During the Bank of Montreal’s annual meeting, CEO Darryl White highlighted the strong growth of the U.S. economy, with a focus on the strategically important market of California. He emphasized the bank’s ability to serve clients within the American and Canadian economies, positioning itself well in a changing global landscape.
BMO, Canada’s third-largest bank, has significantly increased its presence in the United States, generating about a third of its income from this market after acquiring Bank of the West last year in a record-breaking deal for Canadian banking. White stressed the importance of trade and investment between Canada and the U.S. for economic competitiveness, noting it as one of the largest bilateral trade relationships globally.
He pointed out that the Great Lakes region alone could represent the world’s third-largest economy, rivaling the combined size of Japan and Germany, and employing a substantial portion of the workforce shared between the two countries. Adding California, with an economy nearly double the size of Canada’s, further underscores the impact of the North-South partnership on a global scale.
As opportunities for growth in the Canadian market become limited, Canadian banks like BMO are increasingly looking to expand beyond their borders. White also discussed the challenges of a prolonged period of high interest rates and weakening demand, cautioning about the need to adapt to a potential “new normal” in the market when rates eventually begin to ease.