BMO Sees Slight Improvement in Trucking Credit Conditions Amid Potential Sale of Transportation Unit

BMO's transportation numbers show slight improvement in trucking credit conditions, but the bank is reportedly looking at a potential sale of its transportation unit. Gross loans and acceptances in the transportation group at BMO were $13.67 billion, the lowest level since Q1 2023. Provisions for credit losses in transportation rose to $50 million from $45 million in Q2, but still down from previous quarters. The bank is looking to manage provisions for credit losses down and optimize through low-return assets.

BMO's transportation unit has seen mixed performance in recent quarters, with a slight improvement in trucking credit conditions but a potential sale in the works. Gross loans and acceptances in the transportation group at BMO reached $13.67 billion in Q3 2025, the lowest level since Q1 2023 [1]. While provisions for credit losses rose to $50 million from $45 million in Q2, they remain lower than previous quarters, indicating a trend of improving credit performance [2].

The bank is reportedly looking to manage provisions for credit losses down and optimize through low-return assets, which could potentially lead to a sale of the transportation unit. This strategic move aligns with BMO's broader focus on divesting non-core operations and optimizing its balance sheet to maintain a strong capital position [3].

The potential sale of BMO's transportation unit comes amidst a broader trend of banks divesting their payments operations due to the rapid digitization of the North American payments industry and the need for regular capital investment to stay competitive [4]. The banks' exploration of a sale is at an early stage, with discussions involving potential buyers who are interested in acquiring payment processing capabilities [5].

For investors, the potential sale of BMO's transportation unit is a reminder of the bank's ongoing efforts to streamline its operations and focus on core competencies. However, it is important to monitor the bank's credit performance and the impact of any potential sale on its overall financial health. BMO's strategic alignment with macroeconomic trends, particularly its U.S. market expansion, positions it well to navigate these changes [6].

References:
[1] https://www.tradingview.com/news/zacks:b7ccaa2a4094b:0-ry-bmo-consider-the-sale-of-canada-payments-venture-moneris/
[2] https://finance.yahoo.com/news/rbc-bank-montreal-explore-sale-115418465.html
[3] https://www.electronicpaymentsinternational.com/news/rbc-bank-montreal-sale-moneris/
[4] https://www.theglobeandmail.com/investing/markets/stocks/FI/pressreleases/34250890/ry-bmo-consider-the-sale-of-canada-payments-venture-moneris/
[5] https://www.fintechfutures.com/m-a/canadas-rbc-and-bmo-reportedly-exploring-potential-sale-of-moneris
[6] https://www.ainvest.com/news/bmo-q3-2025-earnings-case-strategic-buy-strong-roe-growth-expansion-2508/