Bank of Montreal 2007 Annual Report Download - page 2

Who We Are
Founded in 1817 as Bank of Montreal, BMO Financial Group is today a highly diversified
North American financial services provider. Through our four operating groups –
Personal and Commercial Banking Canada, Personal and Commercial Banking U.S.,
Private Client Group and BMO Capital Markets –we serve a broad range of personal,
commercial, corporate and institutional customers.
•Further improved customer loyalty
through refining our customer experience
and providing excellent customer service.
•Emphasized same store revenue growth
while maintaining a disciplined focus
on managing expenses.
•Continued to build our branch network
primarily through acquisition, closing
on our acquisition of First National
Bank & Trust in Indiana and announcing
the acquisitions of Ozaukee Bank
and Merchants and Manufacturers
Bancorporation, Inc. in Wisconsin.
•Delivered strong referral volumes in
the United States, increasing referrals to
and from Harris Private Bank by nearly
80%. PCG Canada delivered consistently
strong referrals, continuing to improve
on the high levels attained in prior years.
•BMO Harris Private Banking was
recognized in
Euromoney Magazine ’s
Global Survey of private banking
services as the Best Local Private Bank
in Canada and Harris Private Bank
was rated as one of the top five local
private banks in the United States.
Personal and Commercial Banking
Canada (P&C Canada) serves over seven
million customers. Working in partnership
with other BMO businesses, we offer a
full range of products and services. These
include solutions for everyday banking,
financing, investing, credit card and insur-
ance needs, as well as a full suite of
integrated commercial and capital market
products and financial advisory services.
P&C Canada’s extensive delivery network
encompasses almost 1,000 BMO Bank of
Montreal
®
traditional and instore branches,
telephone banking, online banking
at bmo.com, mortgage specialists and
our network of almost 2,000
automated
banking machines.
Our
personal and commer-
cial
banking business is
among the five largest
in Canada.
Personal and Commercial Banking
U.S. (P&C U.S.) serves personal and
business customers in select markets
of the U.S. Midwest with a full range of
products and services delivered through
a community banking model that empha-
sizes local knowledge and commitment.
Harris’®†extensive distribution network
of 232 convenient, attractive branches,
online banking at harrisbank.com, nearly
600 automated banking machines and
an award-winning call centre support our
strong focus on customer service.
BMO Capital Markets (BMO CM)
combines all of our businesses serving
a broad range of corporate, institutional
and government clients in Canada and
the United States. We also serve clients
in the United Kingdom, Europe, Australia/
Asia and South America. BMO Capital
Markets offers complete financial solu-
tions, drawing upon our expertise in areas
including equity and debt underwriting,
corporate lending and project financing,
mergers and acquisitions advisory services,
merchant banking, securitization, treasury
and market risk management, foreign
exchange, derivatives, debt and equity
research, and institutional
sales and trading.
Personal and Commercial Banking Private Client Group BMO Capital Markets
Private Client Group (PCG) brings
together all of our wealth management
businesses. PCG serves a full range
of client segments, from mainstream
to ultra-high net worth, as well as
select institutional market segments.
Working together with our partners
throughout BMO and Harris, we offer
clients a broad range of wealth
management products and services,
including full-service and online
brokerage, private banking and
investment products.
At-A-Glance
Who We Are IFC
Objectives, Strategic Priorities
and Results IFC
Numbers That Matter 1
Business Review
Chairman’s Message 2
President and Chief Executive
Officer’s Message, including Q&A 3
2007 Financial Review 8
Growth, Customer, Pace 10
Corporate Governance 16
Corporate Responsibility 19
Financial Report
Management’s Discussion
and Analysis 22
Financial Performance and
Condition at a Glance 24
Supplemental Information 78
Consolidated Financial Statements 92
Notes to Consolidated
Financial Statements 96
Directories and Resources
Management Committee 4
Board of Directors 18
Principal Subsidiaries 138
Performance Committee 139
Glossary 140
Shareholder Information IBC
Key Facts
• $367 billion in
total assets as of
October 31, 2007
•35,827 employees
• TSX and NYSE: BMO
2007 Highlights
On our cover: Tiffany Kan, Direct Banking Manager, Lending and Investments, BMO Bank of Montreal.
See page 44. See page 46. See page 49. See page 52.
•Improvement in cross-selling performance
over the prior year in our efforts to grow
U.S. revenues.
•U.S. Investment and Corporate Banking
revenue growth fuelled by continued
hiring of 13 sector and product specialists
for key roles in the United States.
•Leveraged our Canadian market leader-
ship to expand our presence in the
United States and Europe.
•Ranked as the top Equity Research Group
in Canada for the 27th consecutive year
in the Brendan Wood International
Survey of Institutional Investors.
•Introduced a new AIR MILES®1program
that rewards personal customers for
purchases made on debit cards, as well
as existing rewards on credit cards. They
also receive additional reward miles when
they do more of their business with BMO.
•Fully integrated the bcpbank Canada
branches, enabling former bcpbank Canada
customers as well as BMO customers
wider access to products and services.
This has increased our presence in a multi-
cultural market in a high-growth area.
•Improved market share across all
commercial banking segments for
loans under $5 million, reinforcing our
continued strength in servicing the
commercial marketplace.
P&C Canada contributed:
57% of total operating net
income, or $1,250 million
P&C U.S. contributed:
5% of total operating net
income, or $114 million
PCG contributed:
19% of total operating net
income, or $408 million
BMO CM contributed:
19% of total operating net
income, or $425 million