BMO Financial Group completed the conversion of Bank of the West customer accounts to BMO operating systems during its fiscal fourth quarter.
“We closed and integrated strategic acquisitions, advanced our digital-first capabilities and increased our focus on delivering interconnected one-client experiences” in Q4, Chief Executive Darryl White said during today’s earnings call.
The Montreal-based bank spent CA$434 million ($321 million) on its Bank of the West integration in Q4, according to the bank’s earnings supplement. The acquisition closed in February.
Total integration costs reached $1.4 billion because expenses were higher than expected and the closing date was later than planned, Chief Financial Officer Tayfun Tuzun said during the call.
In moving Bank of the West accounts, BMO accomplished the following:
- Added 2 million customers;
- Converted 2.7 million accounts and 300 systems;
- Re-enrolled over 90% of active digital users within the first week; and
- Rebranded 500 bank branches.
BIGGER PICTURE: The bank began the conversion over Labor Day weekend during its third quarter, White said during the bank’s fiscal Q3earnings call in August.
With the conversion complete, “Bank of the West customer activity is accelerating as we expected,” White said. “For example, we’ve seen a 3X increase in checking accounts sold digitally on the platform.”
BY THE NUMBERS: BMO reported for Q4:
- Adjusted non-interest expenses increased 19% year over year to $4.2 billion;
- Digital engagement in retail channels increased 8% YoY to 3.9 million; and
- Digital engagement in commercial banking channels grew 8% YoY to 261,000.
NOTEWORTHY: During the quarter, the bank announced its efficiency initiatives, including optimizing its workforce, real estate and technology.
The efforts “are expected to result in additional run rate savings of $296 million and be largely in our run rate by the end of 2024,” CEO White said.
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Editors Note: All figures have been converted to U.S. Dollar.
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