BMO Financial Group raised its quarterly dividend as its second-quarter profit fell compared with a year ago and its provisions for credit losses climbed higher.

The bank said Wednesday it will now pay a quarterly dividend of $1.47 per share, up from $1.43 per share.

The increased payment to shareholders came as BMO reported a profit of $1.06 billion of $1.30 per share for the quarter ended April 30, down from a profit of $4.76 billion or $7.13 per diluted share a year earlier.

Revenue totalled $8.44 billion, down from $9.32 billion in the same quarter last year, while the bank's provision for credit losses amounted to $1.02 billion, up from $50 million a year earlier.

On an adjusted basis, BMO says it earned $2.93 per diluted share in its latest quarter, down from an adjusted profit of $3.23 per diluted share in the same quarter last year.

The average analyst estimate had been for an adjusted profit of $3.19 per share, according to estimates compiled by financial markets data firm Refinitiv.

"Our performance this quarter reflects our highly diversified business mix and the strength, size and stability of our balance sheet, which has been further enhanced by the successful acquisition of Bank of the West," BMO chief executive Darryl White said in a statement.

BMO completed its deal to buy California-based Bank of the West on Feb. 1.

In its second quarter, BMO said its Canadian personal and commercial banking operations earned $861 million, down from $940 million in the same quarter last year, while its U.S. personal and commercial banking business earned $789 million, up from $588 million a year earlier.

BMO's wealth management business earned $284 million, down from $314 million in the same quarter last year.

The bank's capital markets business earned $380 million, down from $448 million a year earlier.

BMO's corporate services division lost $1.26 billion in its latest quarter compared with profit of $2.47 billion in the same quarter last year.

This report by The Canadian Press was first published May 24, 2023.