BMO Bank of Montreal Posts Strong Earnings. BMO U.S. Banking Operations Contribute to Profit. BMO Dividend is Strong.

BMO Bank of Montreal (TSE: BMO) released very promising results recently. Bloomberg Markets reports that profit at the Canadian bank rose 19 percent on higher investment banking earnings and positive results from its recent U.S. acquisitions.


Income at BMO rose to $793 million, or $1.27 per share for the quarter. BMO has now increased its profit for nine straight quarters and is showing incredible consistency and stability in its operations. It now has the longest streak for increasing profits among the six large Canadian banks. It is clear now that the Canadian banks are in very good shape. BMO is now Canada's 4th largest bank by assets.


In the United States, the BMO completed its $4.1 billion takeover of Marshall & Ilsley on July 5. This doubled its total U.S. branches and deposits in the area. Incredibly the bank now has more branches in Chicago than Toronto. Marchall & IIsley contributed $32 million in profits to the bank this quarter. Much better than previous losses it was experiencing.


Happy Investing : )

Canadian Mortgage Rates on the Rise. Royal Bank, TD, and Laurentian Charging Customers More Interest.

It is getting more expensive to buy a house in Canada as mortgage rates in this country are rising. Amidst inflation fears Royal Bank (TSE: RY), TD (TSE: TD), and Laurentian Bank (TSE: LB) are raising their rates by 0.10 percentage points. 1/10th of a percentage point does not sound like a significant amount, but given the lengthy duration of many Canadian mortgages, small amounts make a big difference over time.

Because of the clout of TD and Royal in particular, their raising of mortgage rates will be an indication to the other big banks to do the same. BMO, CIBC, Scotiabank, and National should not be too far behind.

For those Canadians currently on variable rate mortgages, you will be paying more interest soon enough when the Bank of Canada eventually indicates that it will raise its benchmark. For those of you on fixed-terms, you will not notice a rate change until your current mortgage term expires and you have to renew it at current market rates. So for everyone sitting on variable mortgages, be careful, inflation might be biting at your heels and compelling the banks to charge you a little more money every month.

Happy Investing, and for a short video with this news:
http://www.cbc.ca/video/#/News/Business/1239849460/ID=2042286466