- Excel at sales leadership and performance management.
- Leverage customer insights to develop offers and drive marketing program results.
- Focus investments and allocate resources to capitalize on highest-value sales and distribution opportunities.
- Redesign core processes and leverage technology to improve the customer experience, free up front-line capacity and reduce operating costs.
- Build best-in-class human resources capabilities and develop strong line leaders.
MD&A
| MD&A Index | P&C Canada Overview | P&C U.S. Overview | PCG Overview | BMO Capital Markets Overview |
Personal and Commercial Banking Canada (P&C Canada)
Who We Are
We serve more than seven million customers. Working in partnership with other BMO businesses, we offer a full range of products and services. These include solutions for everyday banking, financing, investing, credit cards and insurance as well as a full suite of integrated commercial and capital markets products and financial advisory services. P&C Canada manages an integrated national network of BMO Bank of Montreal branches, telephone banking, online banking, mortgage specialists, financial planners and more than 2,000 automated banking machines.
P&C Canada Operating Group Review (PDF, 249 KB)
“We are committed to making sure that every time a customer interacts with us, their experience is a great one.”
Frank Techar
President and Chief Executive Officer
Personal and Commercial Banking Canada
Vision
To be the bank that defines great customer experience.
Path to Differentiation
Strategies
We will succeed in the Canadian market through the quality and consistency of our customer experience and through the productivity of our sales and distribution network. Our main strategies are:
- In personal banking, deliver a differentiated customer experience and further enhance the performance management system.
- In commercial banking, enhance the quality and consistency of the customer experience for commercial and small business customer segments by focusing on the needs of the customer and embedding a strong performance management discipline.
- Further leverage our successful credit card product offering to provide the right choices by understanding and addressing the needs of customer segments.
Strengths and Value Drivers
- Strong competitive position in commercial banking, reflected in our number two ranking in market share for business loans of $5 million and below.
- Superior risk management that provides our customers with consistent access to financing solutions in all economic conditions.
- Comprehensive range of everyday banking and payment capabilities, combined with our AIR MILES customer loyalty program.
- Competitive electronic transaction processing business through Moneris Solutions, which serves approximately 40% of the Canadian market.
- Integrated technology platform and customer data management capabilities that support our effective sales and service model.
- Effective performance management system, encompassing planning, tracking, assessment and coaching.
Challenges
- Global credit environment has materially increased funding costs.
- Increased pace of change and innovation provides customers with easy access to an expanding array of alternative products and services.
- Strong competition for deposit accounts is pressuring deposit margins and customer retention.
- Competition to attract and retain highly qualified employees has increased in high-growth sectors and regions.
- Demand continues to grow for resources to meet regulatory, compliance, information security and fraud management requirements.
Key Performance Metrics and Drivers
| 2008 | 2007 | 2006 | |
|---|---|---|---|
| Personal banking, insurance and other revenue ($ millions) |
2,565 | 2,464 | 2,370 |
| Personal loan growth (%) (1) | 5.0 | 4.3 | 10.9 |
| Personal deposit growth (%) | 1.1 | 0.3 | 0.4 |
| Commercial banking revenue ($ millions) | 1,364 | 1,351 | 1,274 |
| Commercial loan growth (%) (1) | 9.5 | 8.1 | 6.4 |
| Commercial deposit growth (%) | 5.6 | 10.0 | 7.6 |
| Cards revenue ($ millions) | 1,108 | 929 | 936 |
| Cards loan growth (%) | 13.8 | 12.0 | 7.0 |
| Operating leverage (%) | 0.7 | 0.7 | 1.8 |
| Revenue growth (%) | 6.2 | 3.6 | 6.0 |
| Employee engagement index (%) (2) | 73 | 75 | 73 |
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(1) Includes consumer loans, mortgages, acceptances and securitized loans. (2) Source: BMO’s Annual Employee Survey, conducted by Burke Inc., an independent research company. |
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Our Lines of Business
Personal Banking provides financial solutions for everyday banking, financing, investing and insurance needs. We serve approximately 20% of Canadian households. Our national integrated multi-channel sales and distribution network offers customers convenience and choice in meeting their banking needs.
Commercial Banking provides our small business, medium-sized enterprise and mid-market banking clients with a broad range of banking products and services. We offer a full suite of integrated commercial and capital markets products and financial advisory services.
Cards and Payments Services provides flexible, secure payment options to our customers. We are the largest MasterCard issuer in Canada.
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