BMO’s third-quarter data shows slightly improved credit conditions for its transportation sector, a major lender to trucking. The bank may be looking to sell its transportation unit, with 90% of its business in trucking. Provisions for credit losses rose to $50 million, but writeoffs were the lowest in a year.

The transportation group’s book of business decreased to $13.67 billion, the lowest since early 2023. CEO Darrell White hinted at managing credit losses and optimizing low-return assets. Despite some improvements, conditions have stagnated. Gross impaired loans fell to $424 million, back to where they were a year ago.

With signals of pulling back from transportation activities, BMO’s transportation sector saw various changes in credit health measures. While provisions for credit losses rose, writeoffs were at their lowest in a year. Gross impaired loans fell to $424 million, back to the same level as a year ago.

Read more at Yahoo Finance: BMO’s transportation numbers show slight improvement in trucking credit conditions