Bank of Montreal 2012 Annual Report Download - page 8

BMO Financial Group 195th Annual Report 2012 5
the U.S. effectively doubled with the integration of M&I.
Adjusted earnings
1
from our U.S. segment tripled from the
previous year to more than $1 billion, reflecting strong
business growth and credit performance that proved to
be better than anticipated.
This is the realization of a deliberate strategy
to anchor our core business in the heartland of the
continental economy – a territory defined as much by
shared values and aspirations as it is by geography.
BMO’s enlarged continental footprint is centred
in the vital Great Lakes economy that connects six
key U.S. Midwest states and the two largest Canadian
provinces, and whose combined population of more than
74 million generates a nominal GDP of about $3.3 trillion.
Our significant and long-established presence throughout
the rest of Canada, with a network stretching from
coast to coast, connects powerful regional economies
driven by natural resources and agriculture. BMO’s deep
ties in the energy sector extend from the oilfields of
Alberta and Saskatchewan southward through Colorado
to Texas. And from strategically situated offices around
the Pacific Rim, we facilitate financing and investment
activity between North America and the rapidly
growing economies of Asia.
This, in broad strokes, is how we map the
expanded market that our bank is now ideally positioned
to serve. But what matters far more than any alignment
of states and provinces is the character of the places
where we feel most at home and where we see the
greatest potential for creating value. The markets where
BMO does business are populated by hardworking
people who are focused on raising families, buying
homes, building businesses and investing for the
future – people who contribute every day, in large
ways and small, to strong, competitive economies
that are fully capable of holding their own in the
global marketplace.
to reducing financial leverage in developed economies,
and toward strengthening the management and
oversight of institutions and markets. There may be no
return to the expectations of the early 2000s, but the
potential for economic growth now appears much greater
than we’ve been conditioned, as a result of the past five
years, to consider normal. BMO has never been better
positioned to take advantage of the opportunity.
A fundamental repositioning of our bank
BMO strives for market leadership with customers – and
employees. We’re recognized not only as a great place to
bank, but also a great place to work. Very purposefully, we
have been repositioning the bank and this year passed an
important point. Without doubt, we have fundamentally
changed our position in the marketplace: the opportunity
before us now is equally about the experience we provide
to customers and the geography we span, as we build
long-term value throughout Canada and across the U.S.
border in the middle of the continent.
In extending BMO’s global reach we’ve been similarly
selective, adding to our presence in overseas markets
only where it is meaningful in relation to our core North
American footprint. Still, a fundamental measure by which
we define success remains our ability to attract new
customers. Our expanded North American platform allows
us to grow our customer base on a more competitive scale.
BMO is now the second-largest Canadian bank
measured by number of retail branches in Canada and
the U.S. The bank has the earnings momentum and scale
to translate balance-sheet growth into market-share
gains – building on the confidence that comes from being
an industry leader in customer loyalty.
Opportunity in the economic heartland
In 2012 we marked our first full year of serving significantly
more customers than ever before as BMO’s footprint in
William A. Downe
President and Chief Executive Officer