BMO a "high-return, low-risk bank", Comper says

BMO a “high-return, low-risk bank”, Comper says

Bank plans to grow share of U.S. wealth management business

By: IE Staff
January 19, 2005 January 19, 2005
10:15

Investors should buy or continue to hold BMO Financial Group shares because the organization has a solid reputation as Canada’s high-return, low-risk bank, according to Tony Comper, president and CEO, BMO Financial Group.

Comper told a gathering of investors at the RBC Capital Markets Canadian Financial Services CEO Conference today that BMO has the right business mix, the right growth strategy and the right priorities to maintain its growing reputation as Canada’s high-return, low-risk bank — “a compelling proposition for likeminded investors,” according to Comper.

“BMO’s strategy to grow our core Canadian franchise and improve and selectively expand our U.S. franchise reflects both our longstanding strengths and our desire to build new strengths,” he said.

Comper said that in Canada, the bank plan’s to grow its position in the commercial market, gain share in the high net-worth market, and expand BMO’s share in the investment banking business.

In the United States, the bank plans to grow organically and through retail banking acquisitions to be a leading player in the Midwest in the personal and business banking markets, and the corporate mid-market and wealth management sectors.

“We are also capitalizing on the fragmentation and high-growth potential in the wealth market by growing these businesses in selected areas across the U.S.,” Comper said.

Comper also reviewed the company’s operational priorities for 2005.

“A key priority is to maintain our personal banking market share and increase our commercial banking market share relative to our major competitors,” he said.

As for the BMO’s private client group, Comper said the bank is beginning to see the return on its investment of Canadian profits to fund the cost of building out its wealth management businesses in the U.S.

“We have achieved an annual compound growth rate of 22%, based on U.S. dollars, in wealth management business revenues since 2001 through a combination of acquisitions and increased higher-margin sales from improved client segmentation,” he noted.