BMO accelerates U.S. growth, seeing path to reach target quicker

In its largest recent push into the U.S., Bank of Montreal acquired San Francisco-based Bank of the West three years ago for US$16.3 billion. Photo by Peter J. Thompson/National PostArticle contentThe new head of Bank of Montreal’sUnited States operations is ramping up growth plans for the Canadian banking giant south of the border, hiring bankers, opening and revamping branches, and building out its wealth-advisement business.Sign In or Create an AccountEmail AddressContinueor View more offersArticle contentBank of Montreal wants to generate 12 per cent of return on equity from the U.S. by the end of 2027, said Aron Levine, who was appointed president of BMO U.S. last June. His division has added over 100 client-facing bankers and wealth advisers in the past 12 months.Article contentWe apologize, but this video has failed to load.Try refreshing your browser, ortap here to see other videos from our team.We apologize, but this video has failed to load.Try refreshing your browser, ortap here to see other videos from our team.Play VideoArticle contentArticle contentThat ROE would be up from 8.5 per cent as of the end of January, and the timeline for reaching the target is shorter than when management commented on the aim in December, when they discussed the same target as a medium-term goal, generally defined as three to five years.Article contentPosthasteBreaking business news, incisive views, must-reads and market signals. Weekdays by 9 a.m.There was an error, please provide a valid email address.Sign UpBy signing up you consent to receive the above newsletter from Postmedia Network Inc.Thanks for signing up!A welcome email is on its way. If you don't see it, please check your junk folder.The next issue of Posthaste will soon be in your inbox.We encountered an issue signing you up. Please try againInterested in more newsletters? Browse here.Article content“BMO has this great momentum that we’re starting to see in the U.S., and by bringing together the business the way we have, I think we can accelerate that momentum and really be a very important part of the overall BMO,” Levine said in an interview at the Bloomberg News offices in New York on Thursday.Article contentIn its largest recent push into the U.S., Bank of Montreal acquired San Francisco-based Bank of the West three years ago for US$16.3 billion. The deal made California the biggest retail market for Bank of Montreal by branch count, and the lender is planning to add more than 130 new branches in the largest U.S. state in the next five years.Article contentLevine sees room to improve the performance of branches inherited from Bank of the West. Despite having more than 220 branches in California, Bank of Montreal pulled in fewer deposits than some competitors with less than 70 locations.Article contentArticle content“There is opportunity to improve execution,” Levine said. The plan to build out new branches “will help because, as you add more centres, you do get some benefit from a brand standpoint, from an economies-of-scale standpoint.”Article contentRead More BMO posts record revenue across its business segments, beating expectations Bank of Canada's first-quarter growth forecast in the crosshairs on weak GDP Article contentLevine joined Bank of Montreal after a three-decade career at Bank of America Corp. and a predecessor firm, working across commercial real estate, consumer banking and wealth management. He was involved in Bank of America’s acquisition of Merrill Lynch at the beginning of 2009, and later spearheaded Merrill Edge, a wealth-management offering for mass-affluent clients.Article contentBank of Montreal’s wealth business in the U.S. is relatively small, with a focus on the Midwest and West Coast, along with a specialty team catering to law-firm clients. Levine said he sees opportunities for grow by pitching wealth services to the company’s large commercial-banking base. It hired Michele Havens from Northern Trust Corp. in October 2024 to lead the U.S. wealth business from Los Angeles.Article contentAs part of the broader evolution of financial services, Bank of Montreal has also been adopting the use of artificial intelligence for its operations. It currently focuses on 10 to 15 use cases, such as reducing manual work at call centres and helping client-facing bankers to search for information more quickly. About 98 per cent of its employees have tried out Microsoft Corp’s Copilot chatbot for work, and roughly 45 per cent in the U.S. use it daily.Article content“Whether they’re using it for the most important business thing or they just are messing around with it, that’s OK,” Levine said, “because right now it’s about adoption curves.”Article contentBloomberg.comArticle contentWe apologize, but this video has failed to load.Try refreshing your browser, ortap here to see other videos from our team.Play VideoArticle contentTrending TC Energy could be open to return to B.C. LNG pipeline project as global gas crunch threatens Oil & Gas Dennis, 79, is worried about a market crash. Should he move his portfolio to 100% income?

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Investor Trans Mountain readies expansion in 2027 as pipeline space fills up Oil & Gas Garry Marr: Why it could be the right time to walk away from your real estate Personal Finance Canadian housing bears now have nine reasons backing them up Mortgages