Bank of Montreal 2010 Annual Report Download - page 7

BMO Financial Group 193rd Annual Report 2010 5
PRESIDENT AND CHIEF EXECUTIVE OFFICER’S MESSAGE
Setting higher standards
The financial services industry has changed for the better. The establishment of new rules
under which financial institutions will operate has not only been necessary, it is right –
both for the overall stability of financial markets and for the customers we serve.
At BMO, we’re positioned for success in this environment. It’s not just a matter
of meeting new regulations. Customers are changing the rules of the game as well.
People’s relationship with money has evolved, so too has their relationship with
their financial institution.
This is why the theme running through our annual report is: competing in a changing
world. It’s changing because people are reassessing their idea of value. They want
the freedom to do their banking everywhere. They expect a higher standard of social
responsibility from companies than ever before. And in a marketplace where change
itself has become so profound, a company’s vision is only as strong as its people.
Strong performance in 2010
BMO’s financial and operating results in 2010 reflect the success of our 38,000 employees
in meeting our customers’ needs and striving for higher performance. Net income
increased to $2.8 billion, driven in large part by strong revenue growth of 10.4%. BMO’s
return on equity continued to improve, reaching 14.9%.
The year was characterized by significant achievement across each of our operating
groups. This performance is demonstrated by our pre-tax pre-provision earnings, which
reached $4.6 billion, the highest in the history of the bank. We achieved these results
while maintaining financial strength and flexibility, managing impaired loans, capitalizing
on unique expansion initiatives and investing in future growth.
This was accomplished against a dramatic backdrop including G20 initiatives to stimulate
growth; continued regulatory efforts to address systemic vulnerabilities and to develop
new policies; the formulation of new Basel III capital rules; and active legislative agendas
in both developed and emerging economies. At BMO, we view these changes to the
operating environment as an opportunity – and source of advantage – as we move ahead
with our strategic priorities.
Making money make sense
We have a brand promise common to every business – our commitment to customers
and their success is tangible. BMO has a clear strategy and strong execution capabilities.
Everything we’re undertaking – from customer offers to the 7,640 employees across
North America who completed customer experience and sales training this year – lines
up to support our brand: Making money make sense.
Our ability to stay ahead of our customers’ changing needs is reflected in BMO’s
internal advocacy. It has never been higher: 95% of our employees said they personally
recommend our products and services and 98% said they believe in the strategy.
Our strong balance sheet, liquidity, capital position, reputation and people reinforce our
ability to react to opportunities.
Our Customers’ Success Defines Our Success
BMO is a
company
deeply rooted
in the economic
advancement of
North America
William A. Downe
President and Chief Executive Officer