Bank of Montreal 2004 Annual Report Download - page 47

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BMO Financial Group Annual Report 2004 43
MD&A
Assets under Management
and Administration including
Term Deposits ($ billions)
237
270 282 271
2004200320022001
Canada
United States
Productivity ratio
Cash productivity ratio
Productivity Ratio and
Cash Productivity Ratio (%)
2001 2002 2003 2004
84.4
88.2
82.3
77.7
85.6
91.7
86.7
81.1
Net Income and
Cash Net Income ($ millions)
2001 2002 2003 2004
108
79
144
231
136 122
191
274
Net income
Cash net income
Canadian Wealth Management
Market Share (where available)
1,260 1,160 1,160 1,280 1,384
8.78
9.03
9.57 9.65 9.70
Industry assets ($ billions)
PCG market share (%)
2004
*
2003200220012000
*June 2004 data
Pursue opportunities that focus on deepening client
relationships and building momentum in the high-growth
affluent market segment.
•Award-winning leadership in client services:
• BMO InvestorLine was ranked the top online brokerage
for the fifth consecutive year by Watchfire GómezPro
and was The Globe and Mail’s choice as best online
broker for the third consecutive year.
•Harrisdirect was rated the best in customer service
by SmartMoney and was awarded a four-star rating in
Barron’s annual online brokerage survey. In addition,
Watchfire GómezPro rated Harrisdirect’s ser vices in the
top quartile for the fourth consecutive time.
• BMO Harris Private Banking was selected Best Private
Bank in Canada in Euromoney Magazine’s survey
of private banking services.
Improve our cash productivity ratio by 150 to 200 bps.
•Improved cash productivity ratio by 460 bps, driven by sus-
tainable cost containment initiatives and revenue growth.
•U.S. cash productivity ratio also improved by 460 bps.
2004 Objectives and Achievements
Enhance our business model by continuing to improve
productivity and invest in our high-growth wealth
management businesses.
•Streamlined operations, which contributed to net income
growth of 60% and improved cash productivity.
•Continued to optimize the Harrisdirect business model
to maximize the benefits of future market improvements,
while improving our ability to endure downturns in
market cycles.
Focus on delivering the highest levels of service and integrated
offerings to our clients by leveraging partnerships within PCG
and across BMO Financial Group.
•Built on the solid progress made in previous years by
continuing to increase referral activity within PCG and
between PCG and our retail partner, Personal and
Commercial Client Group (P&C). Referral activity with
P&C increased by nearly one-third over last year.
•Integrated the unique service offerings of myCFO, Inc. and
Sullivan, Bruyette, Speros & Blayney Inc. to further
develop
Harris Private Bank as a provider of comprehensive
wealth
management solutions.
Assets declined, but continued to grow
excluding the effects of the lower
Canadian/U.S. dollar exchange rate.
Productivity improved sharply in 2004
and 2003.
Net income reached record levels
in 2004.
Market share increased each year.
What’s Next? Priorities for 2005
•Continue to enhance client offerings and deepen client
relationships.
•Optimize our business model through specific revenue-
generating initiatives and ongoing expense management.
•The performance of our proprietary investment products
exceeded the industry average.
• Guardian Group of Funds mutual funds achieved a 12%
average annual return on an asset-weighted basis for the
three-year period ended October 31, 2004, compared with
5% for the Canadian mutual fund industry as a whole.
• BMO Mutual Funds achieved the highest percentage
growth in market share among the five largest Canadian
banks over the past two years.
•Established a Wealth Advisory practice within Full-Service
Investing for clients with diverse individual and family
financial management needs.
•Increased ownership interest in Fullgoal Fund Manage-
ment Company Ltd. to 27.8%, better positioning BMO
to take advantage of growth opportunities in the Chinese
investment market. Fullgoal is a creator and distributor
of proprietary mutual fund products in China.
•Continue to focus on the effectiveness of our sales force.
•Improve our cash productivity ratio by at least 150 bps.
Other Achievements