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

BANK OF MONTREAL FINANCIAL HIGHLIGHTS (Canadian $ in millions except as noted) For the three months ended For the nine months ended Jul 31, Apr 30, Jan 31, Jul 31, Change from Jul 31, Jul 31, Change from 2000 2000 2000 1999 Jul 31,1999 2000 1999 Jul 31,1999 Net Income Statement $ 1,090 $ 1,084 $ 1,081 $ 1,092 (0.2)% $ 3,255 $ 3,293 (1.1)% Net interest income (TEB) (a) Other income 1,005 1,200 1,042 933 7.7 3,247 2,627 23.6 2,095 2,284 2,123 2,025 3.4 6,502 5,920 9.8 Total revenue (TEB) (a) 100 100 100 80 25.0 300 240 25.0 Provision for credit losses 1,326 3,928 Non-interest expense 1,348 1,254 1,284 3.1 3,787 3.7 252 322 279 247 1.9 853 721 18.4 Provision for income taxes (TEB) (a) 4 5 4 5 (3.4) 13 17 (20.5) Non-controlling interest in subsidiaries 413 509 486 409 1.2 1,408 1,155 21.8 Net income before goodwill 12 12 12 11 13.0 36 31 12.2 Amortization of goodwill, net of applicable income tax 401 497 474 398 0.9 1,372 1,124 22.1 Net income 33 35 31 34 (3.0) 99 105 (5.6) Taxable equivalent adjustment Per Common Share ($) Net income before goodwill $ 1.46 $ 1.81 $ 1.72 $ 1.42 $ 0.04 $ 4.99 $ 4.01 $ 0.98 - basic 1.45 1.79 1.71 1.41 4.95 3.98 0.97 - fully diluted 0.04 Net income 1.41 1.76 1.68 1.38 0.03 4.85 3.89 0.96 - basic 1.40 1.75 1.66 1.37 0.03 4.81 3.86 0.95 - fully diluted 0.50 1.50 0.50 0.50 0.47 0.03 1.41 0.09 Dividends declared 37.74 37.45 35.77 34.91 2.83 37.74 34.91 2.83 Book value per share 63.75 53.75 48.15 54.90 8.85 63.75 54.90 8.85 Market value per share 16.7 14.4 12.9 14.6 16.7 14.6 2.1 2.1 Total market value of common shares ($ billions) As at Jul 31, Apr 30, Jan 31, Jul 31, Change from 2000 2000 2000 1999 Jul 31,1999 Balance Sheet Summary Assets $235,646 $ 238,414 $ 228,525 $ 225,218 4.6% Loans 137,134 136,697 133,148 136,263 0.6 156,675 162,067 154,469 150,424 4.2 Deposits 16,603 16,428 15,920 15,914 4.3 Capital funds 9,904 10,037 9,571 9,291 6.6 Common equity (195) (283) (240) (203) 3.7 Net impaired loans and acceptances Average Balances 135,356 136,536 135,659 136,965 (1.2) Loans 238,488 233,354 230,195 226,541 5.3 Assets For the three months ended For the nine months ended Jul 31, Apr 30, Jan 31, Jul 31, Jul 31, Jul 31, 2000 2000 2000 1999 2000 1999 Primary Financial Measures (%) (b) 5 year total shareholder return 21.5 18.2 17.5 22.6 21.5 22.6 Net economic profit ($ millions) 124 226 201 147 551 409 Earnings per share growth 2.2 40.0 33.9 4.6 24.6 (1.0) Return on equity 15.0 19.8 19.0 16.2 17.9 15.6 3.4 16.5 9.8 5.8 9.8 4.7 Revenue growth Expense-to-revenue ratio 63.2 59.1 59.0 63.4 60.4 64.0 Provision for credit losses as a % of average loans and acceptances 0.28 0.28 0.28 0.22 0.28 0.22 Gross impaired loans and acceptances as a % of equity and allowance for credit losses 9.83 8.71 8.89 8.56 9.83 8.56 Liquidity ratio 29.1 30.1 29.9 28.6 29.1 28.6 8.44 8.06 7.84 7.87 8.44 7.87 Tier 1 capital ratio Credit rating AA- AA- AA- AA- AA- AA- Other Financial Ratios (% except as noted) (b) Total shareholder return 16.7 (1.0) (12.0) (10.3) 16.7 (10.3) 3.7 4.2 3.3 3.1 3.5 2.9 Dividend yield Price-to-earnings ratio (times) 11.1 9.4 9.3 11.8 11.1 11.8 Market-to-book value (times) 1.69 1.44 1.35 1.57 1.69 1.57 Cash earnings per share – basic ($) 1.49 1.83 1.74 1.44 5.06 4.08 16.6 19.7 Cash return on common shareholders’ equity 21.8 21.0 18.1 17.5 Return on average assets 0.67 0.87 0.82 0.70 0.78 0.66 Net interest margin 1.82 1.89 1.87 1.91 1.86 1.94 Other income as a % of total revenue 48.0 52.5 49.1 46.1 49.9 44.4 Expense growth 3.1 6.2 1.8 6.4 3.7 6.2 Tier 1 capital ratio – U.S. basis 8.07 7.67 7.63 7.56 8.07 7.56 Total capital ratio 12.33 11.13 10.99 10.84 12.33 10.84 5.1 5.1 5.1 Equity-to-assets ratio 5.1 5.1 5.1 (a) Reported on a taxable equivalent basis (TEB). (b) For the period ended or as at, as appropriate. (c) All ratios in this report are based on unrounded numbers. Bank of Montreal Third Quarter Report 2000 Page 1

BANK OF MONTREAL CONSOLIDATED STATEMENT OF INCOME (Unaudited) (Canadian $ in millions except number of common For the three months ended For the nine months ended shares) Jul 31, 2000 Apr 30, 2000 Jan 31, 2000 Jul 31, 1999 Jul 31, 2000 Jul 31, 1999 Interest, Dividend and Fee Income $ 2,604 $ 2,654 $ 2,449 $ 2,405 $ 7,707 $ 7,292 Loans Securities 745 673 701 569 2,119 1,817 283 263 231 258 777 795 Deposits with banks 3,632 3,590 3,381 3,232 10,603 9,904 Interest Expense 1,835 5,494 Deposits 1,905 1,754 1,545 4,757 Subordinated debt 90 83 86 85 259 254 650 553 491 544 1,694 1,705 Other liabilities 2,575 2,541 2,331 2,174 7,447 6,716 1,057 1,049 1,050 1,058 3,156 3,188 Net Interest Income Provision for credit losses 100 100 100 80 300 240 Net Interest Income After Provision for Credit Losses 957 949 950 978 2,856 2,948 Other Income Deposit and payment service charges 162 159 164 155 485 451 85 72 80 89 237 238 Lending fees Capital market fees 237 341 224 207 802 576 59 47 53 56 159 150 Card services 92 100 104 111 296 316 Investment management and custodial fees 62 57 52 52 171 147 Mutual fund revenues 50 140 77 86 267 243 Trading revenues 83 81 70 69 234 212 Securitization revenues 175 203 218 108 596 294 Other fees and commissions 1,005 1,200 1,042 933 3,247 2,627 Net Interest and Other Income 1,962 2,149 1,992 1,911 6,103 5,575 Non-Interest Expense 764 805 734 705 2,303 2,071 Salaries and employee benefits 270 799 Premises and equipment 272 257 280 828 Communications 66 64 65 62 195 196 220 201 194 232 615 676 Other expenses 1,320 1,342 1,250 1,279 3,912 3,771 Amortization of intangible assets 6 6 4 5 16 16 1,326 1,348 1,254 1,284 3,928 3,787 Total non-interest expense Income Before Provision for Income Taxes, Non- 636 801 738 627 2,175 1,788 Controlling Interest in Subsidiaries and Goodwill Income taxes 219 287 248 213 754 616 417 514 490 414 1,421 1,172 Non-controlling interest 4 5 4 5 13 17 413 1,408 Net Income Before Goodwill 509 486 409 1,155 Amortization of goodwill, net of applicable income tax 12 12 12 11 36 31 $ 497 $ 474 $ 398 $ 1,124 Net Income $ 401 $ 1,372 Dividends Declared - preferred shares $ 25 $ 26 $ 25 $ 30 $ 76 $ 90 $ 131 $ 134 $ 134 $ 125 $ 399 $ 375 - common shares 266,387,269 267,820,009 267,248,718 266,031,542 267,147,123 265,558,358 Average Number of Common Shares Outstanding Average Assets $ 238,488 $ 233,354 $ 230,195 $ 226,541 $ 234,017 $ 227,184 Net Income Per Common Share Before Goodwill $ 1.46 $ 1.81 $ 1.72 $ 1.42 $ 4.99 $ 4.01 Basic 1.45 4.95 Fully Diluted 1.79 1.71 1.41 3.98 Net Income Per Common Share 1.41 1.76 1.68 1.38 4.85 3.89 Basic 1.40 1.75 1.66 1.37 4.81 3.86 Fully Diluted Note: Reporting under United States generally accepted accounting principles would have resulted in consolidated net income of $382, basic earnings per share of $1.34 and fully diluted earnings per share of $1.32 for the three months and $1,317, $4.65 and $4.59, respectively, for the nine months ended July 31, 2000. Bank of Montreal Third Quarter Report 2000 Page 2