Bank of Montreal (BMO) is reportedly considering the sale of some of its U.S. branches, particularly those in Wyoming and the Dakotas.
According to a source cited by the Wall Street Journal (WSJ), banks often offload branches either individually or in groups, sometimes bundling loans with deposits. BMO has initiated this sales process, although reports indicate that these plans are still under review and may not lead to actual sales.
BMO did not comment when reached for confirmation regarding this report.
As per the WSJ, the decision to sell comes on the heels of BMO’s acquisition of Western in 2023, which added around 500 branches and increased its total U.S. presence to about 1,000 branches.
It’s fairly common for banks to close or sell locations following significant acquisitions, as mentioned in the report.
Additionally, BMO has been busy opening new branches and renovating existing ones.
In December 2021, BMO announced its acquisition of BNP Paribas’ Bank of the West for $16.3 billion, with expectations of gaining 1.8 million new customers along with new branches and offices in key U.S. markets.
The deal was completed on February 1, 2023, with assurances that customer services would continue through both BMO and Bank of the West until the integration is finished, projected for September 2023.
By that time, BMO plans to share details with customers about how this merged entity will operate.
In June, BMO also announced its agreement to acquire Burgundy Asset Management for about $625 million, which is slated to close by the end of 2025, pending standard closing conditions. This acquisition is expected to expand BMO’s asset management and financial planning services.
Moreover, BMO has partnered with Mastercard to introduce new travel rewards products by 2025, aimed at frequent travelers. This initiative includes enhanced transfer services featuring more destinations and currencies along with a remuneration program for Canadian travelers, also in collaboration with Porter Airlines.
