Bank of Montreal cuts more U.S. investment bankers in drive for savings
Bloomberg News
,Bank of Montreal is reducing staff in its U.S. investment banking unit again, including at least two managing directors, as the Canadian lender continues to trim costs, according to people with knowledge of the matter.
The recent layoffs include a number of bankers in the health-care division, said the people, who spoke on condition they not be identified because the details are private. A Bank of Montreal spokesperson declined to comment.
The bank cut about 100 positions at BMO Capital Markets last June, Bloomberg reported at the time. In August, it announced a broader restructuring program with a goal of $400 million (US$293 million) in annual savings.
The lender is on track to get there by the end of 2024, Chief Executive Officer Darryl White said during the bank’s fiscal first-quarter earnings call in February. “We’ve reduced expenses by 4 per cent from last quarter and remain focused on returning to positive operating leverage beginning next quarter,” he said.
Bank of Montreal’s capital markets division reported a 19 per cent drop in net income to $393 million in the quarter ended Jan. 31, with results dragged down by lower trading revenue. The U.S. segment accounted for a little less than half of that profit. Executives said at the time that activity levels were improving.
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