Why BMO is selling its transportation, vendor finance portfolios
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BMO is selling its transportation and vendor finance businesses to Stonepeak to free up capital and focus on core growth areas. The deal includes loan portfolios in the U.S. and Canada and is expected to close in the fourth quarter. BMO will retain a 19.9% equity interest in the businesses post-sale. This move aims to optimize capital and improve profitability, particularly in the U.S., where BMO targets a 12% return on equity. The sale is expected to enhance BMO's common equity Tier 1 ratio by about 28 basis points.
Source: American Banker The copyright of this article belongs to the original author/organization.
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