Bank of Montreal today reported that its third-quarter profit fell 16% as strong retail banking and wealth management results were offset by lower earnings in its investment banking business.

Net income for the quarter was $541 million, or $1.05 per share, down from $643 million, or $1.24 per share, in the year-before period.

Cash earnings per share was $1.08 compared with $1.27.

Shares of BMO fell 88¢, or 1.5%, to $59.12 on the Toronto Stock Exchange shortly after the market opened.

Revenue rose to $2.41 billion, compared with $2.36 billion a year ago.

Return on equity slipped to 16.5% from 21%.

Third quarter results included a $73 million specific provision for credit losses, compared with specific recoveries of $70 million a year ago.

“This quarter’s earnings did not match the record results of a year ago, which benefited from particularly favourable credit performance,” said Tony Comper, president and CEO, BMO Financial Group, in a news release.

“Our personal and commercial banking and wealth management businesses continue to deliver strong year-over-year earnings growth; however, some of our investment banking businesses have not performed as well in the current interest rate environment.”

Personal and Commercial Client Group earned record net income in the third quarter, rising $39 million or 15% from a year ago.

Private Client Group earnings increased $5 million or 8%, due to strength in full-service investing and mutual funds.

Investment Banking Group net income declined $46 million or 20%.

The bank raised its quarterly dividend to 49¢ per share from 46¢ per share.