Toronto-based BMO Financial Group reported earnings of $358 million or 61 cents per share during the quarter ended April 30, down from year-earlier profits of $642 million or a $1.25 per share.

Stripping out the effect of a charge of $80 million related to still shaky capital markets and another $80 million in severance costs, the major bank reported adjusted cash earnings per share of 93 cents, ahead of the 91 cents forecast by analysts surveyed by Thomson Reuters.

The bank's quarterly dividend was left unchanged at 70 cents per share. Its Tier 1 Capital Ratio, a key performance indicator, increased to 10.7 per cent from 9.77 per cent recorded six months ago.