Bank of Montreal 2015 Annual Report Download - page 58

MD&A
Other Assets
Other assets excluding derivative assets increased $1.4 billion or decreased $0.6 billion excluding the stronger U.S. dollar impact. Other assets
includes premises and equipment, goodwill and intangible assets, current and deferred tax assets, accounts receivable and prepaid expenses.
The increase in derivative financial assets is discussed above and is detailed in Note 8 on page 156 of the financial statements.
Deposits
(Canadian $ in millions)
As at October 31 2015 2014 2013 2012 2011
Banks 27,135 18,243 20,591 18,102 20,877
Businesses and governments 263,618 239,139 222,346 188,103 159,209
Individuals 147,416 135,706 125,432 119,030 122,287
Total deposits 438,169 393,088 368,369 325,235 302,373
Deposits increased $45.1 billion, including an increase of $30.5 billion due to the stronger U.S. dollar. The balance of the increase was largely driven
by a $6.9 billion increase in deposits by banks, a $4.8 billion increase in deposits by individuals and a $2.9 billion increase in deposits by businesses
and governments, reflecting higher levels of wholesale and customer deposits. Further details on the composition of deposits are provided in Note 13
on page 166 of the financial statements and in the Liquidity and Funding Risk section on page 105.
Other Liabilities
Other liabilities excluding derivative financial liabilities decreased $4.9 billion, or decreased $10.0 billion excluding the stronger U.S. dollar impact,
primarily driven by a decrease of $6.8 billion in securities sold but not yet purchased and a $3.4 billion decrease in securities lent or sold under
repurchase agreements related to client activities in BMO Capital Markets. The increase in derivative financial liabilities is discussed above.
Further details on the composition of other liabilities are provided in Note 14 on page 167 of the financial statements.
Subordinated Debt
Subordinated debt decreased $0.5 billion. Further details on the composition of subordinated debt are provided in Note 15 on page 168 of the
financial statements.
Equity
(Canadian $ in millions)
As at October 31 2015 2014 2013 2012 2011
Share capital
Preferred shares 3,240 3,040 2,265 2,465 2,861
Common shares 12,313 12,357 12,003 11,957 11,332
Contributed surplus 299 304 315 213 113
Retained earnings 18,930 17,237 15,087 13,456 11,381
Accumulated other comprehensive income 4,640 1,375 437 17 666
Total shareholders’ equity 39,422 34,313 30,107 28,108 26,353
Non-controlling interest in subsidiaries 491 1,091 1,072 1,435 1,483
Total equity 39,913 35,404 31,179 29,543 27,836
Total equity increased $4.5 billion. Total shareholders’ equity increased $5.1 billion, partly offset by a decrease in non-controlling interest in
subsidiaries of $0.6 billion due to the redemption of BMO BoaTS – Series D. Total shareholders’ equity increased due to an increase of $2.7 billion
in accumulated other comprehensive income on translation of net foreign operations as a result of the strengthening U.S. dollar net of hedging
impacts and increased retained earnings of $1.7 billion.
The increase in share capital is driven by the issuance of preferred shares, as well as the issuance of common shares under the Shareholder
Dividend Reinvestment and Share Purchase Plan (DRIP) and Stock Option Plan, net of the impact of share repurchases. BMO’s DRIP is described in
the Enterprise-Wide Capital Management section that follows. Our Consolidated Statement of Changes in Equity on page 138 provides a summary
of items that increase or reduce shareholders’ equity, while Note 17 on page 170 of the financial statements provides details on the components
of and changes in share capital. Details of our enterprise-wide capital management practices and strategies can be found on the following page.
2011 data has not been restated to reflect the new IFRS standards adopted in 2014.
BMO Financial Group 198th Annual Report 2015 69