Bank of Montreal CEO Sees Further Loan Losses If Oil Prices Drop
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William Downe, CEO of Bank of Montreal, in this Dec. 2009 file photo. Photographer: Norm Betts/Bloomberg
Bank of Montreal
, Canada’s fourth-largest lender, will see further loan losses from oil-and-gas firms if energy prices remain low, Chief Executive Officer William Downe said.
“If oil prices stay down, we will have provisions for credit loss that we otherwise wouldn’t have,” Downe said Tuesday in a phone interview. “They’re not a good thing, but with respect to potential losses relative to the size of the bank or our total overall portfolio, they remain manageable.”
Oil-and-gas loans account for 2 percent of the Toronto-based lender’s portfolio, with more than half in investment grade and a significant portion not tied to energy producers, Downe, 63, said…
Bank of Montreal CEO Sees Further Loan Losses If Oil Prices Drop
