Bank of Montreal 2002 Annual Report Download - page 51

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BMO FINANCIAL GROUP ANNUAL REPORT
2002
47
2003 Focus
Securitization
▪
Maintain leadership position in Canada and remain a rec-
ognized niche player in the United States by focusing on
innovative structuring solutions in new and existing market
segments.
▪Continue to increase fee-based revenue.
CIM
▪
Grow assets under management by US$3.6 billion with a focus
on high-grade asset structures and fiduciary high-yield assets.
International
Description and Strategy
The International line of business provides financial institutions
and select multinational corporations with best-in-class client
service and innovative financial and operational solutions. These
services include trade finance, correspondent banking, financing
and other bank services, which are enhanced through the use
of technology. We continue to pursue a strategy of prudently
supporting our North American clients in the key international
markets where they do business.
Overview of Line Performance
The year 2002 proved a challenging one as slowing and uncertain
economic conditions reduced export and import transactions,
resulting in lower trade finance volumes and fees and moderate
results in the international banking sector. We have made solid
progress on our strategy to provide fully integrated solutions to
clients. This has resulted in enhanced service for our clients and
improved fees across Investment Banking Group.
2003 Focus
▪Maintain our leadership in trade finance and grow our busi-
ness in those markets where we have distinctive product and
risk assessment capabilities.
▪
Continue to promote our unique Canadian and U.S. correspon-
dent banking capabilities internationally.
Merchant Banking
Description and Strategy
The Merchant Banking line of business operates through BMO
Equity Partners and BMO Halyard Partners. It sources, structures
and finances private equity investments, primarily in North
America. Our strategy is to capitalize on proprietary information
flows to build and manage a portfolio of private equity invest-
ments in mid-market companies that produce superior returns
over time.
Overview of Line Performance
Weakening economic conditions created a climate of uncertainty
in financial markets and affected overall commitment levels and
performance. Despite this, we strengthened our merchant bank-
ing business by continuing to successfully align our institutional
priorities with the other IBG lines of business.
2003 Focus
▪
Continue to selectively pursue investments that will achieve supe
-
rior returns, as demand for private equity investing increases.