Bank of Montreal 2003 Annual Report Download - page 77

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BMO Financial Group 186th Annual Report 2003 73
For the Year Ended October 31 (Canadian $ in millions) 2003 2002 2001
Cash Flows from Operating Activities
Net income $ 1,825 $ 1,417 $ 1,471
Adjustments to determine net cash flows provided by (used in) operating activities
Write-down of investment securities 153 322 284
Net (gain) on sale of investment securities (112) (176) (407)
Net (increase) decrease in trading securities (12,692) (6,227) 5,794
Provision for credit losses 455 820 980
Gain on sale of securitized loans (157) (168) (82)
Change in derivative financial instruments
(Increase) decrease in derivative asset 892 1,207 (9,318)
Increase (decrease) in derivative liability (1,380) (1,551) 10,304
Amortization of premises and equipment 375 396 406
Amortization of intangible assets 116 100 56
Amortization of goodwill (Note 12)
––
62
Future income tax expense (benefit) (37) 283 (180)
Net increase (decrease) in current income taxes 401 (256) 98
Change in accrued interest
Decrease in interest receivable 87 256 512
Decrease in interest payable (141) (189) (250)
Changes in other items and accruals, net 1,229 (1,366) 233
Net Cash Provided by (Used in) Operating Activities (8,986) (5,132) 9,963
Cash Flows from Financing Activities
Net increase (decrease) in deposits 9,713 7,548 (3,793)
Net increase (decrease) in securities sold but not yet purchased 601 1,045 (2,744)
Net increase (decrease) in securities sold under repurchase agreements (1,031) 7,316 (2,499)
Net decrease in liabilities of subsidiaries (157) (1,313) (15)
Proceeds from issuance of securities of a subsidiary
––
800
Repayment of subordinated debt (752) (850) (300)
Redemption of preferred shares
––
(633)
Proceeds from issuance of preferred shares
–
478
–
Proceeds from issuance of common shares 175 81 149
Share issue expense, net of applicable income tax
–
(7)
–
Common shares repurchased for cancellation (12)
–
(2,031)
Dividends paid (748) (668) (648)
Net Cash Provided by (Used in) Financing Activities 7,789 13,630 (11,714)
Cash Flows from Investing Activities
Net (increase) decrease in interest bearing deposits with banks (1,741) (1,407) 2,308
Purchase of investment securities (29,348) (37,437) (35,979)
Maturities of investment securities 18,999 27,444 25,955
Proceeds from sales of investment securities 9,298 9,928 13,838
Net (increase) decrease in loans, customers’ liability under acceptances and loan substitute securities 760 (5,303) (6,000)
Proceeds from securitization of loans
–
519 2,234
Net (increase) decrease in securities purchased under resale agreements 2,388 (710) 1,354
Proceeds from sale of land (Note 10)
–
122
–
Premises and equipment
–
net purchases (254) (384) (399)
Acquisitions (Note 11) (91) (1,028) (245)
Net Cash Provided by (Used in) Investing Activities 11 (8,256) 3,066
Net Increase (Decrease) in Cash and Cash Equivalents (1,186) 242 1,315
Cash and Cash Equivalents at Beginning of Year 3,701 3,459 2,144
Cash and Cash Equivalents at End of Year $ 2,515 $ 3,701 $ 3,459
Represented by:
Cash and non-interest bearing deposits with Bank of Canada and other banks $ 1,693 $ 1,257 $ 2,066
Cheques and other items in transit, net 822 2,444 1,393
$ 2,515 $ 3,701 $ 3,459
Supplemental Disclosure of Cash Flow Information
Amount of interest paid in the year $ 4,169 $ 4,495 $ 8,751
Amount of income taxes paid in the year $ 324 $ 393 $ 405
The accompanying notes to consolidated financial statements are an integral part of this statement.
Certain comparative figures have been reclassified to conform with the current year’s presentation.
Consolidated Statement of Cash Flow