Bank of Montreal 2013 Annual Report Download - page 98

Table 8: Non-Interest Expense and Expense-to-Revenue Ratio ($ millions, except as noted)
5-year 10-year
For the year ended October 31 2013 2012 2011 2010 2009 CAGR CAGR
Non-Interest Expense
Employee compensation
Salaries 3,318 3,208 2,646 2,285 2,395 9.1 5.3
Performance-based compensation 1,686 1,657 1,560 1,455 1,338 5.4 4.8
Employee benefits 823 763 621 624 652 9.2 4.3
Total employee compensation 5,827 5,628 4,827 4,364 4,385 7.9 5.0
Premises and equipment
Rental of real estate 416 400 360 319 306 8.3 9.1
Premises, furniture and fixtures 377 368 310 269 272 8.2 3.3
Property taxes 37 36 30 28 30 5.2 (3.4)
Computers and equipment (1) 1,047 1,112 878 727 673 6.4 5.3
Total premises and equipment (1) 1,877 1,916 1,578 1,343 1,281 7.1
Other expenses
Amortization of intangible assets (1) 352 339 231 203 203 30.2
Communications 291 301 259 229 221 7.6 6.0
Business and capital taxes 39 46 51 52 44 (1.8) (9.8)
Professional fees 527 593 624 401 362 6.5 7.5
Travel and business development 514 491 382 343 309 9.4 8.6
Other 870 924 789 684 576 9.5 8.3
Total other expenses 2,593 2,694 2,336 1,912 1,715 10.1 8.3
Total Non-Interest Expense 10,297 10,238 8,741 7,619 7,381 8.4 5.4
Year-over-year total non-interest expense growth (%) 0.6 17.1 14.7 3.2 7.1 na na
Total Adjusted Non-Interest Expense 9,826 9,513 8,453 7,583 7,220 7.5 5.1
Year-over-year total adjusted non-interest expense growth (%) 3.3 12.5 11.5 5.0 5.4 na na
Non-interest expense-to-revenue ratio (Efficiency ratio) (%) 63.3 63.5 62.7 62.2 66.7 na na
Adjusted non-interest expense-to-revenue ratio (Efficiency ratio) (%) 63.1 63.1 61.5 62.0 62.3 na na
Government Levies and Taxes (2)
Government levies other than income taxes
Payroll levies 249 250 203 175 171 8.7 4.8
Property taxes 37 36 30 28 30 5.2 (3.4)
Provincial capital taxes 31 37 44 45 35 (1.0) (11.2)
Business taxes 7 9 7 7 9 (4.7) 1.7
Harmonized sales tax, GST and other sales taxes 262 249 235 146 116 13.0 5.2
Sundry taxes 1 2 1 1 3 nm nm
Total government levies other than income taxes 587 583 520 402 364 19.7 2.2
Provision for income taxes 1,129 938 876 687 217 nm 5.6
Total Government Levies and Taxes 1,716 1,521 1,396 1,089 581 54.1 2.6
Total government levies and taxes as a % of income available to pay government
levies and taxes 28.7 26.6 31.0 27.4 23.8 na na
Effective income tax rate (%) 21.0 18.3 22.0 19.2 10.5 na na
Adjusted effective income tax rate (%) 20.6 19.5 21.7 19.2 15.9 na na
Supplemental Information
2010 and prior based on CGAAP. Five-year and ten-year CAGR based on CGAAP in 2008 and
2003, respectively, and on IFRS in 2012. 2011 growth rates based on CGAAP in 2010 and IFRS in
2011.
(1) In 2009, we adopted new accounting requirements for intangible assets and reclassified
certain computer equipment from premises and equipment to intangible assets. Computer
and equipment expense and the amortization of intangible assets were restated, but not for
years prior to 2007. As such, ten-year growth rates for these expense categories are not
meaningful. Together, computer and equipment expense and the amortization of intangible
assets increased at a compound annual growth rate of 8.0% over ten years. Together, total
premises and equipment expense and the amortization of intangible assets increased at a
compound annual growth rate of 6.9% over ten years.
(2) Government levies are included in various non-interest expense categories.
na – not applicable
nm – not meaningful
BMO Financial Group 196th Annual Report 2013 109