TABLE 12 Net Loans an d Acceptances – Segmented Information  ($ millions) TABLE 13 Net Impair ed Loans and Acceptances – Segmented Information  ($ millions) TABLE 14 Change in Impaired Loans and Allowances ($ millions) BMO FINANCIAL GROUP ANNUAL REPORT 2002 59 As at or for the year ended October 31 2002 2001 2000 1999 1998 Gross impaired loans and accept ances, beginning of year 2,014 1,501 1,092 824 787 Additions to impaired loans and acceptances 1,945 2,041 1,106 1,084 621 Reductions in impaired loans and acceptances (g) (738) (830) (446) (623) (389) Net new additions 1,207 1,211 660 461 232 Write-offs (884) (698) (251) (193) (195) Gross impaired loans and accept ances, end of year 2,337 2,014 1,501 1,092 824 Allowance for credit losses (ACL) , beginning of year 1,949 1,597 1,348 1,166 1,145 Increases — specific allowance 884 950 390 290 106 Increases — general allowance — 100 110 85 110 Write-offs (h) (884) (698) (251) (193) (195) Allowance for credit losses (i) end of year 1,949 1,949 1,597 1,348 1,166 As at October 31 2002 2001 2000 1999 1998 Net Impaired Diversified Co mmercial Loan s (d) Commercial mortgages 25 39 38 19 15 Commercial real estate 16 18 26 54 122 Construction (non-real estate) 3 47 6 3 4 Retail trade 51 120 48 21 17 Wholesale trade 77 47 12 7 9 Agriculture 24 10 18 18 15 Communications 429 78 19 25 23 Manufacturing 273 126 81 48 41 Mining 9 6 — 1 1 Oil and gas 71 77 102 145 37 Transportation 130 167 153 61 49 Utilities 162 154 1 — — Forest products 23 48 55 5 20 Service industries 63 102 115 127 47 Financial institutions  14 25 113 23 8 Other (e)(f) 30 (1) 11 (20) (4) Total net impaired diversified co mmercial loans (b) 1,400 1,063 798 537 404 As at October 31 2002 2001 2000 1999 1998 Net Loans and Acceptances b y Province Atlantic provinces 5,787 4,644 4,460 4,137 4,250 Quebec 14,376 13,685 14,602 12,304 11,714 Ontario 51,115 49,554 43,794 37,317 34,421 Prairie provinces 12,779 13,365 14,722 13,941 13,741 British Columbia and Territories 14,708 12,516 13,120 12,809 12,915 Total net loans and acceptances i n Canada 98,765 93,764 90,698 80,508 77,041 Net Diversified Commercial L oans by Industry (d) Commercial mortgages 7,591 7,352 6,616 6,254 5,626 Commercial real estate 3,592 3,816 3,100 3,632 3,601 Construction (non-real estate) 722 931 1,156 1,782 1,056 Retail trade 3,039 3,181 3,092 3,217 2,556 Wholesale trade 2,884 2,912 2,976 3,984 3,912 Agriculture 2,693 2,659 2,475 2,772 2,471 Communications 2,724 3,261 3,079 1,994 2,200 Manufacturing 8,461 10,994 11,290 10,922 10,301 Mining 495 628 794 873 1,068 Oil and gas 3,611 4,023 4,566 5,090 5,149 Transportation 1,303 1,523 1,717 1,121 1,172 Utilities 1,418 1,590 1,624 1,279 1,319 Forest products 981 1,177 1,378 1,391 1,223 Service industries 6,680 6,658 6,871 6,944 6,600 Financial institutions  16,836 15,992 14,730 13,598 9,468 Other 3,976 4,590 5,540 2,171 2,185 Total net diversified commercial loans  67,006 71,287 71,004 67,024 59,907 Total 2002 2001 2000 1999 1998 44,334 38,741 36,553 35,370 33,325 2,280 1,527 1,407 1,160 797 21,164 19,099 18,033 16,904 16,086 67,778 59,367 55,993 53,434 50,208 67,006 71,287 71,004 67,024 59,907 15,664 14,954 16,308 25,090 27,520 82,670 86,241 87,312 92,114 87,427 328  337 222 205 288 150,776 145,945 143,527 145,753 137,923 (1,180) (1,180) (1,080) (970) (885) 149,596 144,765 142,447 144,783 137,038 Total 2002 2001 2000 1999 1998 119 126 138 129 105 49 56 48 48 34 168 182 186 177 139 1,400 1,063 798 537 404 — — — — — 1,568 1,245 984 714 543 (1,180) (1,180) (1,080) (970) (885) 388 65 (96) (256) (342) 15.16 14.17 10.51 8.53 6.66 0.26 0.05 (0.07) (0.18) (0.25) 0.25 0.31 0.33 0.33 0.28 2.09 1.49 1.12 0.80 0.67