The Successful Investor Hotline – Friday, February 26, 2016

Article Excerpt

BANK OF MONTREAL, $74.15, Toronto symbol BMO, reported better-than-expected results this week, thanks mainly to strong gains from its U.S. operations. In its fiscal 2016 first quarter, which ended January 31, 2016, the bank’s revenue rose 0.4%, to $5.08 billion from $5.06 billion a year earlier. That beat the consensus forecast of $4.88 billion. Overall earnings increased 13.2%, to $1.2 billion from $1.0 billion. Earnings per share gained 14.4%, to $1.75 from $1.53, on fewer shares outstanding. These figures exclude unusual items such as the cost to integrate recent acquisitions. On that basis, they exceed the consensus estimate of $1.72 a share. Earnings from Canadian retail banking (46% of the total) rose 5.2% on higher loan demand and credit card spending. Rising fee income also contributed to the gain. The U.S. retail banking division (16%) reported an 11.0% increase in profit. That’s mainly because BMO recently acquired General Electric’s transportation-financing business. That unit lends money to commercial truck and trailer manufacturers, dealers and…