苧宥仟療廨


BMO Financial Group Reports Net

Income of $1.1 Billion for the First Quarter of 2014
Company:    02/26/2014 14:17     Page view:67

   Financial Results Highlights:

  First Quarter 2014 Compared with First Quarter 2013:

  - Net income of $1,061 million, up 2%; adjusted net income(1) of $1,083 million, up 5%

  - EPS(2) of $1.58, up 5%; adjusted EPS(1,2) of $1.61, up 7%

  - ROE of 14.2%, compared with 14.9%; adjusted ROE(1) of 14.5%, compared with 14.8%

  - Provisions for credit losses of $99 million, compared with $178 million; adjusted provisions for credit losses(1) of $99 million, compared with $96 million

  - Basel III Common Equity Ratio is 9.3%

  TORONTO, ONTARIO--(Marketwired - Feb 25, 2014) - BMO Financial Group (TSX: BMO)(NYSE: BMO) and Bank of Montreal -

  For the first quarter ended January 31, 2014, BMO Financial Group reported net income of $1,061 million or $1.58 per share on a reported basis and net income of $1,083 million or $1.61 per share on an adjusted basis.

  "BMO's first quarter results reflect continued revenue growth and strong operating group performance, especially in Canadian Personal and Commercial Banking. The bank is showing sustained momentum and a growing balance sheet," said Bill Downe, Chief Executive Officer, BMO Financial Group.

  "We gained market share in domestic personal lending complemented by double-digit growth in both commercial loans and deposits. Our U.S. commercial banking team also continued to deliver excellent volume growth with core commercial and industrial loans up 14% from a year ago. Margins were stable on both sides of the border, and Wealth Management and Capital Markets posted robust revenue growth.

  "We recently announced an agreement to acquire F&C Asset Management, a diversified, U.K.-based investment manager. The acquisition will expand our BMO Global Asset Management business which had grown to over US$130 billion in assets under management and 175 investment professionals at the end of 2013.

  "We're seeing the benefits of our diversified North American presence. We have clear opportunities for growth across our U.S. businesses in an environment of improved household finances and growing consumer confidence. In addition, progress in debt ceiling and budget negotiations in the United States will benefit business investment and our large North American commercial banking platform," concluded Mr. Downe.

  Concurrent with the release of results, BMO announced a second quarter 2014 dividend of $0.76 per common share, unchanged from the preceding quarter and up $0.02 per share from a year ago, equivalent to an annual dividend of $3.04 per common share.

  Our complete First Quarter 2014 Report to Shareholders, including our unaudited interim consolidated financial statements for the period ended January 31, 2014, is available online at www.bmo.com/investorrelations and at www.sedar.com.

  (1) Results and measures in this document are presented on a GAAP basis.

  They are also presented on an adjusted basis that excludes the impact

  of certain items. Adjusted results and measures are non-GAAP and are

  detailed in the Adjusted Net Income section, and (for all reported

  periods) in the Non-GAAP Measures section, where such non-GAAP measures

  and their closest GAAP counterparts are disclosed.

  (2) All Earnings per Share (EPS) measures in this document refer to diluted

  EPS unless specified otherwise. EPS is calculated using net income

  after deductions for net income attributable to non-controlling

  interest in subsidiaries and preferred share dividends.

  Note: All ratios and percentage changes in this document are based on

  unrounded numbers.

  Total Bank Overview

  Net income was $1,061 million for the first quarter of 2014, up $25 million or 2% from a year ago.

  Adjusted net income was $1,083 million, up $54 million or 5% from a year ago. There was continued momentum in Canadian P&C and Wealth Management, improved results from the prior quarter in U.S. P&C and solid results from BMO Capital Markets.

  Operating Segment Overview

  Canadian P&C

  Net income was $484 million, up $37 million or 8% from a year ago. Adjusted net income was $486 million, up $36 million or 8% from the prior year. Results reflect continued momentum from the second half of last year with good revenue growth and a second consecutive quarter with above 2% operating leverage. Revenue was up $99 million or 7% year over year driven by strong volume growth across most products, partially offset by the impact of lower net interest margin. There was year-over-year loan growth of 10% and deposit growth of 11%. Expenses increased $33 million or 4% due to continued investment in the business.

  In personal banking, there was strong loan and deposit growth of 10% and 9% respectively. Our recent BMO World Elite MasterCard® 'UPGRADE' campaign has been successful in attracting new customers to the Bank. In commercial banking, momentum continued with strong loan and deposit growth of 11% and 14%, respectively. We remain second in Canadian business banking loan market share for small and medium-sized loans. In both personal and commercial banking, we continue to make improvements in our processes, enabling front-line employees to spend more time acquiring more customers and strengthening existing relationships.

  U.S. P&C (all amounts in US$)

  Net income of $153 million decreased $27 million or 15% from a strong first quarter a year ago. Adjusted net income of $164 million declined $30 million or 15% from a year ago. The prior year included strong revenues on sales of newly originated mortgages, commercial lending fees, due to customers' response to anticipated U.S. tax changes that accelerated commercial lending, and higher net interest margin. Adjusted net income was up $55 million compared to the prior quarter, benefiting from lower provisions for credit losses that were above trend in the fourth quarter.

  There were year-over-year and quarterly sequential increases in average current loans and acceptances, led by continued strong growth in the core commercial and industrial loan portfolio. This portfolio increased by $3.0 billion or 14% from a year ago to $24.3 billion.

  Growth in our commercial business and personal chequing and savings accounts was more than offset by planned reductions in higher-cost deposit products and a transfer of certain customer balances to Wealth Management at the beginning of the quarter, which resulted in a decline in deposits.

  During the quarter, we were awarded 24 competitive Affordable Housing Program projects by the Federal Home Loan Bank of Chicago. These projects allow us to support our communities through the development of affordable housing, and also provide us with opportunities to cross-sell our products and services.

  Wealth Management

  Wealth Management continued to produce good results. Net income of $175 million increased $13 million or 8% from a year ago. Adjusted net income of $183 million also increased 8%. Adjusted net income in our traditional wealth businesses was $123 million, up $19 million or 17% from strong growth in client assets and increased transaction volumes. Adjusted net income in insurance was $60 million, down $4 million or 7%.

  Assets under management and administration grew by $97 billion or 19% from a year ago to $597 billion, driven by market appreciation, the stronger U.S. dollar and growth in new client assets.

  BMO InvestorLine was named the top bank-owned online brokerage firm in Canada for the third consecutive year in the 15th annual Globe and Mail ranking of online brokers and was also named Best Online Brokerage 2013 at the 19th annual Morningstar Awards.

  In January, BMO announced an agreement on the terms of a cash offer to acquire all of the shares of F&C Asset Management plc (F&C), a diversified U.K.-based investment manager, at an aggregate purchase price of approximately GBP 708 million ($1.3 billion) that would see F&C become part of BMO Financial Group. Subject to F&C shareholder approval and satisfaction of all regulatory and other conditions, the acquisition is expected to close after May 1, 2014.

  BMO Capital Markets

  Net income for the current quarter was $277 million, down $21 million or 7% from the first quarter a year ago, as good revenue growth primarily from our U.S. businesses was more than offset by higher expenses, lower loan recoveries and a higher effective tax rate. Return on equity of 18.8% was strong, increasing 3.8% from 15.0% in the prior quarter. Revenues increased $79 million or 9% year over year due to good revenue performance in both the Investment and Corporate Banking and the Trading Products businesses, and in particular from our U.S. segment. Expenses increased $85 million or 16% year over year due to higher employee-related expenses, including severance, and increased support costs, both related to a changing business and regulatory environment.

  Our continued focus on our core clients was recognized as BMO Capital Markets was selected during the quarter as a 2013 Greenwich Quality Leader in Canadian Mergers and Acquisitions and in Canadian Equity Capital Markets. We were also selected as a 2013 Greenwich Share Leader in Canadian Investment Banking and Canadian Debt Capital Markets for Market Penetration.

  BMO Capital Markets participated in 374 new global issues in the quarter, including 192 corporate debt deals, 110 government debt deals and 72 equity transactions, raising $818 billion.

  Corporate Services

  Corporate Services net loss for the first quarter of 2014 was $41 million, compared with a net loss of $50 million a year ago. The adjusted net loss in the quarter was $41 million, compared with an adjusted net loss of $79 million a year ago. Beginning in the first quarter of 2014, credit-related items in respect of the purchased performing loan portfolio are included in adjusted results. Credit-related items consist of $79 million for the recognition in net interest income of a portion of the credit mark on the portfolio, a $34 million specific provision for credit losses and related income taxes of $17 million. Adjusted revenues were higher mainly due to credit-related revenue in respect of the purchased performing loan portfolio, partially offset by a group taxable equivalent basis (teb) offset that was $21 million higher than the prior year. Adjusted expenses were lower primarily due to lower support costs retained in Corporate and reduced costs associated with the impaired real estate secured asset portfolio. Adjusted recoveries of credit losses of $59 million improved by $8 million primarily due to a $58 million increase in recoveries on the purchased credit impaired loan portfolio from the prior year, partially offset by $34 million of provisions in respect of the purchased performing loan portfolio.

  Adjusted Net Income

  Adjusted net income was $1,083 million for the first quarter of 2014, up $54 million or 5% from a year ago. Adjusted earnings per share were $1.61, up 7% from $1.50 a year ago.

  Management has designated certain amounts as adjusting items and has adjusted GAAP results so that we can discuss and present financial results without the effects of adjusting items to facilitate understanding of business performance and related trends. The only item excluded from first quarter 2014 results in the determination of adjusted results was the amortization of acquisition-related intangible assets of $31 million ($22 million after tax; $0.03 per share), which is charged to the operating groups. There was no net change in the collective allowance for credit losses. Previously, amounts excluded from adjusted results also included credit-related items in respect of the purchased performing loan portfolio, acquisition integration costs and run-off structured credit activities. Management assesses performance on a GAAP basis and on an adjusted basis and considers both to be useful in the assessment of underlying business performance. Presenting results on both bases provides readers with a better understanding of how management assesses results. Adjusted results and measures are non-GAAP and, together with items excluded in determining adjusted results, are disclosed in more detail in the Non-GAAP Measures section, along with comments on the uses and limitations of such measures. The impact of adjusting items for comparative periods is summarized in the Non-GAAP Measures section.

  Caution

  The foregoing sections contain forward-looking statements. Please see the Caution Regarding Forward-Looking Statements.

  Adjusted results in these Total Bank Overview and Operating Segment Overview sections are non-GAAP amounts or non-GAAP measures. Please see the Non-GAAP Measures section.

  Management's Discussion and Analysis

  Management's Discussion and Analysis (MD&A) commentary is as of February 25, 2014. Unless otherwise indicated, all amounts are in Canadian dollars and have been derived from financial statements prepared in accordance with International Financial Reporting Standards (IFRS). References to GAAP mean IFRS. The MD&A should be read in conjunction with the unaudited interim consolidated financial statements for the period ended January 31, 2014, as well as the audited consolidated financial statements for the year ended October 31, 2013, and the MD&A for fiscal 2013 in BMO's 2013 Annual Report. The material that precedes this section comprises part of this MD&A.

  The annual MD&A includes a comprehensive discussion of our businesses, strategies and objectives, and can be accessed on our website at www.bmo.com/investorrelations. Readers are also encouraged to visit the site to view other quarterly financial information.

  Bank of Montreal's management, under the supervision of the CEO and CFO, has evaluated the effectiveness, as at January 31, 2014, of Bank of Montreal's disclosure controls and procedures (as defined in the rules of the Securities and Exchange Commission and the Canadian Securities Administrators) and has concluded that such disclosure controls and procedures are effective.

  There were no changes in our internal control over financial reporting during the quarter ended January 31, 2014, that materially affected, or are reasonably likely to materially affect, our internal control over financial reporting.

  Because of inherent limitations, disclosure controls and procedures and internal control over financial reporting can provide only reasonable assurance and may not prevent or detect misstatements.

  As in prior quarters, Bank of Montreal's Audit and Conduct Review Committee reviewed this document and Bank of Montreal's Board of Directors approved the document prior to its release.

  Regulatory Filings

  Our continuous disclosure materials, including our interim filings, annual MD&A and audited consolidated financial statements, Annual Information Form and Notice of Annual Meeting of Shareholders and Proxy Circular are available on our website at www.bmo.com/investorrelations, on the Canadian Securities Administrators' website at www.sedar.com and on the EDGAR section of the SEC's website at www.sec.gov.

  Bank of Montreal uses a unified branding approach that links all of the organization's member companies. Bank of Montreal, together with its subsidiaries, is known as BMO Financial Group. As such, in this document, the names BMO and BMO Financial Group mean Bank of Montreal, together with its subsidiaries.

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  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 may involve, but are not limited to, comments with respect to our objectives and priorities for 2014 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, U.S. and international 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; weak, volatile or illiquid capital and/or credit markets; interest rate and currency value fluctuations; changes in monetary, fiscal or economic policy; the degree of competition in the geographic and business areas in which we operate; changes in laws or in supervisory expectations or requirements, including capital, interest rate and liquidity requirements and guidance; 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, including obtaining regulatory approvals; critical accounting estimates and the effect of changes to accounting standards, rules and interpretations on these estimates; operational and infrastructure risks; changes to our credit ratings; general political conditions; global capital markets activities; the possible effects on our business of war or terrorist activities; disease or illness that affects local, national or international economies; natural disasters and disruptions to public infrastructure, such as transportation, communications, power or water supply; technological changes; and our ability to anticipate and effectively manage risks associated with all of the foregoing factors.

  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 30 to 31 of BMO's 2013 Annual Report, which outlines in detail certain key factors that may affect Bank of Montreal'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 statements, 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, as well as our strategic priorities and objectives, and may not be appropriate for other purposes.

  Assumptions about the level of default and losses on default were material factors we considered when establishing our expectations regarding the future performance of the transactions into which our credit protection vehicle has entered. Among the key assumptions were that the level of default and losses on default will be consistent with historical experience. Material factors that were taken into account when establishing our expectations regarding the future risk of credit losses in our credit protection vehicle and risk of loss to Bank of Montreal included industry diversification in the portfolio, initial credit quality by portfolio, the first-loss protection incorporated into the structure and the hedges into which Bank of Montreal has entered.

  Assumptions about the performance of the Canadian and U.S. economies, as well as overall market conditions and their combined effect on our business, 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. See the Economic Review and Outlook section of this interim MD&A.

  Economic Review and Outlook

  The Canadian economy strengthened moderately in the second half of 2013, supported by firm consumer spending, a rebound in housing markets and stronger business investment. However, weaker exports and tighter fiscal policies held back the expansion. In the year ahead, Canadian exports are expected to increase in response to a weaker Canadian dollar and stronger global demand. The U.S. economy is gaining strength, the Eurozone economy is growing again and China's economic slowdown has stabilized. Canadian consumer spending is projected to grow moderately in the face of elevated household debt, while residential construction should slow modestly. Consequently, growth in consumer credit and residential mortgages will likely continue to moderate. However, firmer exports should encourage an improvement in investment and business loan growth. Economic growth is expected to increase from approximately 1.8% in 2013 to 2.3% in 2014, lowering the unemployment rate to 6.8% by year end. Continued low inflation will likely encourage the Bank of Canada to maintain a steady interest rate policy for a fourth consecutive year. The Canadian dollar is projected to further weaken in the near term amid market expectations of a possible Bank of Canada interest rate reduction.

  The U.S. economy overcame tighter fiscal policy, renewed political uncertainty and higher mortgage rates to grow strongly in the second half of 2013, as consumer spending and exports rose at the fastest rate in three years in the final quarter. Improved household finances, strong replacement demand for motor vehicles and a declining energy trade deficit should support the economy in 2014. In addition, the federal budget deal implies less fiscal restraint and diminished political uncertainty, which should support business investment. Demand for business credit and residential mortgages will likely strengthen, while demand for consumer loans should remain firm. Economic growth is projected to increase from 1.9% last year to 2.8% in 2014, the fastest growth since 2005, reducing the unemployment rate to 6.1% by year-end. While the Federal Reserve will likely maintain a low interest-rate policy for at least another year, it is expected to continue reducing purchases of fixed-income securities, resulting in moderate upward pressure on longer-term interest rates.

  The U.S. Midwest region, that includes the six states in BMO's U.S. footprint, grew approximately 1.6% in 2013, held back by fiscal consolidation. However, we expect stronger growth of 2.5% in 2014 due to strengthening exports and increased automotive production.

  This Economic Review and Outlook section contains forward-looking statements. Please see the Caution Regarding Forward-Looking Statements.

  Other Value Measures

  BMO's average annual total shareholder returns for the one-year, three-year and five-year periods ending January 31, 2014, were 12.9%, 10.6% and 21.4%, respectively.

  Return on equity (ROE) was 14.2% in the first quarter of 2014 and adjusted ROE was 14.5%, compared to 14.9% and 14.8%, respectively, in the first quarter a year ago. ROE was impacted by common shareholders' equity growing at a higher rate than income, in part as a result of foreign exchange gains on our U.S. operations recognized in shareholders' equity as a result of the stronger U.S. dollar.

  Foreign Exchange

  The Canadian dollar equivalents of BMO's U.S.-dollar-denominated net income, revenues, expenses, recoveries of credit losses and income taxes were increased relative to the fourth quarter of 2013 and the first quarter of 2013 by the strengthening of the U.S. dollar. The average Canadian/U.S. dollar exchange rate for the quarter, expressed in terms of the Canadian dollar cost of a U.S. dollar, increased by 9% from a year ago and 4% from the average of the fourth quarter. BMO may execute hedging transactions to mitigate the impact of foreign exchange rate movements on net income. Table 3 indicates the relevant average Canadian/U.S. dollar exchange rates and the impact of changes in the rates.

  This Foreign Exchange section contains forward-looking statements. Pease see the Caution Regarding Forward Looking Statements.

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  Net Income

  Q1 2014 vs Q1 2013

  Net income was $1,061 million for the first quarter of 2014, up $25 million or 2% from a year ago. EPS was $1.58, up $0.07 or 5% from a year ago.

  Adjusted net income was $1,083 million, up $54 million or 5% from a year ago. The impact of the stronger U.S. dollar increased adjusted net income growth by $20 million or 2%. Adjusted EPS was $1.61, up $0.11 or 7% from a year ago. Adjusted results and items excluded in determining adjusted results are disclosed in detail in the preceding Adjusted Net Income section and in the Non-GAAP Measures section, together with comments on the uses and limitations of such measures.

  On an adjusted basis, net income growth was driven by good growth in Canadian P&C and Wealth Management. Canadian P&C results reflected strong volume growth across most products, partially offset by lower net interest margin. Wealth Management had strong results in traditional wealth businesses with a 17% increase in adjusted net income, partially offset by lower net income in insurance. BMO Capital Markets was down, as good revenue growth primarily from our U.S. businesses was more than offset by higher expenses, lower loan recoveries and a higher effective tax rate. U.S. P&C net income decreased from a strong first quarter a year ago that included strong revenue on sales of newly originated mortgages, commercial lending fees and higher net interest margin. Corporate Services adjusted results improved due to performance in the purchased loan portfolios and lower expenses.

  Q1 2014 vs Q4 2013

  Net income decreased $13 million and EPS decreased $0.02. Adjusted net income decreased $5 million and adjusted EPS decreased by $0.01. The impact of the stronger U.S. dollar increased adjusted net income growth by $7 million or 1%.

  On an adjusted basis, net income decreased relative to the fourth quarter due to higher securities gains in the prior quarter and stock-based compensation for employees eligible to retire that is expensed in the first quarter of each year. Net income growth in Canadian P&C was driven by increased revenues reflecting higher volumes across most products. U.S. P&C adjusted net income increased, primarily driven by reductions in provisions for credit losses, which were above trend in the previous quarter. Net income decreased in Wealth Management primarily due to a $121 million after-tax security gain in the prior quarter and lower net income in insurance, primarily due to lower benefits from changes in our investment portfolio to improve asset-liability management. BMO Capital Markets results were up primarily due to higher revenues across the businesses. Corporate Services adjusted results decreased due to lower recoveries of credit losses.

  Adjusted results in this Net Income section are Non-GAAP amounts or non-GAAP measures. Please see the Non-GAAP measures section.

  Revenue

  Q1 2014 vs Q1 2013

  Total revenue of $4,122 million increased $90 million or 2% from the first quarter last year. Adjusted revenue increased $310 million or 8% to $4,122 million. Excluding the impact of the stronger U.S. dollar, adjusted revenue increased by $217 million or 6%. Canadian P&C had good results due to the effect of strong volume growth across most products, partially offset by the impact of lower net interest margin. Wealth Management revenue increased from a year ago due to growth in client assets and increased transaction volumes. BMO Capital Markets had good revenue performance from Investment and Corporate Banking businesses, driven by higher equity underwriting volumes, higher securities gains in corporate banking and merchant banking activities. Trading Products businesses performed well mainly due to higher trading revenues and securities commissions and fees. U.S. P&C revenues decreased on a U.S. dollar basis from a strong first quarter a year ago that included strong revenues on sales of newly originated mortgages, commercial lending fees, due to customers' response to anticipated U.S. tax changes that accelerated commercial lending, and higher net interest margin. Adjusted revenues improved in Corporate Services mainly due to the inclusion, commencing this quarter, of credit-related revenue in respect of the purchased performing loan portfolio, partially offset by a higher group teb offset.

  Net interest income decreased $135 million or 6% from a year ago to $2,113 million in the first quarter of 2014. Adjusted net interest income increased $77 million or 4% to $2,113 million, due to revenue from the purchased performing loan portfolio and volume growth in the P&C businesses, partially offset by a lower net interest margin. BMO's overall net interest margin decreased on a reported basis by 25 basis points from a year ago to 1.62%. Adjusted net interest margin decreased by 8 basis points to 1.62%. Average earning assets in the first quarter of 2014 increased $39.8 billion or 8% relative to a year ago, including a $15.7 billion increase as a result of the stronger U.S. dollar.

  Non-interest revenue increased $225 million or 13% from the first quarter a year ago to $2,009 million. Adjusted non-interest revenue increased $233 million or 13% to $2,009 million, with the majority of the increase driven by good performance in BMO Capital Markets and Wealth Management. There were significant increases in trading revenues, and most other types of non-interest revenue increased, with the exception of underwriting fees and card fees.

  Q1 2014 vs Q4 2013

  Revenue decreased $16 million from the fourth quarter. Adjusted revenue increased $112 million or 3%. Excluding the impact of the stronger U.S. dollar, adjusted revenue increased by $73 million or 2%. Canadian P&C revenues increased 2%, reflecting higher volumes across most products. Revenue in Wealth Management decreased as prior quarter results included a $191 million security gain. Revenue in other traditional wealth businesses increased 4%, driven by growth in client assets. Investment and Corporate Banking revenue performance in BMO Capital Markets improved on higher equity underwriting fees and securities gains in corporate banking. Trading Products revenues were significantly stronger on improved market conditions and higher client activity. U.S. P&C revenues increased moderately on a U.S. dollar basis primarily due to loan growth and stable net interest margin. Corporate Services adjusted revenues were higher mainly due to the inclusion, commencing this quarter, of credit-related revenue in respect of the purchased performing loan portfolio, partially offset by a variety of other items, none of which were individually significant.

  Net interest income decreased $4 million. Adjusted net interest income increased $113 million or 6%, due to revenue from the purchased performing loan portfolio and volume growth in the P&C businesses. BMO's overall net interest margin decreased by 7 basis points from the fourth quarter, while adjusted net interest margin increased 2 basis points. Average earning assets increased $19.7 billion or 4% from the fourth quarter, of which $7.0 billion related to the stronger U.S. dollar.

  Non-interest revenue decreased $12 million and adjusted non-interest revenue was essentially unchanged. Increases in most categories were more than offset by significantly lower securities gains, insurance income and other income.

  Net interest income and non-interest revenue are detailed in the unaudited interim consolidated financial statements.

  Adjusted results in this Revenue section are non-GAAP amounts or non-GAAP measures. Please see the Non-GAAP Measures section.

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  (i) Net interest margin is disclosed and computed with reference to

  average earning assets, rather than total assets. This basis provides

  a more relevant measure of margins and changes in margins. Operating

  group margins are stated on a taxable equivalent basis (teb) while

  total BMO margin is stated on a GAAP basis.

  (ii) Corporate Services adjusted net interest income is negative in all

  periods and its variability affects changes in net interest margin.

  (iii) Total Canadian retail margin represents the net interest margin of the

  combined Canadian businesses of Canadian P&C and Wealth Management.

  (1) These are non-GAAP amounts or non-GAAP measures. Please see the Non-

  GAAP Measures section.

  nm - not meaningful

  Provisions for Credit Losses

  Q1 2014 vs Q1 2013

  The total provision for credit losses (PCL) was $99 million, a decrease of $79 million from the prior year. Adjusted PCL increased by $3 million from the prior year. There was no net change to the collective allowance year over year.

  Canadian P&C provisions increased by $13 million to $141 million, resulting from higher commercial losses partially offset by lower provisions in the consumer portfolio. Wealth Management provisions decreased by $3 million. Recoveries of credit losses in BMO Capital Markets were $14 million lower due to lower recoveries combined with new provisions this quarter. U.S. P&C provisions of $19 million decreased by $13 million due to improvements in the consumer portfolio. Corporate Services adjusted recoveries of $59 million improved by $8 million. Recoveries on the purchased credit impaired loan portfolio increased $58 million from the prior year. Beginning in the first quarter of 2014, Corporate Services adjusted results include credit-related items in respect of the purchased performing loan portfolio and include a $34 million specific provision for credit losses.

  Q1 2014 vs Q4 2013

  The total PCL decreased by $90 million to $99 million from the prior quarter. Adjusted PCL decreased by $41 million from the prior quarter. There was no net change to the collective allowance from the prior quarter.

  Canadian P&C provisions decreased by $25 million due to a combination of lower write-offs and higher recoveries. Wealth Management provisions were relatively stable quarter over quarter. Recoveries of credit losses in BMO Capital Markets were $16 million lower due to lower recoveries combined with new provisions this quarter. U.S. P&C provisions decreased significantly by $77 million from the above trend provisions in the previous quarter, and benefited from higher recoveries in the current quarter. Corporate Services adjusted recoveries decreased by $47 million primarily due to the inclusion of specific provisions in respect of the purchased performing loan portfolio. Recoveries on the purchased credit impaired loan portfolio increased $13 million from the prior quarter.

  Adjusted results in this Provisions for Credit Losses section are non-GAAP amounts or non-GAAP measures. Please see the Non-GAAP Measures section.

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  Impaired Loans

  Total gross impaired loans (GIL) were $2,482 million at the end of the current quarter, down from $2,544 million in the fourth quarter of 2013 and from $2,912 million a year ago. The stronger U.S. dollar raised GILs by $105 million relative to the fourth quarter of 2013 and $172 million relative to a year ago.

  Factors contributing to the change in GIL are outlined in Table 7 below. Loans classified as impaired during the quarter totalled $642 million in the current quarter, up from $614 million in the fourth quarter of 2013 and $630 million a year ago.

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  For further discussion of risk management practices and key measures, see the Risk Management section.

  Non-Interest Expense

  Non-interest expense increased $114 million or 4% from the first quarter a year ago to $2,684 million. Adjusted non-interest expense increased $209 million or 8% to $2,653 million, primarily due to higher employee-related expenses, including severance, and increased technology and support costs related to a changing business and regulatory environment. Excluding the impact of the stronger U.S. dollar, adjusted non-interest expense increased by $137 million or 6%.

  Non-interest expense increased $104 million or 4% relative to the fourth quarter. Adjusted non-interest expense increased $168 million or 7%, primarily due to $66 million of stock-based compensation for employees eligible to retire that is expensed in the first quarter of each year and higher severance costs. Excluding the impact of the stronger U.S. dollar, adjusted non-interest expense increased by $136 million or 5%.

  Year-over-year operating leverage on a reported basis was negative 2.1% and adjusted operating leverage was negative 0.3%. On a basis that adjusts for the security gain in the prior quarter and the current quarter stock-based compensation mentioned above, the quarter-over-quarter adjusted operating leverage was positive.

  Non-interest expense is detailed in the unaudited interim consolidated financial statements.

  Adjusted results in this Non-Interest Expense section are non-GAAP amounts or non-GAAP measures. Please see the Non-GAAP Measures section.

  Income Taxes

  The provision for income taxes of $278 million increased $30 million from the first quarter of 2013 and decreased $17 million from the fourth quarter of 2013. The effective tax rate for the quarter was 20.8%, compared with 19.3% a year ago and 21.6% in the fourth quarter of 2013.

  The adjusted provision for income taxes of $287 million increased $44 million from a year ago and decreased $10 million from the fourth quarter of 2013. The adjusted effective tax rate was 20.9% in the current quarter, compared with 19.0% a year ago and 21.5% in the fourth quarter of 2013. The higher adjusted tax rate in the current quarter relative to the first quarter of 2013 was primarily due to lower recoveries of prior periods' income taxes. The lower adjusted tax rate in the current quarter relative to the fourth quarter of 2013 was primarily due to a lower proportion of income from higher tax-rate jurisdictions. The adjusted tax rate is computed using adjusted net income rather than net income in the determination of income subject to tax.

  Adjusted results in this Income Taxes section are non-GAAP amounts or non-GAAP measures. Please see the Non-GAAP Measures section.

  Capital Management

  First Quarter 2014 Regulatory Capital Review

  BMO's capital position remains strong, with a Common Equity Tier 1 (CET1) Ratio of 9.3% at January, 31, 2014.

  The CET1 Ratio decreased by 60 basis points from 9.9% at October 31, 2013, due to reductions of approximately: 50 basis points due to higher business driven source currency risk-weighted assets (RWA); 20 basis points due to the newly implemented Credit Valuation Adjustment (CVA) risk capital charge; 10 basis points due to changes in IFRS accounting standards; and 5 basis points due to the net impact of a strengthening U.S. dollar; net of a 25 basis point benefit from increased retained earnings.

  The RWA of $240 billion at January 31, 2014, increased by $25 billion from October 31, 2013, primarily resulting from approximately $11 billion due to increased business driven source currency RWA, approximately $6 billion due to the impact of the newly implemented CVA adjustment and IFRS accounting changes, and approximately $6 billion due to the impact of the strengthening U.S. dollar.

  Business driven source currency RWA increased due to increased credit risk RWA across all groups and increased market risk RWA in BMO Capital Markets. A portion of these market risk increases are temporary.

  The CVA RWA resulted from OSFI's decision to begin phasing in the CVA risk capital charge in the first quarter of 2014. The CET1 CVA risk capital charge applicable to BMO for CET1 during fiscal 2014, and for Tier 1 and Total Capital during the first and second quarter of 2014, will be 57% of the fully-implemented charge. This will increase each year until it reaches 100% by 2019.

  CET1 capital at January 31, 2014, was $22.3 billion, up $1.1 billion from October 31, 2013, due mainly to retained earnings growth and the net impact of foreign exchange movements on U.S.-dollar-denominated investments in foreign operations and related hedges.

  The bank's Tier 1 and Total Capital Ratios were 10.6% and 12.4%, respectively, at January 31, 2014, compared with 11.4% and 13.7%, respectively, at October 31, 2013. These ratios decreased from last quarter primarily due to the same factors that caused the decrease in the CET1 Ratio, as described above, and due to the additional 10% phase-out of non-qualifying Tier 1 and Tier 2 Capital in January 2014.

  OSFI has recently announced the Assets-to-Capital Multiple (ACM), based on Total Capital, will be discontinued in 2015. BMO's ACM was 17.4 at January 31, 2014. BMO's ACM increased from 15.6 at October 31, 2013, primarily due to balance sheet growth.

  BMO's investments in foreign operations are primarily denominated in U.S. dollars. Foreign exchange gains or losses on the translation of the investments in foreign operations to Canadian dollars are reported in shareholders' equity. However, when coupled with the foreign exchange impact of U.S.-dollar-denominated RWA on Canadian-dollar equivalent RWA, and with the impact of U.S.-dollar-denominated capital deductions on our Canadian dollar capital, this may result in variability in the bank's capital ratios. BMO may hedge the risk of foreign exchange gains or losses by funding its foreign investments in U.S. dollars or, alternatively, to offset the impact of foreign exchange rate changes on the bank's capital ratios, may enter into derivative contracts, such as forward currency contracts, or elect to fund its investments in Canadian dollars.

  Pages 61 to 65 and pages 92 to 94 of BMO's 2013 Annual Report provide disclosure on Enterprise-Wide Capital Management and Liquidity and Funding Risk, including regulatory requirements impacting capital and liquidity.

  Other Capital Developments

  On January 24, 2014, we announced our intention to redeem all of our Non-cumulative Class B Preferred Shares Series 18 on February 25, 2014, at a redemption price of $25.00 per share plus declared and unpaid dividends up to but excluding the date fixed for redemption.

  On January 28, 2014, we announced an agreement to acquire F&C. Assuming a third quarter close, which is subject to F&C shareholder approval and the satisfaction of all regulatory and other conditions, the acquisition is expected to reduce BMO's CET1 Ratio by approximately 75 basis points.

  During the quarter, 468,000 common shares were issued through the exercise of stock options.

  On January 30, 2014, we announced that we had received approvals from the Toronto Stock Exchange (TSX) and OSFI to proceed with a normal course issuer bid through the facilities of the TSX to purchase, for cancellation, up to 15 million of BMO's common shares commencing February 1, 2014, and ending January 31, 2015. The timing and amount of purchases under the program are subject to management discretion based on factors such as market conditions and capital adequacy. We do not expect to be active under the normal course issuer bid until after closing of the agreement to acquire F&C, described above. The bank will regularly consult with OSFI before making purchases under the bid. Over the term of the previous bid we purchased 10.7 million of common shares at an average price of $62.88 per share.

  On February 25, 2014, BMO announced that the Board of Directors had declared a quarterly dividend payable to common shareholders of $0.76 per common share, unchanged from the preceding quarter and up $0.02 per share from a year ago. The dividend reflects our strong capital position and the success of our business strategies.

  The dividend is payable May 27, 2014, to shareholders of record on May 1, 2014. Common shareholders may elect to have their cash dividends reinvested in common shares of the bank in accordance with the dividend reinvestment and share purchase plan.

  Economic Capital Review

  Economic capital is a measure of our internal assessment of the risks underlying BMO's business activities. It represents management's estimation of the likely magnitude of economic losses that could occur should adverse situations arise, and allows returns to be measured on a basis that considers the risks taken. Economic capital is calculated for various types of risk - credit, market (trading and non-trading), operational and business - based on a one-year time horizon. Economic capital is a key element of our risk-based capital management and Internal Capital Adequacy Assessment Process framework.

  To view the chart "Economic Capital and RWA by Operating Group and Risk Type", please visit the following link: http://media3.marketwire.com/docs/929120_CHART.pdf.

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  Caution

  The foregoing Capital Management sections contain forward-looking statements. Please see the Caution Regarding Forward-Looking Statements.

  Eligible Dividends Designation

  For the purposes of the Income Tax Act (Canada) and any similar provincial and territorial legislation, BMO designates all dividends paid or deemed to be paid on both its common and preferred shares as "eligible dividends", unless indicated otherwise.

  Review of Operating Groups' Performance

  How BMO Reports Operating Group Results

  The following sections review the financial results of each of our operating segments and operating groups for the first quarter of 2014.

  Periodically, certain business lines and units within the business lines are transferred between client and corporate support groups to more closely align BMO's organizational structure with its strategic priorities. In addition, revenue and expense allocations are updated to more accurately align with current experience. Results for prior periods are restated to conform to the current presentation.

  Corporate Services results reflect certain items in respect of the acquired loan portfolio, including the recognition of a portion of the credit mark that is reflected in net interest income over the term of the purchased loans and provisions and recoveries of credit losses on the acquired portfolio. Certain integration and restructuring costs, run-off structured credit activities and changes in the collective allowance are also included in Corporate Services.

  Effective November 1, 2013, we adopted several new and amended accounting pronouncements issued by the International Accounting Standards Board (IASB), which are outlined in Note 1 to the unaudited interim consolidated financial statements.

  BMO analyzes revenue at the consolidated level based on GAAP revenues reflected in the consolidated financial statements rather than on a taxable equivalent basis (teb). Like many banks, we analyze revenue on a teb basis at the operating group level. This basis includes an adjustment that increases GAAP revenues and the GAAP provision for income taxes by an amount that would raise revenues on certain tax-exempt items to a level equivalent to amounts that would incur tax at the statutory rate. The offset to the group teb adjustments is reflected in Corporate Services revenues and income tax provisions. The teb adjustments for the first quarter of 2014 totalled $85 million, down from $89 million in the fourth quarter of 2013 and up from $64 million in the first quarter of 2013.

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  Q1 2014 vs Q1 2013

  Canadian P&C net income of $484 million increased $37 million or 8% from a year ago, continuing the momentum from the second half of 2013. Revenue was up $99 million or 7% from the prior year due to the effects of strong volume growth across most products, partially offset by the impact of lower net interest margin, which was down 9 basis points to 2.61%. Operating leverage was above 2% for a second consecutive quarter.

  In the personal banking segment, revenue increased $62 million or 6% year over year reflecting higher volumes across most products, partially offset by the impact of lower net interest margin. Total personal lending balances (excluding credit cards) increased 10%. Personal deposit balances increased 9% year over year mainly due to increased volumes in term deposit products.

  In the commercial banking segment, revenue increased $37 million or 7% reflecting higher volumes across most products, partially offset by the impact of lower net interest margin. Balance growth in commercial loans and deposits continued to be strong, increasing 11% and 14% year over year respectively.

  Provisions for credit losses increased $13 million or 10% due to higher commercial losses partially offset by lower provisions in the consumer portfolio. Non-interest expense increased $33 million or 4% due to continued investment in the business. We continue to actively manage expenses, including simplifying our core processes.

  Average current loans and acceptances increased $17.0 billion or 10% from a year ago, and deposits increased $12.2 billion or 11%.

  Q1 2014 vs Q4 2013

  Net income increased $26 million or 6% from last quarter due to higher revenues and lower provisions for credit losses, partially offset by higher expenses. Revenues increased $36 million from the prior quarter reflecting higher volumes across most products. Net interest margin increased 1 basis point to 2.61%.

  Personal revenue increased $26 million due to higher volumes across most products including higher retail cards revenues.

  Commercial revenue increased $10 million from the prior quarter due to higher volumes across most products.

  Provisions for credit losses decreased $25 million due to a combination of lower write-offs and higher recoveries. Non-interest expense increased by $22 million due to higher volume-driven costs and stock-based compensation for employees eligible to retire that is expensed in the first quarter of each year.

  Average current loans and acceptances increased $3.0 billion or 2% from last quarter, while deposits increased $4.5 billion or 4%.

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  Q1 2014 vs Q1 2013 (in US$)

  Net income of $153 million decreased $27 million or 15% from a strong first quarter a year ago. Adjusted net income of $164 million also declined 15%.

  Revenues of $693 million decreased $53 million or 7% from the prior year, which included strong revenues on sales of newly originated mortgages, commercial lending fees, due to customers' response to anticipated U.S. tax changes that accelerated commercial lending, and higher net interest margin. Net interest margin decreased by 29 basis points due to a decline in loan spreads due to competitive pricing and a decline in deposit spreads given the low-rate environment.

  Provisions for credit losses were $18 million, down $15 million due to improvements in the consumer portfolio. Non-interest expense of $464 million increased $5 million or 1%. Adjusted non-interest expense of $448 million was $9 million or 2% higher than last year primarily due to a changing regulatory environment.

  Average current loans and acceptances increased $1.4 billion year over year to $52.4 billion. The core commercial and industrial loan portfolio continues to grow, increasing $3.0 billion or 14% from a year ago to $24.3 billion. In addition, our indirect auto and commercial real estate portfolios reflected year-over-year growth. As expected, there were decreases in certain loan portfolios, including our mortgage loan portfolio, due to the effects of our continued practice of selling most mortgage originations. Average deposits of $58.9 billion declined $0.9 billion year over year, due to growth in our commercial business and in our personal chequing and savings accounts being more than offset by a planned reduction in higher-cost personal money market and time deposit accounts, in addition to a transfer of certain customer balances to Wealth Management at the beginning of the current period.

  Q1 2014 vs. Q4 2013 (in US$)

  Net income increased $55 million or 57% and adjusted net income increased $55 million or 50% from the prior quarter, primarily driven by reductions in provisions for credit losses, which were above trend in the previous quarter.

  Revenue increased $5 million or 1%, primarily due to loan growth and stable net interest margin.

  Provisions for credit losses decreased significantly by $74 million from above trend provisions in the previous quarter, and benefited from higher recoveries in the current quarter. Non-interest expense increased $6 million or 1%. Adjusted non-interest expense increased $8 million or 2% with approximately half due to higher stock-based compensation for employees that are eligible to retire that is recognized in the first quarter of each year.

  Average current loans and acceptances increased by $0.4 billion from the prior quarter, our fifth consecutive quarter of positive growth. Average deposits increased by $0.1 billion from the prior quarter.

  Adjusted results in this U.S. P&C section are non-GAAP amounts or non-GAAP measures. Please see the Non-GAAP measures section.

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  Q1 2014 vs Q1 2013

  Wealth Management continued to produce good results. Net income for the quarter of $175 million increased $13 million or 8% from a year ago. Adjusted net income of $183 million increased $15 million or 8% from a year ago. Adjusted net income in our traditional wealth businesses was $123 million, up $19 million or 17% from a year ago. Strong results reflect growth in client assets and increased transaction volumes. Adjusted net income in insurance was $60 million, down $4 million or 7% from a year ago. The decrease was primarily due to lower benefits from changes in our investment portfolio to improve asset-liability management. There was continued growth in both the creditor and life insurance underlying businesses.

  Revenue was $867 million, up $89 million or 11% from a year ago. Revenue in our traditional wealth businesses was $768 million, up $90 million or 13% from a year ago due to growth in client assets and increased transaction volumes. Insurance revenue was $99 million, down $1 million or 1% due to the factors mentioned above. The stronger U.S. dollar increased revenue by $15 million or 2%.

  Non-interest expense was $644 million, up $73 million or 13% from a year ago. Adjusted non-interest expense was $634 million, up $72 million or 13% due to higher revenue-based costs, higher support costs and timing of initiative spend. The stronger U.S. dollar increased adjusted expense by $13 million or 2%.

  Assets under management and administration grew by $97 billion or 19% from a year ago to $597 billion, driven by market appreciation, the stronger U.S. dollar and growth in new client assets.

  Q1 2014 vs Q4 2013

  Net income was down $136 million or 44% and adjusted net income was down $135 million or 43% from the fourth quarter. Adjusted net income in our traditional wealth businesses was down $126 million or 51%, as prior quarter results included a $121 million after-tax security gain and the current quarter included $15 million after-tax impact of stock-based compensation for employees that are eligible to retire that is expensed in the first quarter of each year. Other traditional wealth businesses continued to perform well. Adjusted net income in insurance was down $9 million or 14%, primarily due to lower benefits from changes in our investment portfolio to improve asset-liability management. The underlying insurance businesses continued to perform well.

  Revenue decreased $173 million or 17%. Revenue in our traditional wealth businesses decreased $163 million or 17%, due to a $191 million security gain in the prior quarter. Revenue in other traditional wealth businesses increased $28 million or 4%, driven by growth in client assets. Insurance revenue decreased $10 million or 9% due to the factors mentioned above. The stronger U.S. dollar increased revenue by $7 million or 1%.

  Non-interest expense increased $42 million or 7%. Adjusted non-interest expense also increased 7%. Half of the increase was due to stock-based compensation for employees eligible to retire. There were also higher revenue-based costs. The stronger U.S. dollar increased adjusted expense by $6 million or 1%.

  Assets under management and administration grew by $45 billion or 8% primarily due to the stronger U.S. dollar and market appreciation.

  Adjusted results in this Wealth Management section are non-GAAP amounts or non-GAAP measures. Please see the Non-GAAP measures section.

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  Q1 2014 vs Q1 2013

  Net income of $277 million decreased by $21 million or 7% from the first quarter a year ago, as good revenue growth primarily from our U.S. businesses was more than offset by higher expenses, lower loan recoveries and a higher effective tax rate.

  Revenues increased $79 million or 9% year over year due to good revenue performance across the businesses, and in particular from our U.S. segment. Investment and Corporate Banking businesses performed well, driven by higher equity underwriting volumes, higher securities gains in corporate banking and merchant banking activities. Trading Products businesses were supported by higher trading revenue, driven by higher interest rate trading and foreign exchange trading, as well as increased securities commissions and fees. The stronger U.S. dollar increased revenues by $29 million or 3% relative to the same period a year ago.

  Recoveries of credit losses were lower by $14 million due to lower recoveries combined with new provisions this quarter. Expenses increased $85 million or 16% due to higher employee-related expenses, including severance, and increased support costs, both driven by a changing business and regulatory environment. The stronger U.S. dollar increased expenses by $19 million or 4% relative to the same period a year ago.

  Q1 2014 vs Q4 2013

  Net income increased $60 million or 27% from the previous quarter primarily due to higher revenues across the businesses. Revenue increased $177 million or 22%. Higher equity underwriting fees and securities gains in corporate banking drove improved performance in Investment and Corporate Banking. There was stronger Trading Products revenue, particularly in interest rate and equity trading, driven by improved market conditions and stronger client activity. The stronger U.S. dollar increased revenue by $13 million or 2% relative to the previous quarter.

  Recoveries of credit losses were lower by $16 million due to a combination of lower recoveries and new provisions this quarter. Non-interest expense increased $83 million or 16% from the previous quarter, primarily due to higher employee-related expenses, including severance and stock-based compensation for employees eligible to retire that is expensed in the first quarter of each year, as well as increased support costs, both driven by a changing business and regulatory environment. The stronger U.S. dollar increased expenses by $9 million or 2% relative to the previous quarter.

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  Corporate Services

  Corporate Services consists of Corporate Units and Technology and Operations (T&O). Corporate Units provide enterprise-wide expertise and governance support in a variety of areas, including strategic planning, risk management, finance, legal and compliance, marketing, communications and human resources. T&O manages, maintains and provides governance over information technology, operations services, real estate and sourcing for BMO Financial Group.

  The costs of Corporate Units and T&O services are largely transferred to the three client operating groups (P&C, Wealth Management and BMO Capital Markets), and only relatively minor amounts are retained in Corporate Services results. As such, Corporate Services adjusted operating results largely reflect the impact of certain asset-liability management activities, the elimination of taxable equivalent adjustments, the results from certain impaired real estate secured assets, purchased loan accounting impacts and run-off structured credit activities. Corporate Services reported results in 2013 and prior reflect a number of items and activities that are excluded from BMO's adjusted results to help assess BMO's performance. These adjusting items are not reflective of core operating results. They are itemized in the Non-GAAP Measures section.

  Financial Performance Review

  Q1 2014 vs Q1 2013

  Corporate Services net loss for the first quarter of 2014 was $41 million, compared with a net loss of $50 million a year ago. The adjusted net loss in the quarter was $41 million, compared with an adjusted net loss of $79 million a year ago. Adjusted revenues were higher mainly due to the inclusion, commencing this quarter, of $79 million of credit-related revenue in respect of the purchased performing loan portfolio, partially offset by a group teb offset that was $21 million higher than the prior year. Adjusted expenses were lower primarily due to lower support costs retained in Corporate and reduced costs associated with the impaired real estate secured asset portfolio. Adjusted recoveries of credit losses of $59 million improved by $8 million primarily due to a $58 million increase in recoveries on the purchased credit impaired loan portfolio from the prior year, partially offset by $34 million of specific provision in respect of the purchased performing loan portfolio.

  Q1 2014 vs Q4 2013

  Corporate Services net loss for the first quarter of 2014 was $41 million, compared with a net loss of $14 million in the fourth quarter of 2013. The adjusted net loss in the quarter was $41 million, compared with a net loss of $22 million in the fourth quarter of 2013. Adjusted revenues were higher mainly due to the inclusion, commencing this quarter, of $79 million of credit-related revenue in respect of the purchased performing loan portfolio, partially offset by a variety of other items, none of which were individually significant. Adjusted expenses were marginally lower. Adjusted recoveries of credit losses decreased mainly due to $34 million of specific provisions in respect of the purchased performing loan portfolio.

  Adjusted results in the foregoing Corporate Services section are non-GAAP amounts or non-GAAP measures. Please see the Non-GAAP Measures section.

  Non-GAAP Measures

  Results and measures in this MD&A are presented on a GAAP basis. They are also presented on an adjusted basis that excludes the impact of certain items as set out in Table 16 below. 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 if they consider the items to not be reflective of ongoing results. As such, the presentation may facilitate readers' analysis of trends, as well as comparisons with our competitors. Adjusted results and measures are non-GAAP and as such do not have standardized meaning 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.

  Net economic profit represents net income available to common shareholders, before deduction for the after-tax impact of the amortization of acquisition-related intangible assets, less a charge for capital, and is considered a reasonable measure of added economic value.

  Beginning in the first quarter of 2014, credit-related items on the purchased performing loan portfolio, acquisition integration costs and run-off structured credit activities are no longer adjusting items.

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  Summary Quarterly Earnings Trends

  BMO's quarterly earnings trends were reviewed in detail on pages 102 and 103 of BMO's 2013 Annual Report. Readers are encouraged to refer to that review for a more complete discussion of trends and factors affecting past quarterly results including the modest impact of seasonal variations in results. Table 17 outlines summary results for the second quarter of fiscal 2012 through the first quarter of fiscal 2014. The table reflects changes in IFRS that are outlined in Note 1 to the unaudited interim consolidated financial statements.

  Periodically, certain business lines and units within the business lines are transferred between client operating groups to more closely align BMO's organizational structure and its strategic priorities. Comparative figures have been restated to conform to the current presentation.

  Over the past two years, we have remained focused on executing our strategic priorities. Economic conditions have generally been stable to improving.

  Canadian P&C has had good results in recent quarters with net income growth driven by stronger revenues and our operating leverage has been positive for the last two quarters. The improving revenue growth is due to more stable margins with continued strong balance growth.

  Recent quarterly results in traditional wealth businesses have been strong and have grown on a relatively consistent basis, driven by growth in client assets, better markets and a focus on productivity. The fourth quarter of 2013 included a large security gain. Quarterly results in insurance have been subject to variability, resulting primarily from changes in long-term interest rates and investment portfolio changes.

  Building on improving operating results from 2012, BMO Capital Markets continued to show strength through 2013, benefiting from an improved market environment which enabled us to deliver three quarters of good performance with higher revenue contributing to an overall strong net income performance. Results in the fourth quarter of 2013 were impacted by market uncertainty in both the United States and Canada, and contributed to both lower revenue and lower net income. Rebounding from the fourth quarter's results, this quarter reflects higher net income, driven by increased client activity and more favourable market conditions across both the Investment and Corporate Banking and Trading Products businesses.

  U.S. P&C had strong results in the first quarter of 2013 and results were relatively stable in the second and third quarters due to core commercial and industrial loan growth and lower expenses compared to the prior year, offsetting lower margins and balances in certain portfolios. Results in the fourth quarter of 2013 were negatively impacted by above trend provisions for credit losses. Results improved in the first quarter of 2014, primarily driven by reductions in provisions for credit losses. Net interest margin has declined relative to 2012, primarily due to lower loan spreads due to competitive pricing and a decline in deposit spreads given the low-rate environment.

  Corporate Services quarterly net income can vary, in large part due to the inclusion of the adjusting items, which are largely recorded in Corporate Services, and recoveries of credit losses on the purchased credit impaired loan portfolio. Reduced recoveries in the first quarter of 2013 together with lower revenues and increased expenses lowered Corporate Services results that quarter. These recoveries increased in the last three quarters of 2013 and first quarter of 2014, increasing net income.

  BMO's PCL measured as a percentage of loans and acceptances has been trending lower in recent quarters relative to 2012, with the exception of an increase in the fourth quarter of 2013.

  Fluctuations in exchange rates in 2012 and 2013 have been subdued. The U.S. dollar strengthened significantly in the first quarter of 2014. A stronger U.S. dollar increases the translated value of U.S.-dollar-denominated revenues, expenses, provisions for credit losses, income taxes and net income.

  The effective income tax rate can vary, as it depends on the timing of resolution of certain tax matters, recoveries of prior periods' income taxes and the relative proportion of earnings attributable to the different jurisdictions in which we operate.

  Caution

  This Summary Quarterly Earnings Trends section contains forward-looking statements. Please see the Caution Regarding Forward-Looking Statements.

  Adjusted results in this Summary Quarterly Earnings Trends section are non-GAAP amounts or non-GAAP measures. Please see the Non-GAAP Measures section.

  Balance Sheet

  Total assets of $592.7 billion at January 31, 2014, increased $55.6 billion from October 31, 2013, including a $15.3 billion increase as a result of the stronger U.S. dollar. The increase primarily reflects growth in securities of $15.1 billion, securities borrowed or purchased under resale agreements of $13.8 billion, net loans and acceptances of $10.5 billion, derivative financial assets of $7.2 billion and cash, cash equivalents and interest bearing deposits with banks of $8.1 billion. All remaining assets increased by a combined $0.9 billion.

  The $15.1 billion increase in securities was primarily due to an increase in trading securities, reflecting higher client-driven activities.

  The $13.8 billion increase in securities borrowed or purchased under resale agreements was mainly due to increased client activities. This is commensurate with the increase in securities lent or sold under repurchase agreements.

  The $10.5 billion increase in net loans and acceptances, included a $5.7 billion increase as a result of the stronger U.S. dollar. The remaining net loans and acceptances increase was primarily driven by loans to businesses and governments in the P&C businesses and BMO Capital Markets.

  The $7.2 billion increase in derivative financial assets and the $4.9 billion increase in derivative financial liabilities were primarily due to the increase in the fair value of foreign exchange contracts.

  The $8.1 billion increase in cash, cash equivalents and interest bearing deposits with banks was primarily due to increased balances held with central banks.

  Liabilities and equity increased $55.6 billion from October 31, 2013, including a $15.3 billion increase as a result of the stronger U.S. dollar. The change primarily reflects increases in deposits of $30.0 billion, securities lent or sold under repurchase agreements of $15.9 billion, increases in derivative financial liabilities of $4.9 billion, securities sold but not yet purchased of $4.2 billion and shareholders' equity of $1.5 billion. All remaining liabilities and equity decreased by a combined $0.9 billion.

  The $30.0 billion increase in deposits included a $12.9 billion increase due to the stronger U.S. dollar. Business and government deposits increased $18.0 billion, half due to the stronger U.S. dollar and the remaining half due to increased wholesale funding issuances. Deposits by banks increased $6.3 billion and deposits by individuals increased $5.7 billion, with half driven by increases in Canadian P&C and Wealth Management and the remaining half driven by the impact of the stronger U.S. dollar.

  Contractual obligations by year of maturity are outlined in Note 17 to the unaudited interim consolidated financial statements.

  Transactions with Related Parties

  In the ordinary course of business, we provide banking services to our key management personnel, joint ventures and associates on the same terms that we offer to our customers for those services.

  The Bank's policies and procedures for related party transactions did not materially change from October 31, 2013, as described in Note 27 to the audited consolidated financial statements on page 177 of BMO's 2013 Annual Report.

  Off-Balance Sheet Arrangements

  BMO enters into a number of off-balance sheet arrangements in the normal course of operations. The most significant of these are Credit Instruments, Structured Entities, and Guarantees, which are described on pages 65, 66 and 70 of BMO's 2013 Annual Report as well as in Notes 5 and 7 to the unaudited interim consolidated financial statements. We consolidate all of our Structured Entities, except for certain Canadian customer securitization and structured finance vehicles. See the Select Financial Instruments section for comments on any significant changes to these arrangements during the quarter ended January 31, 2014.

  Accounting Policies and Critical Accounting Estimates

  Significant accounting policies are described in the notes to our audited consolidated financial statements for the year ended October 31, 2013, together with a discussion of certain accounting estimates that are considered particularly important as they require management to make significant judgments, some of which relate to matters that are inherently uncertain. Readers are encouraged to review that discussion.

  Effective November 1, 2013, we adopted several new and amended accounting pronouncements issued by the IASB, which are outlined in Note 1 to the unaudited interim consolidated financial statements.

  Future Changes in Accounting Policies

  BMO monitors the potential changes proposed by IASB, and analyzes the effect that changes in the standards may have on BMO's financial reporting and accounting policies. New standards and amendments to existing standards, which are effective for the Bank in the future, can be found in Note 1 to the audited consolidated financial statements on pages 132 and 133 of BMO's 2013 Annual Report.

  Regulatory Developments

  Regulators in Canada, the United States and elsewhere are very active on a number of fronts, including consumer protection, capital markets activities, anti-money laundering, and the oversight and strengthening of risk management. These regulatory reforms can impact our operations when they pose financial costs, for example from increasing capital and liquidity requirements and cost of compliance in terms of infrastructure, and our failure to comply with laws and regulations could result in sanctions and financial penalties that could adversely affect our strategic flexibility, reputation and earnings.

  We continue to monitor and prepare for regulatory developments, including those referenced elsewhere in this MD&A and the recent U.S. regulatory developments set out below. For a more comprehensive discussion of U.S. regulatory developments, see the U.S. Regulatory Developments section on page 69 of BMO's 2013 Annual Report.

  As a bank holding company with total consolidated assets of US$50 billion or more, our U.S. subsidiary BMO Financial Corp. (BFC) is subject to the 2014 Comprehensive Capital Analysis and Review (CCAR) rules and processes, under which BFC participated in the annual stress testing and capital planning exercise conducted by the Board of Governors of the Federal Reserve System (FRB). BFC is required to demonstrate an ability to maintain a Tier 1 Common Ratio(1) of 5% or more and meet or exceed minimum required capital ratios, after considering its planned capital actions under a company-developed severely adverse scenario and a supervisory-prescribed severely adverse scenario. Pursuant to these requirements, BFC submitted a two-year capital plan to the FRB in January 2014. The FRB is expected to provide its decision on the proposed capital actions contained within BFC's 2014 Capital Plan in March 2014. BMO Harris Bank N.A. (BHB) was subject to similar capital planning requirements by the Office of the Comptroller of Currency (OCC).

  The FRB finalized a rule (the FBO Rule) that implements the Dodd-Frank Act's enhanced prudential standards and early remediation requirements for the U.S. operations of non-U.S. banks, such as BMO. The FBO Rule establishes new requirements relating to risk-based capital, leverage limits, liquidity standards, risk-management frameworks, concentration and credit exposure limits, resolution planning and credit exposure reporting.

  The OCC issued for comment proposed guidelines for the design and implementation of a risk governance framework for large national banks, and board of director oversight of the risk governance framework's design and implementation. As proposed, the guidelines would apply to our principal U.S. subsidiary bank, BHB, and establish specific roles and responsibilities focused on risk management for front line units, risk management, internal audit, bank boards and CEOs.

  The Volcker Rule, which prohibits banking entities and their affiliates from certain proprietary trading and specified relationships with hedge funds and private equity funds, was finalized in December 2013. The U.S. federal banking agencies, the Securities and Exchange Commission and the Commodity Futures Trading Commission have confirmed that banking entities have until July 2015, to conform all of their activities and investments, or longer if the period is extended. Banking entities are expected to engage in good-faith planning efforts and work toward compliance during this period.

  The Consumer Financial Protection Bureau, which enforces certain U.S. federal consumer finance laws, has stated that it will closely scrutinize indirect auto lenders to focus on compliance, including with fair lending laws.

  For Full Releasehttp://www.marketwired.com/press-release/bmo-financial-group-reports-net-income-of-11-billion-for-the-first-quarter-of-2014-tsx-bmo-1882320.htm

  Caution

  This Regulatory Developments section contains forward-looking statements. Please see the Caution Regarding Forward-Looking Statements.

  Select Financial Instruments

  Pages 65 and 66 of BMO's 2013 Annual Report provide enhanced disclosure relating to select financial instruments that, commencing in 2008 and based on subsequent assessments, markets had come to regard as carrying higher risk. Readers are encouraged to review that disclosure to assist in understanding the nature and extent of BMO's exposures.

  The Financial Stability Board (FSB) issued a report encouraging enhanced disclosure related to financial instruments that market participants had come to regard as carrying higher risk. An index of where the disclosures recommended by the Enhanced Disclosure Task Force (EDTF) of the FSB are located is provided on our website at www.bmo.com/investorrelations.

  We follow a practice of reporting on significant changes in the select financial instruments since year end, if any, in our interim MD&A. There have been no changes of substance from the disclosure in our 2013 Annual Report, other than the expected maturity of the $1.05 billion of Series 2013 Apex Notes that occurred on December 30, 2013.

  Risk Management

  Our risk management practices and key measures have not changed significantly from those outlined on pages 77 to 99 of BMO's 2013 Annual Report.

  Market Risk

  Linkages between Balance Sheet Items and Market Risk Disclosures

  Below are parts of our consolidated balance sheet that are subject to market risk, showing balances that are mainly subject to traded risk and non-traded risk measurement techniques.

  For Full Releasehttp://www.marketwired.com/press-release/bmo-financial-group-reports-net-income-of-11-billion-for-the-first-quarter-of-2014-tsx-bmo-1882320.htm

  Trading, Underwriting and Non-Trading (Structural) Market Risk

  Total Trading Value at Risk (VaR) increased over the quarter generally due to client facilitation activity within our equity books along with higher levels of interest rate exposure. There was a partially offsetting improvement in overall diversification benefit. The available-for-sale (AFS) VaR increased mainly as a function of additional securities held in fixed income portfolios. Total Trading Stressed VaR increased mainly due to heightened equity exposures broadly reflecting the changes in Trading VaR for the quarter.

  There were no significant changes in our non-trading (structural) market risk management practices during the quarter. Structural economic value exposure to rising interest rates primarily reflects a lower market value for fixed-rate loans. Structural earnings exposure to falling interest rates primarily reflects the risk of prime-based loans repricing at lower rates. Economic value and earnings interest rate sensitivities remained largely unchanged over the quarter.

  BMO's market risk management practices and key measures are outlined on pages 87 to 91 of BMO's 2013 Annual Report.

  For Full Releasehttp://www.marketwired.com/press-release/bmo-financial-group-reports-net-income-of-11-billion-for-the-first-quarter-of-2014-tsx-bmo-1882320.htm

  Liquidity and Funding Risk

  Liquidity and funding risk is managed under a robust risk management framework. There were no material changes in the framework during the quarter.

  Liquid and Unencumbered Assets

  BMO's liquid assets are primarily held in our trading businesses and in supplemental liquidity pools that are maintained for contingency purposes. Liquid assets include unencumbered, high-quality assets that are marketable, can be pledged as security for borrowings and can be converted to cash in a time frame that meets our liquidity and funding requirements.

  BMO's liquid assets are summarized in Table 22 below. In the ordinary course of the bank's day-to-day business activities, BMO may encumber a portion of cash and security holdings as collateral to support its trading activities and participation in clearing and payment systems. In addition, BMO may receive highly liquid assets as collateral and may re-pledge these assets in exchange for cash or as collateral for trading activities. Net unencumbered liquid assets, defined as on-balance sheet assets such as BMO owned cash and securities and securities borrowed or purchased under resale agreements plus other off-balance sheet eligible collateral received less collateral encumbered, totalled $180.7 billion at January 31, 2014, compared with $160.6 billion at October 31, 2013. The increase in unencumbered liquid assets was primarily due to higher cash and security balances. Net unencumbered liquid assets are primarily held at the parent bank level, in our U.S. legal entity BMO Harris Bank, and in BMO's broker/dealer operations in Canada and internationally. In addition to liquid assets, BMO retains access to the Bank of Canada's emergency lending assistance program, Federal Reserve Bank discount window in the U.S. and European Central Bank standby liquidity facilities. BMO does not consider central bank facilities as a source of available liquidity when assessing its liquidity position.

  In addition to cash and securities holdings, BMO may also pledge other assets, including mortgages and loans, to raise long-term secured wholesale funding. Table 23 provides a summary of total encumbered and unencumbered assets.

  For Full Releasehttp://www.marketwired.com/press-release/bmo-financial-group-reports-net-income-of-11-billion-for-the-first-quarter-of-2014-tsx-bmo-1882320.htm

  Funding Strategy

  Our funding philosophy requires that secured and unsecured wholesale funding used to support loans and less liquid assets be longer term (typically maturing in two to ten years) to better match the term to maturity for these assets. Wholesale secured and unsecured funding for liquid trading assets is generally shorter term (maturing in one year or less), and is aligned with the liquidity of the assets being funded. Trading assets are subject to haircuts in order to reflect the potential for lower market values and liquidity during times of market stress. Supplemental liquidity pools are funded with a mix of wholesale term funding.

  BMO maintains a large and stable base of customer deposits that, along with our strong capital base, is a source of strength. It supports the maintenance of a sound liquidity position and reduces our reliance on wholesale funding. Customer deposits include core deposits and larger retail and commercial fixed-rate customer deposits. Customer deposits totalled $227.9 billion at January 31, 2014, up from $220.6 billion at October 31, 2013. BMO also receives non-marketable deposits from corporate and non-financial institutional customers. These deposits totalled $27.5 billion as at January 31, 2014.

  Total wholesale funding outstanding, largely consisting of negotiable marketable securities, was $171.1 billion at January 31, 2014, with $36.4 billion sourced as secured funding and $134.7 billion sourced as unsecured funding. The mix and maturities of BMO's wholesale term funding are outlined in Table 24 below. BMO maintains a sizeable portfolio of unencumbered liquid assets totalling $180.7 billion as of January 31, 2014, that can be monetized to meet potential funding requirements, as described in the Liquid and Unencumbered Assets section above.

  Diversification of our wholesale funding sources is an important part of our overall liquidity management strategy. BMO's wholesale funding activities are well diversified by jurisdiction, currency, investor segment, instrument and maturity profile. BMO maintains ready access to long-term wholesale funding through various borrowing programs, including a European Note Issuance Program, Canadian and U.S. Medium Term Note Programs, Canadian and U.S. mortgage securitizations, Canadian credit card securitizations, covered bonds and Canadian and U.S. senior (unsecured) deposits.

  For Full Releasehttp://www.marketwired.com/press-release/bmo-financial-group-reports-net-income-of-11-billion-for-the-first-quarter-of-2014-tsx-bmo-1882320.htm

  Credit Rating

  The credit ratings assigned to BMO's short-term and senior long-term debt securities by external rating agencies are important in the raising of both capital and funding to support our business operations. Maintaining strong credit ratings allows us to access the capital markets at competitive pricing levels. Should our credit ratings experience a material downgrade, our cost of funds would likely increase significantly and our access to funding and capital through capital markets could be reduced. A material downgrade of our ratings could have other consequences, including those set out in Note 10 to the audited consolidated financial statements on page 150 of BMO's 2013 Annual Report.

  The credit ratings assigned to BMO's senior debt by the rating agencies are indicative of high-grade, high-quality issues. The ratings as at January 31, 2014, were as follows: DBRS (AA); Fitch (AA-); Moody's (Aa3); and Standard & Poor's (A+).

  We are required to deliver collateral to certain counterparties in the event of a downgrade to our current credit rating. The incremental collateral required is based on mark-to-market exposure, collateral valuations and collateral threshold arrangements, as applicable. As at January 31, 2014, the bank would be required to provide additional collateral to counterparties totalling $64 million and $272 million under a one-notch and two-notch downgrade, respectively.

  Insurance Risk

  There were no significant changes in the risk management practices or risk levels of our insurance business during the quarter. BMO's insurance risk management practices are outlined on pages 95 and 96 of BMO's 2013 Annual Report.

  Information and Cyber Security Risk

  There were no significant changes in our information and cyber security risk management practices during the quarter from those described in the Information and Cyber Security Risk section on page 79 and in the Operational Risk section on page 94 of BMO's 2013 Annual Report.

  Derivative Transactions

  With limited exceptions, we utilize the International Swaps and Derivatives Association (ISDA) Master Agreement to document our contractual trading relationships with our counterparties for over-the-counter (OTC) derivatives. ISDA Master Agreements set out the legal framework and standard terms that apply to all derivative transactions entered into bilaterally between the parties. In addition to providing Events of Default and Termination Events which can lead to the early termination of transactions prior to their maturity date, ISDA Master Agreements also contain rules for the calculation and netting of termination values (also known as Close-out Amounts) for transactions between counterparties to identify a single net aggregate amount payable by one party to the other.

  Credit Support Annexes (CSAs) are commonly included with ISDA Master Agreements to provide for the exchange of collateral between the parties where one party's OTC derivatives exposure to the other party exceeds an agreed amount (Threshold). The purpose of collateralization is to mitigate counterparty credit risk. Collateral can be exchanged as initial margin and/or variation margin. CSAs outline, among other things, provisions setting out acceptable collateral types (e.g. government treasuries and cash) and how they will be valued (discounts are often applied to the market values), as well as Thresholds, whether or not the collateral can be re-pledged by the recipient and how interest is calculated.

  Table 25 represents the notional amounts of our OTC derivative contracts comprised of those which are centrally cleared and settled through a designated clearing house and those which are non-centrally cleared. The notional amounts of our derivatives represent the amount to which a rate or price is applied in order to calculate the payments that must be exchanged under the contract. Notional amounts do not represent assets or liabilities and therefore are not recorded in our Consolidated Balance Sheet. The fair values of OTC derivative contracts are recorded in our Consolidated Balance Sheet.

  For Full Releasehttp://www.marketwired.com/press-release/bmo-financial-group-reports-net-income-of-11-billion-for-the-first-quarter-of-2014-tsx-bmo-1882320.htm

  Select Geographic Exposures

  Select geographic exposures were disclosed and discussed on pages 67, 68, 119 and 120 of BMO's 2013 Annual Report. Our exposure to select countries of interest, as at January 31, 2014, is set out in the tables that follow, which summarize our exposure to Greece, Ireland, Italy, Portugal and Spain (GIIPS) along with a broader group of countries of interest in Europe where our gross exposure is greater than $500 million. Our gross and net portfolio exposures are summarized in Table 26 for lending, securities (inclusive of credit default swaps (CDS) activity), repo-style transactions and derivatives. These totals are further broken down by counterparty type in Tables 27 to 29. There has been limited change in our exposures.

  For greater clarity, BMO's CDS exposures in Europe are outlined separately in Table 30. As part of our credit risk management framework, purchased CDS risk is controlled through a regularly reviewed list of approved counterparties. The majority of CDS exposures are offsetting in nature, typically contain matched contractual terms and are attributable to legacy credit trading strategies that have been in run-off mode since 2008.

  For Full Releasehttp://www.marketwired.com/press-release/bmo-financial-group-reports-net-income-of-11-billion-for-the-first-quarter-of-2014-tsx-bmo-1882320.htm

  Caution

  This Risk Management section contains forward-looking statements. Please see the Caution Regarding Forward-Looking Statements.

  INVESTOR AND MEDIA PRESENTATION

  Investor Presentation Materials

  Interested parties are invited to visit our website at www.bmo.com/investorrelations to review our 2013 Annual Report, this quarterly news release, presentation materials and supplementary financial information package online.

  Quarterly Conference Call and Webcast Presentations

  Interested parties are also invited to listen to our quarterly conference call on Tuesday, February 25, 2014, at 2:00 p.m. (EST). 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 416-695-9753 (from within Toronto) or 1-888-789-0089 (toll-free outside Toronto). A replay of the conference call can be accessed until Tuesday, May 27, 2014, by calling 905-694-9451 (from within Toronto) or 1-800-408-3053 (toll-free outside Toronto) and entering passcode 6766952.

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

  For Full Releasehttp://www.marketwired.com/press-release/bmo-financial-group-reports-net-income-of-11-billion-for-the-first-quarter-of-2014-tsx-bmo-1882320.htm

  ® Registered trademark of Bank of Montreal

  For Full Releasehttp://www.marketwired.com/press-release/bmo-financial-group-reports-net-income-of-11-billion-for-the-first-quarter-of-2014-tsx-bmo-1882320.htm

  Contact Information

  Contacts:

  Media Relations Contacts

  Ralph Marranca, Toronto

  ralph.marranca@bmo.com

  416-867-3996

  Ronald Monet, Montreal

  ronald.monet@bmo.com

  514-877-1873

  Investor Relations Contacts

  Sharon Haward-Laird

  Head, Investor Relations

  sharon.hawardlaird@bmo.com

  416-867-6656

  Andrew Chin

  Director, Investor Relations

  andrew.chin@bmo.com

  416-867-7019

  Tom Flynn

  Chief Financial Officer

  tom.flynn@bmo.com

  416-867-4689

  Corporate Secretary

  Barbara Muir

  Senior Vice-President, Deputy General Counsel,

  Corporate Affairs and Corporate Secretary,

  corp.secretary@bmo.com

  416-867-6423

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