Bank of Montreal 2010 Annual Report Download - page 54

MANAGEMENT’S DISCUSSION AND ANALYSIS
MD&A
Maintain our high level of internal collaboration and continue
to leverage the full range of our wealth management businesses
to better meet client needs.
• Developed an integrated wealth management approach in U.S. retail
branches to better serve the mass affluent and high net worth
client segments.
• Created joint deal teams across full-service investing, private banking,
retail and commercial banking and insurance to better address
the complex financial needs of our clients.
• Increased referral volumes across BMO Financial Group to ensure our
clients’ specific wealth management needs are addressed seamlessly.
• Strengthened asset management capabilities to drive scale and focus
on new external mandates.
• Leveraged core capabilities in China by building a strong foundation
for future business opportunities, and actively participated in BMO’s
incorporation activities there.
2010 Group Objectives and Achievements
Continue to differentiate PCG by delivering a great client experience
that is anchored in financial and retirement planning.
• Delivered a planning-based client experience and improved sales
efficiency with enhanced financial planning and investment advisor
tools and comprehensive financial planning client materials.
•
Delivered an innovative program (Take Charge of Your Retirement) that
motivates clients to think about how their financial and non-financial
retirement goals are linked.
• Increased retirement planning training across our sales force to ensure
we remain competitive in this important market, add value for our
clients and drive business results.
Innovate in the design and delivery of our products and services.
• Expanded our Exchange Traded Funds (ETF) family of lower-cost and
risk-diversifying investment products to provide our clients with greater
access to innovative and industry-leading investment products and
solutions. We now offer 30 funds, as well as strategic ETF Portfolios,
as part of our managed solutions program for retail customers.
•
Strengthened BMO InvestorLine’s capabilities and delivered
an enhanced online experience with improved functionality and
educational materials.
• Effectively integrated and expanded our insurance businesses, and
streamlined related sales processes and applications.
2011 Group Objectives
• Deliver a great client experience with a strong focus on
financial planning.
• Leverage our high level of internal collaboration across wealth
management businesses and BMO Financial Group.
• Invest for future growth by focusing on innovative products
and services and widening our geographic reach.
Client assets grew 11%
(13% in source currency)
year over year.
231
2008 2009 2010
Assets under Management
and Administration ($ billions)
Canada
United States
239
264
The cash productivity ratio
improved year over year due to
revenue growth and effective
expense management initiatives.
Cash Productivity Ratio (%)
2008 2009 2010
72.9
77.8
71.5
The significant increases in
net income and return on
equity were driven by cash
operating leverage of 9.1%.
Net Income and Return
on Equity
Net income ($ millions)
Return on equity (%)
426
359
470
37.9
29.4
37.4
2008 2009 2010
Our lines of business are aligned
to implement our wealth
management strategy effectively.
2010 Revenue by
Line of Business (%)
Full-Service
Investing 42%
BMO Insurance
13%
BMO Asset
Management 5%
Retail
Investments 13%
Private Banking 20%
Self-Directed Investing 7%
52 BMO Financial Group 193rd Annual Report 2010