Bank of Montreal 2012 Annual Report Download - page 100

MD&A
Summarized Statement of Income and Quarterly Financial Measures
($ millions)
Oct. 31
2012
July 31
2012
April 30
2012
Jan. 31
2012
Oct. 31
2011*
July 31
2011*
April 30
2011*
Jan. 31
2011* 2012 2011* 2010
Net interest income 2,145 2,225 2,120 2,318 2,262 1,803 1,692 1,717 8,808 7,474 6,235
Non-interest revenue 2,031 1,653 1,839 1,799 1,560 1,517 1,641 1,751 7,322 6,469 6,004
Total revenue 4,176 3,878 3,959 4,117 3,822 3,320 3,333 3,468 16,130 13,943 12,239
Provision for credit losses – specific 216 229 195 122 299 245 265 317 762 1,126 1,049
Provision for credit losses – general (24) 8 – 19 63 (15) 32 6 386 –
Non-interest expense 2,701 2,484 2,499 2,554 2,432 2,221 2,030 2,058 10,238 8,741 7,619
Income before provision for income taxes 1,283 1,157 1,265 1,422 1,028 869 1,006 1,087 5,127 3,990 3,571
Provision for income taxes 201 187 237 313 260 161 193 262 938 876 687
Net income 1,082 970 1,028 1,109 768 708 813 825 4,189 3,114 2,884
Operating group reported net income:
Personal and Commercial Banking 569 582 567 583 594 533 467 531 2,301 2,125 1,882
Private Client Group 166 109 145 105 137 104 91 144 525 476 431
BMO Capital Markets 293 232 225 198 143 270 229 260 948 902 816
Corporate Services, including T&O 54 47 91 223 (106) (199) 26 (110) 415 (389) (245)
BMO Financial Group reported net income 1,082 970 1,028 1,109 768 708 813 825 4,189 3,114 2,884
Adjusted net income 1,125 1,013 982 972 832 856 770 817 4,092 3,275 2,916
Information per Common Share ($)
Dividends declared 0.72 0.70 0.70 0.70 0.70 0.70 0.70 0.70 2.82 2.80 2.80
Earnings
Basic 1.59 1.42 1.52 1.65 1.12 1.10 1.34 1.36 6.18 4.90 4.78
Diluted 1.59 1.42 1.51 1.63 1.11 1.09 1.32 1.34 6.15 4.84 4.75
Adjusted earnings
Basic 1.65 1.49 1.45 1.43 1.22 1.35 1.26 1.35 6.02 5.17 4.83
Diluted 1.65 1.49 1.44 1.42 1.20 1.34 1.25 1.32 6.00 5.10 4.81
Book value 40.25 39.43 38.06 37.85 36.76 35.38 31.38 31.38 40.25 36.76 34.09
Market price
High 59.96 58.73 59.91 61.29 61.40 62.74 63.94 62.44 61.29 63.94 65.71
Low 56.72 53.15 56.54 54.38 55.02 59.31 57.81 56.17 53.15 55.02 49.78
Close 59.02 57.44 58.67 58.29 58.89 60.03 62.14 57.78 59.02 58.89 60.23
Financial Measures (%)
Dividend yield 4.9 4.9 4.8 4.8 4.8 4.7 4.5 4.8 4.8 4.8 4.6
Diluted earnings per share growth 43.2 30.3 14.4 21.6 (10.5) (3.5) 4.8 19.6 27.1 1.9 54.2
Adjusted diluted earnings per share growth 37.5 11.2 15.2 7.6 (4.8) 17.5 (2.3) 16.8 17.6 6.0 19.7
Return on equity 15.6 14.5 16.2 17.2 12.7 13.3 17.5 17.8 15.9 15.1 14.9
Adjusted return on equity 16.3 15.2 15.4 15.0 13.9 16.4 16.6 17.6 15.5 16.0 15.0
Net economic profit growth +100 84.5 16.2 33.4 (21.1) 31.0 30.9 +100 53.0 33.0 +100
Net income growth 40.8 36.9 26.5 34.4 1.4 3.0 6.5 22.1 34.5 8.0 54.8
Adjusted net income growth 35.1 18.4 27.5 18.9 8.6 22.9 – 19.7 24.9 12.3 22.9
Revenue growth 9.3 16.8 18.8 18.7 18.1 13.9 9.0 14.4 15.7 13.9 10.6
Adjusted revenue growth 6.8 8.8 14.9 8.5 13.4 16.0 6.1 13.7 9.7 12.3 5.7
Expense growth 11.0 11.9 23.2 24.1 19.9 16.5 10.4 11.5 17.1 14.7 3.2
Adjusted expense growth 4.1 13.2 18.2 16.1 16.0 9.1 9.0 11.5 12.5 11.5 5.0
Net interest margin on earning assets 1.83 1.88 1.89 2.05 2.01 1.76 1.82 1.78 1.91 1.85 1.88
Adjusted net interest margin on earning assets 1.67 1.70 1.76 1.85 1.78 1.78 1.83 1.79 1.74 1.79 1.88
Efficiency ratio 64.7 64.1 63.1 62.0 63.7 66.9 60.9 59.3 63.5 62.7 62.2
Adjusted efficiency ratio 62.2 63.7 63.2 63.5 63.8 61.2 61.5 59.4 63.1 61.5 62.0
Operating leverage (1.7) 4.9 (4.4) (5.4) (1.8) (2.6) (1.4) 2.9 (1.4) (0.8) 7.4
Adjusted operating leverage 2.7 (4.4) (3.3) (7.6) (2.6) 6.9 (2.9) 2.2 (2.8) 0.8 0.7
Provision for credit losses as a % of average net loans and
acceptances 0.30 0.38 0.32 0.23 0.60 0.43 0.58 0.63 0.31 0.56 0.61
Effective tax rate 15.7 16.2 18.7 22.0 25.3 18.5 19.2 24.1 18.3 22.0 19.2
Adjusted effective tax rate 17.9 16.9 19.5 23.7 20.7 19.7 21.7 24.5 19.5 21.7 19.2
Canadian/U.S. dollar average exchange rate ($) 0.989 1.018 0.992 1.013 1.008 0.963 0.962 1.007 1.003 0.985 1.043
Gross impaired loans and acceptances as a % of equity and
allowance for credit losses (1) 9.30 9.15 9.34 8.74 8.98 7.94 10.18 11.46 9.30 8.98 12.18
Cash and securities-to-total assets 29.4 31.3 32.0 32.2 29.5 32.0 32.9 33.1 29.4 29.5 35.0
Common Equity Ratio (Basel II basis) 10.5 10.3 9.9 9.7 9.6 9.1 10.7 10.2 10.5 9.6 10.3
Tier 1 Capital Ratio 12.6 12.4 12.0 11.7 12.0 11.5 13.8 13.0 12.6 12.0 13.5
Total Capital Ratio 14.9 14.8 14.9 14.6 14.9 14.2 17.0 15.2 14.9 14.9 15.9
2010 based on CGAAP.
* Growth rates for 2011 reflect growth based on CGAAP in 2010 and IFRS in 2011.
(1) Effective in 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.
Net economic profit and adjusted results in this table are non-GAAP and are discussed in the Non-GAAP Measures section on page 98.
BMO Financial Group 195th Annual Report 2012 97