BMO, short for Bank of Montreal, is Canada's oldest bank and a major financial services company with a significant presence in North America and globally.

The Early Years: How BMO Began and Grew

Key idea: BMO was founded by merchants in 1817 and quickly expanded its reach across Canada and into the United States, adapting to changing laws and market needs.

BMO's story began on June 23, 1817, when a group of merchants in Montreal decided to create the "Montreal Bank." They rented some rooms on Rue Saint Paul to start. Very quickly, in 1818, the bank opened its first branch outside Montreal in Quebec City, and also expanded into other parts of Canada, like Kingston and present day Toronto. It even opened its first international office in New York City in the same year.

By 1822, the bank changed from being owned by a small group to a public company with 144 owners, and that is when it officially became known as the Bank of Montreal. Its growth wasn't always smooth; for example, a law in 1824 stopped it from opening more branches in Upper Canada (now Ontario) for a while. But it found ways around this, like buying another bank in Toronto in 1838. After Upper and Lower Canada joined together in 1841, BMO could open many more branches.

Later, after Canada became a country in 1867 (this is called Canadian Confederation), BMO expanded even more. It opened its first branch in Western Canada in Winnipeg in 1877 and spread throughout the eastern provinces. A notable moment was in 1895 when the government of the Newfoundland Colony asked BMO to open branches there after two local banks failed, showing how important BMO had become.

“The bank was established on 23 June 1817 when a group of merchants signed the Articles of Association, formally creating the "Montreal Bank".”

Growth and Modernization in the 20th Century

Key idea: The 20th century saw BMO expand significantly through acquisitions, stop printing its own currency, and move its operational headquarters to Toronto.

The 20th century was a time of significant growth for BMO, often through buying other banks. For example, it acquired several banks in the eastern provinces in the early 1900s, like the Exchange Bank of Yarmouth in 1903. It also bought larger banks like the Ontario Bank in 1906 and the Bank of British North America in 1918, which helped it grow its presence across Canada.

An interesting historical fact is that BMO, like other private banks in Canada, used to print its own money. This practice ended in 1942, and by 1944, the Bank of Canada became the only organization allowed to print money in the country. This change meant all private bank notes were taken out of circulation.

In 1960, BMO moved its main operational offices to a new building next to its historic Montreal headquarters. Then, in 1977, these main offices moved again to Toronto, to a building called First Canadian Place. This building was named after BMO's slogan at the time, "The First Canadian Bank." During this period, in 1967, BMO also introduced its well known "M Bar" logo.

BMO also started expanding more seriously into the United States in the 1980s, buying Chicago based Harris Bank in 1984. It also acquired a stock brokerage firm, Nesbitt, Thomson and Company, in 1987, which became a key part of its wealth management business.

BMO in the 21st Century: Expansion, Challenges, and New Directions

Key idea: In the 21st century, BMO has significantly expanded its US operations, faced cybersecurity and legal challenges, and committed to sustainability and social responsibility.

The 21st century has brought continued expansion and new challenges for BMO. In 2009, BMO bought AIG's Canadian life insurance business, making it a major player in that area. It also acquired the North American rights to issue Diners Club credit cards.

BMO continued its growth in the United States, notably by buying Marshall & Ilsley in 2010, which was then combined with its Harris Bank operations and rebranded as BMO Harris Bank. This significantly increased BMO's presence in the US. More recently, in 2023, BMO completed a huge acquisition of Bank of the West for 16.3 billion US dollars, further doubling its presence in the US market.

Like many large companies, BMO has faced some difficulties. For instance, in 2018, BMO and another Canadian bank were targeted by hackers who claimed to have stolen customer information. BMO also had to pay a large sum in 2022 due to a Ponzi scheme that happened at Marshall & Ilsley Bank before BMO acquired it. In 2020, there was a notable incident where a 12 year old First Nations girl and her grandfather were handcuffed by police at a BMO branch due to an identification issue, leading to a settlement and changes in BMO's policies.

Despite these challenges, BMO has also shown a commitment to new areas and social responsibility. It became the first Canadian bank to invest in the marijuana sector in 2018. In 2021, BMO signed the UN Principles for Responsible Banking, aiming for net zero carbon emissions in its lending by 2050, showing its focus on sustainability.

“In December 2021, BMO agreed to acquire San Francisco based Bank of the West from BNP Paribas, with the intent of merging it with BMO Harris Bank, which would at least double BMO's total presence in the United States.”

How BMO Operates: Three Main Client Groups

Key idea: BMO divides its services into three main client groups: personal and commercial banking, investment banking, and wealth management, each serving distinct financial needs.

BMO organizes its many services into three main groups to serve different types of customers.

The first is the Personal and Commercial Client Group. This is what most people think of as regular banking. It includes BMO Bank of Montreal for banking in Canada (with its credit cards and life insurance) and BMO Bank, N.A. for banking in the United States. This group helps individuals and businesses with their everyday money needs.

The second is the Investment Banking Group, known as BMO Capital Markets. This part of BMO helps large companies and governments with complex financial tasks, like raising money or making big investments.

The third is the Private Client Group, which focuses on wealth management. This includes BMO Nesbitt Burns for full service investing in Canada, BMO InvestorLine for people who want to manage their own investments, and BMO Private Banking for high net worth individuals in both Canada and the US. These services help people grow and manage their wealth.

Community Involvement and Sponsorships

Key idea: BMO actively supports arts, sports, and community events through various sponsorships, including major sports teams and national figure skating programs.

BMO is also well known for its support of various community and sports initiatives. It is a major sponsor of the Siminovitch Prize in Theatre, which is a significant award for Canadian artists.

In sports, BMO has a strong presence. It has been a sponsor of Toronto FC, a soccer team, since 2007, and its home stadium is even called BMO Field. It also sponsors CF Montréal and Los Angeles FC, with their stadium also named BMO Stadium. For many years, BMO was a sponsor for the Toronto Maple Leafs (hockey) and the Toronto Raptors (basketball).

Additionally, BMO has been a major sponsor of Skate Canada since 1997, supporting various national figure skating championships and programs like the CanSkate Learn to Skate Program. It is also the title sponsor of the annual Vancouver Marathon, now known as the BMO Bank of Montreal Vancouver Marathon. These sponsorships show BMO's commitment to supporting arts, sports, and community events across Canada and beyond.