The Successful Investor Hotline – Friday, May 30, 2008

Article Excerpt

BANK OF NOVA SCOTIA $49.75, Toronto symbol BNS, earned $980 million in its second fiscal quarter ended April 30, 2008, down 5.8% from $1.04 billion a year earlier. Per-share earnings fell 5.8%, to $0.97 from $1.03. The declines were largely due to higher provisions for loan losses, which jumped to $153 million from an unusually low $20 million in the year-earlier quarter. Revenue rose 3.2%, to $3.2 billion from $3.1 billion, partly due to acquisitions. The bank has increased its quarterly dividend 4.3%, from $0.47 a share to $0.49. The new annual rate of $1.96 yields 3.9%. Bank of Nova Scotia is a buy. BANK OF MONTREAL $48.77, Toronto symbol BMO, also reported lower second-quarter earnings, as its loan loss provisions rose to $151 million from $59 million a year earlier. Consequently, earnings fell 4.3%, to $642 million or $1.25 a share from $671 million or $1.29 a share. The latest earnings also included a $28 million after-tax gain from the re-valuation…