Bank of Montreal 2010 Annual Report Download - page 48

MANAGEMENT’S DISCUSSION AND ANALYSIS
MD&A
Improve productivity of our sales and distribution network.
• S
trengthened our network, opening and upgrading a total
of 27 branches, and launched an innovative new branch format
designed to encourage great conversations with our customers.
• Added to our specialized sales force, increasing our mortgage
specialists by 31% and our financial planners by 14%.
• Improved online capabilities, providing our customers with more
information and making it easier for them to manage their finances.
We ranked third among the public websites of the six largest
Canadian banks as evaluated by an independent research firm
in Forrester Research, Inc.’s 2010 Canadian Bank Public Web
Site Ranking (April 2010).
• Started the move and consolidation of 1,700 personal, commercial,
credit card and collections call centre agents and their support teams
into a state-of-the-art building in the Toronto area, better positioning
us to deliver a seamless customer experience.
Redesign core processes and technologies to achieve a high-quality
customer experience, create capacity for customer-facing employees
and reduce costs.
•
Improved and simplified more than 100 branch processes.
•
Significantly reduced the in-branch reporting burden, and we are
now automating the remaining in-branch reporting.
•
Re-engineered key end-to-end processes in personal lending,
retail investments and commercial lending, and streamlined our
sales processes for lending and investments.
2010 Group Objectives and Achievements
Continue to enhance the customer experience and create
a differentiated position in the Canadian market.
•
Employees are aligned behind one vision and one brand promise,
both centred on providing our customers with a great experience.
98% of employees participating in this year’s employee survey
indicated that they understand how their work aligns with our vision
of being the bank that defines great customer experience.
•
Continued to renew our leadership base to improve the customer
experience. Approximately 55% of executives were appointed to their
current roles within the past three years and all P&C Canada executives
participated in an advanced leadership development program.
• Rolled out training to our front-line employees geared to improving
the quality and consistency of their conversations with customers, which
is driving higher growth in both personal and commercial banking
revenues. Overall, we invested $35 million in training and development.
Leverage improvements in our performance management system
to deliver stronger revenue growth and greater customer loyalty.
• Revenue grew by 10% to $5.8 billion and customer loyalty improved.
• Enhanced our performance management system to motivate and
reward employees based on targets that are clearly linked to improved
financial performance and customer loyalty. Sales force productivity
improved by 11% over the prior year.
Launch attractive and compelling new offers that drive results.
• Responding to customer insights, we introduced offers that
bring clarity to financial decisions, including the Low-Rate Mortgage,
BMO SmartSteps for Business and BMO Business Bundles.
• Maintained our focus on the Canadian agriculture segment, providing
rate leadership with our AgriInvest solution.
• Made good progress in growing our profitable payments business by
introducing our BMO World Elite MasterCard, entering into an exclusive
strategic credit card relationship with Sobeys in Canada and acquiring
the Diners Club North American franchise, which more than doubled
our corporate card business.
2011 Group Objectives
• Continue to enhance the customer experience and create
a differentiated position in the Canadian market.
• Launch attractive and compelling new offers that drive results.
• Improve productivity of our sales and distribution network.
• Continue the redesign of core processes and technologies to
achieve a high-quality customer experience, create capacity for
customer-facing employees and reduce costs.
There was loan growth
across all products.
201020092008
7.1
Loans and Loan Growth
(includes acceptances and securitized loans)
Commercial ($ billions)
Total loan growth (%)
Personal and Cards ($ billions)
3.9 4.6
131.6 136.7 143.0
Deposit growth was lowered
by a return of client preferences
for equities.
Deposits and Deposit Growth
201020092008
Commercial ($ billions)
Total deposit growth (%)
Personal ($ billions)
5.0
3.1
11.4
86.1
96.0 99.0
Cash productivity improved
by 260 basis points due to
strong revenue growth and
effective cost containment.
201020092008
Cash Productivity Ratio
and Revenue Growth
Cash productivity ratio (%)
Revenue growth (%)
4.8
10.3 10.3
53.6
51.0
57.0
Revenue growth drove high ROE
and strong net income growth.
201020092008
3.9
Net Income Growth
and Return on Equity (ROE)
ROE (%)
Net income growth (%)
22.7
16.2
36.4
42.1
49.7
46 BMO Financial Group 193rd Annual Report 2010