HispanicBusiness

Adjusted results in this section are non-GAAP amounts or non-GAAP measures. Please see the Non-GAAP Measures section.

Revenue

Total revenue decreased $36 million or 1% from the first quarter a year ago to $4,081 million. Adjusted revenue increased $118 million or 3% to $3,861 million. There was strong growth in BMO Capital Markets, as favourable market conditions generated strong investment banking and trading results, and in PCG due largely to higher Insurance results as well as growth in client assets. P&C Canada revenues were unchanged, reflecting the combination of increases in volumes across most products and lower net interest margin. P&C U.S. revenues decreased due to reductions in net interest margin, securities gains and deposit fees, partially offset by increases in gains on sale of newly originated mortgages and commercial lending fees. Corporate Services' adjusted revenues also decreased, due to reduced securities gains, a higher teb group offset in the current quarter and lower revenue from a variety of items, including treasury-related items, none of which were individually significant. The weaker U.S. dollar decreased adjusted revenue growth by $22 million or 1%.

Revenue decreased $95 million or 2% from the fourth quarter. Adjusted revenue decreased $59 million or 2%. There was modest growth across all the operating groups with the exception of PCG, where revenue growth in wealth businesses was more than offset by reduced Insurance revenue. There was reduced revenue in Corporate Services, due primarily to lower revenue from a variety of items, as discussed above. The stronger U.S. dollar increased adjusted revenue growth by $7 million.

Changes in net interest income and non-interest revenue are reviewed in the sections that follow.

This section contains adjusted results and measures, which are non-GAAP. Please see the Non-GAAP Measures section.

Net Interest Income

Net interest income decreased $102 million or 4% from a year ago to $2,216 million in the first quarter of 2013. Reported net interest income includes amounts for the recognition of a portion of the credit mark on the M&I purchased performing loan portfolio. Adjusted net interest income decreased $88 million or 4% to $2,004 million. On an adjusted basis, there were reductions in PCG, P&C U.S., P&C Canada and Corporate Services, with an increase in BMO Capital Markets.

BMO's overall net interest margin decreased by 20 basis points year over year to 1.85%. Adjusted net interest margin decreased by 18 basis points to 1.67% with decreases in each of the operating groups. Changes are discussed in the Review of Operating Groups' Performance section.

Average earning assets in the first quarter of 2013 increased $26 billion or 6% relative to a year ago, including a $3 billion decrease as a result of the weaker U.S. dollar. There was growth in each operating group. The major increases were in BMO Capital Markets, due to increased trading securities as a result of investment opportunities, and P&C Canada, driven by volume growth across most products.

Relative to the fourth quarter, net interest income increased $71 million or 3%. Adjusted net interest income increased $48 million or 2%. There was a strong increase in BMO Capital Markets due to a charge on the termination of a contract in the U.S. business in the previous quarter, as well as increases in PCG, P&C Canada and P&C U.S.