Bank of Montreal 2010 Annual Report Download - page 47

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We serve more than seven million customers, offering a full range of products and services. These include solutions
for everyday banking, financing, investing, credit cards and creditor insurance, as well as a full suite of commercial
products and financial advisory services. We provide our customers with an integrated network of BMO Bank of
Montreal branches, telephone banking, online banking and automated banking machines, along with the expertise
of our mortgage specialists and financial planners.
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 less.
• Largest MasterCard issuer in Canada, as measured by transaction
volumes, and one of the top commercial card issuers in North America.
• Highly experienced team of senior account managers in upper mid-
market commercial banking, offering integrated products and services
that are driving high customer loyalty scores in the segment.
• Strong and consistently applied credit risk management practices
that provide customers with reliable access to appropriate financing
solutions in all economic conditions.
• Rigorous performance management system, encompassing planning,
tracking, assessment and coaching.
Challenges
•
Uncertainty regarding the strength of the economic recovery is
expected to affect demand for some products and services.
• Increased pace of change and innovation offers customers access
to an array of products and services from competitors.
•
Demand continues to grow for resources to meet regulatory, compliance,
information security and fraud management requirements.
Our Lines of Business
Personal Banking provides financial solutions for everyday banking,
financing, investing and creditor insurance needs. We serve approximately
20% of Canadian households.
Commercial Banking provides our small business, medium-sized
enterprise and mid-market banking clients with a broad range of
banking products and services.
Cards and Payments Services offers flexible, secure payment options
to our customers, along with a comprehensive and industry-leading suite
of rewards, including AIR MILES reward miles and our newly launched
BMO ELITE Rewards Program.
Caution
This Personal and Commercial Banking Canada section contains forward-looking statements.
Please see the Caution Regarding Forward-Looking Statements.
Frank Techar
President and Chief Executive Officer
Personal and Commercial Banking Canada
” We are delivering strong results
by differentiating our business from
our competitors, with a clear focus
on one vision and one brand promise
that both start with the customer.”
Our Strategies
We aim to 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 Path to Differentiation
• 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
the 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.
Key Performance Metrics and Drivers 2010 2009 2008
Net income growth (%) 16.2 22.7 3.9
Revenue growth (%) 10.3 10.3 4.8
Operating leverage (%) 5.4 6.5 (1.8)
Personal banking revenue ($ millions) 2,777 2,546 2,344
Personal loan growth (%) (1) 4.8 4.6 5.7
Personal deposit growth (%) 0.4 14.6 4.3
Commercial banking revenue ($ millions) 1,640 1,500 1,376
Commercial loan growth (%) (1) 2.0 1.6 9.7
Commercial deposit growth (%) 9.2 4.9 6.4
Cards revenue ($ millions) 1,413 1,241 1,074
Cards loan growth (%) 15.4 6.5 13.8
Employee engagement index (%) (2) 75 75 73
(1) Includes current consumer loans and mortgages, acceptances and securitized loans.
(2) Source: BMO Annual Employee Survey, conducted by Burke Inc., an independent
research company.
Personal and Commercial Banking Canada
MD&A
BMO Financial Group 193rd Annual Report 2010 45