Bank of Montreal (BMO) announced on Thursday its target to achieve a return on equity (ROE) exceeding 15% by 2028. The bank is focusing on growth within its wealth management and U.S. business segments to reach this goal. BMO is a Canada-based financial services provider offering a range of banking, investment, and wealth management products. It serves personal, commercial, and corporate clients across North America and internationally.
CEO Darryl White stated that the bank has “a clear line of sight to 15% ROE” and is “accelerating growth across each of our businesses as we deliver on that target,” during BMO’s Investor Day. White also highlighted the strength of their North American capital markets business as a continued growth driver. In the first quarter, BMO reported a return on equity of 12.1%, a key metric reflecting the bank’s efficiency in generating profit for its shareholders.
The announcement comes amidst increasing geopolitical uncertainty, including ongoing tensions which have impacted oil prices and contributed to inflation concerns, casting a shadow over the global economic forecast. White assured that BMO’s strategy is designed for long-term performance, capable of navigating various economic conditions, while acknowledging the dynamic nature of the geopolitical landscape. He added that the bank has a history of successfully managing periods of disruption and change, consistently supporting its clients.
Investors are closely monitoring BMO’s progress in achieving cost savings and revenue synergies as it expands its presence in the U.S. market, which remains highly competitive. The bank’s ability to effectively scale its operations and capitalise on growth opportunities in this environment will be critical to achieving its stated financial targets.
