Bank of Montreal 1997 Annual Report Download - page 46

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Bank of Montreal 180th Annual Report 199740
Financial Results
In 1997, net income for I&CB grew 33.9% to $150 million, driven primarily by revenue
growth. The increase in revenue growth resulted from the success of the key growth strate-
gies and the impact of the buoyant capital markets, in particular, more new equity issues
and increased secondary trading volumes. Non-interest expense increased 25.0%, which
largely reflects revenue-driven compensation.
Income growth in 1996 of $55 million was largely due to the impact of stronger capital
markets and in particular, new equity issues and increased secondary trading volumes.
Expense growth primarily reflected higher revenue-related compensation.
979695
11.7 11.9
10.9
Leading Institutional Equity
Market Share
(%)
1 1 2
As measured by block trading volume on the
Montreal Exchange and Toronto Stock Exchange.
1
Data quarter ending December 31
2
Data quarter ending September 30
Source: Montreal Exchange and Toronto
Stock Exchange
979695
15.1 15.0
15.8
Underwriting Market Share
(%)
Estimated dollar value of underwriting
participation as a % of total capital raised
for the 12 months ended September 30.
RBC Dominion Securities
Nesbitt Burns
CIBC Wood Gundy
ScotiaMcLeod
Investment and Corporate Banking
($ millions except as noted)
As at or for the year ended October 31
1997 1996* 1995* 1994* 1993*
Net interest income 100 52 55 46 37
Other income 1,175 962 644 470 323
Provision for credit losses 00 0 6 8
Non-interest expense 1,003 803 587 384 268
Income before taxes 272 211 112 126 84
Income taxes 122 99 55 55 30
Net income 150 112 57 71 54
Average assets 36,014 25,881 22,075 15,538 13,898
Average current loans 19,405 12,594 10,882 8,271 8,516
Securities purchased under resale agreements 18,044 11,431 9,894 7,842 8,136
Average deposits 1,916 1,447 1,009 673 454
Assets under administration 41,919 34,176 26,289 22,005 11,800
Assets under management 16,516 10,597 8,488 8,987 8,100
Full-time equivalent staff
(a)
4,555 4,093 NA NA NA
Expense-to-revenue ratio 78.7 79.2 83.9 74.4 74.4
*Restated to give effect to the current year’s organization structure.
(a) As at October 31.
NA – Not available.
Wealth Management
Given demographic factors and the growth opportunities presented across our chosen markets, and the increasing
cross-border alignment and synergies between businesses within the Bank, the wealth management business
is a key priority for future investment and development through 1998 and beyond. Our wealth management
business has a broad reach across several entities within the Bank of Montreal Group of Companies which, taken
together, offer a significant product range and scope of distribution.
Our wealth management is best described by addressing three business segments:
•retail money management through mutual funds and other packaged products;
•high net worth personal client money management; and
•institutional money management.
Retail money management encompasses a combination of no-load and load mutual funds distributed through
proprietary channels. Our mutual fund families include: First Canadian Funds, Harris Insight Funds, Jones
Heward funds and Nesbitt Burns mutual funds. Matchmaker®,a strategic asset allocation service launched in
1997, has been very successful in Canada.
High net worth clients are delivered wealth management products and services on a bundled and unbundled
basis, through a combination of discretionary and non-discretionary products and services. Nesbitt Burns has more
than 1,350 investment advisors who provide full-service investment advice from some 125 offices across Canada.
As well as traditional investment products, Nesbitt Burns offers a wide range of proprietary products, including
management account programs and Nesbitt Burns Pathfinder®
, a comprehensive investment and retirement plan-
ning program. In addition, we offer investment products and services through Harris Trust in the United States,
and through Bank of Montreal Private Client Services, Jones Heward, The Trust Company of Bank of Montreal and
InvestorLine®, a discount brokerage subsidiary, in Canada. Canadian distribution points have expanded, while U.S.
distribution, currently focused in the Midwest, is in the process of expanding to Arizona, Florida and California.
Institutional money management is conducted through Jones Heward Investment Counsel and Harris Investment
Management Company.
Investment and Corporate Banking Continued
®
Registered trade mark of Bank of Montreal.
®
Pathfinder is a registered trade mark of Nesbitt Burns.