Management’s Discussion
and Analysis

Personal and Commercial Banking Canada (P&C Canada)

We serve more than seven million customers, offering a full range of products and services. These include solutions for everyday banking, financing, investing, credit cards and creditor insurance, as well as a full suite of commercial products and financial advisory services. We provide our customers with an integrated network of BMO Bank of Montreal branches, telephone banking, online banking and automated banking machines, along with the expertise of our mortgage specialists and financial planners.

Image of Frank Techar

“We are delivering strong results by differentiating our business from our competitors, with a clear focus on one vision and one brand promise that both start with the customer.”

Frank Techar
President and Chief Executive Officer
Personal and Commercial Banking Canada

Our Strategies

We aim to succeed in the Canadian market through the quality and consistency of our customer experience and through the productivity of our sales and distribution network.

Our Path to Differentiation

  • Excel at sales leadership and performance management.
  • Leverage customer insights to develop offers and drive marketing program results.
  • Focus investments and allocate resources to capitalize on the highest-value sales and distribution opportunities.
  • Redesign core processes and leverage technology to improve the customer experience, free up front-line capacity and reduce operating costs.
  • Build best-in-class human resources capabilities and develop strong line leaders.
Key Performance Metrics and Drivers 2010 2009 2008

(1) Includes current consumer loans and mortgages, acceptances and securitized loans.

(2) Source: BMO Annual Employee Survey, conducted by Burke Inc., an independent research company.

Net income growth (%) 16.2 22.7 3.9
Revenue growth (%) 10.3 10.3 4.8
Operating leverage (%) 5.4 6.5 (1.8)
Personal banking revenue ($ millions) 2,777 2,546 2,344
Personal loan growth (%) (1) 4.8 4.6 5.7
Personal deposit growth (%) 0.4 14.6 4.3
Commercial banking revenue ($ millions) 1,640 1,500 1,376
Commercial loan growth (%) (1) 2.0 1.6 9.7
Commercial deposit growth (%) 9.2 4.9 6.4
Cards revenue ($ millions) 1,413 1,241 1,074
Cards loan growth (%) 15.4 6.5 13.8
Employee engagement index (%) (2) 75 75 73

Strengths and Value Drivers

  • Strong competitive position in commercial banking, reflected in our number two ranking in market share for business loans of $5 million and less.
  • Largest MasterCard issuer in Canada, as measured by transaction volumes, and one of the top commercial card issuers in North America.
  • Highly experienced team of senior account managers in upper midmarket commercial banking, offering integrated products and services that are driving high customer loyalty scores in the segment.
  • Strong and consistently applied credit risk management practices that provide customers with reliable access to appropriate financing solutions in all economic conditions.
  • Rigorous performance management system, encompassing planning, tracking, assessment and coaching.


  • Uncertainty regarding the strength of the economic recovery is expected to affect demand for some products and services.
  • Increased pace of change and innovation offers customers access to an array of products and services from competitors.
  • Demand continues to grow for resources to meet regulatory, compliance, information security and fraud management requirements.

Our Lines of Business

Personal Banking provides financial solutions for everyday banking, financing, investing and creditor insurance needs. We serve approximately 20% of Canadian households.

Commercial Banking provides our small business, medium-sized enterprise and mid-market banking clients with a broad range of banking products and services.

Cards and Payments Services offers flexible, secure payment options to our customers, along with a comprehensive and industry-leading suite of rewards, including AIR MILES reward miles and our newly launched BMO ELITE Rewards Program.


This Personal and Commercial Banking Canada section contains forward-looking statements. Please see the Caution Regarding Forward-Looking Statements.