Bank of Montreal 2010 Annual Report Download - page 51

MD&A
• Consistent with our focus on the customer experience across all of
our channels, for the second consecutive year, Harris Contact Center
was certified as a Center of Excellence by BenchmarkPortal,
a recognized leader in benchmarking and certifying contact centres.
Capitalize on our leadership position in the Chicago area and increase
our presence and visibility in all other markets where we compete.
• Harris’ deposit market share grew by 35 basis points, maintaining
our number two ranking in personal deposit market share in the
Chicago metropolitan market, while some larger banks lost market
share and overall market deposit levels fell.
• Increased the scale of our commercial bank by transferring select
U.S. mid-market clients from BMO Capital Markets to better serve them
and accelerate our Commercial Banking growth strategy
.
•
Acquired certain assets and liabilities of a Rockford, Illinois-based bank
in an FDIC-assisted transaction and successfully integrated its operations
into Harris. This was an excellent strategic fit that accelerated our
growth strategy, adding quality locations, a good customer base and
new key markets in northern Illinois and southern Wisconsin.
• Increased our share of voice, a measure of marketing visibility, from
10% in 2009 to 14% in 2010.
• In personal banking, we developed Harris Helpful Steps, five simple
steps to help our customers make sense of their money.
• Launched an integrated marketing campaign to position Harris as a
leader in commercial banking.
2010 Group Objectives and Achievements
Number of Branches
281 280
312
The Rockford, Illinois-based bank
transaction added to our branch
network in 2010.
201020092008
Personal Banking
Net Promoter Score
42 43 40
P&C U.S. Personal Banking
Major competitors
201020092008
U.S. personal banking customer
loyalty scores remained very strong,
compared to the scores of major
banks with which we compete.
20
12
6
Deposits and Deposit Growth
21.6
8.4
17.6
(1.1)
25.4 25.1
After growing strongly in 2009,
deposits remained relatively
unchanged, demonstrating our
success in retaining customers in
the highly competitive market.
Average deposits (US$ billions)
Growth (%)
201020092008
Loans and Loan Growth
29.4 28.7
10.8
(2.4)
24.7
(14.1)
Average current loans (US$ billions)
Growth (%)
201020092008
Strong mortgage and auto loan
originations, with portfolio
balances reflecting secondary
market mortgage sales and
lower commercial loan balances.
Maintain strong customer loyalty.
• Grew our business by deepening relationships with existing customers
and attracting new ones. Harris received a Metro Chicago 2010 TNS
Choice Award, recognition of our success in establishing strong client
relationships and offering the best customer-focused solutions.
• Employees are aligned behind one vision. 95% of employees in this
year’s employee survey indicated that they understand how their
work aligns with our vision and 86% think that Harris offers something
distinctive in the marketplace.
•
Our focus on the customer experience has resulted in historically
strong retention rates that are among the highest in the industry.
• Our Commercial Banking team won several awards from Greenwich
Associates, recognizing excellence in our Mid-Market and Small Business
segments as well as our Treasury Management group.
Improve financial performance by growing revenue and effectively
managing costs.
• Continued to renew leadership talent to improve our capabilities and
performance focus. Over 60% of leaders have new or broadened
roles over the past two years.
• Revenue grew almost 2% to $1.4 billion, reflecting improved net
interest margin, primarily due to improved loan spreads and revenue
from the Rockford transaction, despite the impact of impaired loans,
lower commercial loan balances and deposit spread compression
in a difficult economic environment.
• Core deposits, which includes chequing, savings and certain money
market accounts, grew by more than 15%, excluding the Rockford
transaction, reflecting the success of our sales efforts.
• Expenses were unchanged excluding the impact of the Rockford
transaction and impaired loans, changes in the Visa litigation accrual
and valuation adjustments on our serviced mortgage portfolio.
Optimize our integrated distribution network and build our base
of core households through organic expansion.
• Households using online banking and bill payment services increased
9.7% and 16.2%, respectively, with new customers representing
approximately 80% of new online banking households.
• Integrated our existing ABM platform with BMO’s platform in 2010,
leveraging BMO’s scale to operate more effectively and enable
better capabilities.
2011 Group Objectives
• Maintain strong customer loyalty.
• Improve financial performance by growing revenue through
sales productivity, effectively managing costs and continuing
to optimize our distribution network.
•
Increase the level of profitable customer acquisition to
complement our high customer retention rates.
•
Establish a commercial banking leadership position and
drive growth in sectors in which we have expertise and the
opportunity to grow market share.
BMO Financial Group 193rd Annual Report 2010 49