BANK OF MONTREAL FINANCIAL HIGHLIGHTS (Canadian $ in millions - PDF document

BANK OF MONTREAL FINANCIAL HIGHLIGHTS (Canadian $ in millions except as noted) For the three months ended For the six months ended Apr 30, Jan 31, Apr 30, Change from Apr 30, Apr 30, Change from 2000 1999 Apr 30,1999 1999 Apr 30,1999 2000 2000 Net Income Statement $ 1,084 $ 2,165 Net interest income (TEB) (a) $ 1,081 $ 1,112 (2.5)% $ 2,201 (1.6)% Other income 1,200 1,042 849 41.4 2,242 1,694 32.4 2,284 2,123 1,961 16.5 4,407 3,895 13.2 Total revenue (TEB) (a) 100 200 Provision for credit losses 100 80 25.0 160 25.0 1,348 2,602 Non-interest expense 1,254 1,271 6.2 2,503 4.0 322 601 Provision for income taxes (TEB) (a) 279 231 39.2 472 27.2 5 9 Non-controlling interest in subsidiaries 4 5 (9.6) 12 (27.2) 509 995 486 374 35.9 748 33.1 Net income before goodwill 12 24 Amortization of goodwill, net of applicable income tax 12 10 12.3 22 13.5 497 971 Net income 474 364 36.6 726 33.7 35 66 Taxable equivalent adjustment 31 35 (0.9) 71 (6.8) Per Common Share ($) Net income before goodwill - basic $ 1.81 $ 1.72 $ 1.30 $ 0.51 $ 3.53 $ 2.59 $ 0.94 1.79 1.71 1.29 3.50 2.57 0.93 - fully diluted 0.50 Net income 1.76 3.44 - basic 1.68 1.26 0.50 2.51 0.93 1.75 3.41 - fully diluted 1.66 1.25 0.50 2.49 0.92 0.50 1.00 Dividends declared 0.50 0.47 0.03 0.94 0.06 37.45 37.45 35.77 33.53 33.53 3.92 Book value per share 3.92 53.75 53.75 Market value per share 48.15 60.80 (7.05) 60.80 (7.05) 14.4 14.4 Total market value of common shares ($ billions) 12.9 16.2 (1.8) 16.2 (1.8) As at Apr 30, Jan 31, Apr 30, Change from 2000 2000 1999 Apr 30,1999 Balance Sheet Summary $ 238,414 $ 228,525 $ 219,653 8.5% Assets 136,697 Loans 133,148 132,984 2.8 Deposits 162,067 154,469 146,965 10.3 16,428 Capital funds 15,920 15,479 6.1 10,037 Common equity 9,571 8,916 12.6 (283) (240) (212) (33.3) Net impaired loans and acceptances Average Balances 136,536 135,659 134,806 1.3 Loans 233,354 Assets 230,195 224,762 3.8 For the three months ended For the six months ended Apr 30, Jan 31, Apr 30, Apr 30, Apr 30, 2000 2000 1999 2000 1999 Primary Financial Measures (%) (b) 5 year total shareholder return 18.2 17.5 23.4 18.2 23.4 Net economic profit ($ millions) 226 201 132 427 262 40.0 36.9 Earnings per share growth 33.9 (5.3) (3.9) Return on equity 19.8 19.0 15.5 19.4 15.3 Revenue growth 16.5 9.8 2.7 13.2 4.1 59.1 59.0 64.8 59.1 64.3 Expense-to-revenue ratio Provision for credit losses as a % of average loans and acceptances 0.28 0.28 0.23 0.28 0.22 Gross impaired loans and acceptances as a % of 8.71 8.71 equity and allowance for credit losses 8.89 8.36 8.36 Liquidity ratio 30.1 29.9 28.3 30.1 28.3 Tier 1 capital ratio 8.06 7.84 7.73 8.06 7.73 Credit rating AA- AA- AA- AA- AA- Other Financial Ratios (% except as noted) (b) Total shareholder return (1.0) (12.0) (0.8) (1.0) (0.8) Dividend yield 4.2 3.3 2.9 3.4 2.9 Price-to-earnings ratio (times) 9.4 9.3 13.2 9.4 13.2 Market-to-book value (times) 1.44 1.35 1.81 1.44 1.81 Cash earnings per share – basic ($) 1.83 1.74 1.32 3.57 2.64 Cash return on common shareholders’ equity 21.8 21.0 17.4 21.4 17.2 0.87 0.82 0.66 0.84 0.64 Return on average assets Net interest margin 1.89 1.87 2.03 1.88 1.95 Other income as a % of total revenue 52.5 49.1 43.3 50.9 43.5 Expense growth 6.2 1.8 6.3 4.0 6.2 7.67 Tier 1 capital ratio – U.S. basis 7.63 7.38 7.67 7.38 Total capital ratio 11.13 10.99 10.85 11.13 10.85 Equity-to-assets ratio 5.1 5.1 5.1 5.1 5.1 (a) Reported on a taxable equivalent basis (TEB). (b) For the period ended or as at, as appropriate. (c) All ratios in this report are based on unrounded numbers. Bank of Montreal Second Quarter Report 2000 Page 1

BANK OF MONTREAL CONSOLIDATED STATEMENT OF INCOME (Unaudited) (Canadian $ in millions except number of common shares) For the three months ended For the six months ended Apr 30, 2000 Jan 31, 2000 Apr 30, 1999 Apr 30, 2000 Apr 30, 1999 Interest, Dividend and Fee Income $ 2,654 $ 5,103 Loans $ 2,449 $ 2,321 $ 4,887 Securities 673 701 611 1,374 1,248 263 231 260 494 537 Deposits with banks 3,590 3,381 3,192 6,971 6,672 Interest Expense 1,905 3,659 Deposits 1,754 1,482 3,212 Subordinated debt 83 86 83 169 169 553 1,044 Other liabilities 491 550 1,161 2,541 2,331 2,115 4,872 4,542 1,049 2,099 Net Interest Income 1,050 1,077 2,130 Provision for credit losses 100 100 80 200 160 Net Interest Income After Provision for Credit Losses 949 950 997 1,899 1,970 Other Income Deposit and payment service charges 159 164 150 323 296 72 152 Lending fees 80 71 149 Capital market fees 341 224 185 565 369 47 53 46 100 94 Card services 100 204 Investment management and custodial fees 104 101 205 57 109 Mutual fund revenues 52 46 95 140 217 Trading revenues 77 92 157 81 151 Securitization revenues 70 68 143 203 421 218 90 186 Other fees and commissions 1,200 1,042 849 2,242 1,694 Net Interest and Other Income 2,149 1,992 1,846 4,141 3,664 Non-Interest Expense 805 734 698 1,539 1,366 Salaries and employee benefits 272 529 Premises and equipment 257 274 548 Communications 64 65 68 129 134 201 395 Other expenses 194 226 444 1,342 1,250 1,266 2,592 2,492 Amortization of intangible assets 6 4 5 10 11 1,348 2,602 Total non-interest expense 1,254 1,271 2,503 Income Before Provision for Income Taxes, Non- 801 1,539 Controlling Interest in Subsidiaries and Goodwill 738 575 1,161 Income taxes 287 248 196 535 401 514 490 379 1,004 760 Non-controlling interest 5 4 5 9 12 509 995 Net Income Before Goodwill 486 374 748 Amortization of goodwill, net of applicable income tax 12 12 10 24 22 Net Income $ 497 $ 474 $ 364 $ 971 $ 726 Dividends Declared - preferred shares $ 26 $ 25 $ 30 $ 51 $ 60 $ 134 $ 134 $ 125 $ 268 $ 250 - common shares 267,820,009 267,531,225 Average Number of Common Shares Outstanding 267,248,718 265,695,473 265,317,845 Average Assets $ 233,354 $ 230,195 $ 224,762 $ 231,757 $ 227,510 Net Income Per Common Share Before Goodwill Basic $ 1.81 $ 1.72 $ 1.30 $ 3.53 $ 2.59 1.79 1.71 1.29 3.50 2.57 Fully Diluted Net Income Per Common Share Basic 1.76 1.68 1.26 3.44 2.51 1.75 3.41 Fully Diluted 1.66 1.25 2.49 Note: Reporting under United States generally accepted accounting principles would have resulted in consolidated net income of $479, basic earnings per share of $1.69 and fully diluted earnings per share of $1.68 for the three months and $935, $3.31 and $3.27, respectively, for the six months ended April 30, 2000. Bank of Montreal Second Quarter Report 2000 Page 2