Bank of Montreal 2010 Annual Report Download - page 142

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
Notes
140 BMO Financial Group 193rd Annual Report 2010
The following table presents the average deposit balances and average rates of interest paid during 2010 and 2009:
Average balances Average rate paid (%)
2010 2009 2010 2009
Deposits Booked in Canada
Demand deposits – interest bearing 15,331 13,640 0.24 0.34
Demand deposits – non-interest bearing 19,213 16,383 – –
Payable after notice 45,384 42,480 0.29 0.48
Payable on a fixed date 87,208 89,155 1.88 2.92
Total deposits booked in Canada 167,136 161,658 1.08 1.76
Deposits Booked in the United States and Other Countries
Banks located in the United States and other countries 8,022 9,327 0.98 0.72
Governments and institutions in the United States and other countries 8,862 9,607 0.51 1.08
Other demand deposits 3,114 7,847 0.03 0.02
Other deposits payable after notice or on a fixed date 54,829 64,126 0.78 1.59
Total deposits booked in the United States and other countries 74,827 90,907 0.74 1.31
Total average deposits 241,963 252,565 0.98 1.60
As at October 31, 2010 and 2009, deposits by foreign depositors in our Canadian bank offices amounted to $14,129 million and $14,392 million, respectively.
Deposits
Deposits payable on demand are comprised primarily of our customers’
chequing accounts, some of which we pay interest on. Our customers need
not notify us prior to withdrawing money from their chequing accounts.
Deposits payable after notice are comprised primarily of our
customers’ savings accounts, on which we pay interest.
Deposits payable on a fixed date are comprised of:
• Various investment instruments purchased by our customers to earn
interest over a fixed period, such as term deposits and guaranteed
investment certificates. The terms of these deposits can vary from
one day to 10 years.
• Federal funds purchased, which are overnight borrowings of other
banks’ excess reserve funds at a United States Federal Reserve Bank.
As at October 31, 2010, we had purchased $732 million of federal funds
($1,012 million in 2009).
• Commercial paper, which totalled $1,816 million as at October 31, 2010
($1,303 million in 2009).
Included in our deposits payable on a fixed date as at October 31, 2010
were $116,452 million of deposits, each greater than one hundred
thousand dollars, of which $67,321 million were booked in Canada,
$35,085 million were booked in the United States and $14,046 million
were booked in other countries ($110,832 million, $56,766 million,
Note 15: Deposits
Payable on demand
Payable Payable on
(Canadian $ in mil lions) Interest bearing Non-interest bearing after notice a fixed date Total
2010 2009 2010 2009 2010 2009 2010 2009 2010 2009
Deposits by:
Banks 606 668 388 495 2,346 2,194 16,095 19,616 19,435 22,973
Businesses and governments (1) (2) 9,052 7,376 14,701 12,338 24,949 22,048 82,071 71,976 130,773 113,738
Individuals 6,664 7,082 8,919 7,884 41,494 39,174 41,966 45,305 99,043 99,445
Total (3) 16,322 15,126 24,008 20,717 68,789 63,416 140,132 136,897 249,251 236,156
Booked in:
Canada 15,657 14,619 20,654 18,161 46,996 44,017 90,286 81,949 173,593 158,746
United States 282 276 3,345 2,552 21,274 18,949 35,800 37,645 60,701 59,422
Other countries 383 231 9 4 519 450 14,046 17,303 14,957 17,988
Total 16,322 15,126 24,008 20,717 68,789 63,416 140,132 136,897 249,251 236,156
$36,763 million and $17,303 million, respectively, in 2009). Of the
$67,321 million of deposits booked in Canada, $35,191 million mature
in less than three months, $1,349 million mature in three to six months,
$6,171 million mature in six to 12 months and $24,610 million mature
after 12 months ($56,766 million, $22,770 million, $2,609 million,
$7,091 million and $24,296 million, respectively, in 2009). We have liquid
assets of $143,953 million to support these and other deposit liabilities
($124,108 million in 2009). A portion of these liquid assets have been
pledged (see Note 28).
The following table presents the maturity schedule for our deposit
liabilities.
Contractual Obligations
(Canadian $ in millions) 2010 2009
Within 1 year 102,184 90,896
1 to 2 years 11,780 18,127
2 to 3 years 12,491 13,855
3 to 4 years 2,139 5,356
4 to 5 years 6,000 2,755
Over 5 years (1) 114,657 105,167
Total (2) 249,251 236,156
(1) The over 5 years category includes deposits with no fixed maturity date.
(2) Includes structured notes designated under the fair value option.
(1) The senior deposit notes of $800 million (2009 – $800 million) issued to BMO Subordinated
Notes Trust and $450 million (2009 – $450 million) issued to BMO Capital Trust II are included
in business and government deposits. Please refer to Note 17 and Note 18, respectively,
for further details.
(2) Included in business and government deposits are Covered Bond issuances of €1 billion
maturing in January 2013 and US$2 billion maturing in June 2015, which pay interest
of 4.25% and 2.85%, respectively (2009 – €1 billion maturing in January 2013, 4.25%).
Please refer to Note 9 for further details.
(3) Total deposits payable on a fixed date included $15,844 million and $16,994 million,
respectively, of federal funds purchased, commercial paper issued and other deposit liabilities.
Included in deposits as at October 31, 2010 and 2009 are $92,213 million and $89,777 million,
respectively, of deposits denominated in U.S. dollars, and $5,207 million and $7,271 million,
respectively, of deposits denominated in other foreign currencies.