Bank of Montreal (BMO) is winding down its retail auto finance business and shifting focus to other areas in a move that will result in an unspecified number of job losses, Canada's third largest bank said on Saturday.
TORONTO, Sept 17 (Reuters) - Bank of Montreal (BMO) (BMO.TO) is winding down its retail auto finance business and shifting focus to other areas in a move that will result in an unspecified number of job losses, Canada’s third largest bank said on Saturday.
“By winding down the indirect retail auto finance business, we have the ability to focus our resources on areas where we believe our competitive positioning is strongest,” BMO said in a statement to Reuters.
The bank is working closely with employees who will be affected by job cuts to provide support, it said.
Gross loans in its retail auto business rose about 34% in the third quarter from a year earlier to C$17.36 billion, and accounted for 2.7% of the bank’s overall loans, according to BMO’s latest financial report released in August.
A rapid rise in interest rates is slowing the Canadian economy, and banks are setting aside more funds to deal with an expected pick up in bad loans.
It said commercial impaired losses in the United States were up 10 basis points from the prior quarter, driven by a large provision in the retail trade sector.
The original article contains 418 words, the summary contains 192 words. Saved 54%. I’m a bot and I’m open source!
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TORONTO, Sept 17 (Reuters) - Bank of Montreal (BMO) (BMO.TO) is winding down its retail auto finance business and shifting focus to other areas in a move that will result in an unspecified number of job losses, Canada’s third largest bank said on Saturday.
“By winding down the indirect retail auto finance business, we have the ability to focus our resources on areas where we believe our competitive positioning is strongest,” BMO said in a statement to Reuters.
The bank is working closely with employees who will be affected by job cuts to provide support, it said.
Gross loans in its retail auto business rose about 34% in the third quarter from a year earlier to C$17.36 billion, and accounted for 2.7% of the bank’s overall loans, according to BMO’s latest financial report released in August.
A rapid rise in interest rates is slowing the Canadian economy, and banks are setting aside more funds to deal with an expected pick up in bad loans.
It said commercial impaired losses in the United States were up 10 basis points from the prior quarter, driven by a large provision in the retail trade sector.
The original article contains 418 words, the summary contains 192 words. Saved 54%. I’m a bot and I’m open source!