Bank of Montreal 2003 Annual Report Download - page 69

BMO Financial Group 186th Annual Report 2003 65
Table 20 Risk-Weighted Assets ($ millions, except as noted)
As at October 31 2003 2002
Credit Risk Risk- Risk-
risk weighting weighted weighted
Balance equivalent % balance balance
Balance sheet items
Cash resources 19,860 19,860 0–20 3,675 3,689
Securities 54,790 54,790 0–100 5,024 6,771
Mortgages 56,513 56,513 0–100 17,355 15,300
Other loans and acceptances 89,643 89,643 0–100 67,086 71,268
Other assets 35,688 35,688 0–100 8,997 7,534
Total balance sheet items 256,494 256,494 102,137 104,562
Off-balance sheet items
Guarantees and standby letters of credit 11,170 8,849 0–100 7,666 8,251
Securities lending 553 48 0–100 37 38
Documentary and commercial letters of credit 714 143 0–100 74 84
Commitments to extend credit:
Original maturity of one year and under 67,200 0 –
Original maturity of over one year 21,655 10,828 0–100 10,596 9,787
Derivative financial instruments 1,846,303 18,991 0–50 5,503 5,994
Total off-balance sheet items 1,947,595 38,859 23,876 24,154
Total risk-weighted assets – credit risk 126,013 128,716
Total risk-weighted assets – market risk 3,150 2,362
Total risk-weighted assets 129,163 131,078
Total risk-weighted assets – U.S. basis 130,140 132,730
Table 21 Capital Adequacy ($ millions, except as noted)
As at October 31 2003 2002 2001 2000 1999 1998 1997 1996 1995 1994
Tier 1 – Common shareholders’ equity 11,036 10,377 9,632 10,260 9,313 8,650 7,629 6,729 6,174 5,678
Non-cumulative preferred shares 1,446 1,517 1,050 1,681 1,668 1,958 1,274 857 858 860
Innovative Tier 1 preferred shares 1,150 1,150 1,150 350 ––––––
Non-controlling interest in subsidiaries 39 32 32 20 27 40 80 101 121 144
Goodwill and excess intangible assets (a) (1,334) (1,547) (798) (447) (430) (494) (521) (557) (411) (450)
Tier 1 Capital 12,337 11,529 11,066 11,864 10,578 10,154 8,462 7,130 6,742 6,232
Tier 2 – Subsidiary preferred shares (b) 320 377 397 –––––––
Subordinated debt 1,981 3,171 4,133 4,550 4,522 4,670 3,582 3,179 2,268 1,999
General allowance for credit losses (c) 1,130 1,147 1,180 1,007 970 873 775 –––
Tier 2 Capital 3,431 4,695 5,710 5,557 5,492 5,543 4,357 3,179 2,268 1,999
First loss protection (149) (192) (325) (511) (315) (323) (113) na na na
Investment in non-consolidated
subsidiaries/substantial investments ––– (821) (1,010) (858) (697) (625) ––
Total capital 15,619 16,032 16,451 16,089 14,745 14,516 12,009 9,684 9,010 8,231
Risk-weighted assets 129,163 131,078 135,768 134,360 136,964 139,782 124,348 106,267 96,075 86,589
Risk-weighted capital ratios (%)
Tier 1 capital ratio 9.55 8.80 8.15 8.83 7.72 7.26 6.80 6.71 7.02 7.20
Total capital ratio 12.09 12.23 12.12 11.97 10.77 10.38 9.66 9.11 9.38 9.51
U.S. basis Tier 1 capital ratio 9.17 8.32 7.87 8.47 7.42 6.95 6.35 6.26 6.82 6.91
U.S. basis total capital ratio 11.60 11.60 11.69 12.50 11.34 10.86 9.92 9.81 9.97 10.07
Assets-to-capital multiple 16.4 15.8 14.2 14.8 16.3 16.0 18.0 19.0 17.6 17.7
Equity-to-assets ratio (%) 5.5 5.3 5.1 5.4 4.9 5.0 4.4 4.6 4.7 4.8
(a) In addition to goodwill, intangible assets in excess of gross Tier 1 capital are deducted from Tier 1
capital as required by OSFI guidelines.
(b) Reflects the qualification of existing preferred shares of a subsidiary as Tier 2 capital.
(c)
General allowance included with the approval of OSFI beginning in 1997. OSFI approved the inclusion
of the lesser of the balance of our general allowance for credit losses and a percentage of risk-
weighted assets (0.875% since 2002).
na – not applicable