BMO shrinks loan-loss provisions as US outlook improves
US provisions for credit losses drop from C$110 million to C$44 million year-on-year
The Bank of Montreal (BMO) reported a 36% reduction in provisions for credit losses (PCLs) in the year to April 30, thanks to higher recoveries, an improved economic outlook and lower expected losses in personal and commercial banking.
Total PCLs across performing and impaired assets totaled C$160 million ($124 million) in the second quarter of 2018, down from C$251 million the 12 months previous. The ratio of PCLs to average net loans and acceptances declined accordingly, from 0.27% to 0.17%
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