The Globe and Mail reports in its Thursday edition that the Bank of Montreal posted second-quarter earnings that topped analysts' expectations even as the lender set aside more money for loans that could default amid the trade war. The Globe's Stefanie Marotta quotes BMO chief risk officer Piyush Agrawal saying that while provisions for loans on the verge of defaulting were lower this quarter, the weakening economic outlook prompted the bank to bolster reserves for loans that are still being repaid. "We remain cautious given the ongoing uncertainty and volatility in the economic environment related to trade policies," Mr. Agrawal said during a call. "The outlook for the Canadian economy has weakened with rising unemployment and declining GDP growth. The U.S. market has shown resilience, but momentum has softened." In the quarter, BMO set aside $1.05-billion in provisions for credit losses. That was more than analysts had expected. BMO set aside $289-million for these types of loans, up from $152-million last quarter. BMO earned $1.96-billion in the three months that ended April 30, a 5-per-cent increase from the same quarter last year. Adjusted earnings were $2.62 a share, beating the $2.55 a share analysts expected.