Topic: How To Invest

The Successful Investor Hotline – Friday, December 8, 2017

Article Excerpt

BANK OF MONTREAL, $100.91, Toronto symbol BMO, purchased the transportation-financing operations of General Electric in late 2017. That business lends money to commercial truck and trailer manufacturers in the U.S. and Canada. The bank is also spending more to enhance its online and mobile banking operations. If you exclude the bank’s costs to integrate that GE operation as well as its expenses associated with closing branches in the ongoing shift to online, Bank of Montreal’s earnings in the quarter ended October 31, 2017, fell 6.2%. Specifically, it earned $1.31 billion, down from $1.40 billion a year earlier. Due to more shares outstanding, earnings per share declined 7.6%, to $1.94 from $2.10. That missed the consensus estimate of $1.98. The lower earnings are mainly because the bank’s reinsurance business (part of its wealth management division) paid out $112 million in claims related to hurricanes Irma, Maria and Harvey. Those cut overall earnings in the latest quarter by $0.17 a share. Earnings from Canadian retail…