The Bank of Montreal is moving away from the capital market competition by eliminating about 100 jobs as banks continue to look for ways to control costs.
According to a source familiar with the issue, which has been released internally for a couple of days this week and is not authorized to discuss changes, they have a variety of sectors and seniority in Canada and the United States, as well as other countries where BMO operates. I have.
BMO improved capital market team leadership as four senior bankers left in April. Six months later, Dan Barclay was appointed as CEO of BMO Nesbitt Burns Inc. and succeeded Pat Cronin, who was promoted to BMO's chief risk manager.
Like many colleagues, BMO had to overcome the instability of the capital markets at the end of 2018, and since then the market has stabilized, but the department faces a challenging climate. In the first quarter of the year ended January 31, BMO showed a 6% revenue decline in the capital market compared with the previous year, but with good results compared to other major banks.
BMO is also being promoted at the bank level to improve efficiency, which is Darryl White, the former chief financial officer in charge of capital efficiency. BMO's efficiency ratio, which measures cost-to-revenue, is over 60%, far behind other large Canadian banks.
"Our strategy is clear and unchanging and will continue to be customer driven," a BMO spokesperson said in a statement, making adjustments from time to time in line with the current market environment.
As of the end of January, the BMO capital market has 2,747 full-time employees, up from 2,375 two years ago.
In an effort to improve efficiency, BMO closely scrutinized every aspect of the bank, from staffing levels to procurement contracts. White has refused to plan to sign BMO's total number, but he said at the annual shareholders' meeting in 2018, "I do not think it will become a heavier bank in the future."
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