BMO continued to deliver on its digital-first agenda during its 2024 fiscal first quarter through innovation and new offerings.
The Montreal-based bank continues to expand its “suite of innovative products,” Chief Executive Darryl White said today during the bank’s earnings call.
In December, the CA$1.3 trillion ($960 billion) bank launched its BMO Eclipse Rise Visa card that “rewards customers for establishing good financial habits,” White said, noting that the card has 15,000 new accounts.
In November, BMO launched its digital Real Financial Progress Hub, which allows customers to access finance advice and guidance for budgeting, saving and building credit, according to the bank.
BIGGER PICTURE: The bank has launched these digital efforts over the past several years:
- Its Canadian banking app, which offers a simple user experience;
- Enhanced debit card payment details that allow clients to manage day-to-day spending;
- Partnership with digital card fintech Extend in August to offer virtual card capabilities; and
- Fee-free transfers for small-business customers using TransferNow.
BY THE NUMBERS: BMO reported for its fiscal Q1, which ended Jan. 31:
- Revenue increased 49% year over year to $5.6 billion;
- Digital engagement in retail channels increased 2% sequentially to 4.5 million; and
- Digital engagement in commercial banking channels grew 7% sequentially to 319,000.
NOTEWORTHY: The bank completed its acquisition of Bank of the West during its fiscal fourth quarter, ending Oct. 31, 2023.
On today’s earnings call, BMO Chief Financial Officer Tayfun Tuzun said the bank has seen the following since acquisition:
- A 19% YoY increase in average customer deposits;
- A 4% drop in expenses sequentially due to savings related to the merger and operational savings; and
- BMO has achieved $800 million in the Bank of the West net cost-saving synergies.
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Editor’s note: All amounts have been converted to U.S. dollars.
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