Bank of Montreal 2015 Annual Report Download - page 126

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Consolidated Financial Statements
Consolidated Statement of Cash Flows
For the Year Ended October 31 (Canadian $ in millions) 2015 2014 2013
Cash Flows from Operating Activities
Net Income $ 4,405 $ 4,333 $ 4,195
Adjustments to determine net cash flows provided by (used in) operating activities
Impairment write-down of securities, other than trading (Note 3) 12 817
Net (gain) on securities, other than trading (Note 3) (183) (170) (302)
Net (increase) decrease in trading securities 15,613 (8,470) (4,392)
Provision for credit losses (Note 4) 612 561 587
Change in derivative instruments – (Increase) decrease in derivative asset (6,178) (2,822) 20,240
– Increase (decrease) in derivative liability 9,320 1,402 (19,195)
Amortization of premises and equipment (Note 9) 378 365 348
Amortization of intangible assets (Note 11) 411 382 346
Net decrease in deferred income tax asset 226 241 203
Net increase (decrease) in deferred income tax liability 76 (42) (65)
Net decrease in current income tax asset 298 546 389
Net increase (decrease) in current income tax liability (141) (226) 21
Change in accrued interest – (Increase) decrease in interest receivable 53 (36) 122
– Increase (decrease) in interest payable (113) 160 (129)
Changes in other items and accruals, net 4,791 4,094 (364)
Net increase in deposits 7,967 9,814 35,739
Net (increase) in loans (15,600) (15,207) (21,665)
Net increase (decrease) in securities sold but not yet purchased (7,049) 4,429 (1,221)
Net increase (decrease) in securities lent or sold under repurchase agreements (4,625) 9,073 (12,090)
Net (increase) decrease in securities borrowed or purchased under resale agreements (7,940) (11,362) 8,660
Net Cash Provided by (Used in) Operating Activities 2,333 (2,927) 11,444
Cash Flows from Financing Activities
Net (decrease) in liabilities of subsidiaries (390) (48) (397)
Proceeds from issuance (maturities) of Covered Bonds (Note 13) 4,103 (406) (1,354)
Proceeds from issuance (repayment) of subordinated debt (Note 15) (500) 1,000 –
Proceeds from issuance of preferred shares (Note 17) 950 1,200 –
Redemption of preferred shares (Note 17) (753) (425) (200)
Redemption of securities of a subsidiary (Note 17) –– (359)
Redemption of capital trust securities (Note 16) (600) ––
Share issue expense (5) (16) –
Proceeds from issuance of common shares (Note 17) 51 133 122
Common shares repurchased for cancellation (Note 17) (618) – (675)
Cash dividends paid (2,135) (1,851) (1,896)
Cash dividends paid to non-controlling interest (37) (52) (73)
Net Cash Provided by (Used in) Financing Activities 66 (465) (4,832)
Cash Flows from Investing Activities
Net (increase) decrease in interest bearing deposits with banks (461) 519 302
Purchases of securities, other than trading (16,996) (24,674) (32,007)
Maturities of securities, other than trading 5,267 11,698 13,233
Proceeds from sales of securities, other than trading 16,740 17,184 17,288
Premises and equipment – net (purchases) (179) (355) (361)
Purchased and developed software – net (purchases) (345) (382) (254)
Acquisitions (Note 10) –(956) 140
Net Cash Provided by (Used in) Investing Activities 4,026 3,034 (1,659)
Effect of Exchange Rate Changes on Cash and Cash Equivalents 5,484 2,396 1,480
Net increase in Cash and Cash Equivalents 11,909 2,038 6,433
Cash and Cash Equivalents at Beginning of Year 28,386 26,348 19,915
Cash and Cash Equivalents at End of Year $ 40,295 $ 28,386 $ 26,348
Represented by:
Cash and deposits with banks (Note 2) $ 38,818 $ 27,056 $ 24,938
Cheques and other items in transit, net (Note 2) 1,477 1,330 1,410
$ 40,295 $ 28,386 $ 26,348
Supplemental Disclosure of Cash Flow Information
Net cash provided by operating activities includes:
Amount of interest paid in the year $ 4,476 $ 4,407 $ 4,708
Amount of income taxes paid in the year $ 641 $ 264 $ 577
Amount of interest and dividend income received in the year $ 13,306 $ 12,849 $ 13,283
The accompanying notes are an integral part of these consolidated financial statements.
Certain comparative figures have been reclassified to conform with the current year’s presentation.
BMO Financial Group 198th Annual Report 2015 139