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Bank of Montreal kicked off earnings season Tuesday by beating analyst estimates and easing concerns about oil and gas exposure and consumer credit, despite a bump in provisions for credit losses tied to the energy sector.

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Analysis: The big banks would not be immune to a steep drop in prices, something that seems within the realm of possibility given early indications of cooling in Vancouver.





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Canada’s fourth largest bank posted net income of $1.2 billion ($1.86 a share) for the quarter ending July 31, up four per cent from $1.19 billion ($1.80) a year earlier.

Both revenues and expense controls topped expectations, and core cash earnings per share came in at $1.94, handily beating the analyst consensus estimate of $1.81.

“While credit was expected to be a significant theme in the quarter, we no longer believe that energy exposures are driving valuations and consumer credit remained benign,” said John Aiken, an analyst at Barclays Capital, in a note to clients. “On the consumer front, there was no significant change to consumer charge-offs and no apparent uptick in delinquencies.”