Core Viewpoint - BMO Financial Group is planning to open over 130 branches in California to attract more customers and deposits, aiming for higher returns [1] Expansion Plans - BMO expects to generate $50 million to $60 million in retail deposits from each new California branch within three years of opening [2] - The bank currently has about 220 branches in California and plans to increase this number to over 350 within the next five years [2] Market Strategy - The expansion aims to increase BMO's density in higher-growth markets, which is expected to lead to a higher market share [3] - BMO's current deposit market share in California is only 2%, compared to double-digit shares in Illinois and Wisconsin [4] Leadership Insights - BMO's U.S. president emphasized the importance of density for market share and profitability, referring to it as a "proven playbook" [4] - The bank's growth strategy includes opening about 15 new branches in Arizona as well [4] Financial Goals - Commercial banking is a core component of BMO's strategy, alongside wealth and capital markets businesses [5] - By 2025, BMO expects to derive about 40% of its total earnings from its U.S. banking unit [5] - The bank aims for a 12% return on equity for its U.S. business by the fourth quarter of 2027 [6]