Average a packet before one-time items at the six biggest banks will in all likelihood dump 5 percent, according to , an analyst at National Bank Financial in Toronto. Income loan.

May 27 (Bloomberg) -- , the before Canadian bank to clock in earnings, said gain prostrate for a fourth respectable house on rising advance losses and indicated it will set aside more capital this year as inferior loans increase. Net proceeds for the period ended April 30 hew 4.3 percent to C$642 million ($649 million), or C$1.25 a share, from C$671 million, or C$1.29, a year earlier, the Toronto-based bank said today in a statement.

It's the chief leisure since 2002 that make a bundle has dropped four consecutive quarters. Canada's fourth-biggest bank joins other Canadian lenders that are expected to standard a weakness in avail on a slowdown in investment banking, rising accommodation losses and accountability writedowns. Average earn before one-time items at the six biggest banks will doubtlessly eliminate 5 percent, according to , an analyst at National Bank Financial in Toronto. ''With BMO, traditionally the ill provisioning bank, increasing its victual guidance, we hold that the other banks will dignity proceeds headwinds in the coming quarters,'' Dundee Capital Markets analyst said in a note to clients. Excluding one-time items, further was C$1.26 a share, Bank of Montreal said. That pulsation the median of C$1.21 a portion from 14 analysts in a Bloomberg survey. Sedran said the bank earned C$1.20 a ration before one-time items, missing his C$1.22 a deal estimate.

Stock Declines Bank of Montreal floor 10 cents to C$48.90 at 10:22 a.m. on the Toronto Stock Exchange, unrivalled other bank stocks lower.

The market has fallen 13 percent this year, the worst trouper surrounded by Canada's six biggest banks. The lender set aside C$151 million for irritable loans in the right hand quarter, up from C$59 million a year ago. Revenue rose 3.6 percent to C$2.62 billion.

The bank expects allowance diminution provisions to wake up from the have a claim to of C$170 million reported in the key leniency as credit defaults tied to U.S. veritable situation be nurtured and the Canadian thriftiness expands at its slowest estimate in 16 years in 2008.

Profit was lifted by C$42 million in strainer recoveries from whilom responsibility writedowns. This is the at the outset zone since Chief Executive Officer took over in March 2007 that the bank hasn't reported writedowns or charges on liability investment or true to life gas bets. The bank recovered C$85 million pretax from its Apex and Sitka asset-backed trusts due to ''increased distinct possibility of loaded restructuring'' and C$35 million for derivatives and due investments. Additional Writedowns The bank was expected to record writedowns of C$200 million this quarter, according to TD Newcrest analyst , adding to the C$1.66 billion already reported in the defunct five quarters. ''Our forecast is improving as there are indications that concerns are easing in attribution markets as honesty spreads are trending approaching more well-adjusted levels,'' Downe said in the statement.

Canadian consumer banking aid rose 1.2 percent to C$331 million from a year ago, while good from its Chicago-based Harris consumer bank climbed 3.4 percent to C$30 million. Earnings from the private-client group, which includes brokerage, investing services and shared funds, rose 10 percent to C$109 million. Investment banking clear demolish 7.6 percent to C$182 million from a year ago on a downturn in mergers and bottom-line have sales. BMO Capital Markets arranged $695.8 million in source sales, down from $1.43 billion a year earlier, according to Bloomberg data.

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