BMO Financial Group Reports Fourth Quarter and Fiscal 2018 Results (3)

(Canadian $ in millions, except as noted) Q4-2018 Q3-2018 Q4-2017 Fiscal 2018 Fiscal 2017 --- Summary Income Statement Net interest income 2,669 2,607 2,535 10,313 10,007 Non-interest revenue 3,253 3,213 3,120 12,724 12,253 --- Revenue 5,922 5,820 5,655 23,037 22,260 Insurance claims, commissions and changes in policy benefit liabilities (CCPB) 390 269 573 1,352 1,538 --- Revenue, net of CCPB 5,532 5,551 5,082 21,685 20,722 --- Provision for credit losses on impaired loans (1) 177 177 na 700 na Provision for (recovery of) credit losses on performing loans (1) (2) 9 na (38) na --- Total provision for credit losses (1) 175 186 202 662 746 Non-interest expense 3,224 3,386 3,375 13,613 13,330 Provision for income taxes 438 443 278 1,960 1,296 --- Net income 1,695 1,536 1,227 5,450 5,350 --- Attributable to bank shareholders 1,695 1,536 1,227 5,450 5,348 Attributable to non- controlling interest in subsidiaries 2 --- Net income 1,695 1,536 1,227 5,450 5,350 --- Adjusted net income 1,529 1,565 1,309 5,979 5,508 --- Common Share Data ($ except as noted) Earnings per share 2.57 2.31 1.81 8.17 7.92 Adjusted earnings per share 2.32 2.36 1.94 8.99 8.16 Earnings per share growth (%) 41.9 13.0 (10.3) 3.1 14.5 Adjusted earnings per share growth (%) 19.3 16.4 (7.6) 10.1 8.5 Dividends declared per share 0.96 0.96 0.90 3.78 3.56 Book value per share 64.73 63.31 61.92 64.73 61.92 Closing share price 98.43 103.11 98.83 98.43 98.83 Number of common shares outstanding (in millions) End of period 639.3 639.9 647.8 639.3 647.8 Average diluted 641.8 642.4 650.3 644.9 652.0 Total market value of common shares ($ billions) 62.9 66.0 64.0 62.9 64.0 Dividend yield (%) 3.9 3.7 3.6 3.8 3.6 Dividend payout ratio (%) 37.2 41.4 49.5 46.2 44.8 Adjusted dividend payout ratio (%) 41.3 40.6 46.2 41.9 43.5 --- Financial Measures and Ratios (%) Return on equity 16.1 14.7 12.1 13.2 13.3 Adjusted return on equity 14.5 15.0 12.9 14.6 13.7 Return on tangible common equity 19.5 17.9 14.8 16.2 16.3 Adjusted return on tangible common equity 17.3 18.0 15.5 17.5 16.5 Net income growth 38.1 10.7 (8.8) 1.9 15.5 Adjusted net income growth 16.8 13.9 (6.2) 8.6 9.7 Revenue growth 4.7 6.6 7.2 3.5 5.6 Revenue growth, net of CCPB 8.9 6.6 (2.2) 4.6 6.0 Non-interest expense growth (4.5) 3.0 1.4 2.1 2.2 Adjusted non- interest expense growth 6.0 3.7 (0.1) 3.4 3.6 Efficiency ratio, net of CCPB 58.3 61.0 66.4 62.8 64.3 Adjusted efficiency ratio, net of CCPB 62.4 60.3 64.1 62.2 62.9 Operating leverage, net of CCPB 13.4 3.6 (3.6) 2.5 3.8 Adjusted operating leverage, net of CCPB 2.9 2.9 (2.1) 1.2 2.0 Net interest margin on average earning assets 1.49 1.49 1.57 1.51 1.55 Effective tax rate 20.6 22.4 18.5 26.5 19.5 Adjusted effective tax rate 19.7 22.4 19.3 20.7 19.8 Total PCL-to- average net loans and acceptances (annualized) 0.18 0.19 0.22 0.17 0.20 PCL on impaired loans-to-average net loans and acceptances (annualized) 0.18 0.18 0.22 0.18 0.22 --- Balance Sheet (as at, $ millions, except as noted) Assets 774,048 765,318 709,580 774,048 709,580 Gross loans and acceptances 404,215 395,295 376,886 404,215 376,886 Net loans and acceptances 402,576 393,635 375,053 402,576 375,053 Deposits 522,051 506,916 479,792 522,051 479,792 Common shareholders' equity 41,387 40,516 40,114 41,387 40,114 Cash and securities- to-total assets ratio (%) 29.9 28.2 28.5 29.9 28.5 --- Capital Ratios (%) CET1 Ratio 11.3 11.4 11.4 11.3 11.4 Tier 1 Capital Ratio 12.9 12.9 13.0 12.9 13.0 Total Capital Ratio 15.2 14.9 15.1 15.2 15.1 Leverage Ratio 4.2 4.2 4.4 4.2 4.4 --- Foreign Exchange Rates ($) As at Canadian/U.S. dollar 1.3169 1.2997 1.2895 1.3169 1.2895 Average Canadian/ U.S. dollar 1.3047 1.3032 1.2621 1.2878 1.3071 ===

(1) Effective the first quarter of 2018, the bank prospectively adopted IFRS 9, Financial Instruments (IFRS 9). Under IFRS 9, we refer to the provision for credit losses on impaired loans and the provision for credit losses on performing loans. Prior periods have not been restated. The provision for credit losses in periods prior to the first quarter of 2018 is comprised of both specific and collective provisions. Refer to the Changes in Accounting Policies section on page 121 of BMO's 2018 Annual MD&A for further details. Certain comparative figures have been reclassified to conform with the current period's presentation. Adjusted results are non-GAAP amounts or non- GAAP measures. Please see the Non-GAAP Measures section. na - not applicable

Non--GAAP MeasuresResults and measures in this document are presented on a GAAP basis. Unless otherwise indicated, all amounts are in Canadian dollars, and they have been derived from our audited annual consolidated financial statements prepared in accordance with International Financial Reporting Standards (IFRS). References to GAAP mean IFRS. They are also presented on an adjusted basis that excludes the impact of certain items as set out in the following table. Results and measures that exclude the impact of Canadian/U.S. dollar exchange rate movements on our U.S. segment are non-GAAP measures (please see the Foreign Exchange section on page 7 for a discussion of the effects of changes in exchange rates on our results). Management assesses performance on a reported basis and on an adjusted basis and considers both to be useful in assessing underlying ongoing business performance. Presenting results on both bases provides readers with a better understanding of how management assesses results. It also permits readers to assess the impact of certain specified items on results for the periods presented, and to better assess results excluding those items that may not be reflective of ongoing results. As such, the presentation may facilitate readers' analysis of trends, as well as comparisons with our competitors. Except as otherwise noted, management's discussion of changes in reported results in this document applies equally to changes in the corresponding adjusted results. Adjusted results and measures are non-GAAP and as such do not have standardized meanings under GAAP. They are unlikely to be comparable to similar measures presented by other companies and should not be viewed in isolation from, or as a substitute, for GAAP results.

Non--GAAP Measures

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