Bank of Montreal beat estimates as it benefited from strong performance in its capital-markets business and set aside less money than expected to cover possible loan losses.

Canada's Bank of Nova Scotia and Bank of Montreal on Tuesday beat analysts' expectations for quarterly profit driven by strong income from capital markets and wealth management businesses. Lower interest rates have increased appetite for mergers and acquisitions while less regulation,

Bank of Montreal TXN-Q -0.37% posted higher first-quarter profit that topped analysts’ estimates as capital markets activity surged. BMO earned $2.1-billion or $2.83 per share in the three months that ended Jan3 31. That compared with $1.3-billion or $1.73 per share in the same quarter last year.

Canadian lender Bank of Montreal on Tuesday reported a jump in first-quarter profit driven by strength in its capital markets business. Adjusted earnings from BMO's capital markets business jumped 45% to C$591 million ($414.