Topic: How To Invest

The Successful Investor Hotline – Friday, September 1, 2023

Article Excerpt

BANK OF MONTREAL, $117.10, Toronto symbol BMO, remains a buy. On February 1, 2023, the bank completed its acquisition of Bank of the West from France’s BNP Paribas. Bank of the West provides a variety of retail and commercial banking services to over 1.8 million customers in 24 U.S. states, mainly in the Western and Midwestern regions. Bank of Montreal paid $13.8 billion U.S. for this business. Eliminating overlapping operations should let it cut $760 million U.S. from its annual costs in the first year following the deal. To help finance the purchase—and comply with increased capitalization requirements in Canada—Bank of Montreal has sold $6.5 billion of new common shares through public offerings and private placements. As well, in June 2023, Bank of Montreal paid $160 million U.S. for the Canadian operations of the popular Air Miles loyalty rewards program, which lets members earn points on purchases for air travel or other rewards. If you exclude costs related to those acquisitions and other unusual items, earnings for…