Annual Report 2016

Management’s Discussion and Analysis

U.S. Personal and
Commercial Banking

We’re here to help our more than two million customers feel confident in their financial decisions. Our retail and small and mid-sized business banking customers are served through nearly 600 branches, contact centres, online and mobile banking platforms and more than 1,300 automated banking machines across eight states. Our commercial banking customers are offered in-depth specific industry knowledge, as well as strategic capital markets solutions.

Image of Alexandra Dousmanis-Curtis and David R. Casper

Alexandra Dousmanis-Curtis
Group Head
U.S. Retail and Business Banking

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

Lines of Business

Personal Banking offers a broad range of products and services to individuals, as well as small and mid-sized business customers, including deposits, mortgages, consumer credit, business lending, credit cards and other banking services.

Commercial Banking provides business customers with a broad range of banking products and services, including lending, deposits, treasury management and risk management.

Strengths and Value Drivers

  • Rich heritage of 170 years in the U.S. Midwest, with a deep commitment to our communities and helping our customers succeed.
  • Strong, experienced leadership team that knows how to compete and perform in our markets.
  • Unique, differentiated platform for profitable growth with attractive branch footprint and top-tier deposit market share in key U.S. Midwest markets.
  • Large-scale, relationship-based national commercial banking business centred in the U.S. Midwest, complemented by in-depth industry knowledge in select sectors.
  • Comprehensive and integrated risk management and compliance framework to manage within our risk appetite and respond to regulatory expectations. A risk culture that is evident in every aspect of the way we operate across the business.

Strategy and Key Priorities

We aim to grow our business and be a leader in our markets by creating a differentiated, intuitive customer experience and advising our customers on a wide range of financial topics, leveraging our brand reputation, local presence and high-performance teams.

Deliver a great customer experience to a loyal, profitable and growing customer base

2016 Achievements

  • Further improved customer loyalty as measured by a key industry metric in both our commercial and retail banking segments, by optimizing service delivery, improving our product offering and enhancing our digital solutions.
  • Improved retail net customer acquisition by 30% year over year. Retail deposits grew by 9% across all products, while commercial net customer acquisition improved by 3% year over year.
  • Increased deposit market share in our core footprint to 6.5%, which includes Illinois, Wisconsin, Missouri, Kansas, Indiana and Minnesota. Maintained second place rankings in the Chicago and Wisconsin areas.

2017 Focus

  • Continue to build market share and expand into high opportunity segments, grow customer share of wallet and drive customer acquisition through enhanced value proposition, while focusing on consistent service delivery and developing expert bankers.

Continue to transform our Personal Banking business by improving our products and channel capabilities to meet our customers’ evolving needs

2016 Achievements

  • Introduced a new competitive credit card suite, which includes lower interest rates, EMV-enabled (Europay, MasterCard and Visa) chip cards, a refined points program and premium rewards.
  • Launched a customer insight tool to generate intuitive and meaningful individualized offers and services to help deepen customer relationships.
  • Continued our multi-year strategy to improve efficiency and enhance the digital customer experience, including the launch of our new home equity origination system and investments in Smart Branch technology.

2017 Focus

  • Build digital capabilities to align to customer behaviour and market demand, accelerate the modernization of our physical footprint and enhance our product offering.

Continue to deliver local access and industry expertise to clients across a broad geographic footprint through a proven and effective commercial operating model

2016 Achievements

  • The acquisition of BMO Transportation Finance added an industry-leading business with an established client base to our already well-diversified and robust commercial business.
  • Opened a new commercial office in Dallas, building on the presence of the BMO Transportation Finance team. Expanded into two new high-growth commercial real estate segments – seniors’ housing facilities and hotel finance.
  • Continued to deepen customer relationships in our treasury management services business, driving a 15% year-over-year increase in fee income, and introduced a new U.S. Enterprise Wire Payment system to deliver a flexible, faster and more efficient platform for our customers.
  • Deployed a dedicated cross-border service contact group to improve client relationships and deliver an integrated cross-bank client service experience.

2017 Focus

  • Continue to deepen market share in our flagship businesses, grow revenue by investing in higher-growth markets, increase speed of delivery and optimize operational and credit processes, while delivering comprehensive customer solutions.

Continue our strong risk leadership and operating discipline

2016 Achievements

  • Achieved good revenue growth while controlling expenses and continuing to operate within our risk appetite and risk culture, all within the context of a low interest rate environment and moderate economic growth.
  • Actively managed risks and regulatory compliance by maintaining a solid foundation of effective operational risk controls.
  • Maintained robust anti-money laundering capabilities to protect our customers.

2017 Focus

  • Focus on effectively controlling potential risks related to new digital capabilities to safeguard customer identity and personal information.


This U.S. P&C Banking section contains forward-looking statements. Please see the Caution Regarding Forward-Looking Statements.


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