As the third largest bank in Canada by market capitalization, BMO has experienced rapid growth in the United States following its acquisition of Bank of the West last year. This acquisition was the largest deal in Canadian banking history and has generated about a third of BMO’s income from the United States.
During the Bank of Montreal’s annual meeting, CEO Darryl White emphasized the strategic importance of California as a market. He highlighted that BMO has expanded rapidly in the United States and is well positioned to serve clients in both American and Canadian economies amidst a changing global landscape. White also stressed the significance of trade and investment between Canada and the U.S., pointing out that it is one of the largest bilateral trade relationships globally.
White underscored the economic impact of the relationship between the Great Lakes region and California, emphasizing its importance as a North-South partnership. However, he cautioned that Canadian banks face challenges when expanding beyond their domestic market, including high interest rates and weakening demand. When interest rates eventually decrease, White foresees a “new normal” characterized by different conditions than seen in the past two decades.