Bank of Montreal 2010 Annual Report Download - page 123

Notes
BMO Financial Group 193rd Annual Report 2010 121
Loans, including customers’ liability under acceptances and allowance for credit losses, by category are as follows:
Credit card, consumer
Residential instalment and other Business and Customers’ liability
(Canadian $ in millions) mortgages personal loans government loans under acceptances Total
As at October 31 2010 2009 2008 2010 2009 2008 2010 2009 2008 2010 2009 2008 2010 2009 2008
Gross loan balances
at end of year 48,715 45,524 49,343 54,467 48,398 45,857 68,338 68,169 84,151 7,001 7,640 9,358 178,521 169,731 188,709
Specific allowance
at beginning of year 33 13 14 51 2 1 507 411 142 5 – – 596 426 157
Provision for credit losses 27 26 5 603 624 332 414 888 733 5 5 – 1,049 1,543 1,070
Recoveries – – – 137 104 91 46 41 23 – – – 183 145 114
Write-offs (8) (6) (6) (744) (679) (422) (464) (807) (542) – – – (1,216) (1,492) (970)
Foreign exchange
and other – – – – – – (22) (26) 55 – – – (22) (26) 55
Specific allowance
at end of year 52 33 13 47 51 2 481 507 411 10 5 – 590 596 426
General allowance
at beginning of year 18 8 11 266 242 327 968 1,030 517 54 41 43 1,306 1,321 898
Provision for credit losses 4 10 (3) 49 24 (85) (43) 13 350 (10) 13 (2) – 60 260
Foreign exchange
and other – – – 25 – – (34) (75) 163 – – – (9) (75) 163
General allowance
at end of year 22 18 8 340 266 242 891 968 1,030 44 54 41 1,297 1,306 1,321
Total allowance 74 51 21 387 317 244 1,372 1,475 1,441 54 59 41 1,887 1,902 1,747
Allowance for other
credit instruments (1) – – – – – – 9 – – – – – 9 – –
Total allowance excluding
other credit instruments 74 51 21 387 317 244 1,363 1,475 1,441 54 59 41 1,878 1,902 1,747
Net loan balances
at end of year 48,641 45,473 49,322 54,080 48,081 45,613 66,975 66,694 82,710 6,947 7,581 9,317 176,643 167,829 186,962
(1) The allowance related to Other Credit Instruments is included in Other Liabilities.
Restructured loans of $53 million were classified as performing during the year ended
October 31, 2010 ($9 million in 2009 and $3 million in 2008). Restructured loans of $1 million
were written off during the year ended October 31, 2010 ($nil in 2009 and 2008).
Loans, including customers’ liability under acceptances and allowance for credit losses, by geographic region are as follows:
(Canadian $ in millions) Gross amount Specific allowance (2) General allowance Net amount
2010 2009 2010 2009 2010 2009 2010 2009
By geographic region (1):
Canada 134,569 121,089 257 241 595 589 133,717 120,259
United States 34,664 38,491 282 294 702 717 33,680 37,480
Other countries 9,288 10,151 42 61 – – 9,246 10,090
Total 178,521 169,731 581 596 1,297 1,306 176,643 167,829
(1) Geographic region is based upon the country of ultimate risk. (2)
2010 excludes allowance for Other Credit Instruments, which is included in Other Liabilities .
Impaired loans and acceptances, including the related allowances, are as follows:
(Canadian $ in millions) Gross impaired amount Specific allowance (2) Net of specific allowance
2010 2009 2010 2009 2010 2009
Residential mortgages 279 269 52 33 227 236
Consumer instalment and other personal loans 457 342 47 51 410 291
Business and government loans 2,485 2,686 482 512 2,003 2,174
Total 3,221 3,297 581 596 2,640 2,701
By geographic region (1):
Canada 952 950 257 241 695 709
United States 2,187 2,161 282 294 1,905 1,867
Other countries 82 186 42 61 40 125
Total 3,221 3,297 581 596 2,640 2,701
(1) Geographic region is based upon the country of ultimate risk.
(2)
2010 excludes allowance for Other Credit Instruments, which is included in Other Liabilities .
Foreclosed Assets
Property or other assets that we have received from borrowers to satisfy
their loan commitments are recorded at fair value and are classified as
either held for use or held for sale according to management’s intention.
Fair value is determined based on market prices where available.
Included in loans as at October 31, 2010 are $46,738 million ($49,508 million and $66,081 million in 2009
and 2008) of loans denominated in U.S. dollars and $1,469 million ($1,945 million and $2,608 million in
2009 and 2008) of loans denominated in other foreign currencies.
Otherwise, fair value is determined using other methods, such as
analysis of discounted cash flows or market prices for similar assets.
During the year ended October 31, 2010, we foreclosed on
impaired loans and received $124 million in real estate properties that
we classified as held for sale ($70 million in 2009). These properties
are disposed of when market conditions are favourable.
Fully secured loans with past due amounts between 90 and 180 days that we have not classified
as impaired totalled $154 million and $187 million as at October 31, 2010 and 2009, respectively.