Bank of Montreal 2013 Annual Report Download - page 13

Board of Directors1
To promote alignment of our strategic goals across all our businesses, each director sits on at least one board committee and the Chief
Executive Officer is invited to all committee meetings. We review the membership of all committees annually . www.bmo.com/corporategovernance
Robert M. Astley Janice M. Babiak
Sophie Brochu George A. Cope
William A. Downe Christine A. Edwards
Ronald H. Farmer Eric R. La Flèche
Bruce H. Mitchell Philip S. Orsino
Dr. Martha C. Piper
J. Robert S. Prichard
Don M. Wilson III
22 BMO Financial Group 196th Annual Report 2013
Robert M. Astley
Former President and Chief
Executive Officer, Clarica
Life Insurance Company, and
former President, Sun Life
Financial Canada
Board/Committees: Governance
and Nominating, Human
Resources (Chair), Risk Review
Director since: 2004
Janice M. Babiak
Corporate Director
Board/Committees: Audit and
Conduct Review, Risk Review
Other public boards: Royal
Mail plc, Walgreens Co.
Director since: 2012
Sophie Brochu
President and Chief Executive
Officer, Gaz Métro
Board/Committees: Audit
and Conduct Review
Other public boards: BCE Inc.
Director since: 2011
George A. Cope
President and Chief Executive
Officer, Bell Canada and BCE Inc.
Board/Committees: Human
Resources
Other public boards: BCE Inc.,
Bell Aliant
Director since: 2006
William A. Downe
Chief Executive Officer,
BMO Financial Group
Board/Committees: Attends
all committee meetings as
an invitee
Other public boards:
ManpowerGroup
Director since: 2007
Christine A. Edwards
Capital Partner, Winston & Strawn
Board/Committees: Human
Resources, Risk Review,
The Pension Fund Society
of the Bank of Montreal
Director since: 2010
Ronald H. Farmer
Managing Director,
Mosaic Capital Partners
Board/Committees: Audit and
Conduct Review, Governance and
Nominating, Human Resources,
The Pension Fund Society of the
Bank of Montreal (Chair)
Other public boards: Valeant
Pharmaceuticals International Inc.
Director since: 2003
Eric R. La Flèche
President and Chief Executive
Officer, Metro Inc.
Board/Committees: Risk Review
Other public boards: Metro Inc.
Director since: 2012
Bruce H. Mitchell
President and Chief Executive
Officer, Permian Industries Limited
Board/Committees: Audit and
Conduct Review, The Pension
Fund Society of the Bank of
Montreal
Director since: 1999
Philip S. Orsino, O.C., F.C.A.
President and Chief Executive
Officer, Jeld-Wen Inc.
Board/Committees: Audit
and Conduct Review (Chair),
Governance and Nominating
Director since: 1999
Dr. Martha C. Piper, O.C., O.B.C.
Corporate Director, former
President and Vice-Chancellor,
The University of British Columbia
Board/Committees: Audit and
Conduct Review, Governance
and Nominating (Chair)
Other public boards: Shoppers
Drug Mart Corporation, TransAlta
Corporation
Director since: 2006
J. Robert S. Prichard, O.C., O.Ont.
Chairman of the Board,
BMO Financial Group, and
Chair of Torys LLP
Board/Committees: Governance
and Nominating, Human
Resources, Risk Review,
The Pension Fund Society
of the Bank of Montreal
Other public boards: George
Weston Limited, Onex Corporation
Director since: 2000
Don M. Wilson III
Corporate Director
Board/Committees: Governance
and Nominating, Human
Resources, Risk Review (Chair)
Other public boards: Ethan
Allen Interiors Inc.
Director since: 2008
1
As at October 31, 2013.
Honorary Directors
Stephen E. Bachand, Ponte Vedra Beach, FL, USA
Ralph M. Barford, Toronto, ON
Matthew W. Barrett, O.C., LL.D., Oakville, ON
David R. Beatty, O.B.E., Toronto, ON
Peter J.G. Bentley, O.C., LL.D., Vancouver, BC
Robert Chevrier, F.C.A., Montreal, QC
Tony Comper, C.M., LL.D., Toronto, ON
Pierre Côté, C.M., Quebec City, QC
C. William Daniel, O.C., LL.D., Toronto, ON
Louis A. Desrochers, C.M., c.r., A.O.E., Edmonton, AB
A. John Ellis, O.C., LL.D., O.R.S., Vancouver, BC
John F. Fraser, O.C., LL.D., O.R.S., Winnipeg, MB
David A. Galloway, Toronto, ON
Richard M. Ivey, C.C., Q.C., Toronto, ON
Betty Kennedy, O.C., LL.D., Campbellville, ON
Harold N. Kvisle, Calgary, AB
Eva Lee Kwok, Vancouver, BC
J. Blair MacAulay, Oakville, ON
Ronald N. Mannix, O.C., Calgary, AB
Robert H. McKercher, Q.C., Saskatoon, SK
Eric H. Molson, Montreal, QC
Jerry E.A. Nickerson, North Sydney, NS
Jeremy H. Reitman, Montreal, QC
Lucien G. Rolland, O.C., Montreal, QC
Joseph L. Rotman, O.C., LL.D., Toronto, ON
Guylaine Saucier, F.C.P.A., F.C.A., C.M., Montreal, QC
Nancy C. Southern, Calgary, AB
CFO’S FOREWORD TO THE FINANCIAL REVIEW
CFO’s Foreword to the
Financial Review
Thomas E. Flynn
Chief Financial Officer, BMO Financial Group
BMO delivered record net income of $4.2 billion in 2013,
building on our 2012 performance. On an adjusted basis, net
income rose to $4.3 billion and EPS was $6.30, increasing 5%
from last year. We also announced two dividend increases,
bought back over 10 million common shares and strengthened
our capital position.
Our continued good results reflect the success of our strategy
and have translated into attractive returns for BMO’s shareholders.
Our one-year total shareholder return of 29% was the highest
among our Canadian peer group. Over the past five years, our
shareholders have earned an average annual total shareholder
return of 17% on their investment in common shares. We have
achieved these returns while managing risk prudently and
strengthening our balance sheet.
The bank’s financial results are examined in Management’s
Discussion and Analysis (MD&A), where we review our
performance and tell our financial story clearly and thoroughly.
Our long-standing commitment to ensuring that shareholders
receive timely and informative reporting on our financial results
earned us the Chartered Professional Accountants of Canada
Award of Excellence in Corporate Reporting for Financial Services
in two of the last three years.
This year, we expanded our disclosures in several areas in
response to recommendations made by the Enhanced
Disclosure Task Force established by the Financial Stability
Board, which is part of a broader effort by industry participants
and regulators to strengthen the resiliency of the financial
services industry globally. We are supportive of this effort and
hope you find the additional disclosures informative.
Looking forward, we are well-positioned for the current
environment:
BMO Financial Group 196th Annual Report 2013 23
• Our large North American commercial banking business is a
differentiator in an environment where commercial loan growth
is expected to continue to outpace consumer loan growth.
• Our flagship Canadian Personal and Commercial banking
business is heading into 2014 with good momentum.
• Wealth Management had record results for this year and
has good growth opportunities in North America and select
global markets.
• We expect growth and operating leverage from investments
we have made in our U.S. businesses and from the
improving U.S. economy.
• We are working to improve efficiency with an emphasis
on simplifying processes and pursuing opportunities to
integrate technology and operations infrastructures on a
North American basis.
• Our capital position is the strongest among our Canadian
peer group with a Basel III Common Equity Tier 1 Ratio of 9.9%,
up from the pro-forma estimate of 8.7% at the end of 2012.
As we head into 2014, we remain focused on meeting our
existing customers’ needs and adding new customers across
all our businesses by delivering on our brand promise.
We hope you enjoy reading our MD&A and look forward
to reporting on our continued progress next year.
Thomas E. Flynn