At Canada’s big five, impairments keep creeping up
BMO leads the group with bad loans up 39% quarter on quarter
Impaired loans hit a three-year high at Canada’s ‘big five’ in the last fiscal quarter of 2023, led by Bank of Montreal (BMO), which reported C$3.96 billion ($2.97 billion) worth of impairments at end-October, up 39.2% sequentially.
Broken down by segment, the bank’s bad loans in manufacturing and commercial real estate (CRE) more than doubled quarter on quarter, while those linked to service industries were up 51%. The three sectors accounted for more than two-thirds of the total growth.
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