Bank of the West brings C$730m in loan provisions to BMO
Acquired book comes with 2.5x the quarterly charges booked by BMO standalone
Bank of the West recorded C$730 million ($538 million) in provisions for credit losses (PCLs) during its first quarter under Bank of Montreal ownership – roughly two-and-a-half times what its new parent set aside on existing loans.
Only C$293 million of the C$1 billion PCLs recorded for the combined book during its second financial quarter – the three months to end-April – related to BMO’s existing exposures, split between C$65 million for performing loans and C$228 million for impaired ones.
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