BMO Financial Group Reports Second Quarter 2019 Results (3)

(Canadian $ in millions, Q2-2019 Q1-2019 Q2-2018 YTD-2019 YTD-2018 except as noted) --- Reported Results Revenue 6,213 6,517 5,580 12,730 11,218 Insurance claims, commissions and changes in policy benefit liabilities (CCPB) (561) (926) (332) (1,487) (693) --- Revenue, net of CCPB 5,652 5,591 5,248 11,243 10,525 Total provision for credit losses (176) (137) (160) (313) (301) Non-interest expense (3,595) (3,557) (3,525) (7,152) (6,925) --- Income before income taxes 1,881 1,897 1,563 3,778 3,299 Provision for income taxes (384) (387) (317) (771) (1,080) --- Net income 1,497 1,510 1,246 3,007 2,219 EPS ($) 2.26 2.28 1.86 4.54 3.29 --- Adjusting Items (Pre-tax) (1) Acquisition integration costs (2) (2) (6) (4) (8) (8) Amortization of acquisition-related intangible assets (3) (30) (31) (29) (61) (57) Restructuring costs (4) (260) (260) Adjusting items included in reported pre-tax income (32) (37) (293) (69) (325) --- Adjusting Items (After tax) (1) Acquisition integration costs (2) (2) (4) (2) (6) (5) Amortization of acquisition-related intangible assets (3) (23) (24) (23) (47) (44) Restructuring costs (4) (192) (192) U.S. net deferred tax asset revaluation (5) (425) Adjusting items included in reported net income after tax (25) (28) (217) (53) (666) Impact on EPS ($) (0.04) (0.04) (0.34) (0.08) (1.03) --- Adjusted Results Revenue 6,213 6,517 5,580 12,730 11,218 Insurance claims, commissions and changes in policy benefit liabilities (CCPB) (561) (926) (332) (1,487) (693) --- Revenue, net of CCPB 5,652 5,591 5,248 11,243 10,525 Total provision for credit losses (176) (137) (160) (313) (301) Non-interest expense (3,563) (3,520) (3,232) (7,083) (6,600) --- Income before income taxes 1,913 1,934 1,856 3,847 3,624 Provision for income taxes (391) (396) (393) (787) (739) --- Net income 1,522 1,538 1,463 3,060 2,885 EPS ($) 2.30 2.32 2.20 4.62 4.32 ---

(1) Adjusting items are generally included in Corporate Services, with the exception of the amortization of acquisition-related intangible assets and certain acquisition integration costs, which are charged to the operating groups. (2) Acquisition integration costs related to the acquired BMO Transportation Finance business are charged to Corporate Services, since the acquisition impacts both Canadian and U.S. P&C businesses. KGS-Alpha acquisition integration costs are reported in BMO Capital Markets. Acquisition integration costs are recorded in non-interest expense. (3) These expenses were charged to the non-interest expense of the operating groups. Before-tax and after-tax amounts for each operating group are provided on pages 13, 14, 16, 18 and 20 of our Second Quarter 2019 Report to Shareholders. (4) In Q2-2018, we recorded a restructuring charge, primarily related to severance, as a result of an ongoing bank-wide initiative to simplify how we work, drive increased efficiency and invest in technology to move our business forward. Restructuring costs are included in non-interest expense in Corporate Services. (5) Charge related to the revaluation of our U.S. net deferred tax asset as a result of the enactment of the U.S. Tax Cut and Jobs Act. For more information see the Critical Accounting Estimates - Income Taxes and Deferred Tax Assets section on page 119 of BMO's 2018 Annual Report. Certain comparative figures have been reclassified to conform with the current period's presentation. Adjusted results and measures in this table are non-GAAP amounts or non-GAAP measures.

Caution Regarding Forward-Looking Statements

Bank of Montreal's public communications often include written or oral forward-looking statements. Statements of this type are included in this document, and may be included in other filings with Canadian securities regulators or the U.S. Securities and Exchange Commission, or in other communications. All such statements are made pursuant to the "safe harbor" provisions of, and are intended to be forward-looking statements under, the United States Private Securities Litigation Reform Act of 1995 and any applicable Canadian securities legislation. Forward-looking statements in this document may include, but are not limited to, statements with respect to our objectives and priorities for fiscal 2019 and beyond, our strategies or future actions, our targets, expectations for our financial condition or share price, the regulatory environment in which we operate and the results of or outlook for our operations or for the Canadian, U.S. and international economies, and include statements of our management. Forward-looking statements are typically identified by words such as "will", "would", "should", "believe", "expect", "anticipate", "project", "intend", "estimate", "plan", "goal", "target", "may" and "could".

By their nature, forward-looking statements require us to make assumptions and are subject to inherent risks and uncertainties, both general and specific in nature. There is significant risk that predictions, forecasts, conclusions or projections will not prove to be accurate, that our assumptions may not be correct, and that actual results may differ materially from such predictions, forecasts, conclusions or projections. We caution readers of this document not to place undue reliance on our forward-looking statements, as a number of factors - many of which are beyond our control and the effects of which can be difficult to predict - could cause actual future results, conditions, actions or events to differ materially from the targets, expectations, estimates or intentions expressed in the forward-looking statements.

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