The Successful Investor Hotline – Friday, May 27, 2011

Article Excerpt

BANK OF MONTREAL, $61.82, Toronto symbol BMO, continues to benefit as more borrowers pay back their loans on time. However, demand for new loans is slowing, and its credit-card customers are making fewer purchases. As well, other banks are paying higher interest rates to attract depositors. That is forcing Bank of Montreal to raise its rates in response. Even so, Bank of Montreal’s revenue rose 5.5%, in its 2011 second quarter, which ended April 30, 2011, to $3.2 billion from $3.05 billion a year earlier. Earnings rose 7.5%, to $800 million from $745 million a year earlier. Earnings per share rose 6.3%, to $1.34 from $1.26, on more shares outstanding. Without unusual items, such as costs related to its upcoming $4.1-billion, all-stock purchase of U.S.-based banking firm Marshall & Ilsley Corp. (New York symbol MI), earnings per share would have risen 5.5%, to $1.35 from $1.28. On that basis, the latest earnings beat the consensus estimate of $1.31 a share. Bank…