Q2 10 Institutional Investor Presentation Forward Looking - PowerPoint PPT Presentation

Q2 10 Institutional Investor Presentation

Forward Looking Statements 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 harbour 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 may involve, but are not limited to, comments with respect to our objectives and priorities for 2010 and beyond, our strategies or future actions, our targets, expectations for our financial condition or share price, and the results of or outlook for our operations or for the Canadian and U.S. economies. By their nature, forward-looking statements require us to make assumptions and are subject to inherent risks and uncertainties. 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 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. The future outcomes that relate to forward-looking statements may be influenced by many factors, including but not limited to: general economic and market conditions in the countries in which we operate; interest rate and currency value fluctuations; changes in monetary policy; the degree of competition in the geographic and business areas in which we operate; changes in laws; judicial or regulatory proceedings; the accuracy and completeness of the information we obtain with respect to our customers and counterparties; our ability to execute our strategic plans and to complete and integrate acquisitions; critical accounting estimates; operational and infrastructure risks; general political conditions; global capital market activities; the possible effects on our business of war or terrorist activities; disease or illness that impacts on local, national or international economies; disruptions to public infrastructure, such as transportation, communications, power or water supply; and technological changes. We caution that the foregoing list is not exhaustive of all possible factors. Other factors could adversely affect our results. For more information, please see the discussion on pages 32 and 33 of BMO’s 2009 Annual Report, which outlines in detail certain key factors that may affect BMO’s future results. When relying on forward-looking statements to make decisions with respect to Bank of Montreal, investors and others should carefully consider these factors, as well as other uncertainties and potential events, and the inherent uncertainty of forward-looking statements. Bank of Montreal does not undertake to update any forward-looking statement, whether written or oral, that may be made, from time to time, by the organization or on its behalf, except as required by law. The forward-looking information contained in this document is presented for the purpose of assisting our shareholders in understanding our financial position as at and for the periods ended on the dates presented and our strategic priorities and objectives, and may not be appropriate for other purposes. Assumptions about the performance of the Canadian and U.S. economies as well as overall market conditions and their combined effect on the bank’s business, including those described under the heading Economic Outlook and Review in our Second Quarter 2010 Report to Shareholders, are material factors we consider when determining our strategic priorities, objectives and expectations for our business. In determining our expectations for economic growth, both broadly and in the financial services sector, we primarily consider historical economic data provided by the Canadian and U.S. governments and their agencies. Non-GAAP Measures Bank of Montreal uses both GAAP and certain non-GAAP measures to assess performance. Readers are cautioned that earnings and other measures adjusted to a basis other than GAAP do not have standardized meanings under GAAP and are unlikely to be comparable to similar measures used by other companies. Reconciliations of GAAP to non-GAAP measures as well as the rationale for their use can be found in Bank of Montreal’s Second Quarter 2010 Report to Shareholders and 2009 Annual Report to Shareholders all of which are available on our website at www.bmo.com/investorrelations. Examples of non-GAAP amounts or measures include: cash earnings per share, cash operating leverage, cash ROE and cash productivity; revenue and other measures presented on a taxable equivalent basis (teb); amounts presented net of applicable taxes and earnings which exclude the impact of provision for credit losses and taxes. Bank of Montreal provides supplemental information on combined business segments to facilitate comparisons to peers. 1 Institutional Investor Presentation • Q2 2010

Bank of Montreal (BMO Financial Group) � 4 th largest bank in Canada measured by total assets � 100% ownership of Chicago-based Harris Bank F2010 YTD Results Listings NYSE, TSX (Ticker: BMO) Revenue C$6.1 billion (US$5.8 1 billion) Share Price Net Income Oct 31/09: NYSE – US$46.37 C$1.4 billion (US$1.3 1 billion) (Fiscal Year-end) TSX – C$50.06 Cash EPS (reported) Apr 30/10: NYSE – US$61.99 TSX – C$63.09 C$2.41 (US$2.31) Market Cap PCL C$0.6 billion (US$0.6 1 billion) Oct 31/09: C$28 billion (US$26 billion 1 ) Apr 30/10: C$35 billion (US$35 billion 1 ) Average Assets C$393 billion (US$377 1 billion) # of Employees 37,000 Capital Ratios Over 10 million personal, commercial, Tier 1 – 13.27% corporate and institutional customers TCE/RWA – 9.80% 1 Balances reported in Canadian dollars. Exchange rates are: F2010 YTD average: Cdn/U.S. $1.0433 / As at April 30, 2010: $1.0158 2 Institutional Investor Presentation • Q2 2010

Financial and Capital Strength BMO’s strong financial position and clear business strategy provide a unique opportunity to grow Tangible Common Equity / Market Capitalization ($US billions) Risk-Weighted Assets 1 (%) Bank of America Northern Trust 12.10 JP Morgan Chase Citibank 11.31 Wells Fargo TD Bank Financial Group 9.86 Citibank BMO Financial Group 9.80 Royal Bank of Canada Royal Bank of Canada 9.38 TD Bank Financial Group JP Morgan Chase 9.15 Bank of Nova Scotia Bank of Nova Scotia 8.52 US Bancorp National Bank of Canada 8.48 PNC Financial CIBC 8.45 BMO Financial Group BMO Financial Group $33.3 (CDE$35.0) BB&T Corporation 8.36 CIBC Suntrust Banks 8.17 BB&T Corporation PNC Financial 8.05 Suntrust Banks Regions Financial 7.97 Northern Trust Bank of America 7.73 Fifth Third Bancorp Fifth Third Bancorp 7.33 M&T Bank Wells Fargo 7.19 Regions Financial US Bancorp 6.23 National Bank of Canada M&T Bank 5.52 Largest banks by market capitalization in North America, as at May 27 th , 2010 as published by Bloomberg. 1 As at April 30, 2010 for Canadian Banks, as at March 31, 2010 for US banks as published in quarterly reports and using a consistent methodology. 3 Institutional Investor Presentation • Q2 2010

Reasons to Invest in BMO � Clear growth strategy Twelve Month Average Total Shareholder Return (%) Consistent and focused North American growth strategy � Strong Canadian and U.S. customer base � 24.1 25.1 Growing global presence to support our customers � 7.2 Commitment to our medium-term financial objectives � 3.7 � Strong financial position (1.2) Balanced approach to capital management � (5.8) Tier 1 Capital Ratio of 13.27% at April 30, 2010 � Tangible common equity to risk-weighted assets ratio of 9.8% � (27.9) at April 30, 2010 Strong senior debt ratings � 2005 2006 2007 2008 2009 2009 2010 � Proactive risk management YTD Annual Dividend Declared Independent risk oversight across the enterprise � (C$/share) Disciplined credit risk management capabilities and processes � Group and individual performance assessments that reflect � CAGR = 12.0% risk-adjusted returns and align with shareholder interests 2.71 2.80 2.80 � Commitment to stakeholders 2.26 Clear brand promise that delivers real benefit for customers � 1.85 Engaged employees committed to exceeding customers’ � 1.40 1.40 expectations Financial performance and consistent dividend payment � track record Strategic approach to corporate responsibility and � sustainability 2005 2006 2007 2008 2009 2009 2010 YTD 4 Institutional Investor Presentation • Q2 2010

BMO Financial Group – Positioned for Strong Growth Greater Edmonton 37* Greater Vancouver 73* Halifax / Saint John 22* Greater Calgary Greater 42* Montreal 94 * Greater Greater Toronto Winnipeg 201 * 28* Chicagoland 213* BMO Branches – 908 locations Harris Bank Branches – 331 locations Harris Private Banking (Wealth Mgmt) BMO Capital Markets * Retail locations in major urban centers 5 Institutional Investor Presentation • Q2 2010