Bank of Montreal 2014 Annual Report Download - page 8

12 BMO Financial Group 197th Annual Report 2014 BMO Financial Group 197th Annual Report 2014 13
The past 12 months sharpened our explanation of what’s
unique about BMO’s response to a changing world. It meant
defining how to meaningfully serve customers while fulfilling
our larger responsibilities – and here we’ve established a
clear perspective. It also meant balancing ambition with
inclusiveness and the values that endure, and using that
experience to create competitive advantage. Finally, it was
about maintaining the conviction to direct all dimensions of
our business – our talent, capabilities, capital and reputation –
toward the ultimate goal of helping customers succeed.
These efforts have led us to elevate the brand of the bank
around what we know: that money is personal. It holds
that customers want to make better decisions with better
information and have confidence in the decisions they
make. But they also want to feel understood. For a brand
to be valuable, it must provide a consistent experience,
defined by a common set of ideals, across every customer
touch point. The pages that precede this letter outline
exactly what we think those ideals are.
The primacy of the customer is our focus. Nothing is more
vital to us. We build our business around what we think is
most important, because in a world where information is so
readily exchanged, who you are and what you stand for are
visible to everyone. The way forward can only be guided by
a coherent view of how we’re going to act.
Predicting what’s in store
The accelerating pace of change is not news – it’s
the everyday reality that frames how we conduct our
business. We have built that fact into our planning. It’s
what allows us to take action in the face of uncertainty
while acknowledging that the future will be difficult
to reliably predict.
Advances in computing, networked communications and
the digitization of everything are transforming the lives of
consumers, as well as the knowledge and skills that people
need to be successful in their work. This is creating both
extraordinary opportunity and unprecedented challenges
for businesses, including our own.
The breadth and velocity of these changes, admittedly,
will be disruptive. The competitive playing field is being
reshaped by a growing number of new entrants, while
incumbents are revisiting models that have long been
taken for granted. In this way, disruption is acting as a
catalyst for positive change: it reveals areas of potential
and inspires innovation along alternative vectors, even as
we reinvest in proven models. And while such a rapid
evolution also brings uncertainty, the one truth we can
count on is that the customer – empowered by digital
platforms, mobile technologies and social networks – will
dictate how banking is going to work.
The customer remains at the centre of the five strategic
priorities that guide our bank (see sidebar). As we continue
our efforts to drive productivity, leverage our North American
platform and support our customers where they operate,
including key global markets such as China – all while
maintaining a prudent approach to risk – every decision we
make points back to our fundamental promise to the
people with whom we do business.
We continue to take the longer view over short-term
tactics and in this context are evolving the way we
operate. Protecting customer records and information, and
ensuring accuracy and system availability; marshalling
technology’s ability to provide improved customer
experiences at lower cost; enhancing our use of
Chief Executive Officer’s Message
In a world where
information is so readily
exchanged, who you
are and what you stand
for is visible to everyone.
The way forward can
only be guided by a
coherent view of how
we’re going to act.
5
4
3
2
1Achieve industry-leading
customer loyalty by delivering
on our brand promise.
Enhance productivity to
drive performance and
shareholder value.
Leverage our consolidated
North American platform
to deliver quality earnings
growth.
Expand strategically in
select global markets to
create future growth.
Ensure our strength in risk
management underpins
everything we do for our
customers.
Our strategic
priorities
2013 2014
2012 2013 2014
2012 2013 2014
2012 2013 2014
2012*
Adjusted Revenue
($ Billions)
Adjusted Net Income
($ Billions)
Adjusted ROE
(%)
Basel III Common
Equity Tier 1 Ratio
(%)
9.9
15.0
4.215.4 10.114.44.516.7 8.7
15.54.114.9
* 2012 CET1 Ratio is on a pro-forma basis.