BMO Winding Down Auto Finance Business, Leading to Job Losses

BMO is winding down its retail auto finance business in Canada and the U.S., leading to unspecified job losses.

The move comes as BMO's bad debt provisions in retail trade surged to $60 million in Q3 2022.

BMO says the move allows it to focus resources on areas where its competitive position is strongest.

BMO provided auto financing to car dealers, who customers then made payments to.

The wind-down is effective Sept. 15, though BMO will still fund previously approved contracts.