Bank of Montreal (BMO.TO) reported a quarterly profit on Wednesday that topped investor expectations, driven largely by growth in its Canadian lending portfolio and a drop in provisions for soured loans. The Toronto-based bank also said it expects cost savings from its proposed acquisition of Wisconsin-based Marshall & Ilsley (MI.N) to exceed earlier expectations. Some analysts were disappointed, however, that BMO did not retract a plan to issue up to C$400 million ($408.2 million) in equity, even though its capital ratios remain in good standing. The equity issue is aimed at ensuring that the bank remains in-line with regulatory requirements following the close of the M&I deal. "We argued last quarter that the bank would not need to resort to this measure to maintain good standing with respect to the new Basel III capital ratios," said National Bank analyst Peter Routledge. "This quarter's results support that argument."
Bank of Montreal (BMO) provides a range of credit and non-credit products and services directly and indirectly through Canadian and non-Canadian subsidiaries, offices and branches. Shares of BMO traded higher by 0.52% or $0.33/share to $63.37. In the past year, the shares have traded as low as $51.11 and as high as $66.64. On average, 855100 shares of BMO exchange hands on a given day and today's volume is recorded at 859303.
Marshall & Ilsley Corporation (M&I) is a bank holding company. Shares of MI traded higher by 0.25% or $0.02/share to $7.9. In the past year, the shares have traded as low as $4.62 and as high as $8.50. On average, 4374430 shares of MI exchange hands on a given day and today's volume is recorded at 3681929.
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