Bank of Montreal 2008 Annual Report Download - page 49

MD&A
BMO Financial Group 191st Annual Report 2008 | 45
Personal and Commercial Banking
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 2007 Fiscal Fiscal Fiscal from 2007 Fiscal Fiscal Fiscal from 2007
As at or for the year ended October 31 2008 2007 2006 $% 2008 2007 2006 $% 2008 2007 2006 $%
Net interest income (teb) 3,984 3,796 3,680 188 5 3,236 3,066 2,941 170 6 748 730 739 18 3
Non-interest revenue 2,043 1,856 1,805 187 10 1,801 1,678 1,639 123 7 242 178 166 64 36
Total revenue (teb) 6,027 5,652 5,485 375 7 5,037 4,744 4,580 293 6 990 908 905 82 9
Provision for credit losses 384 358 344 26 7 341 323 314 18 6 43 35 30 823
Non-interest expense 3,592 3,337 3,247 255 8 2,790 2,644 2,569 146 6 802 693 678 109 16
Income before income taxes
and non-controlling
interest in subsidiaries 2,051 1,957 1,894 94 5 1,906 1,777 1,697 129 7 145 180 197 (35) (19)
Income taxes (teb) 635 574 617 61 11 586 510 537 76 15 49 64 80 (15) (23)
Net income 1,416 1,383 1,277 33 2 1,320 1,267 1,160 53 4 96 116 117 (20) (17)
Amortization of
intangible assets (after tax) 30 33 31 (3) (10) 2 87(6) (69) 28 25 24 312
Cash net income 1,446 1,416 1,308 30 2 1,322 1,275 1,167 47 4 124 141 141 (17) (12)
Net economic profit 678 692 653 (14) (2)
Return on equity (%) 20.0 20.8 20.9 (0.8)
Cash return on equity (%) 20.4 21.3 21.4 (0.9)
Cash operating leverage (%) (1.1) 0.3 1.0 nm 0.4 0.7 1.7 nm (7.0) (1.7) (2.4) nm
Productivity ratio (teb) (%) 59.6 59.0 59.2 0.6 55.4 55.7 56.1 (0.3) 81.0 76.3 74.9 4.7
Cash productivity ratio (teb) (%) 59.0 58.4 58.5 0.6 55.3 55.6 56.0 (0.3) 77.5 72.8 71.6 4.7
Net interest margin on
earning assets (%) 2.72 2.77 2.82 (0.05) 2.67 2.66 2.66 0.01 3.00 3.37 3.67 (0.37)
Average common equity 6,849 6,461 5,994 388 6
Average earning assets 146,294 136,805 130,576 9,489 7 121,381 115,147 110,433 6,234 5 24,913 21,658 20,143 3,255 15
Average loans and acceptances 144,067 136,907 130,937 7,160 5 122,156 116,033 111,499 6,123 5 21,911 20,874 19,437 1,037 5
Average deposits 66,672 64,752 61,980 1,920 3 47,407 45,966 43,998 1,441 3 19,265 18,786 17,982 479 3
Assets under administration 37,122 33,258 14,978 3,864 12 23,502 14,160 12,741 9,342 66 13,620 19,098 2,237 (5,478) (29)
Full-time equivalent staff 20,697 20,294 19,353 403 2 16,549 16,734 15,825 (185) (1) 4,148 3,560 3,528 588 17
nm –not meaningful
P&C U.S. Selected Financial Data (US$ in millions)
As at or for the year ended October 31
Total revenue 959 833 799 126 15
Non-interest expense 773 634 599 139 22
Net income 95 107 104 (12) (11)
Cash net income 121 130 125 (9) (7)
Average earning assets 24,103 19,855 17,797 4,248 21
Average loans and acceptances 21,203 19,136 17,175 2,067 11
Average deposits 18,657 17,218 15,885 1,439 8
Personal and Commercial Banking net income was $1,416 million in 2008,
up $33 million or 2% 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.