BMO cites 'good progress' in push to boost U.S. profits

BMO (Bank of Montreal) is doubling down on its U.S. operations following its massive acquisition of Bank of the West. For retailers and service providers who utilize BMO for consumer or commercial financing, this signals a period of stabilization and aggressive growth. The bank is currently working to improve its efficiency ratio and profitability in the U.S. market, which often leads to a more competitive appetite for new loan volume and merchant partnerships. Executives are focused on integrating their systems and realizing cost savings. For a merchant, this means BMO is likely to be more focused on expanding its domestic market share rather than pulling back. As the bank aims for higher returns south of the border, we expect to see them maintain or increase their presence in the indirect lending and consumer credit space to offset their recent integration costs. They are currently managing a slight increase in credit loss provisions, but leadership remains confident in the U.S. consumer's resilience. This stability is good news for operators who rely on established banking partners for long-term financing programs.

Source: American Banker — Top News

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