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imageTORONTO: Bank of Montreal on Wednesday reported a slightly lower-than-expected quarterly profit and set aside more funds to cover losses on bad loans.

BMO, Canada's fourth-biggest bank, said net income for the second quarter ended on April 30 fell 3 percent to C$973 million ($742 million), or C$1.45 per share, from a year earlier.

Excluding one-off items, earnings were C$1.73 a share.

Analysts on average had expected C$1.75, according to Thomson Reuters I/B/E/S.

The bank said provisions for credit losses rose to C$201 million from C$161 million, with the increase mainly due to resource-related loans at its capital markets division.

BMO raised its quarterly dividend by 2 Canadian cents to 86 Canadian cents.

Copyright Reuters, 2016

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