BMO Financial Group reported increased profit for the first quarter ended January 31, 2003. The bank said on Tuesday that higher revenues and lower provision for credit losses boosted quarterly earnings.

The bank earned $399 million, or 75¢ a share, compared with $372 million, or 71¢ cents a share, in the same quarter of the previous year.

Cash earnings were $421 million, or 79¢ a share in the quarter, up from $388 million, or 71¢ a share.

The bank said revenues rose to $2.32 billion from $2.21 billion, while return on equity eased to 14.3% from 14.5%. Revenues were driven by volume growth in the Personal and Commercial Client Group, acquired businesses in the Private Client Group, and improved mergers and acquisitions and underwriting fees in the Investment Banking Group.

Loan losses stood at $150 million during the quarter, down from C$180 million a year ago. The bank forecast that annual provision losses will be at or below $700 million for 2003. That is down from earlier guidance of $820 million.

“Fiscal 2003 is off to a reasonable start,” said Tony Comper, chairman and CEO, BMO Financial Group, in a news release.

“Solid growth in personal and commercial banking volumes in both Canada and the U.S. continue to drive our performance. Our investment banking and wealth management groups are managing their businesses effectively within the constraints of the challenging market environment, as evidenced by their stable year-over-year performances,” he added.