Bank of Montreal 2012 Annual Report Download - page 24

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BMO Financial Group 195th Annual Report 2012 21
We are well-positioned to deliver on our strategic
priorities in the coming years, with a number of strengths
that position us well for continued sustainable growth:
•
Our business mix is well-diversified with a retail focus.
Our retail businesses represent 75% or more of operating
group adjusted revenue and net income.
• We have proven strength in commercial banking across
our North American platform. We are well-positioned
to leverage this expertise in a business-led recovery.
• We have an expanded and upgraded U.S. platform,
which provides each of our business groups with an
important source of operating leverage.
• We are focused on productivity to drive performance
and shareholder value.
• We have a differentiated, customer-focused strategy
which will drive growth by achieving industry-leading
customer loyalty and delivering on our brand promise –
Making Money Make Sense.
• We have a strong capital position, finishing the year
with a pro-forma Basel III Common Equity Ratio of 8.7%.
Looking forward, we intend to build on our success
this year, continuing to manage our business responsibly
while executing on our strategic priorities to deliver on
our commitments to all stakeholders of the bank.
Thomas E. Flynn
2012 was a year of progress for BMO. We delivered record
financial performance, successfully completed the conversion
of our U.S. core banking system and advanced our strategic
agenda. Each of our businesses is well-positioned to build
on this momentum and success in 2013.
BMO had strong financial results in 2012, with
reported net income of $4.2 billion. On an adjusted basis,
net income rose to $4.1 billion, increasing 25% from last
year with significantly improved results from Personal
and Commercial Banking and Private Client Group, solid
net income growth from BMO Capital Markets and
improved Corporate Services results. We also increased
the dividend this year.
These results reflect the success of our strategy and
our commitment to our customers and our shareholders.
In our MD&A, we examine our results in detail. We
are committed to telling our financial story clearly and
thoroughly with high standards of governance and trans-
parency in our communications. We are proud that our
commitment to good disclosure was again recognized
during the year. For the second consecutive year, BMO
received the Canadian Institute of Chartered Accountants
Award of Excellence for Corporate Reporting in Financial
Services. We were also recognized as having the Best
Financial Disclosure Procedures among the Financials
sector by IR Global Rankings.
CFO’s Foreword to
the Financial Review
Financial Review
Thomas E. Flynn
Executive Vice-President
& Chief Financial Officer