Who Owns BMO Bank?
BMO is a publicly-traded company with significant institutional investors. These include several well-known Canadian asset management firms and banks.
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When you think of big banks in North America, BMO would be higher on the list. With over two centuries of financial history, it blends tradition and innovation.
But who owns it? Discover the key players driving this banking juggernaut forward.
About BMO
Bank of Montreal, or BMO, is one of the largest banks in Canada, with a mind-spinning $1.4 trillion in total assets.[1]
But did you know this bank opened its first agency in New York only months after its founding in 1817? This means it's also a well-established bank in the country.
For many years, it was known as BMO Harris Bank N.A. until it recently changed its US legal name to BMO Bank N.A.
BMO offers various personal and commercial banking products, including checking and savings accounts, credit cards, mortgages, and loans.
BMO Checking Accounts - Earn up to $600
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Get either a $250 or $500 cash bonus when you open a new checking account and complete qualifying activities between 9/10/24 and 10/31/24. Plus, get a $100 digital gift card when you meet with a BMO banker to discuss your financial priorities after opening your account online. Combine the cash bonus and the gift card to maximize your rewards.
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Earn up to $350 with qualifying activities. Conditions Apply. BMO Bank N.A. Member FDIC
Earn a $250 cash bonus when you open a new checking account and complete qualifying activities between 9/10/24 and 10/31/24. Plus, get a $100 digital gift card when you meet with a BMO banker to discuss your financial priorities after opening your account online. Combine the cash bonus and the gift card to maximize your rewards.
Who Currently Owns BMO Bank?
BMO does not have a single individual or entity owner. Instead, its ownership is distributed among thousands of investors worldwide. The largest shareholders are institutional investors, mutual and hedge funds, and other banks.
BMO Nesbitt Burns is the premier investment and wealth management arm of BMO Financial Group. It operates independently, providing individualized services to high-net-worth clients and fostering long-term relationships with them.
Who Are BMO's Major Shareholders?
Here are the top 5 BMO shareholders:
- Royal Bank of Canada (7.92%)
RBC is the largest bank in Canada by market cap. Like BMO, they have a suite of personal and commercial banking services, including wealth management, insurance, and capital markets. It has 57 million+ BMO shares valued at over $4.7 billion.[2] - Vanguard Group Inc. (4.02%)
Founded in 1975 by John C. Bogle, Vanguard is one of the biggest and most prolific institutional investors. This investment management company is unique because it's owned by its funds, which are, in turn, owned by the investors in those funds.As of September 2024, Vanguard has 29 million+ shares in BMO, estimated to be worth $2.4 billion+.[2]
- Bank Of Montreal Canada (3.75%)
Unsurprisingly, BMO Canada holds a decent number of shares in its US subsidiary, the third highest with more than 27 million shares.[2] The company also has a diversified portfolio, with institutional holdings in the energy, healthcare, and technology sectors, among others. - TD Asset Management Inc. (2.57%)
This is a TD Bank Group subsidiary based in Canada. TD Asset Management Inc. is one of the largest asset managers, emphasizing delivering long-term value to its global clients. This investment management firm holds 18 million+ shares valued at around $1.5 billion.[2] - CIBC World Markets Inc. (2.39%)
Aside from helping clients raise capital by issuing stocks or bonds, CIBC World Markets also provides corporate lending and syndicated loans. It enables large companies to use a mix of debt instruments to meet large financing needs.Its BMO shares have reached 17 million+ worth over $1.4 billion in the current market.[2]
Other Canadian firms with substantial stakes in BMO include:
- National Bank Of Canada (2.02%)
- Bank Of Nova Scotia (1.66%)
- Mackenzie Financial Corp (1.57%)
- Fidelity International Ltd (1.31%)
- Norges Bank (1.18%)
BMO is a publicly traded company, meaning it's owned by its shareholders. Its shares are listed on both the Toronto Stock Exchange and the New York Stock Exchange. As such, BMO can raise capital from a wide range of investors by selling shares.
What Bank is BMO Merging With?
In February 2023, Bank of Montreal completed its acquisition of Bank of the West, a US subsidiary of BNP Paribas, to the tune of $16.3 billion[3]. This is a significant move for BMO, further expanding its presence in the American banking market, particularly on the West Coast.
Meanwhile, BMO has closed multiple merger and acquisition deals over many years, the first being Harris Bankcorp, a Chicago-based bank. This is what gave birth to the name BMO Harris Bank N.A.
Since then, more banks and companies have been acquired, including Marshall & Ilsley. It's a Milwaukee-based bank that BMO purchased for $4.1 billion[4] in 2011.
BMO is neither a Chinese bank nor owned by China. Its ownership, management, and operations are rooted in Canada. Nonetheless, BMO has growing ties with China, especially with BMO ChinaCo, which is the first and only wholly-owned subsidiary Canadian bank in Mainland China.
Is BMO Bank Safe?
BMO is generally considered a safe banking option. Here's why:
It's one of Canada's Big Five banks.
As the oldest banking institution in the Great White North, it continues to be a major force in the industry with over $60 billion market cap[5].
It's regulated by the OSFI
and the Federal Reserve.
These regulators enforce high capital requirements, risk management, and consumer protection standards.
It's covered by the CDIC/FDIC.
Whether you are banking in the US or Canada, your eligible deposits are protected up to certain limits.
It usually receives high credit ratings.
With favorable ratings from Fitch and S&P Global, they may reflect BMO's solid financial health and ability to meet its obligations.
BMO Checking Accounts - Earn up to $600
Earn up to $600 with qualifying activities. Conditions Apply. BMO Bank N.A. Member FDIC
Get either a $250 or $500 cash bonus when you open a new checking account and complete qualifying activities between 9/10/24 and 10/31/24. Plus, get a $100 digital gift card when you meet with a BMO banker to discuss your financial priorities after opening your account online. Combine the cash bonus and the gift card to maximize your rewards.
Yes, BMO is considered a big bank, given its total of $1.4 trillion in assets, global reach, and comprehensive services.
Bottom Line
While BMO isn't owned by a specific individual or entity, Royal Bank of Canada and investing giant Vanguard are just some of the biggest names that hold substantial stakes in it. Ultimately, this signals that the bank is seen as a solid investment by key players in the financial world.
References
- ^ Bank of Montreal. Who We Are, Retrieved 9/09/2024
- ^ Nasdaq. Bank Of Montreal Common Stock (BMO) Institutional Holdings, Retrieved 9/10/2024
- ^ Bank of Montreal. News Releases, Retrieved 9/10/2024
- ^ Bank of Montreal. BMO Financial Group to Acquire Marshall & Ilsley Corporation (M&I), Retrieved 9/10/2024
- ^ Nasdaq. Bank Of Montreal Common Stock (BMO), Retrieved 9/10/2024
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Penelope Besana is a research analyst at CreditDonkey, a bank comparison and reviews website. Write to Penelope Besana at penelope.besana@creditdonkey.com. Follow us on Twitter and Facebook for our latest posts.
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