TORONTO: Bank of Montreal (BMO) is winding down its retail operations car finance company and shifting focus to other areas in a move that will lead to an unspecified number of job losses, Canada’s third-largest bank said Saturday.
The measure, which applies in Canada and the United States, comes after BMOs bad debts Retail provisioning rose to C$81 million ($60 million) in the quarter ended July 31, compared with a recovery of C$9 million a year ago, in a sign of mounting stress faced by consumers amid a rapid rise in borrowing costs .
“By winding down the indirect retail auto financing business, we have the opportunity to focus our resources on areas where we believe our competitive position is strongest,” BMO said in a statement to Reuters.
The bank is working closely with employees who will be affected by this job losses to provide support, the bank said.
The measure, which applies in Canada and the United States, comes after BMOs bad debts Retail provisioning rose to C$81 million ($60 million) in the quarter ended July 31, compared with a recovery of C$9 million a year ago, in a sign of mounting stress faced by consumers amid a rapid rise in borrowing costs .
“By winding down the indirect retail auto financing business, we have the opportunity to focus our resources on areas where we believe our competitive position is strongest,” BMO said in a statement to Reuters.
The bank is working closely with employees who will be affected by this job losses to provide support, the bank said.
