Bank of Montreal 2015 Annual Report Download - page 98

MD&A
BMO’s wholesale funding plan ensures sufficient funding capacity is available to execute business strategies. The funding plan considers
expected maturities, as well as asset and liability growth projected for our businesses in our forecasting and planning process, and assesses funding
needs against available potential funding sources. The funding plan is reviewed annually by the RRC and is regularly updated during the year to
incorporate actual results and updated forecast information.
2013 20142012
Customer Deposits-and-
Capital-to-Customer-Loans
Ratio
(%)
Customer Deposits
($ billions)
Our large customer base and
strong capital position reduce our
reliance on wholesale funding.
Customer deposits provide a
strong funding base.
2012 201520142013
2015
94.6 94.5 94.7
98.6
204 221
239
262
Wholesale Funding Maturities (1)
(Canadian $ in millions)
As at October 31, 2015
Less than
1 month
1to3
months
3to6
months
6to12
months
Subtotal
less than
1 year
1to2
years
Over
2 years Total
Deposits from banks 415 576 917 819 2,727 975 – 3,702
Certificates of deposit and commercial paper 5,753 29,143 17,349 5,547 57,792 360 – 58,152
Bearer deposit notes 249 1,637 901 115 2,902 – – 2,902
Asset-backed commercial paper (ABCP) 1,406 1,829 2,131 – 5,366 – – 5,366
Senior unsecured medium-term notes 1,308 2,131 1,212 8,195 12,846 10,636 20,210 43,692
Senior unsecured structured notes (2) 17 476 30 199 722 153 2,115 2,990
Covered bonds and securitizations
Mortgage securitizations – 789 – 1,321 2,110 2,781 12,197 17,088
Covered bonds – 1,961 – – 1,961 2,615 8,038 12,614
Credit card securitizations – – 437 1,538 1,975 1,135 1,101 4,211
Subordinated debt (3) –––––6025,050 5,652
Other (4) –––––1,308 1,798 3,106
Total 9,148 38,542 22,977 17,734 88,401 20,565 50,509 159,475
Of which:
Secured 1,406 4,579 2,568 2,859 11,412 7,839 23,134 42,385
Unsecured 7,742 33,963 20,409 14,875 76,989 12,726 27,375 117,090
Total (5) 9,148 38,542 22,977 17,734 88,401 20,565 50,509 159,475
(1) Wholesale unsecured funding refers to funding through the issuance of marketable, negotiable instruments. Wholesale funding excludes repo transactions and bankers’ acceptances, which are
disclosed in the contractual maturity table in Note 30 on page 198 of the financial statements, and excludes ABCP issued by certain ABCP conduits that are not consolidated for financial reporting
purposes.
(2) Primarily issued to institutional investors.
(3) Includes certain subordinated debt instruments reported as deposits or other liabilities for accounting purposes. Subordinated debt is reported in this table in accordance with recommended Enhanced
Disclosure Task Force disclosures.
(4) Refers to Federal Home Loan Banks advances.
(5) Total wholesale funding consists of Canadian-dollar-denominated funding of $47.5 billion and U.S.-dollar and other foreign-denominated funding of $112 billion as at October 31, 2015.
Material presented in a blue-tinted font above is an integral part of the 2015 annual consolidated financial statements (see page 86).
BMO Financial Group 198th Annual Report 2015 109