Bank of Montreal 2000 Annual Report Download - page 78

Notes to Consolidated Financial Statements
54 ■Bank of Montreal Group of Companies Annual Report 2000
Demand deposits 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 cus-
tomers’ savings accounts, on which we pay interest. Our customers
are often required to give us notice prior to withdrawing money
from these accounts.
Deposits payable on a fixed date are comprised primarily of
various investment instruments purchased by our customers, such
as term deposits and guaranteed investment certificates, to earn
interest over a fixed period. The term of these deposits can vary
from one day to ten years.
Deposits include federal funds purchased, which are overnight
borrowings of other banks’ excess reserve funds at a United States
Federal Reserve Bank. As at October 31, 2000 we had purchased
$2,498 and $3,677 as at October 31, 1999.
Deposits include commercial paper totalling $1,085 as at Octo-
ber 31, 2000 and $649 as at October 31, 1999.
Included in our deposits payable on a fixed date as at October 31,
2000 are $67,664 of individual deposits greater than one hundred thou-
sand dollars of which $26,501 were booked in Canada and $41,163
were booked outside Canada. We had $80,289 of such deposits as
at October 31, 1999 of which $28,180 were booked in Canada and
$52,109 were booked outside Canada. Of these deposits booked
in Canada the amount maturing within six months was $14,392 at
October 31, 2000 and $18,590 at October 31, 1999.
Note 11 Other Liabilities
Acceptances
Acceptances represent a form of negotiable short-term debt that is issued
by our customers and which we guarantee for a fee. We have an offsetting
claim, equal to the amount of the acceptances, against our customers when
the instrument matures. The amount due under acceptances is recorded
as a liability and our corresponding claim is recorded as an asset in our
Consolidated Balance Sheet.
Securities Sold but not yet Purchased
Securities sold but not yet purchased represent our obligation to deliver
securities which we did not own at the time of sale. These obligations are
recorded at their market value. Adjustments to the market value as at the
balance sheet date and gains and losses on the settlement of these obli-
gations are recorded as interest, dividend and fee income from securities
in our Consolidated Statement of Income.
Securities Sold under Repurchase Agreements
Securities sold under repurchase agreements represent short-term funding
transactions where we sell securities that we already own and simultane-
ously commit to repurchase the same securities at a specified price on a
specified date in the future. These securities are recorded at their original
cost. The interest expense related to these liabilities is recorded on an
accrual basis.
2000 1999
Acceptances $ 8,630 $ 6,753
Securities sold but not yet purchased 9,353 10,450
Securities sold under repurchase agreements 19,749 24,177
$ 37,732 $ 41,380
Accounts payable, accrued expenses and other items 4,857 3,044
Liabilities of subsidiaries, other than deposits 1,496 2,715
Accrued interest payable 1,564 1,382
Unrealized losses and amounts
payable on derivative contracts 13,342 9,029
Deferred loan fees 105 104
Non-controlling interest in subsidiaries 751 394
Other $ 22,115 $ 16,668
Total $ 59,847 $ 58,048
Note 9 Operating and Geographic Segmentation
Note 10 Deposits
We conduct our business through operating segments, each of
which has a distinct market and product mandate. Our Personal and
Commercial Client Group provides financial services to personal
and commercial customers in Canada and the United States; our
Private Client Group provides wealth management services; and
our Investment Banking Group offers corporate, institutional and
government clients comprehensive financial services including
advisory, investment and operating services.
Demand deposits
Payable Payable on
Interest bearing Non-interest bearing after notice a fixed date Total
2000 1999 2000 1999 2000 1999 2000 1999 2000 1999
Deposits by:
Banks $ 189 $ 201 $ 510 $ 493 $ 513 $ 244 $ 22,173 $ 29,460 $ 23,385 $ 30,398
Businesses and governments 5,384 3,140 9,779 8,649 15,356 10,050 38,935 43,620 69,454 65,459
Individuals 2,144 1,827 2,322 1,937 24,797 25,213 34,595 32,040 63,858 61,017
Total $ 7,717 $ 5,168 $ 12,611 $ 11,079 $ 40,666 $ 35,507 $ 95,703 $ 105,120 $ 156,697 $ 156,874
Booked in:
Canada $ 6,900 $ 4,617 $ 8,166 $ 6,440 $ 28,619 $ 25,351 $ 50,261 $ 50,164 $ 93,946 $ 86,572
United States 742 498 4,422 4,620 11,469 9,954 27,549 30,003 44,182 45,075
Other countries 75 53 23 19 578 202 17,893 24,953 18,569 25,227
Total $ 7,717 $ 5,168 $ 12,611 $ 11,079 $ 40,666 $ 35,507 $ 95,703 $ 105,120 $ 156,697 $ 156,874
In addition, Corporate Support provides enterprise-wide services
including overall technology support and risk management.
Information on the revenues, expenses, net income, average assets,
loans and deposits of these operating segments is presented in the
tables on pages 29 to 39 and on page 41 in our Management Analysis
of Operations.