BMO Financial Group shared its long-term savings plans and provided an update on its integration of Bank of the West during its third-quarter earnings call Tuesday.

The $923 billion BMO completed its acquisition of Bank of the West in February and is ready to kick off conversion this weekend, Chief Executive Darryl White said during Tuesday’s earnings call.

“Conversion is on track for the upcoming Labor Day weekend, we’re bringing the best of both companies together,” White said. “We’re already seeing a strong response to our offers and campaigns, having opened thousands of new accounts.”

BIGGER PICTURE: The bank’s U.S. personal and commercial revenue increased 46% year over year to $1.9 billion reflecting the addition of Bank of the West, according to BMO’s earnings presentation.

In fact, Bank of the West added $167 million to adjusted net income to BMO, according to the presentation.

BY THE NUMBERS: BMO reported for Q3:

• Adjusted non-interest expenses increased 32% to $3.7 billion.
• Digital engagement in retail channels grew 7% YoY to 3.8 million; and
• Digital engagement in commercial banking channels increased 8% YoY to 256,000.

NOTEWORTHY: In Q3, BMO incurred severance costs of $120 million, related to workforce reductions of approximately 2.5% of total full-time employee figures, as the bank prioritized operational efficiencies, according to the Q3 earnings release. At the end of the quarter, BMO had a total of 57,350 full-time employees, according to the bank’s earnings supplement.

The workforce reductions are expected to bring expense savings of approximately $150 million in fiscal 2024, Chief Financial Officer Tayfun Tuzun said during Tuesday’s earnings call.

The bank’s savings efforts are part of its strategy to “align resources to areas that will support long-term customer growth,” Tuzun said. Other areas that can benefit from added efficiencies include real estate, technology and procurement costs, he said.

The bank’s ongoing integration of Bank of the West, too, is expected to “accelerate efficiency initiatives and align investment with customer and market opportunities,” Tuzun added.

FORWARD LOOK: Following the conversion of BMO and Bank of the West during the upcoming weekend, the bank will provide an update at the end of the conversion quarter, White said.

Editor’s note: All figures have been converted to USD.

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