At BMO, our commitment to transparency and accountability begins at the top. In the following Q&A, BMO Financial Group President and CEO Bill Downe takes the opportunity to answer questions that matter the most to our shareholders.
- Q Why should investors choose BMO?
- Q What is BMO doing to differentiate itself in the highly competitive Canadian retail banking market?
- Q Where do you see your opportunities in the United States?
- Q Has your appetite for risk changed as a result of a more challenging economic climate and tighter credit?
- Q What satisfied you most about the year and what disappointed you most?
- Q How has BMO’s strategy changed under your leadership?
Q. Why should investors choose BMO?
A. Our balance sheet shows the value of the diversity of our business mix from an operating standpoint. But from my vantage point, and the vantage point of our customers, it is the combination of product and service that creates real value. We have completely refocused on customers. In every business, we are making decisions much faster than before. This allows us to enter the market in a way that, I believe, challenges the category. It is how we are strengthening our Canadian franchise in all three business groups and continuing our U.S. expansion. When we make decisions in individual businesses, it is the customers’ experience that will always be the deciding factor.
topQ. What is BMO doing to differentiate itself in the highly competitive Canadian retail banking market?
A. Something we work at every day is to see banking and investing from our customers’ vantage point rather than our own. This way, we can work at taking away the complexity that comes with managing financial affairs. If customers come away with a feeling that we are the financial services company that makes things clearer and behaves like we are standing in their shoes, respecting their time, then we have accomplished something. This is how we are different.
topQ. Where do you see your opportunities in the United States?
A. In the Midwest, our goal remains to become the leading personal and commercial bank. We’re taking advantage of opportunities to grow organically. For instance, we’re leveraging our strong community banking network to grow our commercial, capital markets and private client banking businesses. We’re also continuing to seek out more opportunities to grow through acquisition. We have expanded into both Indiana and Wisconsin and have a strong base in Illinois. We are going to continue to add branches and keep administrative costs flat.
topQ. Has your appetite for risk changed as a result of a more challenging economic climate and tighter credit?
A. The definitive answer is “no.” BMO has long pursued a disciplined, consistent and prudent approach to credit risk management. This means our lending criteria remain consistent whether the economy is growing or slowing. It’s an approach that delivers better and more predictable returns for our shareholders. And peace of mind for our customers, who know they can count on BMO to meet their own unique and individual needs through the ups and downs of the economic cycle. Risk controls, on the other hand, have advanced and we are trying to make every investment we make in risk systems and processes one that not only manages risk but moves us ahead in other ways.
topQ. What satisfied you most about the year and what disappointed you most?
A. It is a great source of satisfaction that, in spite of this year’s challenges which were clearly disappointing, we’ve proven our resilience and managed the performance of our core businesses like never before. And this shows in our operating results. Executing against our stated strategies is job one for our entire leadership team. To do that, we need to be thinking about our customers all the time.
topQ. How has BMO’s strategy changed under your leadership?
A. Our strategic direction has not changed. We continue to develop our core Canadian businesses and accelerate our expansion in the United States. What has changed is our focus. We are far more visible in the market with our offers. We are focused on performance, customers, and doing what needs to be done. We used to ask ourselves: What product or service can we create for our customers to purchase? Now we ask ourselves: What is it our customers want and how can we make that happen – on their terms. Our leaders, myself included, are spending a great deal more time with our customers. It is amazing what you learn from customers when you take the time to listen.
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