BMO says 1.7% of expired commercial loan deferrals showing defaults/delinquency

TORONTO (Reuters) – Only about 1.7% of Bank of Montreal’s commercial loans whose pandemic-related repayment deferrals have expired are in default or are delinquent, executives said on Wednesday.

Outside of industries like hospitality, migration of performing commercial loans to impaired status is low, and is expected to remain that way, executives of Canada’s fourth-largest lender said at a webcast investor event.

BMO is “cautiously optimistic” about commercial real estate lending, where the bank is seeing low impairments and loan-loss provisions, and about 90% of properties are continuing to receive rent payments, they added.

(Reporting By Nichola Saminather; Editing by Chizu Nomiyama)