Bank of Montreal today reported a small increase in second quarter profit as strong retail banking and wealth management growth were offset by weaker investment banking,

Net income for the quarter was $600 million, or $1.16 per share, up from $591 million, or $1.12 per share, in the year-before period.

Excluding items, adjusted net income was $537 million, or $1.04 a share, compared with $567 million, or $1.07 per share in the same period last year.

“Reported earnings were modestly higher than a year ago, but excluding significant items, earnings declined,” said Tony Comper, president and chief executive officer, in a release.

“Our personal and commercial banking and wealth management businesses both delivered solid earnings growth. However, results were weaker in some of our investment banking businesses and we had lower corporate portfolio securities gains.”

Revenue was about flat at $2.43 billion, compared with $2.45 billion. Return on equity, a key measure of profitability, slipped to 19.5% from 20.4%.

The provision for credit losses totalled $6 million in the quarter, compared with $5 million in the second quarter of 2004. There was also a $40 million reduction of the general allowance in the second quarter of 2005.