Bank of Montreal 2008 Annual Report Download - page 10

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6| BMO Financial Group 191st Annual Report 2008
PRESIDENT AND CHIEF EXECUTIVE OFFICER’S MESSAGE
Our strategy at a glance
i
OUR STRATEGIC PRIORITIES
i
P 29
1. Build a superior Canadian
personal banking business.
• Deliver a differentiated customer experience, further enhance our performance management system and launch
attractive and compelling new offerings that drive results
• Further leverage our successful credit card offerings to provide the right choices by understanding and addressing
the needs of our customer segments
iP 46
2. Further strengthen commercial
banking to continue being a leading player.
•
In Canada, enhance the quality and consistency of the customer experience for commercial and small business
segments
by focusing on customer needs and embedding strong performance management discipline
•
In the U.S., grow our commercial businesses and become the leading player in our markets through aggressively
building
our capabilities and strengthening our focus on this segment
3. Grow our wealth management businesses
and capture increasing market share.
• Provide best-in-class wealth management solutions with a focus on helping our clients invest and plan for their
retirement years
• Enhance our business models and invest selectively to create incremental value
iP 52
4. Deliver strong, stable returns
in BMO Capital Markets.
• Maintain a diversified, dynamic portfolio of businesses that serve the evolving needs of our core clients
• Continue to optimize our businesses to generate appropriate risk-adjusted returns iP 55
5. Improve our performance and expand
our network in the U.S. to lead in the
U.S. Midwest.
• Continue to expand our distribution network through a combination of acquisitions and expansion, taking advantage
of recent market and industry events
• Deliver a differentiated customer experience, being helpful in unexpected ways and responsive to evolving customer
needs and preferences
iP 49
6. Build a high-performing,
customer-focused organization.
• Provide a differentiated customer experience by making customer benefit the focus of decision-making, and
streamlining processes to deliver value and take away complexity
• Manage the performance of our businesses, core assets and employees with excellence
• Hire and develop results-focused leaders, who act as role models in our customer culture and deliver results
iP 20
OUR STRATEGY
Grow our core Canadian businesses and
accelerate our expansion in the United States.
To strengthen our performance, we will focus on three core elements of our business:
•Customer – Define who we are and what we do in our customers’ terms
•Pace – Identify and capture opportunities quickly; prioritize, and execute rapidly
•Growth – Grow earnings consistently and manage capital within our capital management framework
iP 29
HOW WE WILL ACHIEVE IT
OUR GOVERNING OBJECTIVE
To maximize the total return to BMO share-
holders and generate, over time, top-quartile
total shareholder return relative to our
Canadian and North American peer groups.
We will maintain our medium-term financial objectives to, over time:
• Increase EPS by an average of 10% per year
• Earn average annual ROE of between 17% and 20%
• Achieve average annual cash operating leverage of at least 2%
• Maintain a strong regulatory capital position
iP 28
i
P 46, 49