Bank of Montreal 2008 Annual Report Download - page 111

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For the Year Ended October 31 (Canadian $ in millions) 2008 2007 2006
Cash Flows from Operating Activities
Net income $ 1,978 $ 2,131 $ 2,663
Adjustments to determine net cash flows provided by (used in) operating activities
Write-down of securities, other than trading 324 18 9
Net (gain) on securities, other than trading (9) (264) (154)
Net (increase) decrease in trading securities 8,275 (23,028) (8,565)
Provision for credit losses 1,330 353 176
(Gain) on sale of securitized loans (Note 8) (420) (202) (69)
Change in derivative instruments –(Increase) decrease in derivative asset (29,370) (4,991) 356
–Increase in derivative liability 20,645 5,807 3,328
Amortization of premises and equipment (Note 11) 393 390 360
Amortization of intangible assets 42 46 44
Net (increase) in future income taxes (157) (176) (153)
Net increase (decrease) in current income taxes (314) (800) 144
Change in accrued interest –(Increase) decrease in interest receivable 303 (129) (468)
–Increase (decrease) in interest payable (351) 537 303
Changes in other items and accruals, net 1,590 (1,243) 1,084
(Gain) on sale of land and buildings (Note 11) (13) (6) –
Net Cash Provided by (Used in) Operating Activities 4,246 (21,557) (942)
Cash Flows from Financing Activities
Net increase (decrease) in deposits (1,412) 45,222 13,108
Net increase (decrease) in securities sold but not yet purchased (7,251) 10,328 (708)
Net increase (decrease) in securities lent or sold under repurchase agreements (3,731) 2,325 9,987
Net increase (decrease) in liabilities of subsidiaries 2,045 335 (94)
Repayment of subordinated debt (Note 18) (150) (483) (425)
Proceeds from issuance of subordinated debt (Note 18) 900 1,200 700
Redemption of preferred share liability (Note 21) –(200) –
Proceeds from issuance of preferred shares (Note 21) 550 600 –
Proceeds from issuance of common shares 182 245 258
Share issue expense (10) (14) –
Common shares repurchased for cancellation (Note 21) –(524) (376)
Dividends paid (1,483) (1,396) (1,163)
Net Cash Provided by (Used in) Financing Activities (10,360) 57,638 21,287
Cash Flows from Investing Activities
Net (increase) decrease in interest bearing deposits with banks 10,077 (5,709) 901
Purchases of securities, other than trading (26,423) (50,366) (20,433)
Maturities of securities, other than trading 16,984 24,635 9,494
Proceeds from sales of securities, other than trading 8,268 11,824 7,920
Net (increase) in loans and loan substitute securities (23,387) (9,265) (18,868)
Proceeds from securitization of loans (Note 8) 11,448 3,330 4,994
Net (increase) decrease in securities borrowed or purchased under resale agreements 14,665 (8,280) (3,723)
Proceeds from sales of land and buildings (Note 11) 19 45 –
Premises and equipment –net purchases (449) (405) (519)
Acquisitions (Note 12) (155) (301) (70)
Net Cash Provided by (Used in) Investing Activities 11,047 (34,492) (20,304)
Effect of Exchange Rate Changes on Cash and Cash Equivalents 551 (397) 5
Net Increase in Cash and Cash Equivalents 5,484 1,192 46
Cash and Cash Equivalents at Beginning of Year 3,650 2,458 2,412
Cash and Cash Equivalents at End of Year $ 9,134 $ 3,650 $ 2,458
Represented by:
Cash and non-interest bearing deposits with Bank of Canada and other banks $ 6,936 $ 2,264 $ 1,154
Cheques and other items in transit, net 2,198 1,386 1,304
$ 9,134 $ 3,650 $ 2,458
Supplemental Disclosure of Cash Flow Information
Amount of interest paid in the year $ 9,900 $ 10,543 $ 7,873
Amount of income taxes paid in the year $ 456 $ 940 $ 630
The accompanying notes are an integral part of these consolidated financial statements.
Certain comparative figures have been reclassified to conform with the current year’s presentation.
Consolidated Statement of Cash Flows
Consolidated Financial Statements
BMO Financial Group 191st Annual Report 2008 | 107