Bank of Montreal 2008 Annual Report Download - page 51

MD&A
BMO Financial Group 191st Annual Report 2008 | 47
Continue to enhance the customer experience and create a
differentiated position in the Canadian market.
•We’ve created a customer-focused mindset across the organization.
We have a sharper focus on the customer experience, with well-
defined standards that promote specific, consistent front-line
behaviours. Our customer loyalty continues to improve, our customer
base is growing and we are strengthening our customer relationships.
Further improve our performance management systems to deliver
stronger revenue growth and greater customer loyalty.
•We have brought greater rigour to performance management
in a clear, concise and simple way. Scorecards have been introduced
at the individual level so that all employees understand their role
in achieving the organization’s goals, and all customer-facing
employees are held accountable for financial success and improving
the customer experience.
Launch attractive and compelling customer offers that drive results.
•We are bringing new offerings to market faster and we’re becoming
more visible in the marketplace. We introduced a number of
compelling new offerings, including AIR MILES reward miles on Debit,
the new Shell Mosaik MasterCard and the Mosaik Gold AIR MILES
MasterCard. HomeOwner Readiline has been an important part of
our personal loan growth.
Continue to invest in our sales and distribution network
so we have the best opportunities to attract more business.
•We continued to invest in our sales and distribution network, with
better site selection, timing and execution for our entry into new
markets. We opened 16 branches in high-growth areas, redeveloped
19 branches and renovated 15 others.
2008 Group Objectives and Achievements
Redesign core processes and technologies to achieve a high-quality
customer experience, create capacity for customer-facing employees
and reduce costs.
•We have been systematically identifying opportunities to improve
our customers’ experience with BMO, updating our processes to make
them more customer-friendly, reducing cycle time and improving
our customer satisfaction levels.
•We simplified our account opening process, making it quicker and
more efficient for the customer and allowing us to focus more
of our time on value-added conversations.
•
Through an end-to-end review of our lending process, we
improved the effectiveness of booking lending products through
our direct channel.
200820072006
44.0 46.0
4.5
3.4 3.1
47.4
Deposits * and Deposit Growth
Commercial ($ billions)
Total deposit growth (%)
Personal ($ billions)
Deposit growth was fuelled by
commercial deposits.
*Including PCG term balances, total deposits
were $86 billion, $82 billion and $79 billion
in 2008, 2007 and 2006.
200820072006
116.4
5.6
123.0
6.6
9.5 131.1
Loans* and Loan Growth
(includes acceptances and securitized loans)
Commercial ($ billions)
Total loan growth (%)
Personal and Cards ($ billions)
Loan growth was driven by
consumer loans.
* Loans on balance sheet were $122 billion,
$116 billion and $111 billion in 2008, 2007
and 2006.
200820072006
56.0
6.0
55.6
3.6
55.3
6.2
Cash Productivity Ratio
and Revenue Growth
Cash productivity ratio (%)
Revenue growth (%)
There was a slight productivity
improvement as revenue growth
exceeded expense growth.
200820072006
27.1
6.9
27.1
9.3
27.7
4.1
Net Income Growth
and Return on Equity (ROE)
ROE (%)
Net income growth (%)
Revenue growth drove higher net
income and ROE.
2009 Group Objectives
•Continue to enhance the customer experience and create a
differentiated position in the Canadian market.
•Leverage improvements in our performance management
system to deliver stronger revenue growth and greater
customer loyalty.
•
Launch attractive and compelling new offerings that drive results.
•Improve productivity of our sales and distribution network.
•Redesign core processes and technologies to achieve a high-
quality customer experience, create capacity for customer-facing
employees and reduce costs.