* Q4 EPS C$1.11, above estimates, vs year-earlier C$1.06

* Announces deal to buy Diners Club from Citigroup

* Loan loss provisions C$386 mln vs year-earlier C$465 mln

* Shares down in late trade as banking sector ebbs (Adds CEO comment from conference call, analyst comment. In U.S. dollars unless noted)

By Andrea Hopkins

TORONTO, Nov 24 (Reuters) - Bank of Montreal (BMO.TO: Quote, Profile, Research) reported a higher-than-expected quarterly profit on Tuesday and said it was buying the Diners Club North America credit card business to double its corporate card portfolio.

The deal, combined with a 16 percent rise in quarterly earnings, emphasizes the relative strength of Canada's big lenders as they emerge from the financial crisis with excess capital and solid balance sheets.

BMO, Canada's fourth-largest bank, kicked off the earnings season for the big banks with net income of C$647 million ($610 million), or C$1.11 a share, for its fourth quarter ended Oct. 31, up from C$560 million, or C$1.06, a year earlier.

That was well above analysts' average estimate of 98 Canadian cents a share, according to Thomson Reuters I/B/E/S, but BMO's shares -- like those of rival banks -- were little changed in trade on the Toronto Stock Exchange.