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Notes
BMO Financial Group 193rd Annual Report 2010 119
Unrealized Gains and Losses
(Canadian $ in millions) Available-for-sale securities 2010 Available-for-sale securities 2009
Gross Gross Gross Gross
Amortized unrealized unrealized Fair Amortized unrealized unrealized Fair
cost gains losses value cost gains losses value
Issued or guaranteed by:
Canadian federal government 14,451 251 1 14,701 17,263 167 71 17,359
Canadian provincial and municipal governments 1,623 74 2 1,695 1,638 50 – 1,688
U.S. federal government 5,440 218 – 5,658 1,136 1 26 1,111
U.S. states, municipalities and agencies 4,182 77 2 4,257 5,993 98 3 6,088
Other governments 10,013 32 3 10,042 8,182 53 6 8,229
Mortgage-backed securities and collateralized
mortgage obligations – Canada (1) 7,945 284 – 8,229 9,331 247 – 9,578
Mortgage-backed securities and collateralized
mortgage obligations – U.S. 652 31 – 683 789 28 – 817
Corporate debt (2) 4,476 130 14 4,592 4,414 184 61 4,537
Corporate equity (2) 662 27 3 686 856 26 32 850
Total 49,444 1,124 25 50,543 49,602 854 199 50,257
(1) These amounts are supported by insured mortgages.
(2) Included in unrealized gains (losses) in 2010 are gains of $9 million in corporate
debt (gains of $60 million in 2009) and gains of $2 million in corporate equity
Unrealized Losses Available-for-sale securities Available-for-sale securities
(Canadian $ in millions) in an unrealized loss position for 2010 in an unrealized loss position for 2009
Less than 12 months 12 months or longer Total Less than 12 months 12 months or longer Total
Gross Gross Gross Gross Gross Gross
unrealized Fair unrealized Fair unrealized Fair unrealized Fair unrealized Fair unrealized Fair
losses value losses value losses value losses value losses value losses value
Issued or guaranteed by:
Canadian federal government 1 326 – – 1 326 65 3,102 6 316 71 3,418
Canadian provincial and municipal
governments 2 253 – – 2 253 – 30 – – – 30
U.S. federal government – 666 – – – 666 12 15 14 2 26 17
U.S. states, municipalities
and agencies
2 340 – 159 2 499 1 510 2 861 3 1,371
Other governments – 1,154 3 3,189 3 4,343 5 1,587 1 309 6 1,896
Mortgage-backed securities
and collateralized mortgage
obligations – Canada (1) – – – – – – – 8 – 2 – 10
Mortgage-backed securities
and collateralized mortgage
obligations – U.S. – 19 – 2 – 21 – – – – – –
Corporate debt 10 717 4 488 14 1,205 27 889 34 880 61 1,769
Corporate equity – – 3 30 3 30 15 38 17 45 32 83
Total 15 3,475 10 3,868 25 7,343 125 6,179 74 2,415 199 8,594
(1) These amounts are supported by insured mortgages.
Income from securities has been included in our consolidated financial statements as follows:
(Canadian $ in millions) 2010 2009 2008
Reported in Consolidated Statement of Income:
Interest, Dividend and Fee Income (1)
Trading securities 1,305 1,424 1,459
Available-for-sale securities 773 933 1,667
Other securities 56 70 65
2,134 2,427 3,191
Non-Interest Revenue
Available-for-sale securities
Gross realized gains 132 148 99
Gross realized losses (5) (69) (106)
Other securities, net realized and unrealized gains (losses) 63 (132) 16
Net impairment write-downs (40) (301) (324)
Securities gains (losses), other than trading (1) 150 (354) (315)
Trading securities, net realized and unrealized gains (losses) (1) (2) 482 609 (718)
Total income from securities 2,766 2,682 2,158
(1) The following income related to our insurance operations was included in non-interest
revenue, insurance income in our Consolidated Statement of Income:
Interest, dividend and fee income of $202 million in 2010, $109 million in 2009 and
$15 million in 2008.
Securities gains (losses), other than trading of $3 million in 2010, $9 million in 2009 and
$nil in 2008.
Trading securities, net realized and unrealized gains (losses) of $306 million in 2010,
$418 million in 2009 and $nil in 2008.
(2) $27 million of net unrealized losses are related to trading securities still held as at
October 31, 2010 ($18 million in 2009 and $nil in 2008).
(losses of $13 million in 2009) related to securities transferred from trading
effective August 1, 2008.
Certain comparative figures have been reclassified to conform with the current year’s presentation.