Welcome!

News Feed Item

BMO Financial Group Releases Supplementary Financial Information Package Reflecting Changes in IFRS

TORONTO, ONTARIO -- (Marketwired) -- 02/07/14 -- BMO Financial Group (TSX:BMO)(NYSE:BMO) today released a Supplementary Financial Information package containing certain quarterly and annual financial information for fiscal 2013 and 2012 that reflects changes in International Financial Reporting Standards (IFRS).

This information, which is available at www.bmo.com/investorrelations, is provided to help readers of the bank's financial statements better understand the impact of changes in IFRS that require retrospective application effective November 1, 2013, on the bank's 2013 and 2012 consolidated financial results. The results presented below and in the Supplementary Financial Information package are unaudited and are presented on a reported and an adjusted basis, as discussed under the heading Non-GAAP Measures below.

BMO will release its first quarter 2014 results and host a quarterly conference call on February 25, 2014. For further information, please visit www.bmo.com/investorrelations.

The following changes in IFRS that require retrospective application, as discussed in the Future Changes in IFRS section on pages 132 to 133 of BMO's 2013 Annual Report, were adopted by the bank effective November 1, 2013:


--  International Accounting Standard (IAS) 19, Employee Benefits 
--  IFRS 10, Consolidated Financial Statements 
--  IFRS 11, Joint Arrangements

The primary impact of the changes in IFRS on the bank's reported and adjusted net income and diluted earnings per share (EPS), as presented in the key fiscal 2013 and 2012 financial highlights below, resulted from the adoption of the amendments to IAS 19. The changes in IAS 19 impact the measurement, presentation and disclosure requirements for employee benefit plans. Under the revised standard, actuarial gains and losses are recognized immediately in other comprehensive income and are no longer deferred and amortized into income. The expected return on plan assets is no longer used in calculating pension expense. The discount rate used to measure the benefit liability must be used to measure the return on plan assets.

IFRS 10 provides a single consolidation model that defines control and establishes control as the basis for consolidation for all types of interests. Under IFRS 10 we control an entity when we have power over the entity, exposure or rights to variable returns from our involvement, and the ability to exercise power to affect the amount of our returns. The adoption of IFRS 10 resulted in the deconsolidation of two of our funding vehicles and certain of our Canadian customer securitization vehicles. The adoption of IFRS 10 did not have a significant impact on the financial position, cash flows or earnings of the bank.

IFRS 11 outlines the principles relating to the accounting for joint arrangements, which are arrangements where two or more parties have joint control. The adoption of IFRS 11 resulted in our only joint venture being accounted for using the equity method of accounting. The adoption of IFRS 11 did not have a significant impact on the financial position, cash flows or earnings of the bank.

In addition, certain reclassifications that do not impact the bank's reported and adjusted net income have been reflected, including changes in group allocations.

Key Fiscal 2013 and 2012 Financial Highlights


--  2013 reported net income of $4,195 million ($4,156 million in 2012),
    compared with $4,248 million previously reported ($4,189 million in
    2012) 
--  2013 adjusted net income of $4,223 million ($4,059 million in 2012),
    compared with $4,276 million previously reported ($4,092 million in
    2012) 
--  2013 reported diluted EPS of $6.17 ($6.10 in 2012), compared with $6.26
    previously reported ($6.15 in 2012) 
--  2013 adjusted diluted EPS of $6.22 ($5.95 in 2012), compared with $6.30
    previously reported ($6.00 in 2012)

Presented below are reported and adjusted net income (loss) by operating group, reflecting the implementation of the changes in IFRS, as well as certain reclassifications.


Net Income (Loss) by Operating Group (Canadian $ in millions)               
                                                                            
----------------------------------------------------------------------------
                                                  2013                  2012
                                 ---------------------- --------------------
For the year ended October 31      Reported   Adjusted    Reported  Adjusted
------------------------------------------------------- --------------------
  Canadian P&C                    $   1,812  $   1,822   $   1,749 $   1,759
  U.S. P&C                              581        631         571       635
------------------------------------------------------- --------------------
Personal and Commercial Banking       2,393      2,453       2,320     2,394
Wealth Management                       830        857         527       548
BMO Capital Markets                   1,044      1,046         985       986
Corporate Services, including                                               
 Technology and Operations              (72)      (133)        324       131
------------------------------------------------------- --------------------
Total                             $   4,195  $   4,223   $   4,156 $   4,059
----------------------------------------------------------------------------
----------------------------------------------------------------------------

Non-GAAP Measures

Management assesses performance on a reported basis and on an adjusted basis and considers both to be useful in assessing underlying ongoing business performance. Presenting results on both bases provides readers with a better understanding of how management assesses results. It also permits readers to assess the impact of certain specified items on results for the periods presented and to better assess results excluding those items if they consider the items to not be reflective of ongoing results. Adjusted results and measures are non-GAAP and are unlikely to be comparable to similar measures presented by other companies. Adjusted results are discussed in more detail in the Non-GAAP Measures section on page 34 of BMO's 2013 Annual Report.

About BMO Financial Group

Established in 1817, BMO Financial Group is a highly diversified financial services provider based in North America with total assets of $537 billion as at October 31, 2013, and approximately 45,500 employees. BMO provides a broad range of retail banking, wealth management and investment banking products and services to more than 12 million customers.

Contacts:
For News Media inquiries:
Ralph Marranca, Toronto
416-867-3996
[email protected]

Ronald Monet, Montreal
514-877-1873
[email protected]

For Investor Relations inquiries:
Sharon Haward-Laird, Head, Investor Relations
416-867-6656
[email protected]

Andrew Chin, Director
416-867-7019
[email protected]

More Stories By Marketwired .

Copyright © 2009 Marketwired. All rights reserved. All the news releases provided by Marketwired are copyrighted. Any forms of copying other than an individual user's personal reference without express written permission is prohibited. Further distribution of these materials is strictly forbidden, including but not limited to, posting, emailing, faxing, archiving in a public database, redistributing via a computer network or in a printed form.

Latest Stories
Internet-of-Things discussions can end up either going down the consumer gadget rabbit hole or focused on the sort of data logging that industrial manufacturers have been doing forever. However, in fact, companies today are already using IoT data both to optimize their operational technology and to improve the experience of customer interactions in novel ways. In his session at @ThingsExpo, Gordon Haff, Red Hat Technology Evangelist, will share examples from a wide range of industries – includin...
"We build IoT infrastructure products - when you have to integrate different devices, different systems and cloud you have to build an application to do that but we eliminate the need to build an application. Our products can integrate any device, any system, any cloud regardless of protocol," explained Peter Jung, Chief Product Officer at Pulzze Systems, in this SYS-CON.tv interview at @ThingsExpo, held November 1-3, 2016, at the Santa Clara Convention Center in Santa Clara, CA.
With major technology companies and startups seriously embracing IoT strategies, now is the perfect time to attend @ThingsExpo 2016 in New York. Learn what is going on, contribute to the discussions, and ensure that your enterprise is as "IoT-Ready" as it can be! Internet of @ThingsExpo, taking place June 6-8, 2017, at the Javits Center in New York City, New York, is co-located with 20th Cloud Expo and will feature technical sessions from a rock star conference faculty and the leading industry p...
@DevOpsSummit at Cloud taking place June 6-8, 2017, at Javits Center, New York City, is co-located with the 20th International Cloud Expo and will feature technical sessions from a rock star conference faculty and the leading industry players in the world. The widespread success of cloud computing is driving the DevOps revolution in enterprise IT. Now as never before, development teams must communicate and collaborate in a dynamic, 24/7/365 environment. There is no time to wait for long developm...
"We are an all-flash array storage provider but our focus has been on VM-aware storage specifically for virtualized applications," stated Dhiraj Sehgal of Tintri in this SYS-CON.tv interview at 19th Cloud Expo, held November 1-3, 2016, at the Santa Clara Convention Center in Santa Clara, CA.
Between 2005 and 2020, data volumes will grow by a factor of 300 – enough data to stack CDs from the earth to the moon 162 times. This has come to be known as the ‘big data’ phenomenon. Unfortunately, traditional approaches to handling, storing and analyzing data aren’t adequate at this scale: they’re too costly, slow and physically cumbersome to keep up. Fortunately, in response a new breed of technology has emerged that is cheaper, faster and more scalable. Yet, in meeting these new needs they...
"We're a cybersecurity firm that specializes in engineering security solutions both at the software and hardware level. Security cannot be an after-the-fact afterthought, which is what it's become," stated Richard Blech, Chief Executive Officer at Secure Channels, in this SYS-CON.tv interview at @ThingsExpo, held November 1-3, 2016, at the Santa Clara Convention Center in Santa Clara, CA.
The IoT is changing the way enterprises conduct business. In his session at @ThingsExpo, Eric Hoffman, Vice President at EastBanc Technologies, discussed how businesses can gain an edge over competitors by empowering consumers to take control through IoT. He cited examples such as a Washington, D.C.-based sports club that leveraged IoT and the cloud to develop a comprehensive booking system. He also highlighted how IoT can revitalize and restore outdated business models, making them profitable ...
When it comes to cloud computing, the ability to turn massive amounts of compute cores on and off on demand sounds attractive to IT staff, who need to manage peaks and valleys in user activity. With cloud bursting, the majority of the data can stay on premises while tapping into compute from public cloud providers, reducing risk and minimizing need to move large files. In his session at 18th Cloud Expo, Scott Jeschonek, Director of Product Management at Avere Systems, discussed the IT and busin...
According to Forrester Research, every business will become either a digital predator or digital prey by 2020. To avoid demise, organizations must rapidly create new sources of value in their end-to-end customer experiences. True digital predators also must break down information and process silos and extend digital transformation initiatives to empower employees with the digital resources needed to win, serve, and retain customers.
In his general session at 19th Cloud Expo, Manish Dixit, VP of Product and Engineering at Dice, discussed how Dice leverages data insights and tools to help both tech professionals and recruiters better understand how skills relate to each other and which skills are in high demand using interactive visualizations and salary indicator tools to maximize earning potential. Manish Dixit is VP of Product and Engineering at Dice. As the leader of the Product, Engineering and Data Sciences team at D...
SaaS companies can greatly expand revenue potential by pushing beyond their own borders. The challenge is how to do this without degrading service quality. In his session at 18th Cloud Expo, Adam Rogers, Managing Director at Anexia, discussed how IaaS providers with a global presence and both virtual and dedicated infrastructure can help companies expand their service footprint with low “go-to-market” costs.
Get deep visibility into the performance of your databases and expert advice for performance optimization and tuning. You can't get application performance without database performance. Give everyone on the team a comprehensive view of how every aspect of the system affects performance across SQL database operations, host server and OS, virtualization resources and storage I/O. Quickly find bottlenecks and troubleshoot complex problems.
"Once customers get a year into their IoT deployments, they start to realize that they may have been shortsighted in the ways they built out their deployment and the key thing I see a lot of people looking at is - how can I take equipment data, pull it back in an IoT solution and show it in a dashboard," stated Dave McCarthy, Director of Products at Bsquare Corporation, in this SYS-CON.tv interview at @ThingsExpo, held November 1-3, 2016, at the Santa Clara Convention Center in Santa Clara, CA.
"We are the public cloud providers. We are currently providing 50% of the resources they need for doing e-commerce business in China and we are hosting about 60% of mobile gaming in China," explained Yi Zheng, CPO and VP of Engineering at CDS Global Cloud, in this SYS-CON.tv interview at 19th Cloud Expo, held November 1-3, 2016, at the Santa Clara Convention Center in Santa Clara, CA.