Bank of Montreal 2004 Annual Report Download - page 109

BMO Financial Group Annual Report 2004 105
Notes
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
customers’ savings accounts, on which we pay interest.
Deposits payable on a fixed date are comprised primarily
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.
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, 2004, we had purchased
$3,165 million of federal funds ($4,481 million in 2003).
Deposits include commercial paper totalling $335 million as
at October 31, 2004 ($179 million in 2003).
Included in our deposits payable on a fixed date as at
October 31, 2004 were $73,273 million of individual deposits
greater than one hundred thousand dollars, of which $41,453 mil-
lion were booked in Canada and $31,820 million were booked
outside Canada. We had $73,532 million of such deposits as at
October 31, 2003, of which $40,687 million were booked in Canada
and $32,845 million were booked outside Canada. Of these
deposits booked in Canada as at October 31, 2004, the amount
maturing within three months was $26,592 million, between three
and six months was $1,309 million, between six and 12 months
was $2,491 million and over 12 months was $11,061 million. As at
October 31, 2003, the amount maturing within three months was
$27,356 million, between three and six months was $1,996 million,
between six and 12 months was $3,208 million and over
12 months was $8,127 million.
(Canadian $ in millions) 2004 2003
Acceptances $ 5,355 $ 5,611
Securities sold but not yet purchased 10,441 8,255
Securities sold under repurchase agreements 20,865 23,765
$ 36,661 $ 37,631
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 instruments mature. The amount due
under acceptances is recorded as a liability and our corresponding
claim is recorded as a loan 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 obligations are recorded in interest,
dividend and fee income – securities, in our Consolidated State-
ment 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 simultaneously commit to repurchase the same securities
at a specified price on a specified date in the future. The obligation
to repurchase these securities is recorded at the amount owing.
The interest expense related to these liabilities is recorded on an
accrual basis.
Note 15 Other Liabilities
Demand deposits
Payable Payable on
(Canadian $ in millions) Interest bearing Non-interest bearing after notice a fixed date Total
2004 2003 2004 2003 2004 2003 2004 2003 2004 2003
Deposits by:
Banks $ 356 $ 299 $ 408 $ 410 $ 329 $ 93 $ 19,561 $ 23,953 $ 20,654 $ 24,755
Businesses and governments 5,570 5,422 10,380 9,536 18,621 17,288 45,043 40,159 79,614 72,405
Individuals 3,495 2,512 4,189 3,728 33,797 32,641 33,441 35,510 74,922 74,391
Total $ 9,421 $ 8,233 $ 14,977 $ 13,674 $ 52,747 $ 50,022 $ 98,045 $ 99,622 $ 175,190 $ 171,551
Booked in:
Canada $ 7,947 $ 7,442 $ 10,894 $ 10,187 $ 37,182 $ 34,449 $ 63,876 $ 63,656 $ 119,899 $ 115,734
United States 1,408 696 4,072 3,481 14,798 15,042 18,039 18,732 38,317 37,951
Other countries 66 95 11 6767 531 16,130 17,234 16,974 17,866
Total $ 9,421 $ 8,233 $ 14,977 $ 13,674 $ 52,747 $ 50,022 $ 98,045 $ 99,622 $ 175,190 $ 171,551
Included in deposits as at October 31, 2004 are $61,982 million ($61,748 million in 2003) of deposits denominated in U.S. dollars and $6,761 million ($9,764 million in 2003) of deposits denominated in other
foreign
currencies.
Note 14 Deposits