Bank of Montreal 2015 Annual Report Download - page 182

Notes
Inter-Group Allocations
Various estimates and allocation methodologies are used in the preparation of the operating groups’ financial information. We allocate expenses
directly related to earning revenue to the groups that earned the related revenue. Expenses not directly related to earning revenue, such as overhead
expenses, are allocated to operating groups using allocation formulas applied on a consistent basis. Operating group net interest income reflects
internal funding charges and credits on the groups’ assets, liabilities and capital, at market rates, taking into account relevant terms and currency
considerations. The offset of the net impact of these charges and credits is reflected in Corporate Services.
Geographic Information
We operate primarily in Canada and the United States but we also have operations in the United Kingdom, Europe, the Caribbean and Asia, which are
grouped in other countries. We allocate our results by geographic region based on the location of the unit responsible for managing the related
assets, liabilities, revenues and expenses, except for the consolidated provision for credit losses, which is allocated based upon the country of
ultimate risk. Our results and average assets, grouped by operating segment and geographic region, are as follows:
(Canadian $ in millions)
Canadian
P&C
U.S.
P&C
Wealth
Management BMO CM
Corporate
Services (1) Total Canada
United
States
Other
countries
2015 (2)
Net interest income 4,937 2,834 642 1,334 (777) 8,970 5,599 3,180 191
Non-interest revenue 1,703 775 5,121 2,539 281 10,419 6,170 2,716 1,533
Total Revenue 6,640 3,609 5,763 3,873 (496) 19,389 11,769 5,896 1,724
Provision for credit losses 496 119 7 26 (36) 612 561 52 (1)
Insurance claims, commissions and changes in policy benefit
liabilities – – 1,254 – – 1,254 624 – 630
Amortization 236 223 231 98 – 788 428 284 76
Non-interest expense 3,104 2,163 3,126 2,388 613 11,394 6,304 4,372 718
Income before taxes and non-controlling interest in
subsidiaries 2,804 1,104 1,145 1,361 (1,073) 5,341 3,852 1,188 301
Provision for income taxes 700 277 295 329 (665) 936 650 240 46
Reported net income 2,104 827 850 1,032 (408) 4,405 3,202 948 255
Non-controlling interest in subsidiaries – – 5 – 30 35 30 – 5
Net Income attributable to bank shareholders 2,104 827 845 1,032 (438) 4,370 3,172 948 250
Average Assets 196,788 88,905 29,147 290,325 59,226 664,391 402,166 234,508 27,717
(Canadian $ in millions)
Canadian
P&C
U.S.
P&C
Wealth
Management BMO CM
Corporate
Services (1) Total Canada
United
States
Other
countries
2014 (2)
Net interest income 4,780 2,482 560 1,177 (538) 8,461 5,476 2,836 149
Non-interest revenue 1,625 669 4,778 2,543 147 9,762 6,541 2,325 896
Total Revenue 6,405 3,151 5,338 3,720 (391) 18,223 12,017 5,161 1,045
Provision for credit losses 528 177 (3) (18) (123) 561 533 30 (2)
Insurance claims, commissions and changes in policy benefit
liabilities – – 1,505 – – 1,505 1,230 – 275
Amortization 229 223 193 102 – 747 424 279 44
Non-interest expense 2,953 1,854 2,647 2,249 471 10,174 5,871 3,809 494
Income before taxes and non-controlling interest in
subsidiaries 2,695 897 996 1,387 (739) 5,236 3,959 1,043 234
Provision for income taxes 679 243 216 310 (545) 903 680 212 11
Reported net income 2,016 654 780 1,077 (194) 4,333 3,279 831 223
Non-controlling interest in subsidiaries – – 3 – 53 56 54 – 2
Net Income attributable to bank shareholders 2,016 654 777 1,077 (247) 4,277 3,225 831 221
Average Assets 190,092 74,371 24,980 259,746 44,739 593,928 370,687 200,915 22,326
(Canadian $ in millions)
Canadian
P&C
U.S.
P&C
Wealth
Management BMO CM
Corporate
Services (1) Total Canada
United
States
Other
countries
2013 (2)
Net interest income 4,536 2,321 558 1,197 65 8,677 5,383 3,223 71
Non-interest revenue 1,484 679 3,658 2,186 146 8,153 5,336 2,218 599
Total Revenue 6,020 3,000 4,216 3,383 211 16,830 10,719 5,441 670
Provision for credit losses 559 236 3 (36) (175) 587 654 (65) (2)
Insurance claims, commissions and changes in policy benefit
liabilities – – 767 – – 767 561 – 206
Amortization 229 225 145 94 – 693 406 274 13
Non-interest expense 2,826 1,711 2,206 1,988 802 9,533 5,574 3,682 277
Income before taxes and non-controlling interest in
subsidiaries 2,406 828 1,095 1,337 (416) 5,250 3,524 1,550 176
Provision for income taxes 594 238 268 297 (342) 1,055 627 432 (4)
Reported net income 1,812 590 827 1,040 (74) 4,195 2,897 1,118 180
Non-controlling interest in subsidiaries – – – – 65 65 54 11 –
Net Income attributable to bank shareholders 1,812 590 827 1,040 (139) 4,130 2,843 1,107 180
Average Assets 177,033 65,764 22,143 246,702 43,789 555,431 345,703 189,476 20,252
(1) Corporate Services includes Technology and Operations.
(2) Operating groups report on a taxable equivalent basis – see Basis of Presentation section.
Certain comparative figures have been reclassified to conform with the current year’s presentation.
BMO Financial Group 198th Annual Report 2015 195