Bank of Montreal 2015 Annual Report Download - page 45

‰Enhanced our data analytics capabilities to increase sales force capacity and efficiency.
‰Launched a comprehensive training program to develop best-in-class sales and relationship management capabilities.
‰Divested our U.S. retirement services business to focus on core businesses.
‰Accelerated credit portfolio growth with improvements in lending processes and expansion in select areas.
‰Effectively managed within our risk appetite and responded to heightened regulatory expectations.
2016 Focus
‰Continue to improve productivity, while managing our risks with an emphasis on increasing revenue per employee.
Invest in our people, products, technology and footprint to drive future growth
2015 Achievements
‰Completed the integration of F&C Asset Management plc (F&C) and rebranded it as BMO Global Asset Management. This acquisition strengthens the
position of BMO Global Asset Management as a globally significant money manager, adding scale, capabilities and resources to its asset
management platform and providing attractive cross-selling opportunities.
‰Launched tablet application with retail online banking to provide self-directed clients with a seamless “One Bank” experience, as well as launched
the BMO Market Pro platform to cater to clients who are active traders.
‰Continued to onboard, train and expand our sales force in strategically important segments.
2016 Focus
‰Selectively invest in our sales force and continue to enhance technology to drive revenue growth.
Wealth Management
(Canadian $ in millions, except as noted)
As at or for the year ended October 31 2015 2014 2013
Net interest income 642 560 558
Non-interest revenue (1) 5,121 4,778 3,658
Total revenue (1) 5,763 5,338 4,216
Insurance claims, commissions and changes in policy benefit
liabilities (CCPB) (1) 1,254 1,505 767
Revenue, net of CCPB 4,509 3,833 3,449
Provision for (recovery of) credit losses 7(3) 3
Non-interest expense 3,357 2,840 2,351
Income before income taxes 1,145 996 1,095
Provision for income taxes 295 216 268
Reported net income 850 780 827
Acquisition integration costs (2) 37 16 –
Amortization of acquisition-related intangible assets (3) 68 47 27
Adjusted net income 955 843 854
Key Performance Metrics and Drivers
Net income growth (%) 8.9 (5.7) 57.8
Adjusted net income growth (%) 13.3 (1.3) 56.7
Revenue growth (%) (1) 8.0 26.6 3.5
Revenue growth, net of CCPB 17.6 11.2 18.9
Non-interest expense growth (%) 18.2 20.8 6.0
Adjusted non-interest expense growth (%) 16.9 19.1 5.7
Return on equity (%) 14.8 18.4 28.4
Adjusted return on equity (%) 16.6 19.9 29.3
Operating leverage (%) (1) (10.2) 5.8 (2.5)
Adjusted operating leverage, net of CCPB (%) 0.7 (7.9) 13.2
Efficiency ratio (%) (1) 58.3 53.2 55.8
Adjusted efficiency ratio, net of CCPB (%) 71.5 71.9 67.1
Net interest margin on average earning assets (%) 2.70 2.65 2.87
Average common equity 5,688 4,181 2,884
Average earning assets 23,784 21,169 19,399
Average current loans and acceptances 14,502 12,897 11,909
Average deposits 27,377 24,912 23,337
Assets under administration 465,742 414,547 357,594
Assets under management 397,959 379,606 194,158
Full-time equivalent employees 6,477 6,649 6,012
U.S. Business Select Financial Data (US$ in millions)
Total revenue 806 720 886
Non-interest expense 652 658 585
Reported net income 99 53 199
Adjusted net income 118 73 220
Average earning assets 3,242 3,028 2,687
Average current loans and acceptances 2,938 2,629 2,510
Average deposits 6,010 5,834 4,947
(1) Commencing in the first quarter of 2015, insurance claims, commissions and changes in policy benefit liabilities (CCPB) are
reported separately. They were previously reported as a reduction in insurance revenue in non-interest revenue. Prior period
amounts and ratios have been reclassified.
(2) F&C acquisition integration costs before tax amounts of $46 million in 2015 and $20 million in 2014 are included in
non-interest expense.
(3) Before tax amounts of $88 million in 2015, $62 million in 2014 and $36 million in 2013 are included in non-interest expense.
Adjusted Net Income
($ millions)
2013 2014 2015
854 843
955
Assets under Management and Administration
2013 2014 2015
2015 Net Revenue by Line of Business
($ billions)
(%)
28% BMO Nesbitt Burns
4% BMO InvestorLine
24% BMO’s Private Banking
Businesses
34% BMO Global Asset
Management
10% BMO Insurance
Assets under
administration
Assets under
management
194.2
357.6 379.6 414.5
465.7
398.0
56 BMO Financial Group 198th Annual Report 2015
MD&A