Net income at BMO’s Private Client Group fell 28 per cent in the first quarter on a year-over-year basis to C$105 million ($106.3 million), and also moved downward 24 per cent on a quarterly basis.

The Canadian bank, which counts the first quarter to 31 January 2012, attributed the yearly fall in net income to “unfavorable movements in long-term interest rates that impacted our insurance business results.” Excluding insurance, net income at the private client business was C$93 million, up 27 per cent from a year earlier.

Assets under management at the PCG unit were C$435 billion, having grown by C$156 billion from a year earlier. On a basis that excludes the impact of acquisitions and the stronger US dollar, assets were relatively unchanged, the firm said.

Meanwhile, at BMO’s personal and commercial banking operations in the US, which includes BMO Harris Bank and Marshall & Ilsley, net income increased by $81 million from the first quarter a year ago to $135 million.

Adjusted net income at the unit, accounting for the amortization of acquisition-related intangible assets, was $152 million, up $93 million from a year ago, with the acquired Marshall & Ilsley Corporation business contributing $89 million, the firm said.

Across the financial services group, net income was C$1.1 billion, up 34 per cent from a year ago, and C$972 million on an adjusted basis, up 19 per cent.

"Overall, we believe that the recovery that is underway in the US will lead to gradually more favorable economic and market conditions throughout North America. Our businesses, customers and shareholders all stand to benefit from this,” said Bill Downe, president and chief executive, BMO Financial Group

"The integration of Marshall & Ilsley is on track... The combination of the two banks has created a competitive platform from which to grow our personal and commercial and wealth businesses in the US,” he added.