SUPPLEMENTARY FINANCIAL INFORMATION For the Quarter Ended April 30, 2002

Transcription

1 SUPPLEMENTARY FINANCIAL INFORMATION For the Quarter Ended April 30, 2002 INVESTOR RELATIONS 18th Floor First Canadian Place Toronto, Ontario Susan Payne, Senior Vice President (416) Lynn Inglis, Director (416) Amanda Mason, Manager (416) Karen Maidment, Executive Vice President and Chief Financial Officer (416)

2 INDEX page page Notes to Users 1 Average Assets by Operating Group and Geographic Area 17 Financial Highlights 2-4 Fair Value of Financial Instruments 17 Income Statement Information 2 Profitability Measures 2 Asset Securitization 18 Balance Sheet Information 2 Balance Sheet Measures 3 Goodwill and Intangible Assets 19 Cash-Based Statistical Information 3 Dividend Information 3 Unrealized Gains and (Losses) on Securities 19 Share Information 3 Growth-Based Statistical Information 4 Capital and Risk-Weighted Assets 20 Other Statistical Information 4 Additional Bank Information 4 Derivative Financial Instruments 21 U.S. GAAP Reconciliation 22 Summary Income Statements and Operating Group Review 5-10 Assets Under Administration and Management 22 Total Bank Consolidated (1) 5 Net Income by Operating Group and Geographic Area 6 Commitments and Contingent Liabilities 22 Non-Recurring Items by Operating Group 6 Personal & Commercial Client Group (1) 7 Credit-Risk Related Schedules Private Client Group (1) 8 Gross Loans and Acceptances Segmented Information Investment Banking Group (1) 9 Net Loans and Acceptances Segmented Information Emfisys & Corporate Support (1) 10 Allowances for Credit Losses Segmented Information Changes in Gross Impaired Loans and Allowances for Credit Losses 29 Harris Bank (Legal Entity) Summary Income Statement and Highlights 11 Net Impaired Loans and Acceptances Segmented Information Provision for Credit Losses Segmented Information 32 Other Income and Trading Revenue 12 Market-Risk Related Schedules Non-Interest Expenses 13 Interest Rate Risk 33 Interest Rate Risk Sensitivity 33 Expense Growth Analysis (excluding non-recurring items) 14 Earnings Volatility 34 Market Value Exposure 34 Balance Sheets (As At and Average Daily Balances) Liquid Assets and Deposits 35 (1) Summary Income Statement and Highlights as reported and excluding non-recurring. This report is unaudited and all amounts are in millions of Canadian dollars, unless otherwise indicated.

3 NOTES TO USERS Presentation Changes in Report Accounting and Organizational Changes Changes to this quarter s Supplementary Financial Information document In The First Quarter have been made as follows: On November 1, 2001, we changed our accounting for goodwill and other intangible 10 A new line added for "Amortization of intangible assets, net of income tax" assets as required by CICA Handbook section 3062 "Goodwill and Other and "Cash net income" on page 5. Intangible Assets". Under the new standard, goodwill is no longer amortized to income over time, and is subject to a periodic impairment review to ensure 10 Change in the presentation format of the Asset Securitization table on that the fair value remains greater than, or equal to, book value. Any excess of page 18. book value over fair value would be charged to income in the period in which the impairment is determined. We have adopted this new accounting standard 10 Added a quarterly format to the Goodwill and Intangible Assets on prospectively. As a result of this change in accounting policy, amortization of page 19. goodwill decreased by $29, net of applicable income tax of $4, for the six months ended April 30, More detailed disclosure of Credit Risk related information on page 23, 25, 27 and 30. We have completed the impairment test required upon adoption of the new standard and have determined that an impairment charge was not necessary for the six 10 Added a new table for the Provision for Credit Losses Segmented months ended April 30, Information on a percentage basis. In The Second Quarter Use of this Document The North American Cash Management (NACM) business was transferred from Information in this package is supplementary to the Bank's second quarter Emfisys to the Investment Banking Group, to align product distribution more 2002 Report to Shareholders and the 2001 Annual Report and should be effectively with client coverage. read in conjunction with those documents. This report is unaudited and all amounts are in millions of Canadian dollars, unless indicated otherwise. Items indicated N.A. were not available Items indicated n.a. were not applicable Taxable Equivalent Basis (TEB) Adjustment - An addition to interest income to gross up the tax-exempt income earned on certain securities (primarily loan substitutes securities) to an amount which, had it been taxable at the statutory rate, would result in the same after-tax net income as appears in the financial statements. This results in a better reflection of the pre-tax economic yield of these assets and facilitates uniform measurement and comparison of net interest income. Users may provide their comments and suggestions on the Supplementary Financial Information document by contacting Amanda Mason at (416) or amanda.mason@bmo.com. April 30, 2002 Supplementary Financial Information Page 1

4 FINANCIAL HIGHLIGHTS YTD YTD Fiscal Fiscal ($ millions except as noted) Q2 Q1 Q4 Q3 Q2 Q1 Q4 Q3 Q Income Statement Information Total revenues (TEB) 2,222 2,205 1,951 2,234 2,485 2,193 2,162 2,095 2,284 4,427 4,678 8,863 8,664 excluding non-recurring items 2,222 2,205 2,129 2,234 2,196 2,149 2,155 2,076 2,196 4,427 4,345 8,708 8,438 Provision for credit losses (PCL) excluding non-recurring items Non-interest expense 1,476 1,462 1,449 1,421 1,404 1,397 1,330 1,326 1,348 2,938 2,801 5,671 5,258 excluding non-recurring items 1,476 1,462 1,449 1,421 1,404 1,397 1,373 1,326 1,348 2,938 2,801 5,671 5,301 Net income ,023 1,471 1,857 excluding non-recurring items ,378 1,672 Net economic profit (249) Total revenues per Consolidated Statement of Income 2,193 2,178 1,919 2,190 2,453 2,159 2,127 2,062 2,249 4,371 4,612 8,721 8,530 Total revenues (TEB) 2,222 2,205 1,951 2,234 2,485 2,193 2,162 2,095 2,284 4,427 4,678 8,863 8,664 Provision for income taxes per Consolidated Statement of Income (109) Provision for income taxes (TEB) (77) ,123 Taxable equivalent basis (TEB) adjustment Profitability Measures Basic earnings per share $0.57 $0.73 $0.00 $0.85 $1.13 $0.74 $0.87 $0.71 $0.88 $1.30 $1.87 $2.72 $3.30 excluding non-recurring items $0.57 $0.73 $0.20 $0.85 $0.77 $0.72 $0.78 $0.68 $0.79 $1.30 $1.49 $2.54 $2.96 Diluted earnings per share $0.57 $0.71 $0.00 $0.83 $1.10 $0.73 $0.86 $0.69 $0.87 $1.28 $1.83 $2.66 $3.25 excluding non-recurring items $0.57 $0.71 $0.19 $0.83 $0.76 $0.70 $0.76 $0.67 $0.78 $1.28 $1.46 $2.48 $2.91 Return on equity 11.6 % 14.5 % (0.4)% 16.8 % 23.7 % 15.3 % 18.4 % 15.0 % 19.8 % 13.1 % 19.4 % 13.8 % 18.0 % excluding non-recurring items 11.6 % 14.5 % 3.8 % 16.8 % 16.2 % 14.8 % 16.2 % 14.5 % 17.6 % 13.1 % 15.5 % 12.9 % 16.1 % Return on average assets 0.51 % 0.60 % 0.01 % 0.75 % 1.00 % 0.67 % 0.81 % 0.67 % 0.87 % 0.55 % 0.84 % 0.60 % 0.79 % excluding non-recurring items 0.51 % 0.60 % 0.18 % 0.75 % 0.70 % 0.65 % 0.72 % 0.65 % 0.78 % 0.55 % 0.67 % 0.57 % 0.71 % Return on average risk-weighted assets 0.94 % 1.11 % 0.01 % 1.33 % 1.93 % 1.24 % 1.45 % 1.15 % 1.45 % 1.03 % 1.57 % 1.11 % 1.35 % excluding non-recurring items 0.94 % 1.11 % 0.32 % 1.33 % 1.34 % 1.20 % 1.28 % 1.12 % 1.30 % 1.03 % 1.27 % 1.04 % 1.22 % Non interest expense-to-revenue ratio 66.4 % 66.3 % 74.2 % 63.6 % 56.5 % 63.7 % 61.5 % 63.2 % 59.1 % 66.4 % 59.9 % 64.0 % 60.7 % excluding non-recurring items 66.4 % 66.3 % 68.1 % 63.6 % 63.9 % 65.0 % 63.8 % 63.8 % 61.4 % 66.4 % 64.5 % 65.1 % 62.8 % Net interest margin (TEB) on average assets 2.02 % 2.07 % 1.94 % 2.09 % 1.80 % 1.81 % 1.81 % 1.82 % 1.89 % 2.05 % 1.81 % 1.91 % 1.85 % on average earning assets 2.45 % 2.57 % 2.38 % 2.47 % 2.15 % 2.16 % 2.15 % 2.11 % 2.16 % 2.51 % 2.16 % 2.29 % 2.13 % PCL to average loans and acceptances 0.87 % 0.49 % 1.49 % 0.32 % 0.57 % 0.27 % 0.16 % 0.28 % 0.28 % 0.68 % 0.43 % 0.66 % 0.25 % excluding non-recurring items (annualized) 0.87 % 0.49 % 1.49 % 0.32 % 0.31 % 0.27 % 0.28 % 0.28 % 0.28 % 0.68 % 0.29 % 0.60 % 0.28 % Effective tax rate (TEB) % % % % % % % % % % % % % excluding non-recurring items % % (2.64)% % % % % % % % % % % Balance Sheet Information Total assets 240, , , , , , , , , , , , ,396 Average assets 243, , , , , , , , , , , , ,944 Average earning assets 200, , , , , , , , , , , , ,002 Average common equity 9,952 9,691 10,121 9,979 10,184 10,118 9,909 9,998 9,698 9,819 10,151 10,100 9,745 Gross impaired loans (GIL) 2,150 2,193 2,014 1,836 1,653 1,702 1,501 1,334 1,189 2,150 1,653 2,014 1,501 Allowance for credit losses (ACL) 2,097 2,023 1,949 1,661 1,656 1,554 1,597 1,610 1,552 2,097 1,656 1,949 1,597 April 30, 2002 Supplementary Financial Information Page 2

5 FINANCIAL HIGHLIGHTS YTD YTD Fiscal Fiscal ($ millions except as noted) Q2 Q1 Q4 Q3 Q2 Q1 Q4 Q3 Q Balance Sheet Measures Cash and securities-to-total assets ratio 26.0% 25.2% 23.1% 25.6% 26.4% 26.3% 27.8% 29.1% 30.1% 26.0% 26.4% 23.1% 27.8% GIL to Gross loans and Acceptances 1.5% 1.5% 1.4% 1.3% 1.1% 1.1% 1.0% 0.9% 0.8% 1.5% 1.1% 1.4% 1.0% ACL to gross impaired loans 97.5% 92.3% 96.8% 90.5% 100.2% 91.3% 106.4% 120.6% 130.6% 97.5% 100.2% 96.8% 106.4% Tier 1 capital ratio 8.61% 8.87% 8.15% 8.84% 8.94% 8.87% 8.83% 8.49% 8.06% 8.61% 8.94% 8.15% 8.83% Total capital ratio 12.48% 12.93% 12.12% 12.60% 12.74% 12.12% 11.97% 11.78% 11.13% 12.48% 12.74% 12.12% 11.97% Cash-Based Statistical Information Basic earnings per share $0.60 $0.76 $0.06 $0.89 $1.18 $0.79 $0.92 $0.74 $0.92 $1.36 $1.97 $2.92 $3.45 excluding non-recurring items $0.60 $0.76 $0.26 $0.89 $0.83 $0.76 $0.81 $0.73 $0.81 $1.36 $1.59 $2.74 $3.10 Diluted earnings per share $0.59 $0.75 $0.06 $0.88 $1.15 $0.77 $0.90 $0.73 $0.90 $1.34 $1.92 $2.86 $3.39 excluding non-recurring items $0.59 $0.75 $0.25 $0.88 $0.80 $0.75 $0.80 $0.71 $0.80 $1.34 $1.55 $2.68 $3.05 Return on equity 12.2% 15.2% 0.7% 17.8% 24.7% 16.2% 19.3% 15.7% 20.6% 13.7% 20.4% 14.8% 18.8% excluding non-recurring items 12.2% 15.2% 4.8% 17.8% 17.2% 15.7% 17.1% 15.3% 18.4% 13.7% 16.5% 13.9% 16.9% Non interest expense-to-revenue ratio 65.7% 65.6% 73.6% 63.2% 56.0% 63.3% 61.2% 63.0% 58.8% 65.7% 59.5% 63.5% 60.4% excluding non-recurring items 65.7% 65.6% 67.5% 63.2% 63.4% 64.6% 63.4% 63.5% 61.2% 65.7% 64.0% 64.6% 62.6% Return on average assets 0.53% 0.62% 0.22% 0.79% 0.74% 0.69% 0.75% 0.68% 0.81% 0.58% 0.71% 0.61% 0.74% excluding non-recurring items 0.53% 0.62% 0.39% 0.79% 0.44% 0.67% 0.66% 0.66% 0.72% 0.58% 0.55% 0.57% 0.67% Net income ,072 1,572 1,931 excluding non-recurring items ,479 1,746 Dividend Information Dividends declared per share $0.30 $0.30 $0.28 $0.28 $0.28 $0.28 $0.25 $0.25 $0.25 $0.60 $0.56 $1.12 $1.00 Dividends paid per share $0.30 $0.28 $0.28 $0.28 $0.28 $0.25 $0.25 $0.25 $0.25 $0.58 $0.53 $1.09 $0.99 Common dividends Preferred dividends Dividend yield 3.18% 3.33% 3.31% 2.74% 3.18% 2.74% 2.84% 3.14% 3.72% 3.18% 3.18% 3.31% 2.84% Dividend payout ratio 52.4% 41.4% (100)%+ 33.5% 24.2% 37.8% 28.4% 34.9% 28.4% 46.3% 29.6% 40.8% 30.2% excluding non-recurring items 52.4% 41.4% 143.1% 33.5% 35.2% 39.1% 32.3% 35.9% 31.9% 46.3% 37.1% 43.8% 33.7% Share Information Share price high $39.60 $37.70 $44.10 $43.25 $44.40 $41.70 $35.80 $32.85 $28.40 $39.60 $44.40 $44.40 $35.80 low $34.05 $34.39 $32.75 $34.20 $35.00 $33.40 $29.90 $26.63 $21.58 $34.05 $33.40 $32.75 $21.00 close $37.68 $36.00 $33.86 $40.85 $35.20 $40.89 $35.25 $31.88 $26.88 $37.68 $35.20 $33.86 $35.25 Book value per share $20.29 $20.11 $19.69 $20.44 $19.93 $19.53 $19.63 $18.87 $18.72 $20.29 $19.93 $19.69 $19.63 Number of common shares outstanding (000's) end of period 490, , , , , , , , , , , , ,584 average basic 490, , , , , , , , , , , , ,318 average diluted 499, , , , , , , , , , , , ,815 Total market value of common shares 18,490 17,637 16,560 20,736 17,838 21,523 18,421 16,728 14,406 18,490 17,838 16,560 18,421 Market-to-book value ratio Price-to-earnings multiple Total shareholder return twelve months 10.4 % (9.3)% (1.2)% 32.0 % 35.0 % 75.8 % 29.0 % 20.5 % (8.3)% 10.4 % 35.0 % (1.2)% 29.0 % five year 11.6 % 12.5 % 14.3 % 23.9 % 20.4 % 23.8 % 22.9 % 21.5 % 18.2 % 11.6 % 20.4 % 14.3 % 22.9 % April 30, 2002 Supplementary Financial Information Page 3

6 FINANCIAL HIGHLIGHTS YTD YTD Fiscal Fiscal ($ millions except as noted) Q2 Q1 Q4 Q3 Q2 Q1 Q4 Q3 Q Growth-Based Statistical Information Diluted earnings per share growth (48.2)% (2.7)% (100.0)% 20.3 % 26.4 % (12.0)% % 1.5 % 40.3 % (30.1)% 7.6 % (18.2)% 38.9 % excluding non-recurring items (25.0)% 1.4 % (75.0)% 23.9 % (2.6)% 0.0 % 20.6 % 3.1 % 25.8 % (12.3)% (1.4)% (14.8)% 15.9 % Cash diluted earnings per share growth (48.7)% (2.6)% (93.3)% 20.5 % 27.8 % (10.5)% 95.7 % 2.8 % 38.5 % (30.2)% 9.1 % (15.6)% 37.8 % excluding non-recurring items (26.3)% 0.0 % (68.8)% 23.9 % 0.0 % 1.4 % 19.4 % 4.4 % 23.1 % (13.5)% 0.6 % (12.1)% 15.5 % Net economic profit growth (88.2)% (21.4)% (100)% % 55.6 % (27.6)% 100%+ (15.7)% 70.1 % (68.6)% 16.5 % (43.3)% 90.0 % Revenue growth (10.5)% 0.6 % (9.7)% 6.6 % 8.8 % 3.2 % 7.7 % 3.4 % 16.5 % (5.3)% 6.1 % 2.3 % 9.3 % excluding non-recurring items 1.2 % 2.6 % (1.2)% 7.5 % 0.0 % 6.8 % 4.4 % 3.9 % 12.0 % 1.9 % 3.3 % 3.2 % 6.1 % Expense growth 5.2 % 4.6 % 8.9 % 7.2 % 4.0 % 11.4 % (11.4)% 3.1 % 6.2 % 4.9 % 7.6 % 7.8 % (0.6)% excluding non-recurring items 5.2 % 4.6 % 5.5 % 7.2 % 4.0 % 11.4 % 1.0 % 3.1 % 6.2 % 4.9 % 7.6 % 7.0 % 3.0 % Net income growth (50.4)% (10.5)% (99.1)% 10.5 % 22.3 % (12.3)% 87.9 % 0.9 % 36.6 % (34.2)% 5.4 % (20.8)% 34.4 % excluding non-recurring items (28.8)% (7.5)% (74.6)% 13.5 % (4.9)% (1.1)% 15.6 % 2.8 % 22.3 % (18.4)% (3.1)% (17.6)% 13.1 % Other Statistical Information Cost of equity 10.5 % 10.5 % 10.5 % 10.5 % 10.5 % 10.5 % 10.7 % 10.8 % 11.1 % 10.5 % 10.5 % 10.5 % 11.0 % Prime rate average Canadian 3.79 % 4.11 % 5.52 % 6.29 % 6.91 % 7.48 % 7.50 % 7.41 % 6.85 % 3.95 % 7.20 % 6.55 % 7.05 % average U.S % 4.90 % 6.16 % 6.99 % 8.21 % 9.35 % 9.63 % 9.54 % 8.98 % 4.82 % 8.79 % 7.68 % 9.18 % Exchange rate as at US/Cdn dollar average US/Cdn dollar as at peso/cdn dollar average peso/cdn dollar Additional Bank Information Number of full-time equivalent employees Canada 27,445 27,809 27,217 27,302 27,181 27,050 26,854 26,600 25,931 27,445 27,181 27,217 26,854 United States 6,731 6,388 6,484 6,119 6,089 5,968 6,204 6,659 6,923 6,731 6,089 6,484 6,204 Other Total 34,306 34,355 33,842 33,585 33,434 33,187 33,200 33,407 33,003 34,306 33,434 33,842 33,200 Number of bank branches Canada ,000 1, United States Other Total 1,131 1,133 1,129 1,124 1,107 1,123 1,135 1,150 1,189 1,131 1,107 1,129 1,135 Number of automated banking machines (Canada) 2,000 1,996 1,982 1,982 1,982 1,983 1,987 1,984 2,013 2,000 1,982 1,982 1,987 Credit rating (1) AA- AA- AA- AA- AA- AA- AA- AA- AA- AA- AA- AA- AA- (1) Composite of Standard & Poor's and Moody's ratings on Senior Debt. April 30, 2002 Supplementary Financial Information Page 4

7 TOTAL BANK CONSOLIDATED SUMMARY INCOME STATEMENT YTD YTD Fiscal Fiscal ($ millions) Q2 Q1 Q4 Q3 Q2 Q1 Q4 Q3 Q As Reported Net interest income (TEB) 1,200 1,288 1,201 1,231 1,092 1,117 1,083 1,090 1,084 2,488 2,209 4,641 4,338 Other income 1, ,003 1,393 1,076 1,079 1,005 1,200 1,939 2,469 4,222 4,326 Total revenues (TEB) 2,222 2,205 1,951 2,234 2,485 2,193 2,162 2,095 2,284 4,427 4,678 8,863 8,664 Provision for credit losses Net interest and other income 1,902 2,025 1,405 2,117 2,268 2,093 2,104 1,995 2,184 3,927 4,361 7,883 8,306 Non-interest expense 1,476 1,462 1,449 1,421 1,404 1,397 1,330 1,326 1,348 2,938 2,801 5,671 5,258 Income before taxes, non-controlling interest in subsidiaries and goodwill (44) ,560 2,212 3,048 Provision for income taxes (TEB) (77) ,123 Non-controlling interest in subsidiaries Net Income before goodwill ,050 1,527 1,906 Amortization of goodwill, net of income tax Net Income ,023 1,471 1,857 Amortization of goodwill and intangible assets, net of income tax Cash net income ,072 1,572 1,931 Excluding Non-Recurring Items Net interest income (TEB) 1,200 1,288 1,201 1,231 1,092 1,117 1,083 1,090 1,084 2,488 2,209 4,641 4,338 Other income 1, ,003 1,104 1,032 1, ,112 1,939 2,136 4,067 4,100 Total revenues (TEB) 2,222 2,205 2,129 2,234 2,196 2,149 2,155 2,076 2,196 4,427 4,345 8,708 8,438 Provision for credit losses Net interest and other income 1,902 2,025 1,583 2,117 2,079 2,049 2,055 1,976 2,096 3,927 4,128 7,828 8,038 Non-interest expense 1,476 1,462 1,449 1,421 1,404 1,397 1,373 1,326 1,348 2,938 2,801 5,671 5,301 Income before taxes, non-controlling interest in subsidiaries and goodwill ,327 2,157 2,737 Provision for income taxes (TEB) (4) Non-controlling interest in subsidiaries Net Income before goodwill ,434 1,721 Amortization of goodwill, net of income tax Net Income ,378 1,672 Amortization of goodwill and intangible assets, net of income tax Cash net income ,479 1,746 Net Income by Operating Group Expenses by group are matched against the revenues to which they relate. Indirect expenses, such as overhead expenses and any related revenues, are allocated to the operating groups using appropriate formulas applied on a consistent basis. For each currency, funds are transferred from any group with a surplus to any group with a shortfall at appropriate market rates for the currency and term. Segmentation of assets and full-time equivalent employees (FTE) are based upon the geographic location of the unit responsible for managing the related assets, liabilities, revenues and expenses. Prior period results have been restated to give effect to the current year's presentation and organization structure. Provisions for credit losses allocated to the banking groups are based on expected losses over an economic cycle. Differences between expected loss provisions and required provisions under Generally Accepted Accounting Principles (GAAP) are allocated to the Corporate Support Group. April 30, 2002 Supplementary Financial Information Page 5

8 NET INCOME BY OPERATING GROUP AND GEOGRAPHIC AREA YTD YTD Fiscal Fiscal ($ millions except as noted) Q2 Q1 Q4 Q3 Q2 Q1 Q4 Q3 Q Personal & Commercial Client Group Canada United States Other Total Private Client Group Canada United States (3) Other (1) (1) (3) (2) (2) Total Investment Banking Group Canada (60) United States (63) Other Total (96) Emfisys and Corporate Support Canada (130) (61) (56) 20 (16) (39) 17 (41) (27) (191) (55) (91) (82) United States 17 (17) (51) (4) (55) (55) (110) 61 Other Total (113) (76) (107) (7) 47 (15) 37 (189) Total Consolidated Canada ,126 United States (86) Other Total ,023 1,471 1,857 U.S. to North America net income 63.8 % 40.0 % 100% % 31.1 % 30.9 % 31.2 % 28.7 % 36.1 % 50.5 % 31.0 % 23.7 % 30.9% Outside Canada to total net income 69.1 % 48.0 % (100)% % 62.9 % 42.5 % 38.5 % 35.6 % 43.5 % 57.5 % 54.6 % 45.9 % 39.4% U.S. to total net income 54.3 % 34.7 % (100)% % 16.7 % 25.7 % 27.9 % 25.9 % 31.9 % 43.5 % 20.4 % 16.8 % 27.1% NON-RECURRING ITEMS BY OPERATING GROUP YTD YTD Fiscal Fiscal ($ millions) Q2 Q1 Q4 Q3 Q2 Q1 Q4 Q3 Q Personal and Commercial Client Group (1) Investment Banking Group (2) - - (178) (178) - Emfisys and Corporate Support (3) Total other income - - (178) Emfisys and Corporate Support (4) (42) (42) Total provision for credit losses (42) (42) Emfisys and Corporate Support (5) (43) (43) Total non interest expense (43) (43) Personal and Commercial Client Group Investment Banking Group (2) - - (73) (73) - Emfisys and Corporate Support (5) Total provision for income taxes - - (73) (38) 126 Personal and Commercial Client Group Investment Banking Group (2) - - (105) (105) - Emfisys and Corporate Support (6) Total Net Income Impact - - (105) (1) Includes gains on Canadian branch sales from the second quarter of 2000 to the current quarter and the gain on sale of Partners First Holding LLC in the first quarter of (2) Includes write-down of equity investments in Collateralized Bond Obligations (CBO) in the fourth quarter of (3) Includes gains on sale of shares in Grupo Financiero Bancomer in the first and second quarter of 2001 and the gain on sale of Corporate Trust in the second quarter of (4) Includes the increase in the general allowance in the second quarter of 2001 and the reversal of the country risk allowance in the fourth quarter of (5) Includes the reversal of the 1999 restructuring charge in the fourth quarter of (6) Includes $25MM adjustment for future tax assets to reflect proposed reductions in federal tax rates, in the first quarter of April 30, 2002 Supplementary Financial Information Page 6

9 PERSONAL & COMMERCIAL CLIENT GROUP SUMMARY INCOME STATEMENT AND HIGHLIGHTS YTD YTD Fiscal Fiscal ($ millions except as noted) Q2 Q1 Q4 Q3 Q2 Q1 Q4 Q3 Q As Reported Net interest income (TEB) ,611 1,505 3,063 2,936 Other income ,256 1,377 Total revenues (TEB) 1,101 1,132 1,095 1,109 1,048 1,067 1,091 1,081 1,022 2,233 2,115 4,319 4,313 Provision for credit losses Net interest and other income 1,030 1,062 1,015 1, ,007 1,032 1, ,092 1,992 4,051 4,078 Non-interest expense ,361 1,329 2,688 2,513 Income before taxes, non-controlling interest in subsidiaries and goodwill ,363 1,565 Provision for income taxes (TEB) Non-controlling interest in subsidiaries Net Income before goodwill Amortization of goodwill, net of income tax Net Income Cash-based net income Net economic profit Cash-based return on equity 24.6 % 23.8 % 24.3 % 29.2 % 25.9 % 27.4 % 30.7 % 30.8 % 30.0 % 24.2 % 26.7 % 26.7 % 31.3% Average net interest margin 3.14 % 3.16 % 3.13 % 3.21 % 3.23 % 3.20 % 3.27 % 3.21 % 3.16 % 3.15 % 3.22 % 3.19 % 3.20% Average net interest margin on earning assets 3.27 % 3.30 % 3.26 % 3.33 % 3.35 % 3.32 % 3.38 % 3.33 % 3.27 % 3.29 % 3.34 % 3.31 % 3.31% Non-interest expense-to-revenue ratio 60.1 % 61.8 % 62.1 % 61.3 % 63.8 % 61.9 % 59.7 % 59.6 % 58.5 % 60.9 % 62.8 % 62.2 % 58.3% Average common equity 3,794 3,750 3,269 2,954 2,971 2,959 2,817 2,798 2,827 3,771 2,965 3,039 2,877 Average assets 104, ,856 99,202 95,612 94,693 94,095 93,332 92,501 91, ,163 94,390 95,909 91,679 Average earning assets 100,169 97,546 95,458 92,133 91,221 90,772 90,281 89,364 87,960 98,836 90,993 92,406 88,631 Average current loans excl. securities purchased 94,622 91,775 89,933 87,275 86,392 85,993 85,535 84,777 83,562 93,175 86,189 87,407 84,045 under resale agreements Securities purchased under resale agreements Average deposits 53,561 52,451 48,941 45,298 43,999 43,796 43,267 42,720 41,599 52,997 43,896 45,521 42,451 Total as at risk-weighted assets 64,246 62,977 61,817 59,446 58,592 57,827 58,380 56,583 56,623 64,246 58,592 61,817 58,380 Assets under administration 11,498 11,662 11,756 10,678 10,110 9,843 10,483 8,891 8,105 11,498 10,110 11,756 10,483 Assets under management Full-time equivalent employees 18,007 18,111 17,436 17,941 17,801 17,641 18,047 17,879 17,447 18,007 17,801 17,436 18,047 Excluding Non-Recurring Items Net interest income (TEB) ,611 1,505 3,063 2,936 Other income ,244 1,225 Total revenues (TEB) 1,101 1,132 1,095 1,109 1,043 1,060 1,084 1,062 1,008 2,233 2,103 4,307 4,161 Provision for credit losses Net interest and other income 1,030 1,062 1,015 1, ,000 1,025 1, ,092 1,980 4,039 3,926 Non-interest expense ,361 1,329 2,688 2,513 Income before taxes, non-controlling interest in subsidiaries and goodwill ,351 1,413 Provision for income taxes (TEB) Non-controlling interest in subsidiaries Net Income before goodwill Amortization of goodwill, net of income tax Net Income Cash-based net income Cash-based return on equity 24.6 % 23.8 % 24.3 % 29.2 % 25.4 % 26.7 % 30.0 % 29.2 % 28.9 % 24.2 % 26.0 % 26.3 % 28.1% Non-interest expense-to-revenue ratio 60.1 % 61.8 % 62.1 % 61.3 % 64.1 % 62.3 % 60.1 % 60.6 % 59.3 % 60.9 % 63.2 % 62.4 % 60.4% April 30, 2002 Supplementary Financial Information Page 7

10 PRIVATE CLIENT GROUP SUMMARY INCOME STATEMENT AND HIGHLIGHTS YTD YTD Fiscal Fiscal ($ millions except as noted) Q2 Q1 Q4 Q3 Q2 Q1 Q4 Q3 Q As Reported Net interest income (TEB) Other income ,059 Total revenues (TEB) ,498 1,566 Provision for credit losses Net interest and other income ,496 1,565 Non-interest expense ,275 1,212 Income before taxes and goodwill Provision for income taxes (TEB) Net Income before goodwill Amortization of goodwill, net of income tax Net Income Cash-based net income Net economic profit 1 16 (5) Cash-based return on equity 10.8 % 16.8 % 8.0 % 14.5 % 27.6 % 18.8 % 24.1 % 32.1 % 45.2 % 13.5 % 23.3 % 17.2 % 35.3% Average net interest margin 9.73 % % % 9.54 % % 9.79 % % % % % 9.92 % 9.97 % 11.82% Average net interest margin on earning assets % % % % % % % % % % % % 13.49% Non-interest expense-to-revenue ratio 88.1 % 84.9 % 93.4 % 84.9 % 78.1 % 84.7 % 82.4 % 77.9 % 74.4 % 86.6 % 81.3 % 85.1 % 77.4% Average common equity 1,330 1, , Average assets 5,490 4,985 4,946 5,305 5,400 5,714 5,188 4,552 4,119 5,233 5,560 5,340 4,289 Average earning assets 4,025 4,065 4,162 4,412 4,492 4,697 4,423 3,921 3,542 4,045 4,596 4,441 3,760 Average current loans excl. securities purchased under resale agreements 3,113 3,165 3,245 3,461 3,468 3,561 3,441 3,070 2,762 3,140 3,516 3,434 2,924 Securities purchased under resale agreements Average deposits 39,605 39,055 39,432 39,832 40,387 39,841 39,308 38,687 38,839 39,326 40,109 39,869 38,331 Total as at risk-weighted assets 4,158 4,382 4,420 4,720 4,583 4,679 4,855 4,025 4,358 4,158 4,583 4,420 4,855 Assets under administration 158, , , , , , , , , , , , ,544 Assets under management 82,655 83,632 79,057 79,507 76,459 75,324 75,746 72,784 75,331 82,655 76,459 79,057 75,746 Full-time equivalent employees 5,549 5,167 5,127 4,995 5,041 4,952 4,735 4,608 4,527 5,549 5,041 5,127 4,735 Excluding Non-Recurring Items Net interest income (TEB) Other income ,059 Total revenues (TEB) ,498 1,566 Provision for credit losses Net interest and other income ,496 1,565 Non-interest expense ,275 1,212 Income before taxes and goodwill Provision for income taxes (TEB) Net Income before goodwill Amortization of goodwill, net of income tax Net Income Cash-based net income Cash-based return on equity 10.8 % 16.8 % 8.0 % 14.5 % 27.6 % 18.8 % 24.1 % 32.1 % 45.2 % 13.5 % 23.3 % 17.2 % 35.3% Non-interest expense-to-revenue ratio 88.1 % 84.9 % 93.4 % 84.9 % 78.1 % 84.7 % 82.4 % 77.9 % 74.4 % 86.6 % 81.3 % 85.1 % 77.4% April 30, 2002 Supplementary Financial Information Page 8

11 INVESTMENT BANKING GROUP SUMMARY INCOME STATEMENT AND HIGHLIGHTS YTD YTD Fiscal Fiscal ($ millions except as noted) Q2 Q1 Q4 Q3 Q2 Q1 Q4 Q3 Q As Reported Net interest income (TEB) ,497 1,320 Other income ,303 1,378 Total revenues (TEB) ,363 1,513 2,800 2,698 Provision for credit losses Net interest and other income ,249 1,409 2,255 2,542 Non-interest expense ,519 1,422 Income before taxes and goodwill (186) ,120 Provision for income taxes (TEB) (92) Net Income before goodwill (94) Amortization of goodwill, net of income tax Net Income (96) Cash-based net income (95) Net economic profit (232) (47) 160 Cash-based return on equity 11.3 % 13.2 % (9.5)% 15.5 % 16.6 % 16.0 % 15.4 % 13.0 % 16.8 % 12.3 % 16.3 % 9.5 % 14.8% Average net interest margin 1.10 % 1.26 % 1.07 % 1.22 % 0.96 % 0.90 % 0.87 % 0.87 % 1.00 % 1.18 % 0.93 % 1.03 % 0.92% Average net interest margin on earning assets 1.45 % 1.72 % 1.43 % 1.52 % 1.20 % 1.13 % 1.07 % 1.05 % 1.18 % 1.59 % 1.17 % 1.31 % 1.10% Non-interest expense-to-revenue ratio 54.9 % 51.7 % 63.6 % 52.6 % 50.7 % 52.9 % 50.8 % 55.2 % 52.1 % 53.2 % 51.8 % 54.3 % 52.7% Average common equity 5,108 5,124 4,612 4,503 4,628 4,298 4,273 4,247 4,195 5,116 4,460 4,509 4,216 Average assets 137, , , , , , , , , , , , ,259 Average earning assets 104, , , , , , , , , , , , ,309 Average current loans excl. securities purchased under resale agreements 33,490 34,711 36,391 36,103 39,208 39,154 39,003 40,417 40,046 34,110 39,179 37,701 39,843 Securities purchased under resale agreements 17,200 17,740 18,807 19,028 25,825 18,975 17,395 19,066 22,020 17,475 22,344 20,617 20,209 Average deposits 58,287 58,021 61,391 60,991 66,719 70,756 70,048 74,343 73,781 58,152 68,771 64,950 73,810 Total as at risk-weighted assets 60,188 64,652 68,545 68,271 69,550 72,610 75,316 75,348 83,916 60,188 69,550 68,545 75,316 Assets under administration 1,569 1,802 2,207 2,458 3,072 3,762 4,344 4,144 4,178 1,569 3,072 2,207 4,344 Assets under management 19,019 18,694 16,485 14,923 13,508 12,276 11,404 9,147 8,323 19,019 13,508 16,485 11,404 Full-time equivalent employees 2,151 2,168 2,190 2,181 2,130 2,153 2,136 2,146 2,090 2,151 2,130 2,190 2,136 Excluding Non-Recurring Items Net interest income (TEB) ,497 1,320 Other income ,481 1,378 Total revenues (TEB) ,363 1,513 2,978 2,698 Provision for credit losses Net interest and other income ,249 1,409 2,433 2,542 Non-interest expense ,519 1,422 Income before taxes and goodwill (8) ,120 Provision for income taxes (TEB) (19) Net Income before goodwill Amortization of goodwill, net of income tax Net Income Cash-based net income Cash-based return on equity 11.3 % 13.2 % (0.4)% 15.5 % 16.6 % 16.0 % 15.4 % 13.0 % 16.8 % 12.3 % 16.3 % 11.8 % 14.8% Non-interest expense-to-revenue ratio 54.9 % 51.7 % 47.8 % 52.6 % 50.7 % 52.9 % 50.8 % 55.2 % 52.1 % 53.2 % 51.8 % 51.0 % 52.7% April 30, 2002 Supplementary Financial Information Page 9

12 EMFISYS & CORPORATE SUPPORT SUMMARY INCOME STATEMENT AND HIGHLIGHTS YTD YTD Fiscal Fiscal ($ millions) Q2 Q1 Q4 Q3 Q2 Q1 Q4 Q3 Q As Reported Net interest income (TEB) (99) (110) (105) (89) (139) (119) (129) (113) (100) (209) (258) (452) (425) Other income Total revenues (TEB) 43 (34) (42) (15) Provision for credit losses (7) 92 (3) (41) (34) Net interest and other income (148) (87) (125) (1) 82 (235) Non-interest expense Income before taxes, non-controlling interest in subsidiaries and goodwill (227) (149) (217) (19) 145 (17) 22 (38) 44 (376) 128 (108) 10 Provision for income taxes (TEB) (129) (89) (128) (50) (39) (21) (36) (30) (3) (218) (60) (238) (97) Non-controlling interest in subsidiaries Net Income before goodwill (113) (76) (103) (3) 52 (12) 42 (189) Amortization of goodwill, net of income tax Net Income (113) (76) (107) (7) 47 (15) 37 (189) Cash-based net income (112) (77) (101) (11) 42 (189) Average common equity (280) (220) 1,407 1,693 1,751 2,073 2,164 2,371 2,107 (250) 1,915 1,731 2,080 Average assets (4,292) (3,295) (2,493) (3,038) (3,782) (3,093) (4,247) (4,782) (4,333) (3,784) (3,435) (3,093) (4,283) Average earning assets (8,115) (7,248) (7,555) (7,571) (8,544) (7,918) (8,854) (8,864) (8,883) (7,674) (8,226) (7,891) (8,700) Average current loans excl. securities purchased under resale agreements (10,101) (9,314) (9,486) (10,259) (11,166) (11,603) (11,689) (11,743) (11,553) (9,701) (11,387) (10,498) (11,508) Securities purchased under resale agreements (12) (11) Average deposits 4,000 4,657 4,737 5,055 4,939 5,050 4,927 5,338 5,065 4,333 4,995 4,945 4,852 Assets under administration 73,651 80,960 85,858 78,680 73,167 73,025 74,240 70,435 72,019 73,651 73,167 85,858 74,240 Full-time equivalent employees 8,599 8,909 9,089 8,468 8,462 8,441 8,282 8,774 8,939 8,599 8,462 9,089 8,282 Excluding Non-Recurring Items Net interest income (TEB) (99) (110) (105) (89) (139) (119) (129) (113) (100) (209) (258) (452) (425) Other income Total revenues (TEB) 43 (34) (42) 11 (7) (37) (15) (44) (75) 13 Provision for credit losses (7) (8) (3) (11) 65 8 Net interest and other income (148) (87) (125) 18 1 (34) (16) (1) 8 (235) (33) (140) 5 Non-interest expense Income before taxes, non-controlling interest in subsidiaries and goodwill (227) (149) (217) (19) (39) (54) (63) (38) (30) (376) (93) (329) (149) Provision for income taxes (TEB) (129) (89) (128) (50) (42) (50) (71) (30) (33) (218) (92) (270) (162) Non-controlling interest in subsidiaries Net Income before goodwill (113) (76) (103) 20 (7) (11) 2 (12) (2) (189) (18) (101) (6) Amortization of goodwill, net of income tax Net Income (113) (76) (107) 16 (11) (15) (3) (15) (7) (189) (26) (117) (22) Cash-based net income (112) (77) (101) 18 (7) (8) 2 (11) (2) (189) (15) (98) (4) Bancomer/Mexico Group Results (included above) Net interest income (TEB) Other income (1) Total revenues Non-interest expense Income taxes (TEB) - 1 (1) Net Income (1) Net book value of equity investment Unrealized losses on translation of net investment Cost base April 30, 2002 Supplementary Financial Information Page 10

13 HARRIS BANK (LEGAL ENTITY) SUMMARY INCOME STATEMENT AND HIGHLIGHTS YTD YTD Fiscal Fiscal ($ millions) Q2 Q1 Q4 Q3 Q2 Q1 Q4 Q3 Q (U.S. GAAP/$U.S.) Net interest income (TEB) Other income Total revenues (TEB) ,264 1,183 Provision for credit losses Net interest and other income ,056 1,156 Non-interest expense Income before taxes, non-controlling interest in subsidiaries and goodwill (32) Provision for income taxes (TEB) (13) Net Income before goodwill (19) Amortization of goodwill, net of income tax Net Income (20) Net Income consists of: Personal & Commercial Client Group Private Client Group Investment Banking Group (31) Emfisys & Corporate Support (11) (11) (16) 1 (1) (22) Average assets 27,911 28,746 28,906 28,390 28,456 28,947 28,374 28,104 27,398 28,333 28,704 28,677 27,705 Average Assets consists of: Personal & Commercial Client Group 11,660 11,133 10,698 9,470 9,158 8,933 8,554 8,365 8,153 11,394 9,044 9,567 8,303 Private Client Group 1,525 1,558 1,577 1,650 1,516 1,460 1,357 1,303 1,283 1,542 1,488 1,551 1,300 Investment Banking Group 13,087 13,627 14,234 14,986 15,568 16,460 16,348 16,178 15,764 13,360 16,019 15,311 15,882 Emfisys & Corporate Support 1,639 2,428 2,397 2,284 2,214 2,094 2,115 2,258 2,198 2,037 2,153 2,248 2,220 (CANADIAN GAAP/$CDN.) Net interest income (TEB) ,186 1,034 Other income Total revenues (TEB) , ,954 1,745 Provision for credit losses Net interest and other income ,627 1,705 Non-interest expense ,127 1,050 Income before taxes, non-controlling interest in subsidiaries and goodwill (42) Provision for income taxes (TEB) (14) Non-controlling interest in subsidiaries Net Income before goodwill (32) Amortization of goodwill, net of income tax Net Income (36) Net Income consists of: Personal & Commercial Client Group Private Client Group Investment Banking Group (65) Emfisys & Corporate Support (20) (4) (10) (24) Average loans 25,295 25,181 24,784 23,787 23,860 23,735 22,950 22,355 21,409 25,237 23,796 24,043 21,908 Average assets 44,066 45,310 45,417 43,165 43,867 43,568 42,479 41,567 39,889 44,698 43,715 44,005 40,732 Average assets consists of: Personal & Commercial Client Group 18,585 18,143 16,910 14,562 14,302 13,632 12,974 12,604 12,047 18,360 13,962 14,856 12,402 Private Client Group 2,377 2,373 2,187 2,460 2,282 2,150 1,992 1,938 1,871 2,375 2,215 2,270 1,906 Investment Banking Group 19,697 20,280 20,724 21,410 22,331 23,004 22,680 22,196 21,132 19,993 22,673 21,864 21,575 Emfisys & Corporate Support 3,407 4,514 5,596 4,733 4,952 4,782 4,833 4,829 4,839 3,970 4,865 5,015 4,849 Net book value 3,661 3,605 3,575 3,612 3,367 3,262 3,270 3,233 3,195 3,661 3,367 3,575 3,270 April 30, 2002 Supplementary Financial Information Page 11

14 OTHER INCOME AND TRADING REVENUE YTD YTD Fiscal Fiscal ($ millions except as noted) Q2 Q1 Q4 Q3 Q2 Q1 Q4 Q3 Q Other Income Deposit & payment service charges Lending fees Capital markets fees Securities commissions and fees Underwriting fees Total capital markets fees ,069 Card services Investment management & custodial fees Mutual fund revenues Trading revenues Securitization revenues Other fees and commissions Revenues from insurance related activities Gain/(loss) on disposal of premises and equipment 2 4 (10) (5) 6 (2) (7) (2) (1) 6 4 (11) (9) Foreign exchange revenue other than trading Investment securities gains/losses (50) 10 (223) (1) (40) Gain on sale of discontinued businesses Other Total other fees and commissions (101) Total Other Income 1, ,003 1,393 1,076 1,079 1,005 1,200 1,939 2,469 4,222 4,326 Other income to total revenue 46.0 % 41.6 % 38.4 % 44.9 % 56.1 % 49.1 % 49.9 % 48.0 % 52.5 % 43.8 % 52.8 % 47.6 % 49.9 % Interest and Non-Interest Trading Revenue Interest rates Foreign exchange Equities Other (27) (2) Total Reported as: Net interest income (2) Other income - Trading revenues Total Trading revenues include interest earned on trading securities and other cash instruments held in trading portfolios, less funding costs associated with trading-related derivatives and cash instruments, and realized and unrealized gains and losses on trading securities, other cash instruments, derivatives and foreign exchange activities. Interest Rates includes Canadian Government Securities, Corporate debt Instruments and Interest Rate derivatives. Foreign Exchange includes Foreign Exchange Spot and foreign exchange derivative contracts. Equities includes Institutional Equities, Equity Derivatives and Proprietary Trading. Other includes commodities, managed futures, credit investment management, Harris Trading and Global Distribution loan trading and sales. April 30, 2002 Supplementary Financial Information Page 12

15 NON-INTEREST EXPENSES YTD YTD Fiscal Fiscal ($ millions) Q2 Q1 Q4 Q3 Q2 Q1 Q4 Q3 Q Non-Interest Expenses Salaries ,475 1,439 2,857 2,800 Employee benefits Total salaries and employee benefits ,698 1,630 3,212 3,065 Premises and equipment Rental of real estate Premises, furniture and fixtures Property taxes Computer and equipment Total premises and equipment ,153 1,071 Communications Other Business and capital taxes Professional fees Travel and business development Other (1) Total other , Non-interest expense before amortization of intangibles and other charges 1,461 1,447 1,437 1,410 1,394 1,387 1,366 1,320 1,342 2,908 2,781 5,628 5,278 Amortization of intangible assets Total non-interest expense before restructuring 1,476 1,462 1,449 1,421 1,404 1,397 1,373 1,326 1,348 2,938 2,801 5,671 5,301 Restructuring charge (reversal) (43) (43) Total Non-Interest Expenses 1,476 1,462 1,449 1,421 1,404 1,397 1,330 1,326 1,348 2,938 2,801 5,671 5,258 (1) Processing fees paid to Symcor are included in Other, effective in the first quarter of April 30, 2002 Supplementary Financial Information Page 13