BMO’s Q3 Numbers Shows More Trucking Credit Deterioration
A recent earnings report from BMO, a major lender in the trucking industry, revealed a significant decline in credit conditions during the third quarter. The bank's allowances for potential losses in its transportation group soared to a record high, indicating deteriorating credit quality among its borrowers.
Additionally, the number of gross impaired loans also reached a new peak. Despite these negative trends, there were some signs of improvement
Write-offs, while still elevated, decreased compared to the previous quarter. BMO's chief risk officer, Piyush Agrawal, noted that the trucking sector is experiencing a cyclical downturn but expressed optimism about potential stabilization.
Overall, the report highlights the challenging conditions facing the trucking industry and the impact they are having on lenders.