UPDATE 3-BMO raises dividend as profit tops estimates
* Adjusted profit tops estimates
* Net profit eases due to bad loans at U.S. bank
* Bank increases dividend 2.8 pct
* Consumer lending margins narrow
* Shares rise 1.3 percent
By Cameron French
Feb 26 (Reuters) - Bank of Montreal's core profit topped expectations on the back of higher markets-related revenue and surprisingly steady consumer loan growth, prompting the bank to unexpectedly raise its dividend.
Shares of BMO, Canada's No. 4 lender and the first to release first-quarter results for 2013, jumped 1.3 percent on Tuesday on the result and dividend increase.
Adjusted profit for the quarter came in at C$1.52 a share, ahead of the year-before profit of C$1.42, and beating analysts' expectations of C$1.48 a share, according to Thomson Reuters I/B/E/S. Continued...