BMO Financial Group Reorganized U.S. Operations

The bank restructured its American business units to recover performance following a major 2023 acquisition.

Updated on Sept. 25, 2026 in Corporate Finance

Isometric editorial illustration of a multi-layered modern corporate structure, representing organized business operations and structural integration. — BMO Financial Group has reorganized its U.S. operations into a unified management structure, following a challenging period since its acquisition of Bank of the West. AI Illustration. Upload story photo >

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BMO Financial Group reorganized its U.S. consumer, commercial, and wealth management operations into a unified structure to improve profitability. The bank achieved this operational pivot following challenges that emerged after its 2023 acquisition of Bank of the West.

Why it matters

The reorganization aims to address performance slumps and streamline operations in the competitive American banking market. By divesting from slower-growth regions and focusing on core segments, BMO seeks to return to higher profitability levels.

BMO reported a 9.2 percent return on equity for the third quarter of 2026, a significant increase from the 3.1 percent reported in late 2024. The firm previously recorded an efficiency ratio of 69.4 percent in the final quarter of 2023.

The players

BMO Financial Group

This is a diversified financial services provider headquartered in Canada with extensive operations in the United States.

Aron Levine

He is a senior leader who joined the banking group in June 2025 to help guide the restructuring of its American business units.

The details

BMO divested 138 bank branches across the Midwest and Great Plains while selling off specific credit card and franchise loan portfolios. Under the new leadership of Aron Levine, who joined in June 2025, the firm implemented a unified management model for its diverse American business lines.

BMO acquired Bank of the West in 2023.
The U.S. return on equity fell to 3.1 percent in Q4 2024.
Aron Levine joined BMO in June 2025.
U.S. return on equity rose to 9.2 percent in Q3 2026.
The bank targets a 12 percent return on equity by October 31, 2027.

Market Landscape

The bank is realigning its footprint to compete against larger regional and national lenders after a period of rapid consolidation. This shift reflects a broader trend of financial institutions shedding non-core assets to improve efficiency ratios in a high-interest environment.

Customers in the Midwest and Great Plains may experience changes in branch availability or service offerings due to the recent divestment of 138 locations. Conversely, the bank is increasing its presence in California, which may offer new services to residents in that state.

The takeaway

The successful turnaround of BMO's U.S. division illustrates the importance of operational cohesion following large-scale mergers. Investors and customers should monitor the bank's progress toward its 12 percent return on equity target, which serves as a benchmark for its long-term viability.