Bank of Montreal 2008 Annual Report Download - page 57

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MD&A
BMO Financial Group 191st Annual Report 2008 | 53
Other Achievements
•For the second consecutive year, BMO Mutual Funds was awarded
the Dalbar, Inc. Mutual Fund Service Award for best overall customer
service in the English and French language categories.
•BMO InvestorLine was recognized as Canada’s fastest online
brokerage web site by Gómez Canada and was named the
number one bank-owned online brokerage in The Globe and Mail’s
10th annual online brokerage ranking.
•Four funds managed by Private Client Group received a 2008
Lipper Award, recognizing excellence in fund performance:
BMO Resource Fund, BMO Dividend Fund, BMO Guardian Global
Technology Fund and Phoenix Insight Value Equity Fund
(sub-advised by Harris Investment Management).
•BMO Guardian won the 2007 Canadian Investment Award for
its Science and Technology Equity Fund.
•Completed the purchase of Pyrford International plc, a United
Kingdom-based institutional asset manager, expanding the
group’s international asset management capabilities outside
of North America.
•Announced an agreement with Phoenix Companies, Inc. under
which Harris would take an equity position in Virtus Investment
Partners, Inc., Phoenix’s wholly owned asset management subsidiary,
to further expand PCG’s asset management capabilities.
Enhance the client experience by streamlining our processes and
providing enhanced tools and solutions designed to assist our
clients in achieving their financial goals.
•Continued to invest in an Investment Advisor technology platform to
drive operational efficiencies and support increased client satisfaction
and sales force productivity.
•Invested in a new financial planning software tool to provide an
enterprise-wide common technology platform supporting the delivery
of an exceptional client experience.
Satisfy our clients’ needs by continuing our high level of internal
collaboration and referrals.
•Our Canadian and U.S. sales forces delivered consistently strong
referral volumes that were above the high levels attained in the
previous year.
•Continued to partner with P&C Canada and P&C U.S. to identify
opportunities to better align the complexity of clients’ needs with
the appropriate solutions.
•In partnership with P&C U.S., launched six new wealth branches
in the Chicago area which combine traditional retail banking with
wealth services.
Expand our sales force and innovate within sales channels
to drive revenue growth.
•
PCG increased full-time equivalent staff by 173 in 2008, the majority
in sales and sales support roles.
–
Full-Service Investing added Investment Advisors and related
support staff.
–BMO InvestorLine added call centre and sales staff to support the
retail branches.
–
BMO Harris Private Banking added Private Wealth Consultants,
Investment Counsellors and Private Bankers as well as sales
support staff.
•
Partnered with P&C Canada to expand the retail investment sales force
in select markets.
2008 Group Objectives and Achievements
72.5 71.6 70.2 71.2
Cash Productivity Ratio (%)
2008200720062005
Cash productivity rose to 71.2%, but
excluding notable items was stable
at 70.2%, as we balanced investing
for the future with revenue challenges
in the current market environment.
267 296 284 275
2008200720062005
Assets under Management
and Administration including
Term Deposits ($ billions)
Canada
United States
Assets decreased 9.7%, excluding
the impact of the stronger U.S. dollar,
reflecting softer market conditions.
Net Income and Return
on Equity
2008200720062005
314
19.6
341
395 395
29.4 34.0 36.4
Net income ($ millions)
Return on equity (%)
Net income was $414 million,
excluding notable items, up from
record results a year ago in a
difficult market environment.
2008 Revenue by
Line of Business (%)
Full-Service
Investing 46%
Online
Brokerage 8%
Investment
Products 26%
North American
Private Banking
20%
U.S. wealth management
represented 12%, excluding
notable items, of total Private
Client Group revenues.
2009 Group Objectives
•Satisfy our clients’ needs by continuing our high level of internal
collaboration and referrals.
•Expand our sales force and improve its productivity to drive
revenue growth.
•Innovate within sales channels and enhance products and
solutions to satisfy clients’ needs.