News Releases
BMO Financial Group will continue to build on the proven success of its North American growth strategy, Chairman and Chief Executive Officer Tony Comper said today at an investor conference in Montreal.
Speaking at National Bank Financial's Canadian Financial Services Conference, Mr. Comper spoke of BMO's earnings reliability, pointing to seven consecutive quarters of earnings growth. Year-over-year, BMO had an increase in first-quarter net income of 34 per cent, an earnings per share increase of 33 per cent and a return on equity surpassing 18 per cent.
Mr. Comper credited BMO's effective execution of its strategy to invest in, and strengthen, its core Canadian franchise while growing and expanding its Harris franchise in some of the most lucrative markets in the United States, with the goal of becoming a top-performing North American financial services company.
"In order to further increase the reach and profitability of our U.S. franchise, we are on the lookout for mid-size and small retail banking acquisitions in Chicago, Illinois, and surrounding states that meet our strict financial criteria and offer the best strategic and cultural fit," Mr. Comper said. "As properties become available, our significant buyer's advantages include our deep knowledge of the market and the respected Harris brand."
Since 1999, BMO has made 13 retail banking, wealth management, and investment banking acquisitions in the United States, including the recent agreement to acquire New Lenox State Bank in the rapidly growing Chicago suburb of Will County. On closing, the New Lenox transaction will add eight branches to the existing 155-branch Harris network. In addition, Harris has secured the real estate to open 10 additional branch locations in the Chicago area in 2004.
This year marks the 20th anniversary of the purchase of Harris Bank, when BMO first established its solid foothold in the United States. Today, all of the organization's U.S. businesses operate under the Harris brand. In addition to the Harris retail bank network in the Chicago area, the U.S. franchise includes Harris Nesbitt, BMO's investment and corporate bank with a growing mid-market commercial business, and The Harris, BMO's U.S. wealth management business. The integrated U.S. franchise has an asset base of $70 billion and generated 30 per cent of BMO Financial Group's revenue in 2003.
Speaking about industry trends, Mr. Comper said the most important U.S. story remains ever-increasing competition and industry consolidation as the drive for scale and operating efficiencies continues in the aftermath of deregulation. He also spoke of the situation in Canada.
"In the Canadian industry, there is the continuing ebb and flow of merger speculation as the federal government's June deadline for clarifying its position on mergers draws closer," he said. "At BMO, let me emphasize, we remain very focused on business as usual. The leadership team routinely assesses a wide range of M&A options in both Canada and the U.S., and when, and if, we find the right partner at the right time, we will take the appropriate action. With or without a merger, I have confidence in BMO's prospects for growth and continued success."
Established in 1817 as Bank of Montreal, BMO Financial Group (TSX, NYSE: BMO) is a highly diversified North American financial services organization. With average assets of $268 billion as at January 31, 2004 and 34,000 employees, BMO provides a broad range of retail banking, wealth management and investment banking products and solutions. BMO serves clients across Canada and in the United States through its Canadian retail arm BMO Bank of Montreal; Chicago-based Harris Bank, a major U.S. mid-west financial services organization which also has wealth management offices across the United States; BMO Nesbitt Burns, one of Canada's leading full-service investment firms; and Harris Nesbitt, its U.S. investment and corporate banking operation.
A full transcript of Mr. Comper's remarks may be found at www.bmo.com/investorrelations.
CAUTION REGARDING FORWARD-LOOKING STATEMENTS
This press release includes forward-looking statements, which are made pursuant to the 'safe harbor' provisions of the United States Private Securities Litigation Reform Act of 1995. These forward-looking statements include, but are not limited to, comments with respect to our objectives, targets, strategies, financial condition, the results of our operations and our businesses, our outlook for our businesses and for the Canadian and U.S. economies, and risk management.
By their very nature, forward-looking statements involve numerous assumptions, inherent risks and uncertainties, both general and specific, and the risk that predictions and other forward-looking statements will not prove to be accurate. We caution readers of this press release not to place undue reliance on these forward-looking statements as a number of important factors could cause actual future results to differ materially from the plans, objectives, targets, expectations, estimates and intentions expressed in such forward-looking statements.
The future outcomes that relate to forward-looking statements may be influenced by the following factors: fluctuations in interest rates and currency values; regulatory developments; statutory changes; the effects of competition in the geographic and business areas in which we operate, including continued pricing pressure on loan and deposit products; and changes in political and economic conditions including, among other things, inflation and technological changes. We caution that the foregoing list of important factors is not exhaustive and that when relying on forward-looking statements to make decisions with respect to Bank of Montreal, investors and others should carefully consider the foregoing factors as well as other uncertainties and potential events. The Bank does not undertake to update any forward-looking statement, whether written or oral, that may be made from time to time by or on behalf of the Bank.
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