By
sharing our success with our shareholders, employees and fellow citizens,
we contribute to the prosperity and wellbeing of our society and, in turn,
create the conditions that will help sustain our company in the future. It
makes sense to contribute to maintaining a vibrant economy. Always.
Where our Canadian Revenues Go
BMO's success is shared across society. In 2008, our canadian revenue was $7,611 million. Of this amount, 37% went to employee compensation, 24% went to suppliers, 5% went to our provision for loan losses and the remainder, 34%, was returned to our shareholders or reinvested in our company.
Paying taxes
The taxes we have paid over the years help make possible many programs and services that benefit individuals and families across our country. In 2008, BMO recognized an overall tax recovery of $466 million in Canada, comprised of an income tax recovery of $785 million net of other government levies of $319 million. The recovery in 2008 was largely attributable to the strengthening of the U.S. dollar and associated hedging losses.
Canadian income taxes were higher in recent years, in part due to the U.S.
dollar weakening and the associated hedging gains. Over the five years prior
to 2008, BMO contributed a total of $5.75 billion in Canadian taxes and levies,
an average of $1.15 billion per year. The $319 million of other government
levies contributed in 2008 included $32 million in provincial capital taxes,
$138 million in GST and sales tax, $130 million in employer payroll taxes,
$14 million in property taxes and $5 million in business taxes.
Benefiting shareholders
There is no question that, like the
vast majority of the world’s financial
institutions, BMO was affected by global economic weakness and financial instability
in 2008. Yet, despite unfavourable conditions, we turned in a solid financial
performance.
In 2008, our total revenue was $10.2 billion, and our net income
was $2.0 billion. We have a long-standing commitment to enhancing shareholder
value while maintaining a strong capital position that allows us to execute
our growth strategies. BMO has a record of consistent dividend growth and
our target payout ratio is 45% to 55% of earnings available to common shareholders,
the highest ratio of Canada’s major banks. Our five-year compound annual
dividend growth rate stands at 15.9%.
For more information on our financial performance, please see our 2008 Annual
Report.
Creating employment
One of the most significant ways BMO contributes to the national economy is
through job creation. In 2008, we employed more than 33,000 full-time and
part-time workers in Canada. Our employee compensation in Canada totalled
$2.8 billion.
Purchasing goods and services
Buying goods and services from large and small companies as well as individual
contractors is yet another important way we distribute the wealth we generate.
We purchased a total of $1.8 billion in goods and services in Canada in 2008.
Investing in our communities
In 2008, we contributed $55.9 million through donations, sponsorships and other
contributions to support charities and not-for-profit organizations in Canada
and the United States. Contributions in Canada totalled $47.7 million, including
$23.7 million in charitable donations and $24 million through sponsorships
and events.
