Bank of Montreal 2004 Annual Report Download - page 39

BMO Financial Group Annual Report 2004 35
MD&A
Contributions to Revenue, Expenses, Net Income and Average Assets by Operating Group and by Location ($ millions, except as noted)
Personal and Commercial Private Investment Corporate Support, including Total
Client Group Client Group Banking Group Technology and Solutions Consolidated
For the year ended
October 31 2004 2003 2002 2004 2003 2002 2004 2003 2002 2004 2003 2002 2004 2003 2002
Operating Groups Contribution to BMO’s Performance (%)
Revenue 51.1 52.0 51.5 19.2 18.7 18.3 29.5 28.6 28.7 0.2 0.7 1.5 100 100 100
Expenses 50.1 50.5 49.5 24.4 24.7 24.7 23.2 22.5 23.4 2.3 2.3 2.4 100 100 100
Net income 42.7 51.3 57.0 9.8 7.9 5.6 36.4 39.5 42.4 11.1 1.3 (5.0) 100 100 100
Average assets 44.1 41.6 41.2 2.0 2.0 2.2 52.5 54.7 55.0 1.4 1.7 1.6 100 100 100
Total Revenue
Canada 3,964 3,911 3,662 1,280 1,154 1,126 1,388 1,178 875 8(62) (90) 6,640 6,181 5,573
United States 859 829 830 560 575 498 1,306 1,317 1,453 (75) 95 205 2,650 2,816 2,986
Other countries 91 84 70 10 8 – 138 161 218 83 21 12 322 274 300
Total 4,914 4,824 4,562 1,850 1,737 1,624 2,832 2,656 2,546 16 54 127 9,612 9,271 8,859
Total Expenses
Canada 2,445 2,441 2,332 916 868 889 649 638 641 69 45 60 4,079 3,992 3,922
United States 637 632 650 582 635 599 680 637 663 65 85 79 1,964 1,989 1,991
Other countries 222222101 94 109 984114 106 117
Total 3,084 3,075 2,984 1,500 1,505 1,490 1,430 1,369 1,413 143 138 143 6,157 6,087 6,030
Net Income
Canada 815 772 660 239 180 143 455 342 128 184 11 (156) 1,693 1,305 775
United States 114 98 92 (15) (42) (62) 345 290 369 (8) 23 81 436 369 480
Other countries 74 67 55 76 (2) 56 89 104 85 (11) 5 222 151 162
Total 1,003 937 807 231 144 79 856 721 601 261 23 (70) 2,351 1,825 1,417
Average Assets
Canada 100,737 93,561 86,922 1,633 1,512 1,612 78,466 76,415 69,360 (3,530) (4,091) (5,282) 177,306 167,397 152,612
United States 17,908 16,065 14,892 3,684 3,751 3,759 40,001 48,431 51,306 7,165 8,387 9,150 68,758 76,634 79,107
Other countries 444 283 235 929 82 23,224 19,572 15,785 51 51 169 23,728 19,935 16,271
Total 119,089 109,909 102,049 5,326 5,292 5,453 141,691 144,418 136,451 3,686 4,347 4,037 269,792 263,966 247,990
This section includes an analysis of our operating groups
financial results and descriptions of their businesses, visions,
strategies, strengths, challenges, achievements and outlooks.
Personal and Commercial Client Group (P&C) (pages 36 to 41)
Net income was $1,003 million in 2004, an increase of $66 mil-
lion or 7% from 2003.
Private Client Group (PCG) (pages 42 to 44)
Net income was $231 million in 2004, an increase of $87 mil-
lion or 60% from 2003.
The basis of allocating results geographically and among
operating groups is outlined in Note 23 in page 116 of the
financial statements.
Net Income
by Operating Group
Corporate
Support 11.1%
P&C 42.7%
PCG 9.8%
IBG 36.4%
2004
Corporate
Support 1.3%
P&C 51.3%
PCG 7.9%
IBG 39.5%
2003
Net Income
by Country
U.S. 18.5%
Canada
72.0%
2004
2003
Other
countries
8.3%
U.S. 20.2%
Canada
71.5%
Other
countries
9.5%
Corporate Support benefited from very
favourable credit provisions in 2004.
Net income rose comparably in
Canada and the United States.
William A. Downe
Deputy Chair, BMO Financial Group
Chief Executive Officer, BMO Nesbitt Burns
and Head, Investment Banking Group
Investment Banking Group (IBG) (pages 45 to 47)
Net income was $856 million in 2004, an increase of $135 mil-
lion or 19% from 2003.
Corporate Support, including Technology and Solutions
(pages 48 to 49)
Net income was $261 million in 2004, compared with net
income of $23 million in 2003.
2004 Review of Operating Groups Performance