Bank of Montreal 2004 Annual Report Download - page 43

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BMO Financial Group Annual Report 2004 39
Improve our cash productivity ratio by 150 to 200 bps.
•We exceeded our target, improving our cash productivity
ratio by 270 bps.
Continue to target a US$1 billion increase in retail and small
business loans.
•Loans increased $1.9 billion or 19% from a year ago,
based on the strength of consumer loan growth of 20% in a
highly competitive market and small business loan growth
of 16% in a soft market.
Migrate to a single commercial deposit processing system
to simplify customer transaction processing.
•In November 2003, we successfully implemented a single
system that has allowed us to consolidate our back-office
processes, provide improved functionality for customers
and offer a common platform for all business markets.
2004 Objectives and Achievements
Expand the reach of our branch banking franchise by adding
10 branch locations to our network, while also pursuing
in-market and out-of-market acquisitions in contiguous states
and/or other high-growth markets. We set a target of
165 locations at the end of fiscal 2004, growing to 200 by 2007.
•We completed the acquisitions of Lakeland Community
Bank, with two locations, and New Lenox State Bank, with
eight locations. We opened nine new branches and closed
four, increasing our Harris community banking network to
168 locations at the end of the year, surpassing our target.
We also announced the acquisition of Mercantile Bancorp,
Inc., located in northwest Indiana, which is anticipated
to close in early 2005, adding another 19 locations.
What’s Next? Priorities for 2005
•Improve our cash productivity by at least 150 bps.
•
Expand our branch network by opening five new
branches and continuing to pursue acquisitions in Chicago,
surrounding states and other high-growth markets.
We are targeting 192 locations by the end of fiscal 2005,
with a goal of 200 branches in Chicago by 2007.
•Provide more seamless customer service and achieve
cost efficiencies through the consolidation of our bank
charter structure.
MD&A
U.S. Core Deposits and
Core Deposit Growth
8.6 9.4 10.5
16
911
Growth (%)
Deposits (US$ billions)
2002 2003 2004
U.S. Loans
and
Loan Growth
8.2
10.3
12.2
26 25
19
Growth (%)
Loans (US$ billions)
200420032002
Number of Branches
145
153
168
200420032002
Solid core deposit growth continued. There was continued strong loan
growth of US$2 billion per year.
Productivity improved significantly
in the past two years.
Our branch expansion continued.