It will also raise about C$2.7 billion through equity issuances to fund the deal, it said.īMO put its share repurchase program, which it previously said it would restart, on hold until the Bank of the West deal closes at the end of calendar 2022. In the past two years it has taken on equity and prime broking businesses from Deutsche Bank (DBKGn.DE) and Credit Suisse (CSGN.S).īNP said it would use the proceeds from the sale to fund more share buybacks, to finance bolt-on acquisitions and further develop its presence in both Europe and the United States.īMO has excess capital of about C$9.7 billion, Shanahan said - amassed during the pandemic following a March 2020 moratorium on capital redistributions by Canada's financial regulator that was lifted last month - which will be absorbed by this deal. The sale will leave the French bank focused squarely on Europe, where it is growing in stature as one of the region's biggest investment banks as local rivals stall. EUROPEAN FOCUSīNP Paribas bought Bank of the West in 1979 and the unit had been its largest business outside of Europe. The average salary for BNP Paribas Data Engineers is 109,675 per year on average or 53 per hour. "Achieving this price for Bancwest is a clear positive for shareholders and gives BNPP some strategic optionality, which has been a rare thing for European banks," wrote KBW. The average salary for BNP Paribas Data Engineers is 109,675 per year on average or 53 per hour. "BMO is paying a fair price for the Bank of the West franchise," Shanahan said, pointing out that the deal will lift earnings by about 10% in fiscal 2024, and that BMO expects to eliminate 35% of operating expenses without closing any branches.īut analysts at Credit Suisse and Keefe, Bruyette & Woods (KBW) said the $16 billion sale price was higher than many analysts had forecast. The Canadian bank expects "meaningful" revenue synergies from the deal, which will be further quantified in coming weeks, executives said on a conference call.
growth opportunity, Edward Jones analyst James Shanahan said in a note. The acquisition allows BMO to further reduce its comparatively low exposure to the Canadian household sector, where "borrowing capacity is somewhat limited," while capitalizing on an attractive U.S. BNP Paribas shares closed up almost 0.5% on Monday. They have lost more than 6%, including Monday's drop, since rumours of the deal surfaced last week.
BMO shares were down 2.5% at C$131.75 on Monday afternoon, on track for their lowest close since mid-October.
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