March 26 (Reuters) - Bank of Montreal said on Thursday it is targeting a return on equity of more than 15% by 2028, as it eyes growth across its wealth management and U.S. businesses.
The bank has "a clear line of sight to 15% ROE" and is "accelerating growth across each of our businesses as we deliver on that target," CEO Darryl White said at BMO's Investor Day.
"Our North American capital markets business continues to be a growth engine for us," White added.
The Canada-based lender reported a 12.1% first-quarter return on equity, a measure that reflects how efficiently it produces profit for its shareholders.
The comments come against a backdrop of heightened geopolitical tensions, including the Iran war, which have driven up oil prices, adding to inflation risks and clouding the global economic outlook.
BMO's strategy is long term and built to perform across a range of economic outcomes, White said, adding that the rapidly evolving geopolitical environment remains highly dynamic.
The bank has successfully navigated periods of disruption and change and has consistently supported its clients, he said.
Investors are closely watching the bank's ability to deliver cost savings and revenue synergies as it scales its U.S. presence in a highly competitive market.
Reporting by Prakhar Srivastava in Bengaluru and Nivedita Balu in Toronto; Editing by Sriraj Kalluvila and Leroy Leo
