Canadian lender BMO to wind down retail auto finance business

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Bank of Montreal (BMO) is winding down its retail auto finance business and shifting focus to other areas in a move that will result unspecified number of job losses, Canada's third largest bank said on Saturday.

is winding down its retail auto finance business and shifting focus to other areas in a move that will result unspecified number of job losses, Canada's third largest bank said on Saturday.

The move, applicable in Canada and the United States, comes after BMO's bad debt provisions in retail trade surged to C$81 million in thecompared with a recovery of C$9 million a year ago, in a sign of growing stress consumers face from a rapid rise in borrowing costs. "By winding down the indirect retail auto finance business, we have the ability to focus our resources on areas where we believe our competitive positioning is strongest," BMO said in a statement to Reuters.

The bank is working closely with employees who will be affected by job cuts to provide support, the bank said.

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Canadian lender BMO to wind down retail auto finance business By ReutersCanadian lender BMO to wind down retail auto finance business
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