Bank of Montreal Will Optimize Its US Banking Segment in Fiscal 2026

Bank of Montreal is the fourth-largest bank in Canada and one of six Canadian banks that collectively hold almost 90% of the nation's banking deposits. Roughly 60% of BMO’s earnings are generated in Canada and 40% in the US. The bank has a well-established Canadian franchise, a solid US presence in the Midwest, and a growing California footprint following the Bank of the West, or BOTW, acquisition. While BMO is not among the most dominant retail banks in Canada, its more commercially oriented loan book gives it a strong position in domestic commercial lending, particularly for loans under CAD 100 million. BMO is also the second-largest exchange-traded fund provider in Canada. Although competition from BlackRock and Vanguard is intensifying, we expect continued growth in passive investing to support longer-term opportunities for leading players.