Bank of Montreal 2010 Annual Report Download - page 160

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
Notes
158 BMO Financial Group 193rd Annual Report 2010
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. Operating group net
interest income reflects internal funding charges and credits on the
groups’ assets, liabilities and capital, at market rates, taking into account
relevant terms and currency considerations. The offset of the net impact
of these charges and credits is reflected in Corporate Services.
Geographic Information
We operate primarily in Canada and the United States but we 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.
Our results and average assets, grouped by operating segment and geographic region, are as follows:
P&C P&C Corporate United Other
(Canadian $ in mil lions) Canada U.S. PCG BMO CM Services (1) Total Canada States countries
2010 (2)
Net interest income 4,164 1,092 365 1,394 (780) 6,235 4,766 1,351 118
Non-interest revenue 1,666 332 1,880 1,885 212 5,975 4,408 1,288 279
Total Revenue 5,830 1,424 2,245 3,279 (568) 12,210 9,174 2,639 397
Provision for credit losses 502 124 7 264 152 1,049 485 573 (9)
Amortization 130 65 36 42 197 470 351 114 5
Non-interest expense 2,848 967 1,575 1,780 (50) 7,120 5,088 1,861 171
Income before taxes and non-controlling
interest in subsidiaries 2,350 268 627 1,193 (867) 3,571 3,250 91 230
Income taxes 706 93 157 373 (642) 687 659 13 15
Non-controlling interest in subsidiaries – – – – 74 74 55 19 –
Net Income 1,644 175 470 820 (299) 2,810 2,536 59 215
Average Assets 145,468 32,477 14,214 200,866 5,449 398,474 256,611 114,334 27,529
Goodwill (As at) 121 1,020 363 113 2 1,619 447 1,150 22
2009 (2)
Net interest income 3,811 1,220 353 1,528 (1,342) 5,570 3,683 1,582 305
Non-interest revenue 1,476 348 1,659 1,561 450 5,494 4,031 1,238 225
Total Revenue 5,287 1,568 2,012 3,089 (892) 11,064 7,714 2,820 530
Provision for credit losses 387 92 5 146 973 1,603 517 1,065 21
Amortization 133 79 31 44 185 472 335 132 5
Non-interest expense 2,704 963 1,538 1,700 4 6,909 4,895 1,857 157
Income before taxes and non-controlling
interest in subsidiaries 2,063 434 438 1,199 (2,054) 2,080 1,967 (234) 347
Income taxes 648 148 79 326 (984) 217 351 (145) 11
Non-controlling interest in subsidiaries – – – – 76 76 55 21 –
Net Income 1,415 286 359 873 (1,146) 1,787 1,561 (110) 336
Average Assets 139,945 41,674 11,594 248,194 (2,859) 438,548 266,649 142,478 29,421
Goodwill (As at) 119 984 358 106 2 1,569 436 1,109 24
2008 (2)
Net interest income 3,428 997 376 1,048 (777) 5,072 3,659 1,110 303
Non-interest revenue 1,366 345 1,770 1,130 522 5,133 3,952 1,182 (1)
Total Revenue 4,794 1,342 2,146 2,178 (255) 10,205 7,611 2,292 302
Provision for credit losses 341 63 4 97 825 1,330 340 942 48
Amortization 133 74 23 42 163 435 312 119 4
Non-interest expense 2,600 841 1,546 1,594 (122) 6,459 4,699 1,591 169
Income before taxes and non-controlling
interest in subsidiaries 1,720 364 573 445 (1,121) 1,981 2,260 (360) 81
Income taxes 567 122 147 (123) (784) (71) 197 (195) (73)
Non-controlling interest in subsidiaries – – – – 74 74 55 19 –
Net Income 1,153 242 426 568 (411) 1,978 2,008 (184) 154
Average Assets 134,402 36,507 8,658 224,289 (6,247) 397,609 236,495 129,260 31,854
Goodwill (As at) 105 1,070 349 109 2 1,635 424 1,192 19
(1) Corporate Services includes Technology and Operations.
(2) Operating groups report on a taxable equivalent basis – see Basis of Presentation section.
Prior years have been restated to give effect to the current year’s organizational structure and presentation changes.