Bank of Montreal’s adjusted net income for the first quarter dropped by 7% to $1.422 billion in the first quarter, but still came in ahead of analyst estimates.

The bank’s adjusted net income amounted to $2.12 per share — above the estimate of $2.06 per share from Thomson Reuters.

Without adjustments, BMO’s net income for the quarter ended Jan. 31 was $973 million or $1.43 per share, down 35% from a year earlier — mostly because of a $425 million one-time item related to U.S. tax reform.

Read: Snapshot: Canadian economic data

BMO’s main Canadian banking operation reported $647 million of adjusted net income, down $98 million from a year earlier when the lender saw a gain on the sale of Moneris’ U.S. operations. Its main U.S. banking operation had $321 million of adjusted net income, up $60 million from a year earlier.

BMO Wealth Management had $276 million of adjusted net income, down $8 million from a year earlier.

Chief executive Darryl White says a constructive economic environment in the U.S. played to the bank’s strengths. “Looking ahead, we see attractive opportunities to deliver organic growth and achieve our financial objectives.”

Meanwhile, Scotiabank reported better-than-expected adjusted profit of roughly $2.275 billion for its first quarter, with strong earnings internationally as well as at home.

Scotiabank increased its quarterly payment to common shareholders by three cents per share to 82 cents per share, the third of the big Canadian banks to do so this quarter after CIBC and Royal Bank.

Read: Snapshot: U.S. economic data

On an adjusted basis, Canada’s third-largest lender reported $1.87 earnings per diluted share, up from to $1.58 per diluted share a year ago and higher than the $1.68 per share expected by analysts surveyed by Thomson Reuters.

A year earlier, Scotiabank’s adjusted profit attributable to shareholders was $1.946 billion or $1.58 per diluted share.

“All of our businesses delivered strong results, contributing to solid top line growth and a continued improvement in efficiency…. We are pleased with our strong start to the year,” says Brian Porter, Scotiabank’s president and chief executive, in a statement.

The lender’s Canadian banking division reported net income attributable to shareholders of $1.1 billion, up 12% compared to the same period a year earlier.

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