Bank of Montreal today said its second-quarter profit rose 7.1% as strength in its investment banking arm offset a modest decline in its retail banking division.

The bank earned $644 million, or $1.24 per share, during the latest quarter, up from a profit of $600 million, or $1.16 per share, in the same period last year.

“Earnings increased strongly from a year ago,” BMO CEO Tony Comper said in a news release.

“Investment banking group earned record net income and (the) private client group’s results were its second-best ever, surpassed only by the final quarter of last year when we recorded significant gains on sales.”

The bank said it is it is raising its quarterly dividend by 9¢, or 17%, to 62¢ a share.

“I’m pleased to also announce that BMO is increasing its target dividend payout range to 45-55% of net income available to common shareholders. The increase, from 35-45%, is reflective of our confidence in our continued ability to generate earnings and our strong capital position,” Comper said.