Bank of Montreal (BMO Financial Group)

• Date founded: 1817
• Industry: Banking, financial services
• Corporate headquarters: Montreal, Quebec, Canada
• Type: Public

Overview

Formally known as BMO Financial Group and often referred to simply as BMO, the Bank of Montreal is a major financial institution and one of Canada’s so-called “Big Five” banks. Founded in 1817, the Bank of Montreal was Canada’s fourth largest bank by assets, with approximately CAD$1.41 trillion in assets, and the eighth largest bank in North America. The company served millions of customers across North America in personal banking, business and commercial banking, investment banking, and wealth management. The Bank of Montreal has operated under various branded names, serving commercial and personal customers as BMO Bank of Montreal, wealth management clients as BMO Nesbitt Burns, and corporate and institutional investment clients as BMO Capital Markets. In the United States, the firm has operated as BMO Bank, N.A., BMO Private Bank, and under the BMO Capital Markets name. The Bank of Montreal maintained more than 1,000 branches across Canada and the United States in the 2020s, along with corporate offices in more than twenty-five different jurisdictions.

The chief executive officer of BMO Financial Group oversees all operations, while the board of directors independently oversees corporate governance. The bank’s board of directors functions independently from its upper management body. Its members participate in focused committees that work in four critical areas: auditing and internal conduct, corporate governance, risk analysis and review, and human resource management. A public company, Bank of Montreal stock trades in Canada on the Toronto Stock Exchange (TSE) and in the United States on the New York Stock Exchange (NYSE).

History

BMO Financial Group was founded as Montreal Bank in 1817. It was the first bank to receive a charter in what is now Canada, and it became the official financial institution of the Province of Lower Canada (Quebec) shortly after its founding. The institution changed its name from Montreal Bank to Bank of Montreal after receiving its charter in 1822. The government of the United Province of Canada—which was formed by the 1841 merger of Lower Canada and Upper Canada—selected the Bank of Montreal as its official financial institution in 1864. The firm expanded into the eastern provinces of New Brunswick and Nova Scotia in 1867, the year Canada became a confederation.

The Bank of Montreal made aggressive moves into the industrial lending sector as Canada’s post-Confederation economy and transportation infrastructure developed. In 1874, the Bank of Montreal further diversified its operations and services to include securities underwriting and related financial services (investment banking). During the 1880s, the bank marked another major milestone when it became Canada’s sole authorized seller of federally issued government railway bonds. By the end of the decade, the Bank of Montreal was also dealing in corporate bonds and was operating coast-to-coast thanks to new branches in Winnipeg, Calgary, and Vancouver.

At the turn of the twentieth century, the Bank of Montreal had fifty-two locations across Canada. In the years leading up to the Great Depression, the firm continued its strategy of rapid growth, expansion, and consolidation. A series of mergers and acquisitions defined this period while the bank also played a critical role in financing the Canadian war effort during World War I (1914–1918). By 1929, the Bank of Montreal had grown to include 669 branches before declining to 567 locations in 1934. The following year, the Canadian federal government created the Bank of Canada to serve as the nation’s reserve bank, ending the Bank of Montreal’s long run as the nation’s official federal financial institution.

After contracting to a low of 468 branches in 1943, the Bank of Montreal resumed its strong growth during the economic boom that followed World War II (1939–1945). In 1954, the Bank of Montreal became one of the first Canadian chartered banks to offer mortgage loans to private property buyers. Thirty years later, the bank made the decision to buy Harris Bancorp of Chicago, making it the first North American financial institution to operate in both Canada and the United States. After a proposed merger with the Royal Bank of Canada was nixed by the Canadian government in 1998, the Bank of Montreal continued to expand internationally. It also continued to increase its footprint in the wealth management and investment banking sectors.

In 2010, the Bank of Montreal established a branch in China called the Bank of Montreal (China) Co. Ltd., becoming the only Canadian bank to have an incorporated subsidiary in China. The following year, the Bank of Montreal acquired Wisconsin’s largest bank, Marshall & Ilsley Bank, doubling the number of its branches in the US. In 2023, the Bank of Montreal completed one of the largest acquisitions by a Canadian bank by acquiring Bank of the West from BNP Paribas, expanding BMO’s presence in major US growth markets.

Impact

From a historical perspective, the Bank of Montreal’s greatest impact occurred when the bank served as Canada’s official federal financial institution from 1864 to 1935. During this time, the Bank of Montreal was a major industrial and commercial lender, and its financing activities helped fuel the rapid growth of Canada’s economy during its early years of nationhood. It was particularly impactful in the development of Canada’s logging and railroad industries. It was also the primary provider of funding for the industrialists who built the Canadian Pacific Railway, which delivered a vital cross-country transportation network.

During World War I, the Bank of Montreal financed government payments to members of Canada’s armed forces. Because of its strong nationwide presence, the Bank of Montreal was also a preferred provider of Victory Bonds. These were issued by the Canadian federal government to serve as a source of financing for the ongoing war effort. As the twentieth century continued, the bank embraced a business model built around mergers, acquisitions, and expansion into emerging and foreign markets. This strategy enabled the Bank of Montreal to make a strong recovery from losing the Canadian federal government as its largest institutional client. The bank also helped many Canadians achieve home ownership when it became the first chartered financial institution to offer private mortgage loans. Through its commercial mortgage wing, the Bank of Montreal continued to exert major influence over the growth of the Canadian economy during the second half of the twentieth century.

In the twenty-first century, the Bank of Montreal continued to occupy a primary position in the Canadian financial services industry. In 2019, the company announced its Boldly Grow the Good in Business and Life initiative. This philosophy guides policies regarding environmental sustainability, economic support, and inclusivity. BMO’s Sustainability Office, which includes the BMO Climate Institute, helps guide the bank’s sustainability strategy and related disclosures.

Bibliography

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“BMO Completes Acquisition of Bank of the West.” BMO, 1 Feb. 2023, newsroom.bmo.com/2023-02-01-BMO-Completes-Acquisition-of-Bank-of-the-West. Accessed 23 May 2026.

Bonham, Mark S. “Bank of Montreal (BMO).” The Canadian Encyclopedia, 26 Apr. 2024, www.thecanadianencyclopedia.ca/en/article/bank-of-montreal. Accessed 23 May 2026.

“Darryl White.” BMO, www.bmo.com/home/about/banking/corporate-information/executive-bios/darryl-white. Accessed 23 May 2026.

Denison, Merrill. A History of the Bank of Montreal: Volume Two. McClelland & Stewart, 1967.

Jimenea, Adrian, et al. “The World’s Largest Banks by Assets, 2024.” S&P Global, www.spglobal.com/market-intelligence/en/news-insights/research/the-worlds-largest-banks-by-assets-2024. Accessed 23 May 2026.

“Milestones in BMO’s History.” BMO, ourheritagebmo.com/history. Accessed 23 May 2026.

“Our Impact.” BMO, our-impact.bmo.com. Accessed 23 May 2026.

“Sustainability Is Embedded in Our Purpose.” BMO, www.bmo.com/en-ca/main/about-bmo/our-impact/clients/sustainability/. Accessed 23 May 2026.

“2024 Annual Report to Shareholders.” BMO Financial Group, 2024, www.bmo.com/ir/archive/en/bmo_ar2024.pdf. Accessed 23 May 2026.