UPDATE: Bank of Montreal Posts Lower Q1 Earnings

Bank of Montreal (NYSE: BMO) reported a drop in its fiscal first quarter profit.The Montreal, Canada-based bank posted a quarterly net profit of C$1 billion ($795 million), or C$1.46 per share, versus a year-ago profit of C$1.06 billion, or C$1.58 per share. On an adjusted basis, Bank of Montreal's earnings declined to C$1.04 billion, or C$1.53 per share, versus C$1.08 billion, or C$1.61 per share. Analysts were expecting a profit of C$1.63 per share.BMO's personal and commercial banking earnings rose 4 % to C$502 million in Canada, while personal and commercial banking earnings climbed 15% to C$192 million in U.S. operations. BMO Capital Markets net income fell 20% to $221 million.BMO announced a Q2 dividend of $0.80 per share, unchanged versus the prior quarter."BMO's first quarter results reflect the impact of an unsettled environment in which we saw significant movements in oil prices, long-term interest rates and the Canadian dollar. Against this backdrop, underlying business performance was solid, with combined Personal and Commercial Banking adjusted earnings of $708 million, up 6% year over year, reflecting the benefits of our diversified and growing customer base. We also had good results in our Traditional Wealth businesses, with adjusted earnings up 28% from last year," said Bill Downe, Chief Executive Officer, BMO Financial Group.BMO shares closed at $61.47 yesterday.