Bank of Montreal 2013 Annual Report Download - page 118

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Consolidated Statement of Cash Flows
For the Year Ended October 31 (Canadian $ in millions) 2013 2012 2011
Cash Flows from Operating Activities
Net Income $ 4,248 $ 4,189 $ 3,114
Adjustments to determine net cash flows provided by (used in) operating activities
Impairment write-down of securities, other than trading (Note 3) 17 5 4
Net (gain) on securities, other than trading (Note 3) (302) (157) (193)
Net (increase) decrease in trading securities (4,392) (251) 1,987
Provision for credit losses (Note 4) 589 765 1,212
Change in derivative instruments – (Increase) decrease in derivative asset 20,240 6,651 (6,621)
– Increase (decrease) in derivative liability (19,195) (1,840) 4,015
Amortization of premises and equipment (Note 11) 360 364 307
Amortization of intangible assets (Note 13) 352 339 231
Net decrease in deferred income tax asset 96 486 163
Net (decrease) in deferred income tax liability (65) (143) (245)
Net decrease in current income tax asset 389 37 109
Net increase (decrease) in current income tax liability 25 (182) 27
Change in accrued interest – (Increase) decrease in interest receivable 122 10 (19)
– Increase (decrease) in interest payable (129) (109) 62
Changes in other items and accruals, net (516) (6,240) (270)
Net increase in deposits 35,724 19,331 15,129
Net (increase) in loans (21,479) (14,972) (4,917)
Net increase (decrease) in securities sold but not yet purchased (1,221) 3,243 6,143
Net increase (decrease) in securities lent or sold under repurchase agreements (12,090) 8,092 (8,648)
Net (increase) decrease in securities borrowed or purchased under resale agreements 8,660 (9,360) (9,974)
Net Cash Provided by Operating Activities 11,433 10,258 1,616
Cash Flows from Financing Activities
Net (decrease) in liabilities of subsidiaries (397) (637) (3,466)
Proceeds from issuance (maturities) of Covered Bonds (1,354) 2,000 3,495
Proceeds from issuance (repayment) of subordinated debt (Note 17) – (1,200) 1,500
Redemption of preferred shares (200) (396) –
Proceeds from issuance of preferred shares – – 290
Redemption of securities of a subsidiary (Note 20) (359) – –
Redemption of Capital Trust Securities (Note 18) – (400) (400)
Share issue expense – – (5)
Proceeds from issuance of common shares (Note 20) 122 88 129
Common shares repurchased for cancellation (Note 20) (675) – –
Cash dividends paid (1,896) (1,419) (1,663)
Cash dividends paid to non-controlling interest (73) (73) (71)
Net Cash (Used in) Financing Activities (4,832) (2,037) (191)
Cash Flows from Investing Activities
Net (increase) decrease in interest bearing deposits with banks 43 (347) 967
Purchases of securities, other than trading (32,007) (37,960) (27,093)
Maturities of securities, other than trading 13,233 12,672 11,958
Proceeds from sales of securities, other than trading 17,288 18,868 15,869
Premises and equipment – net purchases (377) (366) (368)
Purchased and developed software – net purchases (259) (313) (271)
Purchase of Troubled Asset Relief Program preferred shares and warrants – – (1,642)
Acquisitions (Note 12) 140 (21) 677
Net Cash Provided by (Used in) Investing Activities (1,939) (7,467) 97
Effect of Exchange Rate Changes on Cash and Cash Equivalents 1,480 (489) 694
Net increase in Cash and Cash Equivalents 6,142 265 2,216
Cash and Cash Equivalents at Beginning of Year 19,941 19,676 17,460
Cash and Cash Equivalents at End of Year $ 26,083 $ 19,941 $ 19,676
Represented by:
Cash and non-interest bearing deposits with Bank of Canada and other banks $ 24,593 $ 18,347 $ 18,320
Cheques and other items in transit, net 1,490 1,594 1,356
$ 26,083 $ 19,941 $ 19,676
Supplemental Disclosure of Cash Flow Information
Net cash provided by operating activities includes:
Amount of interest paid in the year $ 4,707 $ 4,948 $ 4,951
Amount of income taxes paid in the year $ 577 $ 654 $ 787
Amount of interest and dividend income received in the year $ 13,150 $ 13,555 $ 12,438
The accompanying notes are an integral part of these consolidated financial statements. Certain comparative figures have been reclassified to conform with the current year’s presentation.
BMO Financial Group 196th Annual Report 2013 129
Consolidated Financial Statements