824 281 42
Non-controlling interest in subsidiaries 1 –– 59 60 – 60 45 15 –
Net Income $ 1,003 $ 231 $ 856 $ 261 $ 2,351 $ – $ 2,351 $ 1,693 $ 436 $ 222
Average Assets $119,089 $5,326 $141,691 $3,686 $269,792 $ – $269,792 $177,306 $68,758 $23,728
2003
Net interest income $ 3,318 $ 541 $ 1,393 $ (201) $ 5,051 $ (152) $ 4,899 $ 3,269 $ 1,631 $ 151
Non-interest revenue 1,506 1,196 1,263 255 4,220 – 4,220 2,912 1,185 123
Total Revenue 4,824 1,737 2,656 54 9,271 (152) 9,119 6,181 2,816 274
Provision for credit losses 301 2 231 (79) 455 – 455 211 211 33
Non-interest expense 3,075 1,505 1,369 138 6,087 – 6,087 3,992 1,989 106
Income before taxes and non-controlling
interest in subsidiaries 1,448 230 1,056 (5) 2,729 (152) 2,577 1,978 616 135
Income taxes 507 86 335 (88) 840 (152) 688 625 231 (16)
Non-controlling interest in subsidiaries 4 –– 60 64 – 64 48 16 –
Net Income $ 937 $ 144 $ 721 $ 23 $ 1,825 $ – $ 1,825 $ 1,305 $ 369 $ 151
Average Assets $ 109,909 $ 5,292 $ 144,418 $ 4,347 $ 263,966 $ – $ 263,966 $ 167,397 $ 76,634 $ 19,935
2002
Net interest income $ 3,099 $ 518 $ 1,478 $ (160) $ 4,935 $ (106) $ 4,829 $ 3,018 $ 1,743 $ 174
Non-interest revenue 1,463 1,106 1,068 287 3,924 – 3,924 2,555 1,243 126
Total Revenue 4,562 1,624 2,546 127 8,859 (106) 8,753 5,573 2,986 300
Provision for credit losses 280 1 227 312 820 – 820 560 257 3
Non-interest expense 2,984 1,490 1,413 143 6,030 – 6,030 3,922 1,991 117
Income before taxes and non-controlling
interest in subsidiaries 1,298 133 906 (328) 2,009 (106) 1,903 1,091 738 180
Income taxes 489 54 305 (318) 530 (106) 424 271 241 18
Non-controlling interest in subsidiaries 2 –– 60 62 – 62 45 17 –
Net Income $ 807 $ 79 $ 601 $ (70) $ 1,417 $ – $ 1,417 $ 775 $ 480 $ 162
Average Assets $ 102,049 $ 5,453 $ 136,451 $ 4,037 $ 247,990 $ – $ 247,990 $ 152,612 $ 79,107 $ 16,271
(1) Corporate Support includes Technology and Solutions.
Prior years are restated to give effect to the current year’s organization structure and presentation changes.
Provisions for Credit Losses
Provisions for credit losses are generally allocated to each group
based on expected losses for that group over an economic cycle.
Differences between expected loss provisions and required provi-
sions under GAAP are included in Corporate Support.
Inter Group Allocations
Various estimates and allocation methodologies are used in
the preparation of the operating groups’ financial information.
We allocate expenses directly related to earning revenue to
the groups that earned the related revenue. Expenses not directly
related to earning revenue, such as overhead expenses, are
allocated to operating groups using allocation formulas applied
on a consistent basis. For each currency, the net income effect of
funds transferred from any group with a surplus, to any group with
a shortfall, is at market rates for the currency and appropriate term.
Geographic Information
We operate primarily in Canada and the United States but also
have operations in the United Kingdom, Europe, the Caribbean
and Asia, which are grouped in Other Countries. We allocate
our results by geographic region based on the location of the unit
responsible for managing the related assets, liabilities, revenues
and expenses, except for the consolidated provision for credit
losses, which is allocated based upon the country of ultimate risk.