BMO Exiting Auto Finance Amid Debt Concerns

Bank of Montreal (BMO) is discontinuing its retail auto finance business in Canada and the United States

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[{"selector":"#anim-48640503-2acb-49d3-8bc4-0641296f0544 [data-leaf-element=\"true\"]","keyframes":{"transform":["translate(7.818751980406777%, 0%) scale(1.5)","translate(0%, 0%) scale(1)"]},"delay":0,"duration":2000,"easing":"cubic-bezier(.3,0,.55,1)","fill":"forwards"}] [{"selector":"#anim-e7ff8194-2bd4-4433-be27-f2ef3e16aacf","keyframes":{"transform":["translate3d(-108.85714%, 0px, 0)","translate3d(0px, 0px, 0)"]},"delay":0,"duration":600,"easing":"cubic-bezier(0.4, 0.4, 0.0, 1)","fill":"both"}] [{"selector":"#anim-81b9f116-c640-4f61-940f-7edcffe68637","keyframes":{"opacity":[0,1]},"delay":0,"duration":600,"easing":"cubic-bezier(0.4, 0.4, 0.0, 1)","fill":"both"}] [{"selector":"#anim-4359c6bc-2c17-4248-8453-9d459408f364","keyframes":{"transform":["scale(0.15)","scale(1)"]},"delay":0,"duration":600,"easing":"cubic-bezier(0.4, 0.4, 0.0, 1)","fill":"forwards"}] [{"selector":"#anim-5ac2e27f-a142-4915-9a9c-b8656975bd59","keyframes":{"transform":["translate3d(115.55555%, 0px, 0)","translate3d(0px, 0px, 0)"]},"delay":0,"duration":600,"easing":"cubic-bezier(0.4, 0.4, 0.0, 1)","fill":"both"}] [{"selector":"#anim-956fef6a-faa6-4a72-a5b5-de6943054e9d","keyframes":{"opacity":[0,1]},"delay":0,"duration":600,"easing":"cubic-bezier(0.4, 0.4, 0.0, 1)","fill":"both"}] [{"selector":"#anim-9897ad17-41a3-4b4f-a8a5-e266624ffa7d","keyframes":{"transform":["scale(0.15)","scale(1)"]},"delay":0,"duration":600,"easing":"cubic-bezier(0.4, 0.4, 0.0, 1)","fill":"forwards"}] The move aims to reallocate resources to areas where the bank believes it has a stronger competitive position

[{"selector":"#anim-e6b1180a-73a4-4228-8ae4-fe746749ee7e [data-leaf-element=\"true\"]","keyframes":{"transform":["translate(7.818751980406777%, 0%) scale(1.5)","translate(0%, 0%) scale(1)"]},"delay":0,"duration":2000,"easing":"cubic-bezier(.3,0,.55,1)","fill":"forwards"}] [{"selector":"#anim-8cbf114f-8eb3-4514-b223-67f6b54c6500","keyframes":{"transform":["translate3d(-108.85714%, 0px, 0)","translate3d(0px, 0px, 0)"]},"delay":0,"duration":600,"easing":"cubic-bezier(0.4, 0.4, 0.0, 1)","fill":"both"}] [{"selector":"#anim-f04be25f-df63-4d32-a982-32a3800cb344","keyframes":{"opacity":[0,1]},"delay":0,"duration":600,"easing":"cubic-bezier(0.4, 0.4, 0.0, 1)","fill":"both"}] [{"selector":"#anim-9615341d-63ea-4026-8175-7287e56b3e60","keyframes":{"transform":["scale(0.15)","scale(1)"]},"delay":0,"duration":600,"easing":"cubic-bezier(0.4, 0.4, 0.0, 1)","fill":"forwards"}] [{"selector":"#anim-57f18d6e-9902-40ba-9776-76dca672b2a1","keyframes":{"transform":["translate3d(115.55555%, 0px, 0)","translate3d(0px, 0px, 0)"]},"delay":0,"duration":600,"easing":"cubic-bezier(0.4, 0.4, 0.0, 1)","fill":"both"}] [{"selector":"#anim-f06e5edb-c54c-43b5-ac1d-998cc11c1a2b","keyframes":{"opacity":[0,1]},"delay":0,"duration":600,"easing":"cubic-bezier(0.4, 0.4, 0.0, 1)","fill":"both"}] [{"selector":"#anim-d4c416ec-682c-48d3-81d6-e351d7a8de41","keyframes":{"transform":["scale(0.15)","scale(1)"]},"delay":0,"duration":600,"easing":"cubic-bezier(0.4, 0.4, 0.0, 1)","fill":"forwards"}] The bank has not disclosed the exact number of job losses resulting from this shift in focus

[{"selector":"#anim-3ce26d22-7e91-48e4-80ab-7a9d318ac7f0 [data-leaf-element=\"true\"]","keyframes":{"transform":["translate(7.818751980406777%, 0%) scale(1.5)","translate(0%, 0%) scale(1)"]},"delay":0,"duration":2000,"easing":"cubic-bezier(.3,0,.55,1)","fill":"forwards"}] [{"selector":"#anim-08e05a5b-f805-4898-8f69-78061a2a0078","keyframes":{"transform":["translate3d(-108.85714%, 0px, 0)","translate3d(0px, 0px, 0)"]},"delay":0,"duration":600,"easing":"cubic-bezier(0.4, 0.4, 0.0, 1)","fill":"both"}] [{"selector":"#anim-178b9ebb-dadc-4c3c-9a55-c3d9188ef256","keyframes":{"opacity":[0,1]},"delay":0,"duration":600,"easing":"cubic-bezier(0.4, 0.4, 0.0, 1)","fill":"both"}] [{"selector":"#anim-22cba363-e316-481f-a56d-6593ed2a99eb","keyframes":{"transform":["scale(0.15)","scale(1)"]},"delay":0,"duration":600,"easing":"cubic-bezier(0.4, 0.4, 0.0, 1)","fill":"forwards"}] [{"selector":"#anim-3cc9aa90-a0a0-49f7-84d6-4e8ed97e1b14","keyframes":{"transform":["translate3d(115.55555%, 0px, 0)","translate3d(0px, 0px, 0)"]},"delay":0,"duration":600,"easing":"cubic-bezier(0.4, 0.4, 0.0, 1)","fill":"both"}] [{"selector":"#anim-d15b245e-df41-41f9-9efc-cd24657c07a1","keyframes":{"opacity":[0,1]},"delay":0,"duration":600,"easing":"cubic-bezier(0.4, 0.4, 0.0, 1)","fill":"both"}] [{"selector":"#anim-2a0f42f0-e6f7-49da-ad6c-cd87c0d6a34e","keyframes":{"transform":["scale(0.15)","scale(1)"]},"delay":0,"duration":600,"easing":"cubic-bezier(0.4, 0.4, 0.0, 1)","fill":"forwards"}] BMO is committed to providing support to affected employees during the transition

[{"selector":"#anim-ec3130a5-d0aa-4fd0-ae0d-b9b2b13d9569 [data-leaf-element=\"true\"]","keyframes":{"transform":["translate(7.818751980406777%, 0%) scale(1.5)","translate(0%, 0%) scale(1)"]},"delay":0,"duration":2000,"easing":"cubic-bezier(.3,0,.55,1)","fill":"forwards"}] [{"selector":"#anim-91268552-1de9-40e9-97fa-6086f3312f71","keyframes":{"transform":["translate3d(-108.85714%, 0px, 0)","translate3d(0px, 0px, 0)"]},"delay":0,"duration":600,"easing":"cubic-bezier(0.4, 0.4, 0.0, 1)","fill":"both"}] [{"selector":"#anim-999551db-e695-43a3-9cfe-1de6bd2c151e","keyframes":{"opacity":[0,1]},"delay":0,"duration":600,"easing":"cubic-bezier(0.4, 0.4, 0.0, 1)","fill":"both"}] [{"selector":"#anim-b53114a4-1107-4d33-b668-db892ec69cbd","keyframes":{"transform":["scale(0.15)","scale(1)"]},"delay":0,"duration":600,"easing":"cubic-bezier(0.4, 0.4, 0.0, 1)","fill":"forwards"}] [{"selector":"#anim-c7b6fe20-ed7a-4761-9a09-fb1b7461a5b4","keyframes":{"transform":["translate3d(115.55555%, 0px, 0)","translate3d(0px, 0px, 0)"]},"delay":0,"duration":600,"easing":"cubic-bezier(0.4, 0.4, 0.0, 1)","fill":"both"}] [{"selector":"#anim-39c47fca-96c8-4f27-98ab-3472668fcee6","keyframes":{"opacity":[0,1]},"delay":0,"duration":600,"easing":"cubic-bezier(0.4, 0.4, 0.0, 1)","fill":"both"}] [{"selector":"#anim-e4383178-ca3e-420f-9e8d-b120cd4ce96f","keyframes":{"transform":["scale(0.15)","scale(1)"]},"delay":0,"duration":600,"easing":"cubic-bezier(0.4, 0.4, 0.0, 1)","fill":"forwards"}] The termination of dealer agreements in the auto finance business became effective on September 15, but the bank will honor contracts submitted and approved prior to that date

[{"selector":"#anim-6d3c6ef4-e1ea-4730-8bc6-3ada4eebcd0f [data-leaf-element=\"true\"]","keyframes":{"transform":["translate(7.818751980406777%, 0%) scale(1.5)","translate(0%, 0%) scale(1)"]},"delay":0,"duration":2000,"easing":"cubic-bezier(.3,0,.55,1)","fill":"forwards"}] [{"selector":"#anim-5b4ac0a7-b3e7-4525-a9d5-25dd4b59e455","keyframes":{"transform":["translate3d(-108.85714%, 0px, 0)","translate3d(0px, 0px, 0)"]},"delay":0,"duration":600,"easing":"cubic-bezier(0.4, 0.4, 0.0, 1)","fill":"both"}] [{"selector":"#anim-7a57318f-7586-4efb-bc7a-2955f80bcbce","keyframes":{"opacity":[0,1]},"delay":0,"duration":600,"easing":"cubic-bezier(0.4, 0.4, 0.0, 1)","fill":"both"}] [{"selector":"#anim-1b377fbf-54af-4cdf-b4e9-60101c4d19c5","keyframes":{"transform":["scale(0.15)","scale(1)"]},"delay":0,"duration":600,"easing":"cubic-bezier(0.4, 0.4, 0.0, 1)","fill":"forwards"}] [{"selector":"#anim-e5f38f0f-de9a-482b-98c2-f521328e8927","keyframes":{"transform":["translate3d(115.55555%, 0px, 0)","translate3d(0px, 0px, 0)"]},"delay":0,"duration":600,"easing":"cubic-bezier(0.4, 0.4, 0.0, 1)","fill":"both"}] [{"selector":"#anim-5bb9ca5f-168e-4539-9a9e-a6ca55e50f4c","keyframes":{"opacity":[0,1]},"delay":0,"duration":600,"easing":"cubic-bezier(0.4, 0.4, 0.0, 1)","fill":"both"}] [{"selector":"#anim-341beae3-b3b3-48c5-a2b4-be61f4ef0b06","keyframes":{"transform":["scale(0.15)","scale(1)"]},"delay":0,"duration":600,"easing":"cubic-bezier(0.4, 0.4, 0.0, 1)","fill":"forwards"}] BMO's indirect retail auto finance business involves providing financing to vehicle sellers rather than directly to buyers

[{"selector":"#anim-cef883f7-9e29-4584-b279-0a8e3c55cac0 [data-leaf-element=\"true\"]","keyframes":{"transform":["translate(7.818751980406777%, 0%) scale(1.5)","translate(0%, 0%) scale(1)"]},"delay":0,"duration":2000,"easing":"cubic-bezier(.3,0,.55,1)","fill":"forwards"}] [{"selector":"#anim-bdb35fc2-3939-4b1b-918b-6b2c1bc1fa0e","keyframes":{"transform":["translate3d(-108.85714%, 0px, 0)","translate3d(0px, 0px, 0)"]},"delay":0,"duration":600,"easing":"cubic-bezier(0.4, 0.4, 0.0, 1)","fill":"both"}] [{"selector":"#anim-ee0ab6c0-cf4c-44fe-81c9-0c2353e16c69","keyframes":{"opacity":[0,1]},"delay":0,"duration":600,"easing":"cubic-bezier(0.4, 0.4, 0.0, 1)","fill":"both"}] [{"selector":"#anim-7c2a59d0-4cba-4b63-800a-fa56c612f8da","keyframes":{"transform":["scale(0.15)","scale(1)"]},"delay":0,"duration":600,"easing":"cubic-bezier(0.4, 0.4, 0.0, 1)","fill":"forwards"}] [{"selector":"#anim-ecb0e4c2-a6aa-4afd-b784-019163f26b25","keyframes":{"transform":["translate3d(115.55555%, 0px, 0)","translate3d(0px, 0px, 0)"]},"delay":0,"duration":600,"easing":"cubic-bezier(0.4, 0.4, 0.0, 1)","fill":"both"}] [{"selector":"#anim-04ada041-8771-47f6-bc01-022def5a93df","keyframes":{"opacity":[0,1]},"delay":0,"duration":600,"easing":"cubic-bezier(0.4, 0.4, 0.0, 1)","fill":"both"}] [{"selector":"#anim-1b549ae9-8550-4716-bbd1-a7c786519cd3","keyframes":{"transform":["scale(0.15)","scale(1)"]},"delay":0,"duration":600,"easing":"cubic-bezier(0.4, 0.4, 0.0, 1)","fill":"forwards"}] Gross loans in the retail auto business grew by approximately 34% year-over-year to C$17.36 billion in the third quarter

[{"selector":"#anim-088d4cde-42d4-4e4b-85ec-bf91b50da83f [data-leaf-element=\"true\"]","keyframes":{"transform":["translate(7.818751980406777%, 0%) scale(1.5)","translate(0%, 0%) scale(1)"]},"delay":0,"duration":2000,"easing":"cubic-bezier(.3,0,.55,1)","fill":"forwards"}] [{"selector":"#anim-8d055bd1-258d-44e1-ae52-e924cf67840c","keyframes":{"transform":["translate3d(-108.85714%, 0px, 0)","translate3d(0px, 0px, 0)"]},"delay":0,"duration":600,"easing":"cubic-bezier(0.4, 0.4, 0.0, 1)","fill":"both"}] [{"selector":"#anim-259165f2-3c4e-4715-bfea-38923452c2e1","keyframes":{"opacity":[0,1]},"delay":0,"duration":600,"easing":"cubic-bezier(0.4, 0.4, 0.0, 1)","fill":"both"}] [{"selector":"#anim-7608f82f-24c9-4205-8e2e-0bc36f58eecd","keyframes":{"transform":["scale(0.15)","scale(1)"]},"delay":0,"duration":600,"easing":"cubic-bezier(0.4, 0.4, 0.0, 1)","fill":"forwards"}] [{"selector":"#anim-f2b79b0d-b8cd-4ea5-9216-e603b3f9d90b","keyframes":{"transform":["translate3d(115.55555%, 0px, 0)","translate3d(0px, 0px, 0)"]},"delay":0,"duration":600,"easing":"cubic-bezier(0.4, 0.4, 0.0, 1)","fill":"both"}] [{"selector":"#anim-87fc59c1-31e4-4ffb-8be8-821b61cea57e","keyframes":{"opacity":[0,1]},"delay":0,"duration":600,"easing":"cubic-bezier(0.4, 0.4, 0.0, 1)","fill":"both"}] [{"selector":"#anim-978d5663-0421-4bf6-836f-8e6190377e23","keyframes":{"transform":["scale(0.15)","scale(1)"]},"delay":0,"duration":600,"easing":"cubic-bezier(0.4, 0.4, 0.0, 1)","fill":"forwards"}] Rising interest rates are negatively impacting the Canadian economy, leading banks like BMO to set aside more funds for expected bad loans

[{"selector":"#anim-474e6811-b241-458f-b05e-f242fa095232 [data-leaf-element=\"true\"]","keyframes":{"transform":["translate(7.818751980406777%, 0%) scale(1.5)","translate(0%, 0%) scale(1)"]},"delay":0,"duration":2000,"easing":"cubic-bezier(.3,0,.55,1)","fill":"forwards"}] [{"selector":"#anim-b8e76c00-d20b-4dc8-b5a8-21358fe583ca","keyframes":{"transform":["translate3d(-108.85714%, 0px, 0)","translate3d(0px, 0px, 0)"]},"delay":0,"duration":600,"easing":"cubic-bezier(0.4, 0.4, 0.0, 1)","fill":"both"}] [{"selector":"#anim-2f6310c9-d62c-4738-b866-8fdb3fbcc145","keyframes":{"opacity":[0,1]},"delay":0,"duration":600,"easing":"cubic-bezier(0.4, 0.4, 0.0, 1)","fill":"both"}] [{"selector":"#anim-2818a1a3-b319-4bff-9bd4-85bf91b13bb5","keyframes":{"transform":["scale(0.15)","scale(1)"]},"delay":0,"duration":600,"easing":"cubic-bezier(0.4, 0.4, 0.0, 1)","fill":"forwards"}] [{"selector":"#anim-5dfc6d9f-f1e9-400a-89b7-a859599ee2e8","keyframes":{"transform":["translate3d(115.55555%, 0px, 0)","translate3d(0px, 0px, 0)"]},"delay":0,"duration":600,"easing":"cubic-bezier(0.4, 0.4, 0.0, 1)","fill":"both"}] [{"selector":"#anim-ca98db69-a061-4a9f-a7ff-0333025960d2","keyframes":{"opacity":[0,1]},"delay":0,"duration":600,"easing":"cubic-bezier(0.4, 0.4, 0.0, 1)","fill":"both"}] [{"selector":"#anim-78b4cf91-0b8c-4531-89e3-28eae8dcf5c9","keyframes":{"transform":["scale(0.15)","scale(1)"]},"delay":0,"duration":600,"easing":"cubic-bezier(0.4, 0.4, 0.0, 1)","fill":"forwards"}] BMO has been focusing on growth opportunities in the United States, including its acquisition of Bank of the West, which now contributes significantly to its overall profits