BMO says it's finishing US reset, set to resume loan growth

Group 1 - BMO Financial Group is nearing completion of its U.S. balance sheet optimization and is optimistic about loan growth in the second half of its 2026 fiscal year [1][2] - BMO CEO Darryl White indicated that positive commercial loan growth is expected, supported by strong pipelines, with the U.S. economy anticipated to outpace Canada for the fourth consecutive year [2][6] - BMO U.S. President Aron Levine projected mid-single-digit U.S. loan growth, aligning with the broader U.S. banking industry's recent 2% loan growth [2][3] Group 2 - The tone from BMO executives marks a significant shift from 2025, when the bank focused on shedding low-yield loans and high-cost deposits, resulting in a 3% year-over-year decline in U.S. loan volume [3][4] - As part of its optimization strategy, BMO sold a nonrelationship credit card portfolio and exited an underperforming franchise loan portfolio [4] - BMO agreed to sell 138 branches to First Citizens BancShares, aiming to concentrate on high-growth markets like California, with the transaction expected to close in the second half of 2026 [5] Group 3 - BMO Financial Group reported a profit of $1.82 billion for the first quarter of its 2026 fiscal year, moving closer to its profitability targets of 15% return on assets for overall operations and 12% ROA for U.S. banking [6]