Incoming SA2025: How is BMO compared to other balance sheet banks (HSBC, Mizuho, Wells Fargo, Macquarie, TD, BNP, etc.)?

Based on the most helpful WSO content, here's what you need to know about BMO compared to other balance sheet banks and the potential for lateral moves:

Comparison of BMO to Other Balance Sheet Banks:

• Morale and Culture: BMO has been experiencing significant morale issues, with many juniors looking to move elsewhere. Issues include unrealistic goals, below-street compensation, and declining culture.
• Deal Flow and Reputation: BMO has decent deal flow in certain coverage groups, with LevFin being a strong area. However, the loss of key MDs in the metals and mining group has impacted their revenue.
• Balance Sheet Reliance: BMO relies heavily on its balance sheet for relationships, similar to other balance sheet banks like Wells Fargo, HSBC, and Mizuho. However, Wells Fargo is noted for its broad service offering and large balance sheet, supporting a wide range of IB functions.

Lateral Moves:

• Recruitment Talks: Many professionals at BMO are in serious recruitment talks with other banks, indicating that lateral moves are common and possibly necessary for career growth.
• Reputation for Lateral Moves: Given the current state of morale and culture at BMO, it might be easier to lateral from a good group at BMO to a better bank, especially if you are in a strong group like LevFin.

BMO's Reputation:

• Overall Reputation: BMO is considered a decent brand where you can learn a good amount. However, the current issues with morale, compensation, and culture might affect its overall reputation negatively.
• Comparison to Other Banks: Compared to other balance sheet banks like Wells Fargo, which is termed a "universal bank" with a broad service offering, BMO might not be as strong in terms of overall reputation and deal flow.

Summary:

• Morale and Culture: Currently low at BMO.
• Deal Flow: Decent in certain groups, strong in LevFin.
• Lateral Moves: Common and possibly easier due to current issues.
• Reputation: Decent brand but affected by current internal issues.

If you are considering a lateral move or evaluating BMO's reputation, these factors should be taken into account.

Sources: State of BMO in 2020, How do you characterize banks like Wells Fargo/UBS/Mizuho/RBC etc., https://www.wallstreetoasis.com/forum/investment-banking/best-ib-groups-in-canada?customgpt=1, WF IB VS BMO IB, How good are Scotiabank, CIBC and RBC Mining Groups in Toronto?