Bank of Montreal 2010 Annual Report Download - page 46

Download and view the complete annual report

Please find page 46 of the 2010 Bank of Montreal annual report below. You can navigate through the pages in the report by either clicking on the pages listed below, or by using the keyword search tool below to find specific information within the annual report.

Page out of 176

  • 1
  • 2
  • 3
  • 4
  • 5
  • 6
  • 7
  • 8
  • 9
  • 10
  • 11
  • 12
  • 13
  • 14
  • 15
  • 16
  • 17
  • 18
  • 19
  • 20
  • 21
  • 22
  • 23
  • 24
  • 25
  • 26
  • 27
  • 28
  • 29
  • 30
  • 31
  • 32
  • 33
  • 34
  • 35
  • 36
  • 37
  • 38
  • 39
  • 40
  • 41
  • 42
  • 43
  • 44
  • 45
  • 46
  • 47
  • 48
  • 49
  • 50
  • 51
  • 52
  • 53
  • 54
  • 55
  • 56
  • 57
  • 58
  • 59
  • 60
  • 61
  • 62
  • 63
  • 64
  • 65
  • 66
  • 67
  • 68
  • 69
  • 70
  • 71
  • 72
  • 73
  • 74
  • 75
  • 76
  • 77
  • 78
  • 79
  • 80
  • 81
  • 82
  • 83
  • 84
  • 85
  • 86
  • 87
  • 88
  • 89
  • 90
  • 91
  • 92
  • 93
  • 94
  • 95
  • 96
  • 97
  • 98
  • 99
  • 100
  • 101
  • 102
  • 103
  • 104
  • 105
  • 106
  • 107
  • 108
  • 109
  • 110
  • 111
  • 112
  • 113
  • 114
  • 115
  • 116
  • 117
  • 118
  • 119
  • 120
  • 121
  • 122
  • 123
  • 124
  • 125
  • 126
  • 127
  • 128
  • 129
  • 130
  • 131
  • 132
  • 133
  • 134
  • 135
  • 136
  • 137
  • 138
  • 139
  • 140
  • 141
  • 142
  • 143
  • 144
  • 145
  • 146
  • 147
  • 148
  • 149
  • 150
  • 151
  • 152
  • 153
  • 154
  • 155
  • 156
  • 157
  • 158
  • 159
  • 160
  • 161
  • 162
  • 163
  • 164
  • 165
  • 166
  • 167
  • 168
  • 169
  • 170
  • 171
  • 172
  • 173
  • 174
  • 175
  • 176

MANAGEMENT’S DISCUSSION AND ANALYSIS
MD&A
Personal and Commercial Banking (Canadian $ in millions, except as noted)
P&C Canada P&C U.S. P&C
Change Change Change
Fiscal Fiscal Fiscal from 2009 Fiscal Fiscal Fiscal from 2009 Fiscal Fiscal Fiscal from 2009
As at or for the year ended October 31 2010 2009 2008 $ % 2010 2009 2008 $ % 2010 2009 2008 $ %
Net interest income (teb) 4,164 3,811 3,428 353 9 1,092 1,220 997 (128) (11) 5,256 5,031 4,425 225 4
Non-interest revenue 1,666 1,476 1,366 190 13 332 348 345 (16) (4) 1,998 1,824 1,711 174 10
Total revenue (teb) 5,830 5,287 4,794 543 10 1,424 1,568 1,342 (144) (9) 7,254 6,855 6,136 399 6
Provision for credit losses 502 387 341 115 30 124 92 63 32 35 626 479 404 147 31
Non-interest expense 2,978 2,837 2,733 141 5 1,032 1,042 915 (10) (1) 4,010 3,879 3,648 131 3
Income before income taxes 2,350 2,063 1,720 287 14 268 434 364 (166) (38) 2,618 2,497 2,084 121 5
Income taxes (teb) 706 648 567 58 9 93 148 122 (55) (37) 799 796 689 3 –
Net income 1,644 1,415 1,153 229 16 175 286 242 (111) (39) 1,819 1,701 1,395 118 7
Amortization of acquisition-related
intangible assets (after tax) 5 4 3 1 25 20 28 27 (8) (29) 25 32 30 (7) (22)
Cash net income 1,649 1,419 1,156 230 16 195 314 269 (119) (38) 1,844 1,733 1,425 111 6
Net economic profit 1,117 953 739 164 17
Return on equity (%) 27.6 23.6 22.3 4.0
Cash return on equity (teb) (%) 28.0 24.1 22.8 3.9
Cash operating leverage (%) 5.4 6.6 (2.0) nm (9.3) 2.3 (7.0) nm 2.2 5.4 (3.1) nm
Productivity ratio (teb) (%) 51.1 53.7 57.0 (2.6) 72.5 66.5 68.1 6.0 55.3 56.6 59.5 (1.3)
Cash productivity ratio (teb) (%) 51.0 53.6 57.0 (2.6) 70.8 64.3 65.6 6.5 54.9 56.0 58.9 (1.1)
Net interest margin on
earning assets
(%) 2.95 2.82 2.63 0.13 3.62 3.13 2.89 0.49 3.07 2.89 2.69 0.18
Average common equity 6,404 6,975 6,002 (571) (8)
Average earning assets 141,069 134,985 130,165 6,084 5 30,149 38,933 34,490 (8,784) (23) 171,218 173,918 164,655 (2,700) (2)
Average loans and acceptances 143,034 136,698 131,591 6,336 5 25,737 33,646 30,529 (7,909) (24) 168,771 170,344 162,120 (1,573) (1)
Average deposits 98,945 95,953 86,122 2,992 3 26,178 29,726 22,298 (3,548) (12) 125,123 125,679 108,420 (556) –
Assets under administration 22,740 24,513 23,502 (1,810) (7) 55,957 47,375 65,027 8,582 18 78,697 71,888 88,529 6,772 9
Assets under management – – – – – 805 – – 805 nm 805 – – 805 nm
Full-time equivalent employees 16,377 15,950 16,493 427 3 4,460 3,932 4,386 528 13 20,837 19,882 20,879 955 5
nm – not meaningful
P&C U.S. Selected Financial Data (US$ in millions)
As at or for the year ended October 31
Total revenue (teb) 1,367 1,342 1,301 25 2
Non-interest expense 991 895 883 96 11
Net income 168 243 236 (75) (31)
Cash net income 186 266 263 (80) (30)
Average earning assets 28,910 33,289 33,319 (4,379) (13)
Average loans and acceptances 24,679 28,754 29,492 (4,075) (14)
Average deposits 25,112 25,388 21,591 (276) (1)
44 BMO Financial Group 193rd Annual Report 2010