BMO reportedly "considering options" for asset management unit
Bank of Montreal is said to be talking to advisors about a potential scaling back of its international asset management business.
Bloomberg has reported that unnamed sources say the Canadian banking stalwart is considering options for BMO Asset Management, the investment management division that operates from 19 offices in 13 countries.
The business has assets under management of around US$273 billion (as of the end of 2019) and the report says that it could look to scale back its international operations.
WP has reached out to BMO Asset Management for comment.
BMO has coped well with the challenges of coronavirus, despite some analysts expressing concern about exposure from its commercial lending operations, although the bank says its borrowers are resilient and it does not expect outsized losses.
Domestic focus
While talk of BMO scaling back its international asset management operations is speculation at this stage, the bank has made a strong commitment to its domestic customers this week.
Noting that main street businesses employ the majority of Canadians, BMO has created a dedicated banking team to provide guidance and advice to help promote their growth.
Combining relationship managers with new investment in technology, the group will also work closely with partners in the bank’s Retail, Wealth, and Canadian Commercial Banking units to offer small businesses a full range of wealth and banking products and services.
“It has never been more important to stand behind Canadian businesses – we need to ensure their economic success to ensure Canada's success," said Mike Bonner, Head Canadian Business Banking, BMO Bank of Montreal. "The challenge that we noticed is that this segment has been underserved. We're looking to change that. We now have a team focused solely on this segment to help them make real financial progress. This is the beginning of a true partnership with Canada's main street businesses across the country."
