Bank of Montreal (TSX: BMO) is exploring the potential sale of some US branches holding approximately $6 billion in deposits, The Wall Street Journal first reported, as the Canadian lender reshapes its American operations following a major acquisition.
The bank is considering divesting operations in specific regions, including Wyoming and the Dakotasl. The divestiture could involve selling the locations together or breaking them into separate transactions, though discussions are still early-stage and no deal is guaranteed.
The potential divestiture follows BMO’s completion of its $16.3 billion acquisition of BNP Paribas‘ US unit, Bank of the West, in 2023 — the Canadian bank’s largest deal to date. That acquisition added roughly 500 branches to BMO’s existing US network of about 1,000 locations and gave the bank exposure to nearly 2 million customers across the Midwest and Western United States.
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Financial institutions typically divest redundant branch networks after large acquisitions to optimize their footprint in an era of growing digital banking adoption. The move would allow BMO to streamline operations and exit markets that don’t align with its long-term strategy while maintaining its substantial US presence, particularly around its Chicago headquarters.
BMO, Canada’s fourth-largest bank, operates more than 900 branches in Canada and over 1,000 in the United States, with about 13 million customers globally. The bank has total assets of approximately CAD $1.4 trillion.
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