Bank of Montreal 2010 Annual Report Download - page 97

MD&A
Summarized Statement of Income and Quarterly Financial Measures
Oct. 31 July 31 April 30 Jan. 31 Oct. 31 July 31 April 30 Jan. 31
($ mil lions) 2010 2010 2010 2010 2009 2009 2009 2009 2010 2009 2008
Net interest income 1,610 1,571 1,522 1,532 1,442 1,466 1,335 1,327 6,235 5,570 5,072
Non-interest revenue 1,619 1,336 1,527 1,493 1,547 1,512 1,320 1,115 5,975 5,494 5,133
Total revenue 3,229 2,907 3,049 3,025 2,989 2,978 2,655 2,442 12,210 11,064 10,205
Provision for credit losses – specific 253 214 249 333 386 357 372 428 1,049 1,543 1,070
Provision for credit losses – general – – – – – 60 – – – 60 260
Non-interest expense 2,023 1,898 1,830 1,839 1,779 1,883 1,888 1,841 7,590 7,391 6,902
Restructuring charge (reversal) – – – – – (10) – – – (10) (8)
Income before provision for income taxes and
non-controlling interest in subsidiaries 953 795 970 853 824 688 395 173 3,571 2,080 1,981
Provision for (recovery of) income taxes 196 107 207 177 158 112 18 (71) 687 217 (71)
Non-controlling interest in subsidiaries 18 19 18 19 19 19 19 19 74 76 74
Net income 739 669 745 657 647 557 358 225 2,810 1,787 1,978
Amortization of acquisition-related
intangible assets, net of income taxes 9 9 7 7 8 9 10 8 32 35 35
Cash net income 748 678 752 664 655 566 368 233 2,842 1,822 2,013
Operating group net income:
Personal and Commercial Banking 458 466 441 454 449 420 421 411 1,819 1,701 1,395
Private Client Group 131 108 118 113 106 113 72 68 470 359 426
BMO Capital Markets 216 130 260 214 260 310 188 115 820 873 568
Corporate Services, including T&O (66) (35) (74) (124) (168) (286) (323) (369) (299) (1,146) (411)
BMO Financial Group net income 739 669 745 657 647 557 358 225 2,810 1,787 1,978
Information per Common Share ($)
Dividends declared 0.70 0.70 0.70 0.70 0.70 0.70 0.70 0.70 2.80 2.80 2.80
Earnings
Basic 1.25 1.13 1.27 1.12 1.12 0.97 0.61 0.39 4.78 3.09 3.79
Diluted 1.24 1.13 1.26 1.12 1.11 0.97 0.61 0.39 4.75 3.08 3.76
Cash earnings
Basic 1.26 1.15 1.29 1.14 1.13 0.98 0.63 0.41 4.83 3.15 3.86
Diluted 1.26 1.14 1.28 1.13 1.13 0.98 0.63 0.40 4.81 3.14 3.83
Book value 34.09 33.13 32.04 32.51 31.95 31.26 32.22 32.18 34.09 31.95 32.02
Market price
High 63.46 63.94 65.71 56.24 54.75 54.05 41.03 44.88 65.71 54.75 63.44
Low 54.35 55.75 51.11 49.78 49.01 38.86 24.05 29.60 49.78 24.05 35.65
Close 60.23 62.87 63.09 52.00 50.06 54.02 39.50 33.25 60.23 50.06 43.02
Financial Measures (%)
Five-year average annual total shareholder return 5.9 5.6 7.2 3.5 1.8 4.0 (1.2) (6.9) 5.9 1.8 0.9
Dividend yield 4.6 4.5 4.4 5.4 5.6 5.2 7.1 8.4 4.6 5.6 6.5
Diluted earnings per share growth 11.7 16.5 +100 +100 4.7 (1.0) (51.2) (17.0) 54.2 (18.1) (8.5)
Diluted cash earnings per share growth 11.5 16.3 +100 +100 4.6 (2.0) (50.0) (18.4) 53.2 (18.0) (8.4)
Return on equity 15.1 13.7 16.4 14.3 14.0 12.1 8.1 4.9 14.9 9.9 13.0
Net economic profit growth 40.8 +100 +100 +100 10.4 (35.1) (+100) (71.8) +100 (+100) (32.8)
Net income growth 14.2 20.1 +100 +100 15.6 6.9 (44.3) (11.7) 57.2 (9.7) (7.2)
Revenue growth 8.0 (2.4) 14.8 23.9 6.3 8.4 1.3 20.5 10.4 8.4 9.2
Net interest margin on earning assets 1.89 1.88 1.88 1.85 1.73 1.74 1.55 1.51 1.88 1.63 1.55
Productivity ratio 62.6 65.3 60.0 60.8 59.5 62.9 71.1 75.4 62.2 66.7 67.6
Cash operating leverage (5.7) (3.9) 17.7 23.9 8.3 3.3 (11.0) 6.4 7.5 1.3 4.7
Provision for credit losses as a % of average
net loans and acceptances 0.58 0.50 0.59 0.79 0.89 0.94 0.79 0.90 0.61 0.88 0.76
Effective tax rate 20.6 13.4 21.3 20.8 19.2 16.4 4.4 (41.0) 19.2 10.5 (3.6)
Canadian/U.S. dollar average exchange rate ($) 1.039 1.045 1.027 1.059 1.083 1.110 1.242 1.227 1.043 1.165 1.032
Gross impaired loans and acceptances as a %
of equity and allowance for credit losses (1) 13.55 13.54 15.20 13.89 14.92 13.54 13.79 12.69 13.55 14.92 12.15
Cash and securities-to-total assets 35.0 34.6 35.8 33.9 31.9 30.0 28.2 28.2 35.0 31.9 29.1
Tier 1 Capital Ratio 13.45 13.55 13.27 12.53 12.24 11.71 10.70 10.21 13.45 12.24 9.77
(1) Effective the fourth quarter of 2010, the calculation excludes non-controlling interest in subsidiaries. Prior periods have been restated to reflect this change.
In the opinion of Bank of Montreal management, information that is derived from unaudited financial information, including information as at and for the interim periods, includes 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 the ratios, as well as interim operating results, are not necessarily indicative of actual results for the full fiscal year.
BMO Financial Group 193rd Annual Report 2010 95