- Ability to serve a broad range of core Canadian issuer and investor client needs with an integrated capital markets offering.
- Successful, stable and trustworthy universal North American banking model.
- Ability to serve U.S. mid-market clients with an integrated offer, given the restructuring of the U.S. financial market.
- Ability to leverage capabilities to be a leading competitor in niche markets in North America and globally.
- Nimble and responsive execution, with an ability to react quickly to evolving market and client needs.
MD&A
| MD&A Index | P&C Canada Overview | P&C U.S. Overview | PCG Overview | BMO Capital Markets Overview |
BMO Capital Markets (BMO CM)
Who We Are
BMO Capital Markets combines all of our businesses serving a broad range of corporate, institutional and government clients domestically and internationally. We serve clients from our offices in Canada, the United States, the United Kingdom, Europe, Australia, Asia and South America. We offer complete financial solutions, drawing upon our expertise in areas including equity and debt underwriting, corporate lending and project financing, mergers and acquisitions (M&A) advisory services, merchant banking, securitization, treasury and market risk management, foreign exchange, derivatives, debt and equity research and institutional sales and trading.
BMO Capital Markets Operating Group Review (PDF, 225 KB)
“We excel at using our knowledge, skills and ideas to clarify financial matters and develop and deliver solutions that help our clients realize their ambitions.”
Tom Milroy
Chief Executive Officer
BMO Capital Markets
Vision
To be the investment and corporate bank that defines great customer experience by enabling our clients to fulfill their ambitions.
Path to Differentiation
Strategies
- Increase focus on core clients by emphasizing our areas of strength in niche North American and global markets.
- Maintain a diversified, dynamic portfolio of businesses that serves the evolving needs of our core clients.
- Better serve clients by creating a more focused and integrated North American capital markets business.
- Continue to optimize our businesses to generate appropriate risk-adjusted returns.
- Build strong risk management capabilities through solid partnerships and enhanced risk transparency.
Strengths and Value Drivers
- Well-established franchise with a leadership position in certain industries and products and a reputation for quality advice.
- Top-tier equity research, sales and trading capabilities.
- Significant investment and corporate banking presence in the U.S. Midwest.
- Cross-border capabilities with the ability to leverage North American expertise.
Challenges
- Continuation of the volatility and distress in the global credit markets.
- Slowing of the global economy due to a recession and the uncertainty of the financial system restructuring.
- Mature and competitive Canadian financial markets.
- Highly competitive landscape of the U.S. and international markets.
Key Performance Metrics and Drivers
| 2008 | 2007 | 2006 | |
|---|---|---|---|
| Trading products revenue ($ millions) | 993 | 281 | 1,370 |
| Equity block trading dollar value ($ billions) | 118 | 116 | 92 |
| Investment and Corporate Banking and other revenue ($ millions) | 1,419 | 1,688 | 1,410 |
| Equity underwriting participation (deals) (1) | 140 | 276 | 267 |
| Debt underwriting participation (deals) (1) | 121 | 110 | 143 |
| Average loans and acceptances ($ billions) | 85.0 | 69.6 | 55.0 |
| Canadian equity research ranking (2) | #1 | #1 | #1 |
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(1) Canadian issuers in North America. (2) Brendan Wood International survey. |
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Our Major Lines of Business
Investment and Corporate Banking services include strategic advice on mergers and acquisitions, restructurings and recapitalizations, as well as providing valuation and fairness opinions. We provide capital-raising services through debt and equity underwriting. We also provide a full range of loan and debt products, balance sheet management solutions and treasury management services. In support of our clients’ international business activities, we provide trade finance and risk mitigation services. We also offer a wide range of banking and other operating services to international and domestic financial institutions.
Trading Products services include sales, trading and research activities. We provide integrated debt, foreign exchange, interest rate, credit, equity, securitization and commodities solutions to wholesale, commercial and retail clients. In addition, we provide efficient funding and liquidity management to BMO Financial Group and its clients, as well as new product development, proprietary trading and origination.
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