Bank of Montreal 2008 Annual Report Download - page 50

MANAGEMENT’S DISCUSSION AND ANALYSIS
MD&A
46 | BMO Financial Group 191st Annual Report 2008
Personal and Commercial Banking Canada (P&C Canada)
Key Performance Metrics and Drivers 2008 2007 2006
Personal banking, insurance
and other revenue ($ millions) 2,565 2,464 2,370
Personal loan growth (%) (1) 5.0 4.3 10.9
Personal deposit growth (%) 1.1 0.3 0.4
Commercial banking revenue ($ millions) 1,364 1,351 1,274
Commercial loan growth (%) (1) 9.5 8.1 6.4
Commercial deposit growth (%) 5.6 10.0 7.6
Cards revenue ($ millions) 1,108 929 936
Cards loan growth (%) 13.8 12.0 7.0
Operating leverage (%) 0.7 0.7 1.8
Revenue growth (%) 6.2 3.6 6.0
Employee engagement index (%) (2) 73 75 73
(1) Includes consumer loans, mortgages, acceptances and securitized loans.
(2) Source: BMO’s Annual Employee Survey, conducted by Burke Inc., an independent
research company.
“We are committed to
making sure that every time
a customer interacts
with us, their experience
is a great one.”
Who We Are
We serve more than 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 cards and insurance as well
as a full suite of integrated commercial and capital markets products and financial advisory services. P&C Canada manages
an integrated national network of BMO Bank of Montreal branches, telephone banking, online banking, mortgage specialists,
financial planners and more than 2,000 automated banking machines.
FRANK TECHAR
PRESIDENT AND CHIEF EXECUTIVE
OFFICER, PERSONAL AND
COMMERCIAL BANKING CANADA
Personal Banking provides financial solutions for everyday banking, financing,
investing and insurance needs. We serve approximately 20% of Canadian house-
holds. Our national integrated multi-channel sales and distribution network offers
customers convenience and choice in meeting their banking needs.
Commercial Banking provides our small business, medium-sized enterprise
and mid-market banking clients with a broad range of banking products and
services. We offer a full suite of integrated commercial and capital markets
products and financial advisory services.
Cards and Payments Services provides flexible, secure payment options
to our customers. We are the largest MasterCard issuer in Canada.
Strengths and Value Drivers
•Strong competitive position in commercial banking, reflected in our
number two ranking in market share for business loans of $5 million
and below.
•
Superior risk management that provides our customers with consistent
access to financing solutions in all economic conditions.
•Comprehensive range of everyday banking and payment capabilities,
combined with our AIR MILES customer loyalty program.
•
Competitive electronic transaction processing business through Moneris
Solutions, which serves approximately 40% of the Canadian market.
•Integrated technology platform and customer data management
capabilities that support our effective sales and service model.
•Effective performance management system, encompassing planning,
tracking, assessment and coaching.
Challenges
•Global credit environment has materially increased funding costs.
•
Increased pace of change and innovation provides customers with easy
access to an expanding array of alternative products and services.
•Strong competition for deposit accounts is pressuring deposit margins
and customer retention.
•Competition to attract and retain highly qualified employees has
increased in high-growth sectors and regions.
•Demand continues to grow for resources to meet regulatory, compli-
ance, information security and fraud management requirements.
Our Lines of Business
To be the bank that defines great customer experience.
VISION
PATH TO DIFFERENTIATION
We will succeed in the Canadian market through the quality and consistency
of our customer experience and through the productivity of our sales and
distribution network. Our main strategies are:
•In personal banking, deliver a differentiated customer experience and further
enhance the performance management system.
•In commercial banking, enhance the quality and consistency of the customer
experience for commercial and small business customer segments by
focusing on the needs of the customer and embedding a strong performance
management discipline.
•Further leverage our successful credit card product offering to provide
the right choices by understanding and addressing the needs of
customer segments.
STRATEGIES
•Excel at sales leadership and performance management.
•Leverage customer insights to develop offers and drive marketing
program results.
•Focus investments and allocate resources to capitalize on highest-value
sales and distribution opportunities.
•Redesign core processes and leverage technology to improve the customer
experience, free up front-line capacity and reduce operating costs.
•Build best-in-class human resources capabilities and develop strong
line leaders.