Bank of Montreal 2004 Annual Report Download - page 49

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BMO Financial Group Annual Report 2004 45
MD&A
Investment Banking Group
Group Description
Investment Banking Group (IBG) combines all of the businesses serving corporate,
institutional and government clients. In Canada, operating under the BMO Nesbitt
Burns brand, our client base comprises large corporations and institutions across a
broad range of industry sectors. In the United States, operating under the Harris
Nesbitt brand, we serve corporate and institutional clients in selected sectors. IBG also
serves institutional and government clients in the United Kingdom, Europe and Asia.
We offer clients complete financial solutions across the entire balance sheet, includ-
ing public and private debt and equity underwriting, corporate lending, securitization,
cash management, foreign exchange and trade finance. The group also offers leading
financial advisory services in mergers and acquisitions and restructurings, while pro-
viding investing clients with industry-leading research, sales and trading services.
Vision
To be recognized by clients and shareholders as the best and most disciplined
integrated North American investment and corporate bank in our markets.
Strategies
•Continue to reinforce our leading positions in Canada.
•Accelerate growth in the United States.
•Continuously improve the profitability of client relationships.
Our Lines of Business
Investment and Corporate Banking
provides a full suite of finan-
cial products and services to our clients. Services include
strategic advice on mergers and acquisitions, restructurings
and recapitalizations, as well as providing valuation and fair-
ness opinions. We provide capital-raising services through debt
and equity underwriting. We also provide a full range of loan
and debt products, balance sheet management solutions and
cash management services.
Capital Markets provides integrated debt, currency, interest rate,
credit and commodity solutions to targeted wholesale, commer-
cial and retail clients. We also provide efficient funding and
liquidity management to BMO Financial Group and its clients.
Securitization and Credit Investment Management
offers issuers
and investors products and services that use credit as a tool for
asset management and funding alternatives.
Equity Division
offers a comprehensive suite of Canadian equity
products globally. These products are delivered through our
top-tier research, sales and trading capabilities, and tailored to
our clients’ needs. We continue to maintain and enhance our
leadership position in Canada, while selectively expanding our
product base in the United States.
The
International
line of business provides trade finance
and risk mitigation services to North American corporate
and commercial clients in support of their international
business activities. We also offer a wide range of banking
and other operating services to international and domestic
financial institutions.
Merchant Banking
operates through BMO Halyard Partners and
BMO Equity Partners. We source, structure and finance private
equity investments, primarily in North America.
Key Performance Drivers 2004 2003 2002
Equity value block trading ranking #1 #1 #1
Equity research ranking #1 #1 #1
(Brendan Wood International)
Canadian securitization*ranking #1 #1 #1
Strengths
•Well-established franchise with a leadership position
in certain industries and products and a reputation for
quality advice.
•Top-tier Canadian equity research, sales and trading
capabilities.
•Largest presence of any Canadian investment and corporate
bank in the U.S. Midwest.
•Well-diversified product offerings that can enhance
our clients’ balance sheets.
Challenges
•Mature Canadian market.
•Investment banking revenues increasingly tied to providing
financing to corporate clients.
•
Improving our brand recognition outside the U.S.
Midwest market.
•Rising interest rates, the strengthening Canadian dollar and
high crude oil prices negatively affecting economic growth.
Yvan J.P. Bourdeau
President and Chief Operating Officer,
BMO Nesbitt Burns
*Asset-backed commercial paper conduit outstandings as at September 30, 2004.