Bank of Montreal 2012 Annual Report Download - page 102

MD&A
Non-GAAP Measures (Cont’d)
(Canadian $ in millions, except as noted) 2012 2011* 2010
Q4
2012
Q4
2011*
Reported Results
Revenue 16,130 13,943 12,239 4,176 3,822
Non-interest expense (10,238) (8,741) (7,619) (2,701) (2,432)
Pre-provision, pre-tax earnings 5,892 5,202 4,620 1,475 1,390
Provision for credit losses (765) (1,212) (1,049) (192) (362)
Provision for income taxes (938) (876) (687) (201) (260)
Net income 4,189 3,114 2,884 1,082 768
Reported Measures (5)
EPS ($) 6.15 4.84 4.75 1.59 1.11
Net income growth (%) 34.5 8.0 54.8 40.8 1.4
EPS growth (%) 27.1 1.9 54.2 43.2 (10.5)
Revenue growth (%) 15.7 13.9 10.6 9.3 18.1
Non-interest expense growth (%) 17.1 14.7 3.2 11.0 19.9
Efficiency ratio (%) 63.5 62.7 62.2 64.7 63.7
Operating leverage (%) (1.4) (0.8) 7.4 (1.7) (1.8)
Return on equity (%) 15.9 15.1 14.9 15.6 12.7
Adjusting Items (Pre-tax)
Credit-related items on the M&I purchased performing loan portfolio (2) 407 173 – 57 173
M&I integration costs (4) (402) (131) – (153) (53)
M&I acquisition-related costs –(87) – –(5)
Hedge costs related to foreign exchange risk on purchase of M&I –(20) – ––
Amortization of acquisition-related intangible assets (4) (134) (70) (36) (34) (33)
Decrease (increase) in the collective allowance for credit losses 82 (6) – 49 17
Run-off structured credit activities (3) 264 (50) – 67 (119)
Restructuring charge (4) (173) ––(74) –
Adjusting items included in reported pre-tax income 44 (191) (36) (88) (20)
Adjusting Items (After tax)
Credit-related items on the M&I purchased performing loan portfolio (2) 251 107 – 35 107
M&I integration costs (4) (250) (84) – (95) (35)
M&I acquisition-related costs –(62) –(4)
Hedge costs related to foreign exchange risk on purchase of M&I –(14) – ––
Amortization of acquisition-related intangible assets (4) (96) (54) (32) (24) (25)
Decrease (increase) in the collective allowance for credit losses 53 (4) – 27 12
Run-off structured credit activities (3) 261 (50) – 67 (119)
Restructuring charge (4) (122) ––(53) –
Adjusting items included in reported net income after tax 97 (161) (32) (43) (64)
EPS ($) 0.15 (0.26) (0.06) (0.06) (0.09)
Adjusted Results (1)
Revenue 15,067 13,742 12,239 3,920 3,670
Non-interest expense (9,513) (8,453) (7,583) (2,436) (2,341)
Pre-provision, pre-tax earnings 5,554 5,289 4,656 1,484 1,329
Provision for credit losses (471) (1,108) (1,049) (113) (281)
Provision for income taxes (991) (906) (691) (246) (216)
Adjusted net income 4,092 3,275 2,916 1,125 832
Adjusted Measures (1) (5)
EPS ($) 6.00 5.10 4.81 1.65 1.20
Net income growth (%) 24.9 12.3 22.9 35.1 8.6
EPS growth (%) 17.6 6.0 19.7 37.5 (4.8)
Revenue growth (%) 9.7 12.3 5.7 6.8 13.4
Non-interest expense growth (%) 12.5 11.5 5.0 4.1 16.0
Efficiency ratio (%) 63.1 61.5 62.0 62.2 63.8
Operating leverage (%) (2.8) 0.8 0.7 2.7 (2.6)
Return on equity (%) 15.5 16.0 15.0 16.3 13.9
2010 based on CGAAP.
(1) Adjusted results and measures in this table are non-GAAP amounts or non-GAAP measures.
(2) Comprised of $783 million of net interest income, $291 million of specific provisions for credit losses and $85 million of collective provisions in 2012; and $271 million of net interest income,
$80 million of specific provisions for credit losses and $18 million of collective provisions in 2011.
(3) Substantially all included in trading revenue, in non-interest revenue.
(4) Included in non-interest expense.
(5) Amounts for periods prior to fiscal 2011 have not been restated to conform to IFRS. As a result, growth measures for years prior to 2012 may not be meaningful.
* Growth rates for 2011 reflect growth based on CGAAP in 2010 and IFRS in 2011.
BMO Financial Group 195th Annual Report 2012 99