Tony Comper Tony Comper Chairman & CEO Chairman & CEO - PowerPoint PPT Presentation

Meeting With Investment Community Meeting With Investment Community Meeting With Investment Community Meeting With Investment Community Meeting With Investment Community Meeting With Investment Community Meeting With Investment Community Meeting With Investment Community February 29, 2000 February 29, 2000 Tony Comper Tony Comper Chairman & CEO Chairman & CEO SLIDE 1

Who We Are Who We Are Who We Are Who We Are Who We Are Who We Are Who We Are Who We Are ● Diversified in North America ● Diversified in North America ● Major Canadian bank with > 1/3 of earnings in U.S. ● Major Canadian bank with > 1/3 of earnings in U.S. and > 1/2 outside Canada and > 1/2 outside Canada ● Leadership in credit risk management ● Leadership in credit risk management ● Harris is a key strategic asset – growing and ● Harris is a key strategic asset – growing and expanding earnings expanding earnings ● Important position/alliance with Bancomer – ● Important position/alliance with Bancomer – Mexico’s leading retail bank Mexico’s leading retail bank ● Increasing North American economies of scale, and ● Increasing North American economies of scale, and cross-border initiatives among BMO/Nesbitt/Harris/ cross-border initiatives among BMO/Nesbitt/Harris/ Bancomer Bancomer SLIDE 2

Six Point Strategy Six Point Strategy Six Point Strategy Six Point Strategy Six Point Strategy Six Point Strategy Six Point Strategy Six Point Strategy 1. Continue to aggressively build the value of Harris 1. Continue to aggressively build the value of Harris 2. Rapidly grow the wealth management business 2. Rapidly grow the wealth management business 3. Capitalize on our strong Canadian position in personal and 3. Capitalize on our strong Canadian position in personal and commercial banking commercial banking 4. Build on strong leadership position in investment banking 4. Build on strong leadership position in investment banking in Canada and selectively grow our position in the U.S. in Canada and selectively grow our position in the U.S. 5. Drive e-business opportunities to build dominant positions 5. Drive e-business opportunities to build dominant positions in national markets in national markets 6. Intensely focus on cost, capital and risk management 6. Intensely focus on cost, capital and risk management SLIDE 3

Financial Goals Financial Goals Financial Goals Financial Goals Financial Goals Financial Goals Financial Goals Financial Goals ● Increase return on equity 1 - 1.5% annually ● Increase return on equity 1 - 1.5% annually ● Grow earnings per share by at least 10% per annum ● Grow earnings per share by at least 10% per annum SLIDE 4

Continue to aggressively build Continue to aggressively build Continue to aggressively build Continue to aggressively build Continue to aggressively build Continue to aggressively build Continue to aggressively build Continue to aggressively build the value of Harris… the value of Harris… the value of Harris… the value of Harris… the value of Harris… the value of Harris… the value of Harris… the value of Harris… GOAL GOAL Become dominant full-service bank in Chicago area Become dominant full-service bank in Chicago area ● ● Premier mid-market corporate/investment bank in the Premier mid-market corporate/investment bank in the ● ● Midwest Midwest Expand in fast-growing Sunbelt markets Expand in fast-growing Sunbelt markets ● ● SLIDE 5

Rapidly grow the w ealth Rapidly grow the w ealth Rapidly grow the w ealth Rapidly grow the w ealth Rapidly grow the w ealth Rapidly grow the w ealth Rapidly grow the w ealth Rapidly grow the w ealth management business… management business… management business… management business… management business… management business… management business… management business… GOAL GOAL Build on Nesbitt Burns’ investment advisory services and Build on Nesbitt Burns’ investment advisory services and ● ● Harris Bank’s private banking capabilities Harris Bank’s private banking capabilities Expand sales force and use of BMO channels Expand sales force and use of BMO channels ● ● Expand electronic client access for investment services Expand electronic client access for investment services ● ● SLIDE 6

Capitalize on our strong Canadian position Capitalize on our strong Canadian position Capitalize on our strong Canadian position Capitalize on our strong Canadian position Capitalize on our strong Canadian position Capitalize on our strong Canadian position Capitalize on our strong Canadian position Capitalize on our strong Canadian position in personal and commercial banking… in personal and commercial banking… in personal and commercial banking… in personal and commercial banking… in personal and commercial banking… in personal and commercial banking… in personal and commercial banking… in personal and commercial banking… GOAL GOAL ● Become dominant small business and mid-market bank ● Become dominant small business and mid-market bank in Canada in Canada ● Premier mortgage and consumer lender ● Premier mortgage and consumer lender ● Rebalance channel mix creating a more customer- ● Rebalance channel mix creating a more customer- convenient and cost-effective distribution system convenient and cost-effective distribution system SLIDE 7

Capitalize on our strong Canadian position Capitalize on our strong Canadian position Capitalize on our strong Canadian position Capitalize on our strong Canadian position Capitalize on our strong Canadian position Capitalize on our strong Canadian position Capitalize on our strong Canadian position Capitalize on our strong Canadian position in personal and commercial banking… in personal and commercial banking… in personal and commercial banking… in personal and commercial banking… in personal and commercial banking… in personal and commercial banking… in personal and commercial banking… in personal and commercial banking… HOW HOW Rebalance channel mix Electronic Channels Branches (# millions) 2 2 2 2 2 2 2 2 1 2 0 0 1 2 0 0 1 2 0 0 1 2 0 0 1 0 9 9 1 0 9 9 1 .2 1 .2 1 0 9 9 1 0 9 9 1 .2 1 .2 1 1 1 1 9 0 0 9 0 0 9 0 0 9 0 0 0 .3 0 .3 0 .3 0 .3 0 0 0 0 7 0 0 7 0 0 7 0 0 7 0 0 1 9 9 7 1 9 9 7 1 9 9 7 1 9 9 7 1 9 9 9 1 9 9 9 1 9 9 9 1 9 9 9 2 0 0 1 2 0 0 1 2 0 0 1 2 0 0 1 1 9 9 7 1 9 9 7 1 9 9 7 1 9 9 7 1 9 9 9 1 9 9 9 1 9 9 9 1 9 9 9 In-Store (# of stores) 2 0 0 2 0 0 2 0 0 2 0 0 2 0 0 2 0 0 2 0 0 2 0 0 9 0 9 0 9 0 9 0 1 0 0 1 0 0 1 0 0 1 0 0 1 0 1 0 1 0 1 0 0 0 0 0 0 0 0 0 1 9 9 7 1 9 9 7 1 9 9 9 1 9 9 9 2 0 0 1 2 0 0 1 1 9 9 7 1 9 9 7 1 9 9 9 1 9 9 9 2 0 0 1 2 0 0 1 SLIDE 8

Build on our strong leadership Build on our strong leadership Build on our strong leadership Build on our strong leadership Build on our strong leadership Build on our strong leadership Build on our strong leadership Build on our strong leadership position in investment banking... position in investment banking... position in investment banking... position in investment banking... position in investment banking... position in investment banking... position in investment banking... position in investment banking... GOAL GOAL Industry leader in Canada and selectively grow our Industry leader in Canada and selectively grow our ● ● position in U.S. position in U.S. Become premier mid-market corporate/investment bank in Become premier mid-market corporate/investment bank in ● ● the Midwest the Midwest Build leading North American position with mid-market Build leading North American position with mid-market ● ● energy and communications companies energy and communications companies Build strong franchise in high growth products Build strong franchise in high growth products ● ● SLIDE 9

Drive e-business opportunities… Drive e-business opportunities… Drive e-business opportunities… Drive e-business opportunities… Drive e-business opportunities… Drive e-business opportunities… Drive e-business opportunities… Drive e-business opportunities… GOAL GOAL Become principal conduit for public sector electronic Become principal conduit for public sector electronic ● ● procurement (MERX) procurement (MERX) Develop lead position in electronic bill presentment and Develop lead position in electronic bill presentment and ● ● payment in Canada (EPOST) payment in Canada (EPOST) Become premier provider of automated credit decisioning Become premier provider of automated credit decisioning ● ● for small and medium sized banks in the U.S. for small and medium sized banks in the U.S. (Competix.com) (Competix.com) Build leadership position in delivery of “wireless” Build leadership position in delivery of “wireless” ● ● banking, brokerage, and information services (724 banking, brokerage, and information services (724 Solutions) Solutions) “Capitalize” promising projects to fuel additional growth “Capitalize” promising projects to fuel additional growth ● ● SLIDE 10