Bank of Montreal 2004 Annual Report Download - page 84

BMO Financial Group Annual Report 200480
Supplemental Information
Supplemental Information
Table 21 Risk-Weighted Assets ($ millions, except as noted)
As at October 31 2004 2003
Credit Risk Risk- Risk-
risk weighting weighted weighted
Balance equivalent % balance balance
Balance sheet items
Cash resources 18,045 18,045 0–20 3,426 3,675
Securities 50,472 50,472 0–100 4,722 5,024
Mortgages 61,201 61,201 0–100 20,117 17,355
Other loans and acceptances 95,047 95,047 0–100 69,188 67,086
Other assets 40,429 40,429 0–100 9,084 8,997
Total balance sheet items 265,194 265,194 106,537 102,137
Off-balance sheet items
Guarantees and standby letters of credit 13,042 11,447 0–100 9,379 7,666
Securities lending 548 44 0–100 20 37
Documentary and commercial letters of credit 706 141 0–100 75 74
Commitments to extend credit:
Original maturity of one year and under 66,826 – 0 ––
Original maturity of over one year 18,830 9,415 0–100 9,103 10,596
Derivative financial instruments 1,729,930 23,747 0–50 6,886 5,503
Total off-balance sheet items 1,829,882 44,794 25,463 23,876
Total risk-weighted assets – credit risk 132,000 126,013
Total risk-weighted assets
– market risk 5,323 3,150
Total risk-weighted assets 137,323 129,163
Total risk-weighted assets – U.S. basis 139,159 130,140
Table 20 Capital Adequacy ($ millions, except as noted)
As at October 31 2004 2003 2002 2001 2000
Tier 1 – Common shareholders’ equity 12,143 11,036 10,377 9,632 10,260
Non-cumulative preferred shares 1,046 1,446 1,517 1,050 1,681
Innovative Tier 1 preferred shares 1,745 1,150 1,150 1,150 350
Non-controlling interest in subsidiaries 44 39 32 32 20
Goodwill and excess intangible assets (1) (1,507) (1,334) (1,547) (798) (447)
Tier 1 capital 13,471 12,337 11,529 11,066 11,864
Tier 2 – Subsidiary preferred shares (2) 296 320 377 397 –
Subordinated debt 1,783 1,981 3,171 4,133 4,550
General allowance for credit losses (3) 1,010 1,130 1,147 1,180 1,007
Tier 2 capital 3,089 3,431 4,695 5,710 5,557
First loss protection (128) (149) (192) (325) (511)
Investment in non-consolidated
subsidiaries/substantial investments (901) ––– (821)
Total capital 15,531 15,619 16,032 16,451 16,089
Risk-weighted assets 137,323 129,163 131,078 135,768 134,360
Risk-weighted capital ratios (%)
Tier 1 Capital Ratio 9.81 9.55 8.80 8.15 8.83
Total Capital Ratio 11.31 12.09 12.23 12.12 11.97
U.S. basis Tier 1 Capital Ratio 9.44 9.17 8.32 7.87 8.47
U.S. basis Total Capital Ratio 11.45 11.60 11.60 11.69 12.50
Assets-to-capital multiple 17.0 16.4 15.8 14.2 14.8
Equity-to-assets ratio (%) 5.8 5.5 5.3 5.1 5.4
(1) In addition to goodwill, intangible assets in excess of 5% of gross Tier 1 capital are deducted
from Tier 1 capital as required by OSFI guidelines.
(2) Reflects the qualification of existing preferred shares of a subsidiary as Tier 2 capital.
(3) OSFI permits the inclusion of the lesser of the balance of our general allowance for credit losses
and a percentage of risk-weighted assets (0.875% since 2002).