Double-digit gains in BMO Financial Group's U.S. banking operations helped lead the lender to a profit beat in its fiscal first quarter.

BMO's adjusted net income in the three months ending Jan. 31 dipped seven per cent to $1.42 billion or $2.12 per share. Analysts, on average, expected the bank would earn $2.06 per share. BMO left its quarterly dividend unchanged at 93 cents per share. 

Adjusted profit in BMO's personal and commercial division south of the border surged 30 per cent year-over year to US$256 million, which the bank attributed to higher revenue and U.S. tax reform.

"The constructive economic environment, particularly in the U.S., plays to the strengths of our business mix, with another quarter of increased contribution from our U.S. segment, which grew at a higher rate than the bank overall," said CEO Darryl White in a press release. 

In Canada, BMO's personal and commercial banking adjusted profit slumped 13 per cent to $647 million; the lender blamed the bottom-line erosion on a legal reserve and other factors that drove up expenses.

Meanwhile, the bank's wealth management adjusted profit was little changed at $276 million and capital markets profit sank to $271 million from $367 million a year earlier.

"We have made progress against our strategic areas of focus,” White said, “including making the bank more efficient and continuing to invest in our digital agenda, our people and our communities. Looking ahead, we see attractive opportunities to deliver organic growth and achieve our financial objectives."