11:38 AM EST - Bank of Montreal : managed to squeeze out a 3.1 per cent earnings increase in its latest quarter despite natural gas trading losses that bit into profits. BMO said it earned $671 million or $1.29 per share in its second quarter ended April 30, up from $651 million or $1.25 per share a year earlier. Analysts were expecting $1.15 per share, according to Thomson Financial. Revenue increased two per cent to $2.53 billion from $2.47 billion. The bottom line was hit by previously announced commodities trading losses that lowered net income for the period by $90 million. Excluding this problem, net income rose 17 per cent to $761 million. "Given the significance of the commodities trading losses incurred this year, it will be extremely challenging to achieve most of our annual financial targets," the bank warned. Quarterly earnings in personal and commercial banking rose 22 per cent from a year earlier to $351 million, including a 24 per cent rise in Canada to $324 million. But personal and commercial results at the U.S. Harris Bank subsidiary slipped one per cent in what BMO characterized as "a difficult economic and competitive environment." Bank of Montreal
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