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Supplemental Information
BMO Financial Group 191st Annual Report 2008 | 93
Table 8: Non-Interest Expense and Expense-to-Revenue Ratio ($ millions, except as noted)
5-year 10-year
For the year ended October 31 2008 2007 2006 2005 2004 CAGR CAGR
Non-Interest Expense
Employee compensation
Salaries 2,149 1,964 1,903 1,903 1,901 1.7 (1)
Performance-based compensation 1,297 1,275 1,322 1,277 1,160 4.2 (1)
Employee benefits 530 586 599 571 583 (0.4) 10.0
Total employee compensation 3,976 3,825 3,824 3,751 3,644 2.1 4.4
Premises and equipment
Rental of real estate 279 257 246 198 182 10.0 6.6
Premises, furniture and fixtures 255 242 230 253 263 (1.2) –
Property taxes 29 28 26 45 52 (11.3) (5.6)
Computers and equipment 819 776 709 768 755 1.3 4.7
Total premises and equipment 1,382 1,303 1,211 1,264 1,252 1.8 3.6
Other expenses
Communications 202 149 131 122 138 4.5 (2.7)
Business and capital taxes 42 47 94 107 99 (17.0) (11.0)
Professional fees 384 301 287 243 262 8.5 1.8
Travel and business development 328 287 253 247 239 7.9 3.4
Other 546 484 509 504 431 6.5 7.5
Total other expenses 1,502 1,268 1,274 1,223 1,169 5.5 2.1
Amortization of intangible assets 42 46 44 94 104 (16.7) 5.7
Restructuring charge (reversal) (8) 159 – – – nm nm
Total Non-Interest Expense 6,894 6,601 6,353 6,332 6,169 2.5 3.7
Year-over-year growth (%) 4.4 3.9 0.3 2.6 1.4 na na
Non-interest expense-to-revenue ratio (%) 67.6 70.6 63.6 64.4 66.0 na na
Government Levies and Tax Expense (Recovery) (2)
Government levies other than income taxes
Payroll levies 164 165 162 152 163 1.0 2.5
Property taxes 29 28 26 45 52 (11.3) (5.6)
Provincial capital taxes 32 37 86 100 91 (20.4) (12.4)
Business taxes 10 108788.5 (3.2)
Goods and services tax and sales tax 142 122 128 127 149 (2.1) 1.3
Total government levies other than income tax expense (recovery) 377 362 410 431 463 (4.5) (1.5)
Provision for (recovery of) income taxes reported in:
Statement of income (71) 189 717 874 971 (164.1) (21.6)
Statement of changes in shareholders’ equity (737) 471 156 101 246 nm nm
Total income tax (recovery) (808) 660 873 975 1,217 (191.6) 3.6
Total Net Government Levies and Taxes (Recovery) (431) 1,022 1,283 1,406 1,680 (175.8) (8.1)
Total net government levies and tax expense (recovery)
as a % of net income before taxes and government levies (26.7) 38.1 33.9 38.0 45.0 na na
Effective income tax rate (3.6) 7.9 20.7 26.3 29.5 na na
(1) Salaries and performance-based compensation were not separately reported in 1998. Together, they have increased at a 10-year compound annual growth rate of 3.8%.
(2) Government levies are included in various non-interest expense categories.
na –not applicable
nm –not meaningful