The Globe and Mail reports in its Friday edition that concerns about looming credit losses appear to have peaked at two of Canada's largest lenders, but BMO is paying a heavy price for a ballooning watchlist of bad loans, while the pressure is easing and profit is rising at CIBC. The Globe's James Bradshaw and Stefanie Marotta write that leaders at both banks said Thursday they are hopeful that falling borrowing costs will create better conditions for clients in 2025, wrapping up a challenging fiscal year by reporting sharply contrasting fourth-quarter results. BMO missed profit expectations by a wide margin in the three months that ended Oct. 31 as it added $1.52-billion in new provisions against loans that could default. That wiped out any earnings growth from the bank's Canadian and U.S. retail banking divisions. Chief executive officer Darryl White told analysts on a call that BMO's credit performance "deteriorated more than we expected" in 2024. At CIBC, loan books held up better than expected, mostly because the outlook improved for the bank's U.S. commercial real estate portfolio, especially in the troubled office sector. Provisions for credit losses of $419-million were 23 per cent lower than last year.