Bank of Montreal 2007 Annual Report Download - page 47

MD&A
Personal and Commercial Banking
BMO Financial Group 190th Annual Report 2007 43
Personal and Commercial Banking (Canadian $ in millions, except as noted)
P&C P&C Canada P&C U.S.
Change Change Change
Fiscal Fiscal Fiscal from 2006 Fiscal Fiscal Fiscal from 2006 Fiscal Fiscal Fiscal from 2006
As at or for the year ended October 31 2007 2006 2005 $% 2007 2006 2005 $% 20072006 2005 $%
Net interest income (teb) 3,795 3,681 3,561 114 3 3,065 2,941 2,829 124 4 730 740 732 (10) (1)
Non-interest revenue 1,856 1,805 1,655 51 3 1,678 1,639 1,490 39 2 178 166 165 12 7
Total revenue (teb) 5,651 5,486 5,216 165 3 4,743 4,580 4,319 163 4 908 906 897 2 –
Provision for credit losses 358 344 299 14 4 323 314 269 93 35 30 30 518
Non-interest expense 3,366 3,278 3,140 88 3 2,670 2,597 2,481 73 3 696 681 659 15 2
Income before income taxes
and non-controlling
interest in subsidiaries 1,927 1,864 1,777 63 3 1,750 1,669 1,569 81 5 177 195 208 (18) (9)
Income taxes (teb) 563 607 577 (44) (7) 500 527 493 (27) (5) 63 80 84 (17) (21)
Net income 1,364 1,257 1,200 107 9 1,250 1,142 1,076 108 9 114 115 124 (1) (1)
Amortization of
intangible assets (after tax) 33 32 35 17 8 810 –– 25 24 25 14
Cash net income 1,397 1,289 1,235 108 8 1,258 1,150 1,086 108 9 139 139 149 ––
Net economic profit 672 633 668 39 6
Cash return on equity (%) 21.0 21.0 23.4 –
Productivity ratio (%) 59.6 59.8 60.2 (0.2) 56.3 56.7 57.5 (0.4) 76.7 75.2 73.4 1.4
Cash productivity ratio (%) 58.9 59.1 59.4 (0.2) 56.1 56.6 57.2 (0.5) 73.2 72.0 70.0 1.2
Net interest margin on
earning assets (%) 2.77 2.82 2.93 (0.05) 2.66 2.66 2.76 – 3.37 3.67 3.81 (0.30)
Average common equity 6,461 5,994 5,191 467 8
Average earning assets 136,805 130,576 121,552 6,229 5 115,147 110,433 102,326 4,714 4 21,658 20,143 19,226 1,515 8
Risk-weighted assets 85,578 89,716 85,011 (4,138) (5) 67,423 69,734 65,642 (2,311) (3) 18,155 19,982 19,369 (1,827) (9)
Average loans and acceptances 136,907 130,937 121,240 5,970 5 116,033 111,499 103,153 4,534 4 20,874 19,437 18,087 1,437 7
Average deposits 64,752 61,980 61,200 2,772 4 45,966 43,998 42,554 1,968 4 18,786 17,982 18,646 804 4
Assets under administration 33,258 14,978 11,415 18,280 +100 14,160 12,741 9,346 1,419 11 19,098 2,237 2,069 16,861 +100
Full-time equivalent staff 20,294 19,353 18,534 941 5 16,734 15,825 15,100 909 6 3,560 3,528 3,434 32 1
P&C U.S. Selected Financial Data (US$ in millions)
As at or for the year ended October 31
Total revenue 833 799 739 34 4
Non-interest expense 637 602 542 35 6
Net income 105 102 104 33
Cash net income 128 123 123 54
Average assets 21,524 19,341 17,352 2,183 11
Average loans and acceptances 19,136 17,175 14,907 1,961 11
Average deposits 17,218 15,885 15,361 1,333 8
Personal and Commercial Banking net income was $1,364 million in 2007,
up $107 million or 9% from a year ago. Personal and Commercial Banking
(P&C) combines our two retail and business banking operating segments,
Personal and Commercial Banking Canada (P&C Canada) and Personal
and Commercial Banking U.S. (P&C U.S.). These operating segments are
reviewed separately in the sections that follow.