We are confident about
the future
David A. Galloway
Chairman of the Board
It was a good year to be chairman of a Canadian bank. Despite uncertainty in global credit markets, Canada’s banking system has lived up to its international reputation for safety and soundness.
Meeting the challenge
We were presented with challenges in 2008 that none of us had faced in our lifetimes. The confluence of events over the past year levelled a harsh blow to the global economy.
Credit markets around the world dried up. Interest rate spreads widened significantly. Lending between financial institutions became more guarded. Confidence wavered.
Through it all, Canadian banks persevered. And as Chairman of the Board of Bank of Montreal, I can report to my fellow shareholders that your company and its management team performed well in these challenging times.
Adapting to a new world
Challenging times are also the test of a board of directors. The Board was strengthened in 2008 with what proved to be the particularly timely appointment of Don Wilson III, previously Chief Risk Officer at J.P. Morgan Chase. At the same time, we are disappointed to be losing the services of Stephen Bachand and Eva Lee Kwok. Neither will be standing for re-election to the Board at our 2009 Annual Meeting of Shareholders; they have been outstanding directors and we will miss their wise counsel.
Banking has always been about managing risk – and, for the past year, risk management has been at the top of the Board’s agenda. Along with management, we have learned some lessons. We spent many hours examining the complexities of our business and working with management to respond to rapidly changing markets.
We are convinced that management has been prudent and has succeeded in managing risk. Our capital base remains strong and our lines of business continue to grow. Personal and Commercial Banking is stronger across the board. Private Client Group continues to produce impressive results, and we have succeeded in reducing risk across BMO Capital Markets. Bill Downe and his team have done well. Your Board has complete confidence in them to lead us through these difficult times.
2008 presented challenges, and there will be more to come, but we are confident about the future.
David A. Galloway
Chairman of the Board
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