Topic: How To Invest

The Successful Investor Hotline – Friday, August 31, 2018

Article Excerpt

BANK OF MONTREAL, $106.97, Toronto symbol BMO, reported better-than-expected earnings this week, thanks to higher interest rates and loan demand. In its fiscal 2018 third quarter ended July 31, 2018, the bank earned $1.57 billion. That’s up 13.9% from $1.37 billion a year earlier. Due to fewer shares outstanding, earnings per share rose at a faster rate of 16.3%, to $2.36 from $2.03. The latest results exclude unusual items, mainly costs related to the bank’s investments in its online and mobile banking platforms. On that basis, the earnings beat the consensus estimate of $2.26 a share. Earnings from Canadian retail banking (42% of the total) rose 4.6% due to higher interest rates and loan balances. U.S. retail banking (18%) saw its profits jump 34.0%, partly because recent U.S. tax reforms added $31 million to the unit’s profits of $288 million. Earnings for the bank’s wealth management business (20%) gained 6.0%, as improving stock markets increased the value of its assets under management. As well,…