Bank of Montreal 2007 Annual Report Download - page 11

Q&A
At BMO, our commitment to transparency and accountability begins at the top.
In the following Q&A, BMO Financial Group President and CEO Bill Downe takes
the opportunity to answer questions that matter the most to our shareholders.
QWhy should investors choose BMO?
AOur balance sheet shows the value of the diversity of our
business mix from an operating standpoint. But from my
vantage point, and the vantage point of our customers,
it is the combination of product and service that creates
real value. We have completely refocused on customers.
In every business, we are making decisions much faster
than before. This allows us to enter the market in a
way that, I believe, challenges the category. It is how
we are strengthening our Canadian franchise in all three
business groups and continuing our U.S. expansion.
When we make decisions in individual businesses,
it is the customers’ experience that will always be
the deciding factor.
QWhat is BMO doing to differentiate
itself in the highly competitive Canadian
retail banking market?
ASomething we work at every day is to see banking
and investing from our customers’ vantage point rather
than our own. This way, we can work at taking away
the complexity that comes with managing financial affairs.
If customers come away with a feeling that we are the
financial services company that makes things clearer and
behaves like we are standing in their shoes, respecting
their time, then we have accomplished something. This is
how we are different.
QWhere do you see your opportunities
in the United States?
AIn the Midwest, our goal remains to become the leading
personal and commercial bank. We’re taking advantage
of opportunities to grow organically. For instance,
we’re leveraging our strong community banking network
to grow our commercial, capital markets and private
client banking businesses. We’re also continuing to seek
out more opportunities to grow through acquisition.
We have expanded into both Indiana and Wisconsin and
have a strong base in Illinois. We are going to continue
to add branches and keep administrative costs flat.
QHas your appetite for risk changed as
a result of a more challenging economic
climate and tighter credit?
AThe definitive answer is “no.” BMO has long pursued
a disciplined, consistent and prudent approach to credit
risk management. This means our lending criteria
remain consistent whether the economy is growing or
slowing. It’s an approach that delivers better and more
predictable returns for our shareholders. And peace
of mind for our customers, who know they can count
on BMO to meet their own unique and individual needs
through the ups and downs of the economic cycle.
Risk controls, on the other hand, have advanced and
we are trying to make every investment we make
in risk systems and processes one that not only manages
risk but moves us ahead in other ways.
QWhat satisfied you most about the year
and what disappointed you most?
AIt is a great source of satisfaction that, in spite of this
year’s challenges which were clearly disappointing, we’ve
proven our resilience and managed the performance of
our core businesses like never before. And this shows in
our operating results. Executing against our stated strategies
is job one for our entire leadership team. To do that, we
need to be thinking about our customers all the time.
QHow has BMO’s strategy changed under
your leadership?
AOur strategic direction has not changed. We continue to
develop our core Canadian businesses and accelerate our
expansion in the United States. What has changed is
our focus. We are far more visible in the market with our
offers. We are focused on performance, customers, and
doing what needs to be done. We used to ask ourselves:
What product or service can we create for our customers
to purchase? Now we ask ourselves: What is it our cus-
tomers want and how can we make that happen –on their
terms. Our leaders, myself included, are spending a great
deal more time with our customers. It is amazing what you
learn from customers when you take the time to listen.
BMO Financial Group 190th Annual Report 2007 7