Trucking Credit Health Stalls Despite Rate Gains, BMO Data Shows

Key Details BMO, one of Canada's largest trucking lenders, reported disappointing credit metrics in Q2 2026 despite a stronger freight market. Four key indicators of industry credit health either stalled or deteriorated during the quarter ending April 30, confounding analysts who expected improvement with higher rates. Why It Matters BMO's transportation financing data serves as a critical barometer for trucking sector health since roughly 90% of its transportation group lending goes to trucking companies. This latest report may be among the last transparent disclosures of its kind - BMO is selling its transportation business to private equity firm Stonepeak, with the deal expected to close in Q4 2026. The Numbers Gross impaired loans rose to CA$576 million from CA$563 million in Q1, though down from the Q4 peak of CA$585 million. Allowances for credit losses climbed to $86 million from $77 million a quarter earlier. Provisions for credit losses increased to $41 million from $39 million. Net writeoffs edged up slightly to $25 million. What's Next Despite trimming efforts ahead of the sale, BMO's loan portfolio actually grew to $12.65 billion from $12.42 billion last quarter. The divergence between rising freight rates and deteriorating credit metrics suggests many carriers remain financially stressed despite market improvements.