Bank of Montreal (BMO) on Tuesday reported a significant improvement in the credit health of its transportation division, which primarily lends to the trucking industry, according to its quarterly earnings report. Provisions for credit losses in this division decreased from $41 million in the second quarter to $15 million, the lowest level since the first quarter of 2023. Additionally, total impaired loans fell from $576 million in the previous quarter to $440 million. This improvement is largely attributed to a strengthening freight market. BMO had previously announced plans to sell this transportation division to private equity firm Stonepeak, with the transaction expected to close by year-end.