Bank of Montreal today reported a 15.5% rise in first-quarter profit. The bank said capital markets revenue climbed, while costs were contained.

Net income for Canada’s fifth-largest bank was $602 million, or $1.16 a share, up from $521 million, or $1.00 a share, in the year-before period.

On a cash basis, the bank earned $1.19 per share.

Specific loan loss provisions were $43 million, down from $55 million in the year-before quarter, while return on equity rose to 19.4% from 18.3%.

Revenue rose 3% to $2.4 billion, helped by strong investment income, while expenses retreated by 1.8%.

“The year is off to a good start and we are well positioned to achieve all of our financial targets for fiscal 2005,” CEO Tony Comper said in a release.

“We again improved our productivity, our top priority for 2005, and each of our client operating groups posted higher earnings than a year ago.”

The bank increased its quarterly dividend by 2¢ to 46¢ a share.

BMO shares were down 24¢, or 0.42%, at $56.46, in Tuesday morning trading.