A report Tuesday from Bloomberg cited unnamed sources saying Bank of Montreal is talking with potential buyers about acquiring BMO’s RV loan portfolio.
The report said BMO’s portfolio would be worth at least $5 billion. BMO’s portfolio includes the RV loan portfolio acquired earlier this year in the bank’s acquisition of Bank of the West.
KKR & Co. is among potential bidders, Bloomberg said, according to people with knowledge of the matter. BMO would provide the majority of the financing backing the deal.
In December, BMO Chief Risk Officer Piyush Agrawal said loan sales are a good way for “any good bank” to ensure it has “good risk discipline,” in the wake of a waning economic cycle.
“There is a mutual dialogue always happening,” Agrawal said. “I think this active risk management continues and will continue through 2023.”
