BAM Bam Groep (Kon)

RNS Number:9951S
Bank of Montreal
24 October 2000



Bank of Montreal Announces a Major Regrouping of Businesses and Leadership to
Support the Next Stage of Its Growth Strategy 

TORONTO, October 24, 2000 Tony Comper, Chairman and Chief Executive Officer,
Bank of Montreal, announced today that the bank is implementing a major
regrouping of its businesses and leadership team to support the next stage of
its growth strategy. The changes highlight the bank's intention to accelerate
the shift of its business mix to higher-growth and higher-return businesses. 

Today's announcement follows the April 1999 realignment of the bank into three
client-focused groups to support a new growth strategy. At that time, the bank
also made significant leadership and organizational changes in the Private
Client Group and Investment Banking Group. 

The realignment announced today focuses on the businesses and leadership in the
Personal and Commercial Client Group as well as in Emfisys, the technology and
operations group, which takes on responsibility for most of the bank's
e-businesses. 

"This is a strategy-driven and client-focused realignment," said Mr. Comper.
"Our aim is to match key resources with key priorities. The bank is allocating
priority resources to three key markets: business customers - small business and
commercial banking; personal customers - money management and consumer lending;
and e-business.

"We will allocate resources to businesses where we have proven capability, where
the market is growing, emerging or under-served, and where price-to-earnings
multiples are attractive.

"Maintaining our disciplined approach to cost, capital and risk management, we
are funding our priority businesses through accelerated extraction of capital
and other resources from low-potential businesses across the enterprise." 

Highlights of the organizational and leadership changes, effective November 1,
2000, include the following: 

- Ron Rogers, Vice-Chair, Personal and Commercial Client Group, assumes full    
 responsibility for all businesses in this group. Three vice-chairs previously  
shared this responsibility. 
- Al McNally, Vice-Chair, Bank of Montreal, and Chairman and Chief Executive    
 Officer, Harris Bank, maintains responsibility for the U.S. subsidiary, which  
continues to be a key strategic asset and a strong U.S. platform for           
expansion, a key bank priority. 
- Lloyd Darlington, who leads Emfisys, assumes responsibility for all emerging  
 e-businesses whose potential extends across multiple client segments. His new  
position is President and CEO, Emfisys and Head, E-Business. 
  
"Bank of Montreal already has a decades-old legacy for being first and being   
great at technology innovation," said Mr. Comper. "This enterprise-wide
alignment will help perpetuate this legacy in the era of e-banking. 

"The marriage of our internal expertise and capability in technology with
e-business research and development will ensure an enterprise-wide approach to
setting priorities for technology investments. It will enable us to maximize the
potential of our existing leadership in selected e-businesses; and will provide
more focus and pace to the incubation of new e-businesses." 

Four new banking divisions focused on customer service have been established.

Personal and Commercial Banking Distribution Division 
All Personal and Commercial Client Group businesses involved in branch and
electronic distribution in Canada are being brought together into a new service
delivery division under the leadership of Rob Pearce, President, Personal and
Commercial Banking Distribution. Mr. Pearce was Executive Vice-President, North
American Electronic Banking Services.

Small Business Banking Division 
A new Small Business Banking division is being launched to ensure increased
focus on small and medium-sized businesses. Frank Techar, Executive
Vice-President, Small Business Banking, takes on leadership of a new division
that exclusively targets what Mr. Comper describes as a high priority market.
Mr. Techar was previously Senior Vice-President, Small and Medium Enterprises.
This new small business division has a mandate to grow the bank's small business
portfolio.

"Bank of Montreal has a strong franchise in this high-growth, high-return,
under-served market in Canada, as does Harris Bank in the U.S. Midwest. We rank
second in Canada for small business lending, rapidly closing the gap with our
key competitor," said Mr. Comper.

Commercial Banking Division 
A new Commercial Banking division has been established to serve enterprises with
annual revenues of $100 million to $300 million. The division will be led by Bob
McGlashan, Executive Vice-President, Commercial Banking. Mr. McGlashan was
Senior Vice-President, Mid-Market Banking.

Since the bank first targeted upper-end mid-market businesses in Canada three
years ago, it has boosted lending by 74 per cent while adhering to high
standards for credit risk management. This makes Bank of Montreal the leader in
this target market in Canada, which is largely untapped.

New Personal Banking Products Division 
All Personal and Commercial Client Group businesses involved in product
development and marketing directed at personal banking customers in Canada are
being brought together into a new Personal Banking Products division under the
leadership of Maurice Hudon, President, Personal Banking Products. Mr. Hudon was
Executive Vice-President, Ontario Division.

Within the products division, the bank is consolidating all of its consumer
lending products, including mortgages, under the leadership of Margaret Barrett,
Executive Vice-President, Consumer Lending. 

Now part of Personal Banking Products division are Mortgages and Consumer
Finance (now Consumer Lending), Everyday Banking, Insurance and Corporate
Marketing.

Other Appointments and Reporting Changes 
Kathleen O'Neill is appointed Executive Vice-President, mbanx Direct and Client
Value Management, reporting to Mr. Pearce. Ms. O'Neill was Senior
Vice-President, Consumer Finance.

Pam Robertson is appointed Executive Vice-President, Ontario Division, reporting
to Mr. Pearce. Her previous position was Senior Vice-President, Prairies
Division.

Marnie Kinsley is appointed Executive Vice-President, E-Business, Emfisys and
E-Business, reporting to Mr. Darlington. Her previous position was Executive
Vice-President, mbanx Direct, Personal and Commercial Client Group.

Barry Gilmour is appointed Deputy Group Head and Chief Operating Officer,
Emfisys, Emfisys and E-Business, continuing to report to Mr. Darlington. His
previous position was Executive Vice-President, Systems, Emfisys.

Kathy Lisson is appointed Executive Vice-President, Information Technology
Planning and Strategy, Emfisys and E-Business, continuing to report to Mr.
Darlington. Her previous position was Executive Vice-President, Information
Technology Planning and Strategy, Emfisys. 

Karen Maidment, Executive Vice-President and Chief Financial Officer, reports to
the Chairman. 

Rose Patten, Executive Vice-President, Office of Strategic Management, reports
to the Chairman.

Also reporting to the Chairman will be the head of human resources. That
position is currently vacant and a search is underway. 

Two Vice-Chairs Retiring 
Mr. Comper also announced the retirement of Jeff Chisholm, Vice-Chair, Personal
and Commercial Client Group and Keith Dorricott, Vice-Chair, Corporate Services.
Both vice-chairs will retire on December 31, 2000. 

Mr. Chisholm joined Chicago-based Harris Bank in 1971. Harris was acquired by
Bank of Montreal in 1984. He has held key roles as Treasurer of the bank and has
served as a Vice-Chair since 1990, leading Corporate and Institutional Financial
Services and then Electronic Financial Services before moving to his most recent
position in 1999. 

"With Jeff Chisholm's retirement an era comes to an end at the bank," said Mr.
Comper. "During his watch Bank of Montreal developed industry leadership in
e-banking and e-business. He has played an active role in ongoing learning and
education, both within the bank and outside, and has been a strong supporter of
community affairs." 

Mr. Dorricott came to the bank in 1983 as a Chartered Accountant having served
as a partner at a major accounting firm. He was Executive Vice-President and
Chief Financial Officer until his appointment as Vice-Chair in 1992.

"During Keith Dorricott's stewardship the bank's Corporate Services group became
a centre of expertise and a place for cross-functional collaboration and
co-operation. He contributed to the establishment of the bank's pivotal Office
of Strategic Management. One of his greatest accomplishments was encouraging
people to do their best work," said Mr. Comper.

Bank of Montreal, Canada's first bank, is a highly diversified financial
services institution. The bank operates more than 30 lines of business within
its group of companies, including BMO Nesbitt Burns, one of Canada's largest
full-service investment firms, and Chicago-based Harris Bank, a major U.S.
mid-west financial services provider.


Media Relations Contacts:                Investor Relatons Contacts: 
Joe Barbera, (416) 927-2740              Susan Payne (416) 867-6656 
Ronald Monet (514) 877-1101              Lynn Inglis (416) 867-5452 
 
Internet: http://www.bmo.com

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