BMO Financial Group Reports Fourth Quarter and Fiscal 2018 Results (18)

(Unaudited) (Canadian $ in millions) For the three months ended For the twelve months ended --- October 31, October 31, October 31, October 31, 2018 2017 2018 2017 Preferred Shares Balance at beginning of period $ 4,240 $ 4,240 $ 4,240 $ 3,840 Issued during the period 400 400 900 Redeemed during the period (300) (300) (500) --- Balance at End of Period 4,340 4,240 4,340 4,240 --- Common Shares Balance at beginning of period 12,924 13,044 13,032 12,539 Issued under the Shareholder Dividend Reinvestment and Share Purchase Plan 448 Issued under the Stock Option Plan 26 9 99 146 Repurchased for cancellation (21) (21) (202) (101) --- Balance at End of Period 12,929 13,032 12,929 13,032 --- Contributed Surplus Balance at beginning of period 302 305 307 294 Stock option expense, net of options exercised (2) 2 (12) 6 Other 5 7 --- Balance at End of Period 300 307 300 307 --- Retained Earnings Balance at beginning of period 24,909 23,183 23,709 21,205 Impact from adopting IFRS 9 na 99 na Net income attributable to bank shareholders 1,695 1,227 5,450 5,348 Dividends - Preferred shares (43) (48) (184) (184) - Common shares (614) (583) (2,424) (2,312) Share issue expense (5) (5) (9) Common shares repurchased for cancellation (86) (70) (789) (339) --- Balance at End of Period 25,856 23,709 25,856 23,709 --- Accumulated Other Comprehensive Income (Loss) on Fair Value through OCI Securities, net of taxes (1) Balance at beginning of period (244) 46 56 48 Impact from adopting IFRS 9 na (55) na Unrealized (losses) on fair value through OCI debt securities arising during the period (49) na (251) na Unrealized gains on available-for-sale securities arising during the period na 27 na 95 Reclassification to earnings of (gains) in the period (22) (17) (65) (87) --- Balance at End of Period (315) 56 (315) 56 --- Accumulated Other Comprehensive (Loss) on Cash Flow Hedges, net of taxes Balance at beginning of period (885) (191) (182) 596 (Losses) on derivatives designated as cash flow hedges arising during the period (309) (27) (1,228) (839) Reclassification to earnings of losses on derivatives designated as cash flow hedges in the period 120 36 336 61 --- Balance at End of Period (1,074) (182) (1,074) (182) --- Accumulated Other Comprehensive Income on Translation of Net Foreign Operations, net of taxes Balance at beginning of period 3,486 2,651 3,465 4,327 Unrealized gains (losses) on translation of net foreign operations 303 952 417 (885) Unrealized gains (losses) on hedges of net foreign operations (62) (138) (155) 23 --- Balance at End of Period 3,727 3,465 3,727 3,465 --- Accumulated Other Comprehensive Income (Loss) on Pension and Other Employee Future Benefit Plans, net of taxes Balance at beginning of period 211 (195) (92) (512) Gains (losses) on remeasurement of pension and other employee future benefit plans (42) 103 261 420 --- Balance at End of Period 169 (92) 169 (92) --- Accumulated Other Comprehensive (Loss) on Own Credit Risk on Financial Liabilities Designated at Fair Value, net of taxes Balance at beginning of period (187) (149) (181) (33) (Losses) on remeasurement of own credit risk on financial liabilities designated at fair value (18) (32) (24) (148) --- Balance at End of Period (205) (181) (205) (181) --- Total Accumulated Other Comprehensive Income 2,302 3,066 2,302 3,066 --- Total Shareholders ' Equity $ 45,727 $ 44,354 $ 45,727 $ 44,354 === Non-controlling Interest in Subsidiaries Balance at beginning of period 24 Net income attributable to non-controlling interest 2 Redemption/purchase of non-controlling interest (25) Other (1) --- Balance at End of Period --- Total Equity $ 45,727 $ 44,354 $ 45,727 $ 44,354 ===

(1) Periods reported before November 1, 2017 represent available-for-sale securities. na - not applicable due to IFRS 9 adoption.

INVESTOR AND MEDIA PRESENTATION

Investor Presentation MaterialsInterested parties are invited to visit our website at www.bmo.com/investorrelations [http://www.bmo.com/investorrelations] to review our 2018 Annual MD&A and audited annual consolidated financial statements, quarterly presentation materials and supplementary financial information package.

Quarterly Conference Call and Webcast PresentationsInterested parties are also invited to listen to our quarterly conference call on Tuesday, December 4, 2018, at 8:00 a.m. (ET). At that time, senior BMO executives will comment on results for the quarter and respond to questions from the investor community. The call may be accessed by telephone at 416-641-2144 (from within Toronto) or 1-888-789-9572 Passcode: 5126346. A replay of the conference call can be accessed until Monday, February 25, 2019, by calling 905-694-9451 (from within Toronto) or 1-800-408-3053 and entering Passcode: 5740558.

A live webcast of the call can be accessed on our website at www.bmo.com/investorrelations [http://www.bmo.com/investorrelations]. A replay can also be accessed on the site.

Shareholder Dividend Reinvestment and Share For other shareholder information, including the notice for our normal course issuer Purchase bid, please contact Plan (the Plan) Bank of Montreal Average market price as defined under the Plan Shareholder Services August 2018: $106.33 Corporate Secretary's Department September 2018: $107.98 One First Canadian Place, 21st Floor October 2018: $98.90 Toronto, Ontario M5X 1A1 Telephone: (416) 867-6785 For dividend information, change in shareholder address Fax: (416) 867-6793 or to advise of duplicate mailings, please contact E-mail: corp.secretary@bmo.com Computershare Trust Company of Canada 100 University Avenue, 8th Floor For further information on this document, please contact Toronto, Ontario M5J 2Y1 Bank of Montreal Telephone: 1-800-340-5021 (Canada and the United States) Investor Relations Department Telephone: (514) 982-7800 (international) P.O. Box 1, One First Canadian Place, 10th Floor Fax: 1-888-453-0330 (Canada and the United States) Toronto, Ontario M5X 1A1 Fax: (416) 263-9394 (international) E-mail: service@computershare.com To review financial results and regulatory filings and disclosures online, please visit our website at www.bmo.com/investorrelations . ---

Our 2018 Annual MD&A, audited annual consolidated financial statements and annual report on Form 40-F (filed with the U.S. Securities and Exchange Commission) are available online at www.bmo.com/investorrelations [http://www.bmo.com/investorrelations] and at www.sedar.com [http://www.sedar.com/]. Printed copies of the bank's complete 2018 audited financial statements are available free of charge upon request at 416-867-6785 or corp.secretary@bmo.com[mailto:corp.secretary@bmo.com].

Annual Meeting 2019 The next Annual Meeting of Shareholders will be held on Tuesday, April 2, 2019 in Toronto, Ontario. ---

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Media Relations Contacts: Paul Gammal, Toronto, paul.gammal@bmo.com, 416-867-6543; Investor Relations Contacts: Jill Homenuk, Head, Investor, Media & Government Relations, jill.homenuk@bmo.com, 416-867-4770; Christine Viau, Director, Investor Relations, christine.viau@bmo.com, 416-867-6956

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