Topic: How To Invest

The Successful Investor Hotline – Friday, August 30, 2019

Article Excerpt

BANK OF MONTREAL, $91.26, Toronto symbol BMO, reported lower-than-expected earnings this week due to weaker results at its capital markets division. In its fiscal 2019 third quarter, ended July 31, 2019, Bank of Montreal earned $1.58 billion. That’s up 1.0% from $1.57 billion a year earlier. Earnings per share rose 0.8%, to $2.38 from $2.36. The latest results exclude unusual items. Among them are the costs to integrate a recent acquisition. On that basis, the earnings missed the consensus estimate of $2.49 a share. Earnings from Canadian retail banking (40% of the total) rose 1.2%, while profits at the U.S. retail banking operations (24%) gained 0.8%. In both cases, higher interest rates and loan balances were offset by rising non-interest expenses and higher credit provisions. Profits for the bank’s capital markets operations (20%) rose 5.0%, thanks partly to a recent acquisition. However, earnings at the wealth management business (16%) dropped 14.6%. That was due to rising claims at Bank of Montreal’s reinsurance operations, which…