Bank of Montreal 2010 Annual Report Download - page 56

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BMO Capital Markets
BMO Capital Markets provides a full range of products and services to help corporate, institutional and government
clients achieve their ambitions. From 26 offices on five continents, including 14 in North America, BMO Capital
Markets draws on expertise in areas including equity and debt underwriting, corporate lending and project
financing, mergers and acquisitions, merchant banking, securitization, treasury and market risk management,
foreign exchange, derivatives, debt and equity research and institutional sales and trading.
Strengths and Value Drivers
• Diversified, dynamic portfolio of businesses that supports our well-
established franchise.
• North American expertise providing an integrated cross-border market
experience, combined with select strategic presence internationally.
• Expertise and leadership in targeted sectors and products such as
the Natural Resources sector and Retail Investor Products.
• Top-tier equity research, sales and trading capabilities.
•
Significant North American investment and corporate banking presence.
Challenges
• Evolving regulatory requirements.
• Ongoing market volatility and economic uncertainty.
Our Lines of Business
Investment and Corporate Banking services include strategic
advice and execution on mergers and acquisitions, restructurings and
recapitalizations, as well as valuation and fairness opinions. We provide
capital-raising services through debt and equity underwriting as well
as a full range of loan and debt products, balance sheet management
solutions and treasury management services. In support of our
clients’ international business activities, we offer trade finance and
risk mitigation services. We also provide a wide range of banking
and other operating services to North American and international
financial institutions.
Trading Products services include sales, trading and research activities.
We offer integrated debt, foreign exchange, interest rate, credit, equity,
securitization and commodities solutions to institutional, commercial
and retail clients. In addition, we provide new product development,
proprietary trading and origination services to our clients. We also supply
efficient funding and liquidity management to our clients, including
BMO Financial Group.
Tom Milroy
Chief Executive Officer
BMO Capital Markets
” Our clients remain at the core of
our long-term strategy, and our
performance and progress in fiscal
2010 demonstrate that we have
the right plan in place to deliver.”
Our Strategies
• Build out our distribution platform, primarily in the United
States, to create a more focused and integrated capital
markets business.
• Align capital and capabilities to client opportunity with
a focus on core clients, a diversified, dynamic portfolio of
businesses and strong risk management capabilities.
• Focus on strategic sectors, while building the capability to
further extend BMO Capital Markets’ offering.
Our Path to Differentiation
• A successful, stable and trustworthy North American universal
banking model.
• Leading expertise and relationships in strategic sectors and
products (such as the Natural Resources sector and Research
and Structured Products) that facilitate client acquisition.
•
In the United States, a unique opportunity to capitalize on
reduced competition from full-service banks in the mid-
capitalization space, serving these clients with an integrated
offer and strong balance sheet.
• Strong risk management practices, facilitating optimal
risk/return balance.
Key Performance Metrics and Drivers 2010 2009 2008
Trading Products revenue ($ millions) 2,040 2,018 1,020
Investment and Corporate Banking
revenue
($ millions)
1,239 1,071 1,158
Equity underwriting participation (deals) (1) 213 226 140
Debt underwriting participation (deals) (1) 134 115 121
Average loans and acceptances ($ billions) (2) 25.4 34.9 30.8
Canadian equity research ranking (3) #2 #1 #1
Employee engagement index (%) (4) 71 70 66
(1) Canadian corporate issuers in North America.
(2) Based on current loans.
(3) Brendan Wood International survey.
(4) Source: BMO Annual Employee Survey, conducted by Burke Inc., an independent
research company.
Caution
This BMO Capital Markets section contains forward-looking statements.
Please see the Caution Regarding Forward-Looking Statements.
MD&A
MANAGEMENT’S DISCUSSION AND ANALYSIS
54 BMO Financial Group 193rd Annual Report 2010