Bank of Montreal 2010 Annual Report Download - page 57

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MD&A
Other Achievements
• Ranked 1st as an overall institutional equity franchise (for research,
sales and trading combined) with the highest reputational
franchise score in the Brendan Wood International Survey of
Institutional Investors.
• Ranked 1st for Research Quality in Equity Research, 1st in Equity Sales
and 1st in Equity Trading in the Brendan Wood survey.
• Joined the ranks of the top 20 U.S. Equity Research firms in Greenwich
Associates’ 2010 U.S. Equity Analysts study.
• Ranked 1st in 2010 Canadian Fixed-Income Research Quality and
1st in 2010 Canadian Fixed-Income Market Share – Overall in
Greenwich Associates’ 2010 client study.
• Named Best Trade Bank in Canada by Trade Finance Magazine.
• Moved into Top 20 Global Equity Borrower rankings in the 2010
Euromoney survey of global lenders and borrowers.
• Ranked 1st in Global FX market share growth and most improved
market share by size in the 2010 Euromoney FX survey.
• Named Best Metals and Mining Investment Bank in the World
by Global Finance Magazine in 2010.
• Participated in 276 corporate and government debt transactions
that raised $164 billion. Raised $27 billion through participation in
213 equity transactions.
• Advised on 71 completed mergers and acquisitions in North America
with a value of $28 billion.
2010 Group Objectives and Achievements
Increase our focus on core profitable clients.
• Strengthened capabilities in the United States, including refocusing
our business on core clients, appointing a new head of U.S. Investment
and Corporate Banking and hiring strategically across the business to
position us for future growth.
• Established a cross-functional coverage approach in both Canada
and the United States, driven by a robust client prioritization process.
Better serve clients by creating a more integrated capital
markets business.
• Expanded and strengthened our overall distribution capabilities to
create an integrated North American platform through initiatives
such as expanding our Debt Products offering and our North American
Securities Lending business and upgrading our U.S. Equity Sales &
Trading platform.
Maintain a diversified, dynamic portfolio of businesses to meet
the evolving needs of core clients.
• Continued to grow our U.S. Equity Derivatives and Structured
Products platform.
• Continued to expand our presence and product offering in Asia.
Continue to optimize our businesses to generate appropriate
risk-adjusted returns.
• Upgraded talent in focus sectors.
• Expanded our Energy sector capabilities with the addition of an
Acquisition and Divestiture Advisory team based in Houston and Calgary.
Continue to build strong risk management capabilities through
solid working relationships and enhanced risk transparency.
• Continued our ongoing collaboration with Risk Management Group to
provide proper risk/return balance and alignment across the business.
• Proactively managing regulatory changes with cross-functional teams
to recognize and mitigate risks and identify any opportunities.
2011 Group Objectives
• Build out our distribution platform, primarily in the
United States.
• Align capital and capabilities with client opportunity.
• Focus on strategic sectors, while building the capability to
further extend BMO Capital Markets’ offering.
Productivity Ratio (%)
201020092008
75.1
56.5 55.5
Improved productivity due
to revenue growth and
focused cost control.
Return on Equity (ROE) (%)
201020092008
10.4
15.7
18.8
Improved ROE due to strong
business performance and
lower levels of capital.
M&A Deals* by Volume
and Dollar Value
201020092008
58
50
71
Number of deals
Value (US$ billions)
44.7
12.9
28.3
Improved mergers and acquisitions
revenue due to increased activity.
* U.S. deals were reported for the
12 months ended September 30, 2010.
Canadian deals were reported for
the year ended October 31, 2010.
Canadian Equity Block Trading
– Volume and Ranking
201020092008
13.1
11.6
13.7
BMO Capital Markets
(% of total volume)
Rank
#2 Rank
#4
Rank
#2
Equity block trading ranking
improved due to selectively
increased capital usage in our
Canadian block trading business.
BMO Financial Group 193rd Annual Report 2010 55