Democracy Gone Astray

Democracy, being a human construct, needs to be thought of as directionality rather than an object. As such, to understand it requires not so much a description of existing structures and/or other related phenomena but a declaration of intentionality.
This blog aims at creating labeled lists of published infringements of such intentionality, of points in time where democracy strays from its intended directionality. In addition to outright infringements, this blog also collects important contemporary information and/or discussions that impact our socio-political landscape.

All the posts here were published in the electronic media – main-stream as well as fringe, and maintain links to the original texts.

[NOTE: Due to changes I haven't caught on time in the blogging software, all of the 'Original Article' links were nullified between September 11, 2012 and December 11, 2012. My apologies.]

Tuesday, February 28, 2012

BMO profit hits $1.1-billion


Profit at Bank of Montreal (BMO-T58.410.400.69%) rose 34 per cent in the first quarter, as lower credit losses and the addition of Midwestern U.S. bank Marshall & Ilsley Corp. helped make up for an otherwise bumpy quarter at its Canadian retail banking and capital markets operations.

BMO, Canada’s fourth-largest bank by assets made $1.11-billion, or $1.63 a share in the quarter. That compared to profit of $825-million, or $1.34 a share, during the same period last year.

Revenue rose 18.7 per cent to $4.12-billion.

The results beat the expectations of analysts, who were predicting profit of $1.36 a share on average. Adjusted for one-time items, BMO made $1.42 a share.

Provisions for credit losses, or the amount of money banks set aside to cover bad loans, fell sharply to $141-million, from $323-million a year ago, as fewer loans were in default.

The $182-million improvement in credit losses compared to last year was primarily responsible for BMO’s first-quarter profit, since several of the bank’s key divisions saw their net income fall.

Profit at BMO’s Canadian personal and commercial banking segment fell 6.7 per cent to $446-million as shrinking margins on loans took their toll in the quarter. The results were also compared to higher earnings last year, when the division benefited from a securities gain, BMO said.

Profit also dropped at BMO’s capital markets business, which includes trading, underwriting and securities income. Net income fell nearly 24 per cent per cent in the quarter, to $198-million, compared to high trading revenues a year ago amid upheaval in Europe that fuelled the bond market. Analysts expect to see capital markets income slump across the banking sector this quarter.

BMO said the results also reflect a $46-million charge for restructuring in the capital markets business during the quarter.

Profit at the bank’s U.S. retail banking division rose to $137-million, from $54-million a year ago, fuelled by the acquisition of Milwaukee-based M&I, the Midwestern bank it purchased last summer.

BMO’s private client group, which includes wealth management and insurance operations, made $105-million, down 28 per cent from the same quarter a year ago, due to lower long-term interest rates, which have hurt the insurance sector.

While the drop in credit loss provisions was the main reason for the bank’s profit increase in the quarter, BMO chief executive officer Bill Downe said the bank’s various operations were performing well.

“Each of our businesses is well-positioned and our balance sheet is strong,” Mr. Downe said in a statement accompanying the results.

The bank left its quarterly dividend unchanged at 70 cents.

Original Article
Source: Globe
Author: grant robertson

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