BMO to Close Retail Auto Finance Business, Cuts Jobs
Bank of Montreal (BMO) is closing its indirect retail auto finance business, resulting in job losses, as the bank focuses on other areas. The move comes as BMO's bad debt provisions increased, indicating growing stress on consumers due to rising borrowing costs. The bank will continue to fund contracts submitted and approved prior to the termination date. BMO's consumer loan portfolio includes home equity loans and primarily auto loans, but also loans for boats, recreational vehicles, and motorcycles. The Bank of Canada's data shows higher delinquency rates for vehicle loans, reflecting the strain on consumers' finances. BMO has been expanding in the United States to find new avenues of growth, with the US now accounting for over one-third of its overall profits.
