March 17 (Reuters) - Bank of Montreal said on Tuesday it plans to open more than 130 financial centers in California and about 15 in Arizona over the next five years, as it looks to expand presence in the U.S. West following the sale of several branches across the nation last year.
BMO, the third-largest Canadian bank by market value, said in October it would sell 138 branches to First Citizens Bank, and reinvest in markets with stronger client engagement and longer-term growth prospects.
As part of
its growth strategy, the bank said it would open 150 new branches over the next five years, with a focus on U.S. markets, largely California-centric.
Some of the biggest U.S. banks have invested in building branches in affluent areas to attract more clients, earn consumer trust and provide higher-value services such as mortgages and wealth management.
In 2023, Bank of Montreal acquired BNP Paribas' U.S. unit, Bank of the West, for $16.3 billion, in its biggest deal ever, to gain access to nearly 2 million customers, about 500 retail branches, and commercial and wealth offices across the Midwest and Western United States.
The bank plans to open three new financial centers in Greater Los Angeles, two in the Bay Area and another two in San Diego in 2026. The expansion will create hundreds of jobs and will expand access to in-person and advice-led banking, the lender said.
BMO operates more than 220 financial centers across California, and the planned additions would increase its footprint in the state by more than 50%.
Shares of BMO have gained a little over 7% so far in 2026, outperforming its larger peer, Royal Bank of Canada.
(Reporting by Pritam Biswas in Bengaluru and Nivedita Balu in Toronto; Editing by Shinjini Ganguli)
