The Canadian personal and commercial banking (P&C) arm of BMO Financial Group has reported a net income of C$743m for the first quarter of 2017, a 40% increase compared to C$529m in the prior corresponding period.

The unit’s adjusted net income, which excludes the amortisation of acquisition-related intangible assets, increased 40% to C$744m from C$530m a year ago.

The group said that the results included a C$168m after-tax (C$187m pre-tax) gain on the sale of Moneris US.

Revenues for the quarter ended 31 January 2017 were C$1.98bn, a 15% increase from C$1.72bn a year ago driven by the gain on sale, higher balances across most products and increased non-interest revenue, partially offset by lower net interest margin.

Provision for credit losses dropped 16% to C$118m from C$140m in the prior year.

The bank's US P&C arm reported net income of C$260 for the first quarter of 2017, a 4% rise from C$251m in the previous year. The unit’s adjusted net income, which excludes the amortization of acquisition-related intangible assets, rose 3% year-on-year to C$272m.

Overall, the group recorded net income of C$1.48bn for the first quarter of 2017, a 39% surge from a year ago.  The group’s adjusted net income jumped 30% year-on-year to C$1.53bn.

BMO Financial Group CEO Bill Downe said: "BMO's performance this quarter is strong and broad-based, we delivered adjusted earnings of $1.5 billion and adjusted earnings per share of $2.28.

"The good momentum in the business is the consequence of a clear strategy and consistent execution, doing what we said we would do. Our roadmap is focused on providing customers with intuitive products and services that meet their evolving preferences, while improving efficiency in all of our channels.”