Bank of Montreal (BMO) has parted ways with its $14.5B transportation & vendor finance loan book, which was de-emphasized over recent years…

… given its outsized contribution to provisioning activity, which sits consistently above 10% of total commercial provisions while representing ~3% of the book.

Despite some recent signs of a trucking recovery, impaired loans in the segment have been grinding higher since 2023…

… so the $900M goodwill writedown tied to the sale isn’t surprising, with management deciding the ROE impact from capital redeployment is worth taking the bath next quarter.

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