Canadian Banks Report Lower Earnings and Dividend Announcements

BMO's quarterly earnings report showed a significant increase in provisions for credit losses and allowances for credit provisions in the transportation sector, which is considered a strong indicator of the health of fleets. The data suggests that trucking companies were hitting their lines of credit to a greater degree in the second quarter. Gross impaired loans also rose, but were still below peak levels seen in 2020. The weak trucking market has finally caught up to BMO's earnings report, with provisions for credit losses rising to CA$18 million from $6 million in the prior quarter.