Bank of Montreal today reported a 35% drop in fourth quarter profit, on one-time charges adding up to $275 million.

The charges include $211 million related to the bank’s exposure to stricken credit markets.

The bank said profit for the quarter ended October 32, dropped to $452 million, or 87¢ a share. That compares with earnings of $696 million, or $1.35 a share, in the same period a year ago.

Excluding the writedowns, BMO’s profit would have come in at $727 million, or cash earnings per share of $1.44.

Charges also reined in BMO’s fiscal 2007 earnings, dropping profit by 20% to $2.13 billion, including $787 million in after-tax losses related to deterioration in capital markets.

“Our businesses performed well in the quarter in the face of a difficult environment, which should pay off when market conditions improve,” president and CEO Bill Downe said in a news release.

“We earned $2.1 billion and achieved a return on equity of 14.4% in fiscal 2007. Our return on equity, despite the challenges in the year, reflects the strength of our core businesses and the benefits of our diversified business mix.”