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TORONTO — BMO Monetary Group says it has closed its US$16.3 billion acquisition of Financial institution of the West greater than 13 months after initially saying the deal.

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The financial institution says the closing of the deal provides practically 1.8 million clients and 500 branches to BMO that, together with its present presence within the U.S., provides it a footprint in 32 states.

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North American private and enterprise banking group head Erminia (Ernie) Johannson says the deal provides the financial institution the wanted scale to compete and develop.

She says that amongst different benefits, an even bigger operation will assist the financial institution higher leverage its know-how, whereas additionally providing extra prospects to check out merchandise and choices in several markets.

The deal comes amid heightened regulatory scrutiny within the U.S. on acquisitions, and the banking sector extra typically, however Johannson says its necessary to have scale to answer each competitors and the altering regulatory surroundings.

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The closing additionally arrives as worries develop concerning the near-term financial image amid rising rates of interest and excessive inflation, however Johannson says the financial institution continues to be assured the deal is smart.

“Sure, the market’s shifted, however it is a long-term technique, in addition to a near-term technique play in opposition to all of the financial surroundings modifications that occur.”

Heightened financial worries has pushed Canadian regulators to extend financial institution capital necessities, which has prompted BMO to lift cash each by share points and a dividend reinvestment program.

Whereas there are plenty of priorities to steadiness and handle, Johannson says the financial institution has had a 12 months to organize for the mixing of Financial institution of the West.

“Don’t get me unsuitable. These are advanced items of labor. However we’ve been planning for it, we’re prepared for it.”

This report by The Canadian Press was first revealed Feb. 1, 2023.

Corporations on this story: (TSX:BMO)