May 28--BMO Financial Group, the Canadian owner of Chicago's second-biggest bank, is in cost-cutting mode that will include "things like thinning out the management ranks," it told analysts Wednesday.
"We're keeping a close check on expense growth," Chief Executive Bill Downe said while discussing second-quarter results.
The Toronto-based parent company of BMO Harris Bank said it was taking a charge against its earnings mostly related to "restructuring which will drive operating efficiencies."
BMO has more than 200 branches in the Chicago area. Other business units with a presence here include capital markets.
All parts of the bank have been scrutinized, and the capital markets segment in particular is notably "a little bit overweight" when it comes to the charge, BMO Financial Chief Financial Officer Thomas Flynn said.
"The benefits will come from things like thinning out the management ranks," as well as improving various processes, he said. Most of the charge relates to severance costs.
Asked later about potential Chicago-area cuts, a BMO Financial spokesman said he couldn't "provide anything more specific than what was disclosed in our quarterly earnings announcement."
"These changes ensure that we are allocating our resources effectively and are well-positioned to meet the evolving needs of our customers," spokesman Ralph Marranca said.
Separately, CEO Downe said that U.S. consumers have "rebuilt their balance sheet" and that checking-account balances are up 10 percent from the same period last year.
byerak@tribpub.com
