Bank of Montreal sees buy opportunities in US woes
Bank of Montreal expects the tough environment for banks in the United States to create more acquisition opportunities for its US operations, executives at Canada's fifth-biggest lender said on Tuesday.
By Agencies |
VANCOUVER/BRITISH COLUMBIA: Bank of Montreal expects the tough environment for banks inthe United States to create more acquisition opportunities for its USoperations, executives at Canada's fifth-biggest lender said onTuesday.
"We believe with thecurrent environment, there will be more opportunities at better prices than inthe past and we are monitoring these very closely," said Ellen Costello, chiefexecutive of Harris Bankcorp, BMO's US retail bank. Costello said several banksin the US Midwest, Harris' key market, were either in trouble because of theirexposure to problem areas of the real estate market, or were preoccupied withinternal issues.
"All of thesethings represent opportunities for us that are unprecedented," she said during apresentation to investors in Toronto. Costello, as well as BMO Chief ExecutiveBill Downe, declined to comment on Harris' potential involvement with, orinterest in, National City Corp, a troubled Midwestbank.
The Wall Street Journalreported last week that Bank of Nova Scotia
Harris and BMO havealso experienced a rise in provisions for credit losses because of exposure tothe weakening U.S. housing market, but executives said the hit was much lowerthan at their competitors. "Our exposure to US developer and investor-owned realestate is well below the peer group, which should help us as we move through thecycle," said Tom Flynn, BMO's recently appointed group chief risk officer.
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