BMO Financial Group has made some changes to its leadership within its North American banking divisions. The bank has brought in veteran executives from Bank of America to lead operations in three states.
Effective early July, Aron Levine will take on the role of group head and president of BMO US, overseeing the company’s personal and business banking, commercial banking, and asset management sectors, as mentioned in a press release. He’ll join the BMO Executive Committee and will be working closely with BMO’s CEO Darryl White and BMO US CEO Darryl Hackett in Chicago, which is the headquarters for BMO US.
Levine’s move is part of a broader set of changes at BMO, announced on Thursday, that will begin on July 7. These adjustments seem to follow the retirement of Erminia “Ernie” Johansson, who has headed BMO’s North American Personal and Business Banking Group since 2020.
Johansson, recognized as a key figure in BMO’s American expansion, also played a pivotal role in the recent merger involving a Western Bank acquisition, boosting BMO into one of the country’s top 20 banks by assets.
With Johansson’s exit, BMO is redistributing her responsibilities. Sharon Haward-Laird will be elevated to group head of Canadian commercial banks and will co-lead Canadian private and commercial operations. Mat Mehrotra is set to take on the role of group head of Canadian individuals and business banking, working alongside Haward-Laird.
Haward-Laird, currently BMO’s general counsel, will remain on the executive committee in her new position. Mehrotra, who is the Chief Digital Officer and Head of Canadian Products at the moment, will also join the Executive Committee.
In the wake of the Western acquisition, BMO is striving to enhance its performance in the US. The bank earns about 40% of its revenue from its US operations and has recently sold off its US credit card portfolio. The decision to end its franchise loan portfolio came after it didn’t yield the expected returns, as noted during a recent quarterly revenue conference call.
BMO aims for a return of at least 12% on its US operations in the next three to five years, which is up from the previous fiscal year’s figures of around 6.2% or 7% when adjusted.
The executive changes announced are intended to bolster BMO’s growth in key markets across Canada and the US. The restructuring aims to improve profitability, loyalty, and efficiency by simplifying decision-making and placing capable leaders in vital roles.
Darryl White remarked that the latest appointments showcase BMO’s commitment to talent development and its ability to draw exceptional leaders to better serve clients. This restructuring is seen as a crucial step toward enhancing return on equity while optimizing the structure of its US personal and business banking, commercial banking, and asset management divisions.
Additionally, BMO revealed more management updates: Nadim Hirji will step up as Vice-Chair of BMO Commercial Banking, focusing on growth in both Canadian and US markets. Mona Malone, BMO’s Chief Human Resources Officer, will add the title of Chief Management Officer to her responsibilities, overseeing various divisions including marketing and communications. Paul Noble, currently the Chief Justice, will transition to take over Haward-Laird’s role as general counsel and become the head of legal and regulatory compliance, also joining the executive committee.
