Annual Report 2016

BMO at a Glance

 

Who We Are

Established in 1817, BMO Financial Group is a highly diversified financial services provider based in North America. With total assets of $688 billion and more than 45,000 employees, BMO provides a broad range of personal and commercial banking, wealth management and investment banking products and services to more than 12 million customers and conducts business through three operating groups: Personal and Commercial Banking, Wealth Management and BMO Capital Markets.

200 Years of Change

As we mark BMO’s bicentennial, it’s an opportunity to reflect on a 200-year legacy of consistently anticipating customers’ expectations while helping them achieve their financial goals. But this milestone is even more about continuing to move forward, as we constantly learn from all of our stakeholders, innovate to keep pace with their changing needs and refine our strategy to meet the challenges of tomorrow.

Reporting Excellence

In 2016, for the second year in a row, BMO received the Chartered Professional Accountants of Canada’s Award of Excellence in Corporate Reporting for the financial services industry.


 

Reasons to Invest in BMO

  • Strong, diversified businesses that continue to deliver robust earnings growth and long-term value for shareholders.
    • Large North American commercial banking business with advantaged market share.
    • Well-established, highly profitable core banking business in Canada.
    • Diversified U.S. banking operations well-positioned to benefit from growth opportunities.
    • Award-winning wealth franchise with an active presence in markets across Canada, the United States, Europe and Asia.
    • Competitively advantaged Canadian and growing mid-cap focused U.S. capital markets business.
  • Well-capitalized with an attractive dividend yield.
  • Committed to customer experience, measured through a disciplined loyalty program.
  • Focus on efficiency through technology innovation, process enhancement and increased digitalization across channels.
  • Adherence to strong business ethics and corporate governance standards, including sustainability principles that ensure we consider social, economic and environmental impacts as we pursue sustainable growth.

Our Dividend Record

BMO Financial Group has the longest-running dividend payout record of any company in Canada, at 188 years. BMO common shares had an annual dividend yield of 4.0% at October 31, 2016.

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Compound Annual Growth Rate

BMO 15-year: 7.7%

BMO 5-year: 4.0%

Dividends Declared ($ per share)

  • 2004: 1.59
  • 2005: 1.85
  • 2006: 2.26
  • 2007: 2.71
  • 2008: 2.80
  • 2009: 2.80
  • 2010: 2.80
  • 2011: 2.80
  • 2012: 2.82
  • 2013: 2.94
  • 2014: 3.08
  • 2015: 3.24
  • 2016: 3.40

 

Our Strategic Footprint

BMO’s strategic footprint spans strong regional economies.

Our three operating groups serve individuals, businesses, governments and corporate customers across Canada and the United States with a focus in six U.S. Midwest states – Illinois, Indiana, Wisconsin, Minnesota, Missouri and Kansas. Our significant presence in North America is bolstered by operations in select global markets in Europe, Asia and the Middle East, allowing us to provide all our customers with access to economies and markets around the world.

Strategic Footprint Map View large map

Europe and Middle East presence

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Europe and Middle East presence


Asia-Pacific presence

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Asia-Pacific presence

Our strategic footprint map

Map of North America showing BMO’s strategic footprint stretching from coast to coast across the southern area of Canada and dipping into Illinois, Wisconsin, Indiana, Minnesota, Missouri, Kansas, Arizona and Florida. Certain cities where BMO has presence are colour-coded to relate to categories as follows.

U.S. Personal and Commercial:

  • Seattle
  • San Francisco
  • Irvine
  • Omaha
  • Houston
  • Atlanta
  • Washington DC
  • Columbus
  • Dallas

Wealth Management:

  • Seattle
  • Portland
  • Palo Alto
  • Salt Lake City
  • Mclean
  • Los Angeles
  • New York
  • Boston

BMO Capital Markets:

  • Seattle
  • San Francisco
  • Denver
  • Houston
  • Atlanta
  • Washington
  • New York
  • Boston
  • Mexico City
  • Rio de Janeiro

Europe and Middle East presence

Map of Europe and the Middle East showing BMO’s presence in the region. Cities where BMO has presence are colour-coded to relate to categories as follows.

Wealth Management:

  • Abu Dhabi
  • Amsterdam
  • Dublin
  • Edinburgh
  • Frankfurt
  • Lisbon
  • London
  • Luxembourg
  • Madrid
  • Milan
  • Munich
  • Paris
  • Stockholm
  • Zurich

BMO Capital Markets:

  • Abu Dhabi
  • Dublin
  • London
  • Paris
  • Zurich

Asia-Pacific presence

Map of Asia-Pacific showing BMO’s presence in the region. Cities where BMO has presence are colour-coded to relate to categories as follows.

Wealth Management:

  • Beijing
  • Hong Kong
  • Melbourne
  • Shanghai
  • Singapore
  • Sydney

BMO Capital Markets:

  • Beijing
  • Guangzhou
  • Hong Kong
  • Melbourne
  • Shanghai
  • Singapore
  • Taipei
  • Mumbai

 

Strategic Framework

BMO’s Lisa Brodtrick, Director of Aboriginal Banking, Alberta and Northwest Territories, with Chief Stanley Grier of the Piikani Nation.

Sustainability is not an add-on. It’s core to our strategy.

“The bank’s activities are guided by our strategic priorities, which frame our decision-making and help us gauge progress over the long term. While these priorities may evolve to reflect the changing business environment, they are anchored by a commitment to create lasting value for all of our stakeholders.

Over the past year, we’ve expressed that commitment more formally through a set of sustainability principles focusing on social change, financial resilience, community-building and environmental responsibility. Extending and complementing our promise to customers, these principles reinforce the deeper sense of responsibility that informs all aspects of our business strategy.

Our bank has always tried to lead by example. By giving our sustainability principles due prominence, positioned right alongside the strategic priorities that communicate how we intend to grow, we confirm that sustainability is incorporated into how we do business, manage risk and create value.”

– William A. Downe, Chief Executive Officer, BMO Financial Group

Vision

To be the bank that defines great customer experience.

Strategic Priorities

The clearly defined statements of purpose that guide the bank’s long-term decision-making as we deliver on our vision.

  • Achieve industry-leading customer loyalty by delivering on our brand promise.
  • Enhance productivity to drive performance and shareholder value.
  • Accelerate deployment of digital technology to transform our business.
  • Leverage our consolidated North American platform and expand strategically in select global markets to deliver growth.
  • Ensure our strength in risk management underpins everything we do for our customers.
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Sustainability Principles

The guidelines we follow as a responsibly managed bank consider social, economic and environmental impacts as we pursue sustainable growth.

  • Social change

    Helping people adapt and thrive as society evolves – tailoring our products and services to reflect changing expectations, and embracing diversity and inclusion in our workplace and the communities where we do business.

  • Financial resilience

    Supporting customers’ needs and goals, while gauging appropriate levels of risk, as they shape their financial futures. And providing members of underserved communities with access to guidance and support that helps them and enables them to do better.

  • Community-building

    Fostering social and economic well-being in the communities where we live and work by financing new enterprises, facilitating public investment, paying our fair share of taxes and, together with our employees, providing support through charitable donations, sponsorships and volunteer activities.

  • Environmental impact

    Reducing our environmental footprint while considering the impacts of our business activities as we work with stakeholders who share our commitment to sustainability.

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We balance our commitments to all stakeholders as we pursue our business strategy and strive to fulfill our broader social responsibilities.

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A Foundation of Trust

To continue earning the trust of our stakeholders, we act with integrity, communicate with transparency and uphold the highest standards of sound, ethical governance.


 

Executive Committee*

William A. Downe, C.M. Chief Executive Officer, BMO Financial Group

Darryl White Chief Operating Officer, BMO Financial Group

Frank Techar Vice-Chair, BMO Financial Group

Jean-Michel Arès Chief Technology & Operations Officer, BMO Financial Group

Christopher Begy U.S. Country Head and Chief Executive Officer, BMO Financial Corp.

David R. Casper President & Chief Executive Officer, BMO Harris Bank N.A. and Group Head, Commercial Banking

Patrick Cronin Group Head, BMO Capital Markets

Alexandra Dousmanis-Curtis Group Head, U.S. Retail and Business Banking, BMO Harris Bank

Simon A. Fish General Counsel, BMO Financial Group

Thomas E. Flynn Chief Financial Officer, BMO Financial Group

Cameron Fowler Group Head, Canadian Personal and Commercial Banking, BMO Financial Group

Gilles G. Ouellette Group Head, BMO Asset Management and Vice-Chair, International, BMO Financial Group

Surjit Rajpal Chief Risk Officer, BMO Financial Group

Catherine Roche Head, Office of Strategic Management, BMO Financial Group

Lynn Roger Chief Transformation Officer, BMO Financial Group

Joanna Rotenberg Group Head, BMO Wealth Management, BMO Financial Group

Richard Rudderham Chief Human Resources Officer, BMO Financial Group

Connie Stefankiewicz Chief Marketing Officer, BMO Financial Group

*As at November 1, 2016.

 

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