Bank of Montreal 2008 Annual Report Download - page 54

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MANAGEMENT’S DISCUSSION AND ANALYSIS
MD&A
50 | BMO Financial Group 191st Annual Report 200850 | BMO Financial Group 191st Annual Report 2008
2009 Group Objectives
•Improve financial performance by growing revenue and effectively
managing costs.
•Continue to leverage our leadership position in the Chicago area
and increase our presence and visibility in all other markets where
we compete.
•Deliver a differentiated customer experience that fosters customer
advocacy, as measured by our retail Net Promoter Score.
Loan growth has moderated in
a softer real estate market.
Deposit growth reflects
increases in both personal
and commercial deposits.
Customer loyalty continued
to strengthen.
The acquisitions of Merchants and
Ozaukee added significantly to our
branch network.
2008200720062005
Number of Branches
195 202
232
281
2008200720062005
Retail Net Promoter Score
39
34
41 42
Deposits and Deposit Growth
Deposits (US$ billions)
Growth (%)
15.4
9.3
3.4
8.4 8.4
15.9
17.2 18.7
2008200720062005
Loans
and Loan Growth
Loans (US$ billions)
Growth (%)
2008200720062005
22.1 15.2 11.4 10.8
14.9
17.2 19.1 21.2
Improve financial performance by growing revenue and effectively
managing costs.
•Revenues increased by 15%; however, cash productivity excluding
integration costs deteriorated 370 bps, reflecting the challenging
economic and competitive environment.
Continue to refine our customer experience, providing excellent
service to retain existing customers, expand our relationships and
attract new business.
•
Continued to increase our retail Net Promoter Score, from 41 to 42,
while the average scores of both network banks and community
banks declined.
•
Increased referral volumes by 27% under One Harris, a program
to encourage the sale of products across all lines of business.
•Launched customer experience standards to better define and deliver
great customer experience.
Improve sales force productivity across all our lines of business.
•Internal referrals per service representative increased 21% year
over year.
•Commercial mid-market closed loans increased 62% year over year.
2008 Group Objectives and Achievements
Expand our commercial sales force in Chicago and surrounding areas.
•
Added more than 40 new hires to business banking.
•
Grew our commercial mid-market client count by 6% in a flat market.
Continue our expansion in the U.S. Midwest.
•
Completed the integration of our Wisconsin acquisitions, increasing
our branch count to over 280.
•
Both one-time integration costs and operating expense efficiencies
expected to be superior to original business case.