Bank of Montreal 2014 Annual Report Download - page 143

Notes
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
Note 14: Other Assets
(Canadian $ in millions) 2014 2013
Accounts receivable, prepaid expenses and other
items 6,104 5,681
Accrued interest receivable 879 753
Due from clients, dealers and brokers 542 503
Insurance-related assets (1) 445 566
Pension asset (Note 24) 261 192
Total 8,231 7,695
(1) Includes reinsurance assets related to our life insurance business in the amount of
$215 million as at October 31, 2014 ($383 million in 2013).
Certain comparative figures have been reclassified to conform with the current year’s
presentation and for changes in accounting policies – see Note 1.
Note 15: Deposits
Payable on demand Payable Payable on
(Canadian $ in millions) Interest bearing Non-interest bearing after notice a fixed date Total
2014 2013 2014 2013 2014 2013 2014 2013 2014 2013
Deposits by:
Banks 997 679 993 928 2,412 4,076 13,841 14,908 18,243 20,591
Businesses and governments 14,958 13,947 28,001 23,535 57,165 54,178 139,015 130,686 239,139 222,346
Individuals 2,524 2,579 12,900 11,448 75,529 69,853 44,753 41,552 135,706 125,432
Total (1) (2) 18,479 17,205 41,894 35,911 135,106 128,107 197,609 187,146 393,088 368,369
Booked in:
Canada 16,753 15,440 28,832 25,601 77,232 76,414 111,193 109,574 234,010 227,029
United States 1,191 1,153 12,972 10,211 57,314 51,262 66,664 59,800 138,141 122,426
Other countries 535 612 90 99 560 431 19,752 17,772 20,937 18,914
Total 18,479 17,205 41,894 35,911 135,106 128,107 197,609 187,146 393,088 368,369
(1) Includes structured notes designated at fair value through profit or loss.
(2) As at October 31, 2014 and 2013, total deposits payable on a fixed date included
$18,183 million and $19,496 million, respectively, of federal funds purchased, commercial
paper issued and other deposit liabilities. Included in deposits as at October 31, 2014 and
2013 are $191,155 million and $176,235 million, respectively, of deposits denominated in
U.S. dollars, and $8,204 million and $4,822 million, respectively, of deposits denominated in
other foreign currencies.
Certain comparative figures have been restated as a result of the adoption of new accounting principles – see Note 1.
Deposits
Deposits payable on demand are comprised primarily of our customers’
chequing accounts, some of which we pay interest on. Our customers
need not notify us prior to withdrawing money from their chequing
accounts.
Deposits payable after notice are comprised primarily of our
customers’ savings accounts, on which we pay interest.
Deposits payable on a fixed date are comprised of:
‰Various investment instruments purchased by our customers to earn
interest over a fixed period, such as term deposits and guaranteed
investment certificates. The terms of these deposits can vary from one
day to 10 years.
‰Federal funds purchased, which are overnight borrowings of other
banks’ excess reserve funds at a United States Federal Reserve Bank.
As at October 31, 2014, we had borrowed $651 million of federal
funds ($181 million in 2013).
‰Commercial paper, which totalled $4,294 million as at October 31,
2014 ($4,753 million in 2013).
‰Covered bonds, which totalled $7,683 million as at October 31, 2014
($7,964 million in 2013).
On May 7, 2014 we issued €1.0 billion of 1.0% Covered Bonds under our
Global Registered Covered Bond Program. The issue, Series CBL1, is due
May 7, 2019. During the years ended October 31, 2014 and 2013,
Covered Bond Series 4, US$2.0 billion 1.3% and Covered Bond Series 1
€1.0 billion 4.25% matured, respectively.
The following table presents the maturity schedule for our deposits
payable on a fixed date:
Payable on a fixed date (1)
(Canadian $ in millions) 2014 2013
Within 1 year 124,782 114,079
1 to 2 years 22,733 21,211
2 to 3 years 23,491 21,471
3 to 4 years 8,379 11,468
4 to 5 years 8,498 9,179
Over 5 years 9,726 9,738
Total 197,609 187,146
(1) Includes $174,612 million of deposits, each greater than one hundred thousand dollars,
of which $92,668 million were booked in Canada, $62,193 million were booked in the
United States and $19,751 million were booked in other countries ($161,942 million,
$89,378 million, $54,791 million and $17,773 million, respectively, in 2013). Of the
$92,668 million of deposits booked in Canada, $27,304 million mature in less than three
months, $7,465 million mature in three to six months, $11,565 million mature in six to
12 months and $46,334 million mature after 12 months ($89,378 million, $31,304 million,
$4,079 million, $6,861 million and $47,134 million, respectively, in 2013). We have
unencumbered liquid assets of $170,981 million to support these and other deposit liabilities
($160,635 million in 2013).
156 BMO Financial Group 197th Annual Report 2014