BMO Financial Group Reports Third Quarter 2022 Results

BMO’s Third Quarter 2022 Report to Shareholders, together with the unaudited interim consolidated monetary statements for the interval ended July 31, 2022, is accessible on-line at www.bmo.com/investorrelations and at www.sedar.com.

Third Quarter 2022 Compared with Third Quarter 2021:

• Net revenue of $1,365 million, in contrast with $2,275 million; adjusted internet revenue^1,3 of $2,132 million, in contrast with $2,292 million
• Reported earnings per share (EPS)² of $1.95, in contrast with $3.41; adjusted EPS^1,2,3 of $3.09, in contrast with $3.44
• Provision for credit score losses (PCL) of $136 million, in contrast with a restoration of the availability for credit score losses of $70 million
• Return on fairness (ROE) of 8.8%, in contrast with 17.5%; adjusted ROE^1,3 of 13.8%, in contrast with 17.6%
• Common Equity Tier 1 Ratio⁴ of 15.8%, in contrast with 13.4%

Year-to-Date 2022 Compared with Year-to-Date 2021:

• Net revenue of $9,054 million, in contrast with $5,595 million; adjusted internet revenue^1,3 of $6,903 million, in contrast with $6,425 million
• Reported EPS² of $13.45, in contrast with $8.35; adjusted EPS^1,2,3 of $10.20, in contrast with $9.63
• Provision for credit score losses of $87 million, in contrast with a provision of $146 million
• ROE of 21.1%, in contrast with 14.5%; adjusted ROE^1,3 of 16.0%, in contrast with 16.7%

TORONTO, Aug. 30, 2022 /PRNewswire/ — For the third quarter ended July 31, 2022, BMO Financial Group (TSX:BMO) (NYSE:BMO) recorded internet revenue of $1,365 million or $1.95 per share on a reported foundation, and internet revenue of $2,132 million or $3.09 per share on an adjusted foundation.

“Our performance this quarter continued to demonstrate the strength and quality of our diversified business mix, credit excellence and the resilience of our earnings power. We delivered robust loan growth and margin expansion that drove record revenue in our North American personal and commercial businesses, buffering the impact of challenging market conditions on our capital markets businesses,” stated Darryl White, CEO BMO Financial Group.

“Our relentless focus on employee engagement and customer satisfaction continues to gain momentum, which we believe will be a sustained differentiator over time. We are committed to providing customers with exceptional experiences and personalized advice in every interaction, and helping them make real financial progress – highlighted by our achievement of highest customer satisfaction for retail banking advice in the J.D. Power 2022 Canada Retail Banking Advice Satisfaction Study, reclaiming the top ranking amongst Canada’s largest banks, as well as our recognition by World Finance magazine as the best Commercial, Private and Retail Bank in Canada.

“BMO’s proven track record of superior risk management, strong capital and liquidity, and dynamic financial management positions us for success in any economic environment. We continue to execute our disciplined growth strategy, investing in our talent and technology, including the integration of Bank of the West, to deliver long-term returns for our shareholders and progress for a thriving economy, sustainable future and inclusive society,” concluded Mr. White.

Concurrent with the discharge of outcomes, BMO introduced a fourth quarter 2022 dividend of $1.39 per widespread share, unchanged from the prior quarter, and a rise of $0.33 or 31% from the prior 12 months. The quarterly dividend of $1.39 per widespread share is equal to an annual dividend of $5.56 per widespread share.

The foregoing part incorporates forward-looking statements. Please seek advice from the Caution Regarding Forward-Looking Statements.

During the primary quarter of 2022, we accomplished the sale of our EMEA Asset Management business to Ameriprise Financial, Inc., together with the switch of sure U.S. asset administration purchasers, and on April 30, 2021 we accomplished the sale of our Private Banking business in Hong Kong and Singapore to J. Safra Sarasin Group. Collectively, we refer to those transactions as “divestitures”. The divestitures decreased internet income and bills by roughly 2% and 4%, respectively, on each a reported and adjusted foundation, in contrast with the prior 12 months.

On December 20, 2021, we introduced the signing of a definitive settlement with BNP Paribas to amass Bank of the West and its subsidiaries. Under the phrases of the settlement we can pay a money buy value of US$16.3 billion, or US$13.4 billion internet of an estimated US$2.9 billion of extra capital (at closing) at Bank of the West. The transaction, which is anticipated to shut by the top of calendar 2022, is topic to customary closing situations, together with regulatory approvals.

On closing, the acquisition is anticipated so as to add roughly US$94 billion in belongings, US$59 billion of loans and US$80 billion of deposits to our consolidated steadiness sheet. These quantities are based mostly on the monetary place and outcomes of Bank of the West as on the interval ended June 30, 2022. We anticipate to fund the transaction primarily with extra capital, reflecting our sturdy capital place and anticipated capital technology.

On March 29, 2022, we issued 20,843,750 widespread shares for $3,106 million to finance a portion of the acquisition value.

This acquisition aligns with our strategic, monetary, and cultural aims, and meaningfully accelerates our U.S. progress. Building on the energy of our efficiency and our built-in North American basis, the acquisition will deliver practically 1.8 million clients to BMO and can additional lengthen our banking presence by way of an extra 502 branches and industrial and wealth places of work in key U.S. progress markets. Post closing, our footprint will develop to 32 states, together with a right away scaled entry into the engaging California market, the place we anticipate to ship a extremely aggressive providing to new progress markets, combining the energy of our digital banking platform and our sturdy banking staff to generate good buyer progress.

A signature energy of Bank of the West is the deep relationships shaped between their workers, their clients, and the communities they’ve served for over 100 years. As a part of this transaction, BMO doesn’t plan to shut Bank of the West branches, and is dedicated to retaining front-line Bank of the West department workers.

Leveraging our deep integration expertise and confirmed observe file for U.S. enlargement, we stay assured in attaining annual pre-tax value synergies of roughly US$670 million (C$860 million) by way of operational efficiencies throughout our mixed companies. Integration planning is underway and is being overseen by a devoted, joint integration administration workplace.

Under IFRS accounting, the acquisition value will probably be allotted to the identifiable belongings and liabilities of Bank of the West at shut, on the premise of their relative truthful values, with the distinction recorded as goodwill. The truthful worth/par worth variations, known as the truthful worth mark, will probably be amortized to revenue over the estimated lifetime of the underlying asset (legal responsibility). Intangible belongings recognized, together with the core deposit intangible associated to non-maturity deposits, will probably be amortized over their estimated life. The truthful worth of fastened price loans and deposits is essentially depending on rates of interest. If rates of interest enhance, the truthful worth of the acquired fastened price belongings (particularly, loans and securities) will lower, leading to greater goodwill. If rates of interest lower, the alternative can be true. Conversely, the truthful worth of floating price belongings (liabilities) and non-maturity deposits approximate par, offering no pure truthful worth change offset. Changes in goodwill relative to our authentic assumptions introduced on December 20, 2021, will influence capital ratios at shut, as a result of goodwill is handled as a deduction from capital underneath the Office of the Superintendent of Financial Institutions (OSFI) Basel III guidelines. In addition, on condition that the acquisition value of the acquisition is in U.S. {dollars}, any change in overseas alternate translation between the Canadian greenback relative to the U.S. greenback between the announcement and the shut of the acquisition, will lead to a change to the Canadian greenback equal goodwill.

We are proactively managing publicity to capital from adjustments in truthful worth of the belongings and liabilities of Bank of the West at shut. As a part of our truthful worth administration actions, we entered into rate of interest swaps that rise in worth as rates of interest rise, leading to mark-to-market good points (losses) recorded in buying and selling income. These swaps have been largely offset from an rate of interest threat perspective by way of the acquisition of a portfolio of matched period U.S. treasuries and different steadiness sheet devices that generate internet curiosity revenue. Together, these transactions goal to mitigate adjustments in goodwill arising from adjustments in rates of interest between the announcement and shutting of the acquisition, with the related income (loss) handled as an adjusting merchandise. In addition, BMO entered into ahead contracts, which qualify as accounting hedges, to mitigate adjustments within the Canadian greenback equal of the acquisition value on shut. Changes within the truthful worth of those ahead contracts are recorded in different complete revenue (OCI) till shut of the transaction.

The influence of the truthful worth administration actions on our outcomes was handled as an adjusting merchandise. The present quarter included a lack of $945 million pre-tax ($694 million after-tax) associated to the administration of rate of interest adjustments, comprising $983 million of mark-to-market losses on sure rate of interest swaps reflecting decrease medium and long-term rates of interest as at July 31, 2022, in contrast with April 30, 2022, recorded in non-interest income, in addition to $38 million curiosity revenue on a portfolio of U.S. treasuries and different steadiness sheet devices recorded in internet curiosity revenue. Year-to-date outcomes included $3,172 million pre-tax ($2,331 million after-tax) comprising $2,967 million recorded as non-interest income and $205 million recorded as internet curiosity revenue. The cumulative influence on our Common Equity Tier 1 Ratio was roughly 70 foundation factors relating to those truthful worth administration actions. In addition, the adjustments within the truthful worth of the ahead contracts decreased OCI by $4 million within the present quarter and decreased OCI by $68 million year-to-date. 

This Significant Events part incorporates forward-looking statements. Please seek advice from the Caution Regarding Forward-Looking Statements.

The order wherein the influence on internet revenue is mentioned on this part follows the order of income, bills and provision for credit score losses, no matter their relative influence.

Adjusted outcomes and ratios on this Third Quarter 2022 Performance Review part are on a non-GAAP foundation and mentioned within the Non-GAAP and Other Financial Measures part.

Reported and adjusted internet revenue decreased from the prior 12 months, as greater internet revenue in our P&C companies was offset by decreases in BMO Capital Markets and BMO Wealth Management. On a reported foundation, Corporate Services recorded the next internet loss in contrast with the prior 12 months, and on an adjusted foundation, Corporate Services recorded internet revenue in contrast with a internet loss within the prior 12 months.

Adjusted leads to the present quarter excluded the influence of the introduced acquisition of Bank of the West, comprising a lack of $694 million ($945 million pre-tax) associated to the administration of the influence of rate of interest adjustments between the announcement and shutting of the acquisition on its truthful worth and goodwill, reflecting decrease medium and long-term rates of interest in contrast with the prior quarter, in addition to acquisition and integration prices of $61 million ($82 million pre-tax). In addition, adjusted outcomes excluded the influence of divestiture prices of $6 million ($7 million pre-tax) within the present quarter. For additional data, seek advice from Note 12 to the unaudited interim consolidated monetary statements in our Third Quarter 2022 Report to Shareholders. Adjusted internet revenue additionally excluded the amortization of acquisition-related intangible belongings and different acquisition and integration prices in each the present quarter and the prior 12 months.

Reported and adjusted internet revenue was $965 million, a rise of $137 million or 17%. Results have been pushed by a 13% enhance in income, primarily as a result of greater internet curiosity revenue, reflecting sturdy steadiness progress and better margins, in addition to greater bills and a decrease provision for credit score losses in contrast with the prior 12 months.

Reported internet revenue was $568 million, a rise of $18 million or 3% from the prior 12 months, and adjusted internet revenue was $569 million, a rise of $13 million or 2%. The influence of the stronger U.S. greenback elevated internet revenue progress by 3%, income progress by 5%, and expense progress by 4%. 

On a U.S. greenback foundation, reported internet revenue was $445 million, comparatively unchanged from the prior 12 months, and adjusted internet revenue was $446 million, a lower of $4 million or 1%. Reported and adjusted outcomes have been pushed by a 12% enhance in income, primarily as a result of greater internet curiosity revenue, reflecting sturdy mortgage progress and better margins, in addition to greater bills and the next provision for credit score losses in contrast with a restoration within the prior 12 months. 

Reported internet revenue was $324 million, in contrast with $379 million within the prior 12 months, and adjusted internet revenue was $325 million, in contrast with $384 million. Traditional Wealth reported internet revenue was $263 million, a lower of $37 million or 12% from the prior 12 months, with greater underlying income progress of three% greater than offset by greater underlying bills. Insurance internet revenue was $61 million, a lower of $18 million from the prior 12 months, primarily as a result of influence of unfavourable market actions and a decrease profit from adjustments in investments to enhance asset legal responsibility administration within the present quarter, relative to the prior 12 months.

Reported internet revenue was $262 million, in contrast with $553 million within the prior 12 months, and adjusted internet revenue was $266 million, in contrast with $559 million. Reported and adjusted outcomes have been pushed by decrease income in each Global Markets and Investment and Corporate Banking reflecting present market situations, decrease bills, together with decrease performance-based compensation partially offset by greater severance prices, and a decrease restoration of the availability for credit score losses in contrast with the prior 12 months.

Reported internet loss was $754 million, in contrast with a reported internet lack of $35 million within the prior 12 months, and adjusted internet revenue was $7 million, in contrast with an adjusted internet lack of $35 million. Reported outcomes decreased, primarily as a result of decrease income reflecting truthful worth administration actions associated to the introduced acquisition of Bank of the West within the present quarter. Adjusted outcomes elevated, primarily as a result of decrease bills and the influence of a extra beneficial tax price within the present quarter.

BMO’s Common Equity Tier 1 Ratio was 15.8% as at July 31, 2022, a lower from 16.0% on the finish of the second quarter of 2022, as inner capital technology and customary shares issued from treasury underneath the shareholder dividend reinvestment and share buy plan have been greater than offset by greater risk-weighted belongings and a discount within the profit from truthful worth administration actions associated to the introduced acquisition of Bank of the West. 

Total provision for credit score losses was $136 million, in contrast with a restoration of the availability for credit score losses of $70 million within the prior 12 months. The complete provision for credit score losses as a proportion of common internet loans and acceptances ratio was 10 foundation factors, in contrast with a restoration of the availability for credit score losses ratio of 6 foundation factors within the prior 12 months. The provision for credit score losses on impaired loans was $104 million, a rise of $33 million from the prior 12 months. The provision for credit score losses on impaired loans as a proportion of common internet loans and acceptances ratio was 8 foundation factors, in contrast with 6 foundation factors within the prior 12 months. There was a $32 million provision for credit score losses on performing loans within the present quarter, in contrast with a $141 million restoration within the prior 12 months. The $32 million provision for credit score losses on performing loans within the present quarter mirrored a deteriorating financial outlook and steadiness progress, largely offset by continued discount in pandemic uncertainty and optimistic portfolio migration. The $141 million restoration of credit score losses within the prior 12 months mirrored an enhancing financial outlook and optimistic credit score migration, partially offset by the influence of the unsure financial surroundings on future credit score situations, in addition to steadiness progress. 

Refer to the Critical Accounting Estimates part of BMO’s 2021 Annual Report and Note 4 of our audited annual consolidated monetary statements for additional data on the allowance for credit score losses as at October 31, 2021.

BMO has a deep sense of objective – to be a champion for progress and a catalyst for change. We are leveraging our place as a number one monetary companies supplier to create alternatives for our communities and our stakeholders to make optimistic, sustainable change within the perception that success can and should be mutual. In assist of our clients, communities and workers, BMO:

• Enhanced its NewStart Program to assist newcomers to Canada, together with these displaced from Ukraine, with the assist they should regain their monetary footing sooner and begin constructing a life in Canada with a set of customized, no-fee banking merchandise.
• Announced an additional funding in group applications and organizations to assist Black-owned companies and Black entrepreneurs, the enlargement of Black cultural applications, and Boys and Girls Clubs expert trades profession alternatives, bringing our dedication in Madison, Wisconsin, to over US$1 million.
• Announced that we entered right into a definitive settlement to amass Radicle Group Inc., a Calgary-based chief in sustainability advisory companies and options, and technology-driven emissions measurement and administration. The acquisition will make BMO a pacesetter in carbon credit score growth, emissions measurement capabilities, and the environmental commodity market, and helps our Climate Ambition to be our purchasers’ lead companion within the transition to a net-zero world. Completion of the transaction is topic to receipt of required regulatory approvals and different customary situations.

BMO’s management continues to be acknowledged throughout numerous rankings:

• Awarded the best buyer satisfaction rating in retail banking recommendation by J.D. Power in its 2022 Canada Retail Banking Advice Satisfaction Study, the highest spot amongst Canada’s largest banks, demonstrating our continued dedication to serving to clients make actual monetary progress, together with readability of recommendation and concern for buyer wants.
• Named by World Finance journal as Best Private Bank, Best Commercial Bank and Best Retail Bank, representing the benchmark of feat and finest practices in a wide range of fields. This award displays our dedication to fostering client-centric relationships, driving digital innovation and transformation, and our complete understanding of evolving consumer wants and trade growth.
• Named to Corporate Knight’s rating of Canada’s Best 50 Corporate Citizens, and ranked first amongst main Canadian banks with top-quartile scores in board gender range, government range, and sustainability pay hyperlink. In addition, we obtained a top-quartile Clean Revenue rating, pushed by our sustainable finance technique.

The foregoing sections comprise forward-looking statements. Please seek advice from the Caution Regarding Forward-Looking Statements.

BMO’s steady disclosure supplies, together with interim filings, annual Management’s Discussion and Analysis and audited annual consolidated monetary statements, Annual Information Form and Notice of Annual Meeting of Shareholders and Proxy Circular, can be found on our web site at www.bmo.com/investorrelations, on the Canadian Securities Administrators’ web site at www.sedar.com, and on the EDGAR part of the U.S. Securities and Exchange Commission’s web site at www.sec.gov. Information contained in or in any other case accessible by way of our web site (www.bmo.com), or any third occasion web sites talked about herein, doesn’t kind a part of this doc.

Results and measures on this doc are offered on a GAAP foundation. Unless in any other case indicated, all quantities are in Canadian {dollars} and have been derived from our unaudited interim consolidated monetary statements ready in accordance with International Financial Reporting Standards (IFRS). References to GAAP imply IFRS. We use numerous monetary measures to evaluate our efficiency, in addition to the efficiency of our working companies, together with measures and ratios which are offered on a non-GAAP foundation, as described beneath. We imagine that these non-GAAP quantities, measures and ratios, learn along with our GAAP outcomes, present readers with a greater understanding of how administration assesses outcomes.

Non-GAAP quantities, measures and ratios wouldn’t have standardized meanings underneath GAAP. They are unlikely to be corresponding to comparable measures offered by different corporations and shouldn’t be considered in isolation from, or as an alternative choice to, GAAP outcomes.

Certain data contained in BMO’s Management’s Discussion and Analysis dated August 30, 2022 for the interval ended July 31, 2022 (Third Quarter 2022 Report to Shareholders) is included by reference into this doc. For additional particulars on the composition of non-GAAP quantities, measures and ratios, together with supplementary monetary measures, please seek advice from the Glossary of Financial Terms part in our Third Quarter 2022 Report to Shareholders which is accessible at www.sedar.com.

Our non-GAAP measures broadly fall into the next classes:

Management considers each reported and adjusted outcomes and measures helpful in assessing underlying ongoing business efficiency. Adjusted outcomes and measures take away sure specified objects from income, non-interest expense and revenue taxes, as detailed within the following desk. Adjusted outcomes and measures offered on this doc are non-GAAP. Presenting outcomes on each a reported foundation and an adjusted foundation permits readers to evaluate the influence of sure objects on outcomes for the intervals offered, and to higher assess outcomes excluding these objects that is probably not reflective of ongoing business efficiency. As such, the presentation might facilitate readers’ evaluation of developments. Except as in any other case famous, administration’s dialogue of adjustments in reported outcomes on this doc applies equally to adjustments within the corresponding adjusted outcomes.

We additionally current reported and adjusted income on a foundation that’s internet of insurance claims, commissions and adjustments in coverage profit liabilities (CCPB), and our effectivity ratio and working leverage are calculated on an identical foundation, as reconciled within the Revenue part. Measures and ratios offered on a foundation internet of CCPB are non-GAAP. Insurance income can expertise variability arising from fluctuations within the truthful worth of insurance belongings, brought on by actions in rates of interest and fairness markets. The investments that assist coverage profit liabilities are predominantly fastened revenue belongings recorded at truthful worth, with adjustments in truthful worth recorded in insurance income within the Consolidated Statement of Income. These truthful worth adjustments are largely offset by adjustments within the truthful worth of coverage profit liabilities, the influence of which is mirrored in CCPB. The presentation and dialogue of income, effectivity ratios and working leverage on a internet foundation reduces this variability, which permits for a greater evaluation of working outcomes. For extra data seek advice from the Insurance Claims, Commissions and Changes in Policy Benefit Liabilities part in our Third Quarter 2022 Report to Shareholders.

We analyze consolidated income on a reported foundation. In addition, we analyze income on a taxable equal foundation (teb) on the working group degree, in line with the Canadian peer group. Revenue and the availability for revenue taxes in BMO Capital Markets and U.S. P&C are elevated on tax-exempt securities to an equal pre-tax foundation. These changes are offset in Corporate Services. Presenting outcomes on a teb foundation displays how our working teams handle their business and is beneficial to facilitate comparisons of revenue between taxable and tax-exempt sources. The efficient tax price can be analyzed on a teb foundation for consistency of method, with the offset to working section changes recorded in Corporate Services.

Tangible widespread fairness is calculated as widespread shareholders’ fairness much less goodwill and acquisition-related intangible belongings, internet of associated deferred tax liabilities. Return on tangible widespread fairness is usually used within the North American banking trade and is significant as a result of it measures the efficiency of companies constantly, whether or not they have been acquired or developed organically.

Capital is allotted to the working segments based mostly on the quantity of regulatory capital required to assist business actions. Unallocated capital is reported in Corporate Services. Capital allocation methodologies are reviewed yearly.

Bank of Montreal’s public communications typically embrace written or oral forward-looking statements. Statements of this kind are included on this doc, and could also be included in different filings with Canadian securities regulators or the U.S. Securities and Exchange Commission, or in different communications. All such statements are made pursuant to the “safe harbor” provisions of, and are supposed to be forward-looking statements underneath, the United States Private Securities Litigation Reform Act of 1995 and any relevant Canadian securities laws. Forward-looking statements on this doc might embrace, however usually are not restricted to, statements with respect to our aims and priorities for fiscal 2022 and past, our methods or future actions, our targets and commitments (together with with respect to internet zero emissions), expectations for our monetary situation, capital place or share value, the regulatory surroundings wherein we function, the outcomes of, or outlook for, our operations or for the Canadian, U.S. and worldwide economies, the closing of our proposed acquisition of Bank of the West, together with plans for the mixed operations of BMO and Bank of the West, the monetary, operational and capital impacts of the transaction, and the COVID-19 pandemic, and embrace statements made by our administration. Forward-looking statements are sometimes recognized by phrases corresponding to “will”, “would”, “should”, “believe”, “expect”, “anticipate”, “project”, “intend”, “estimate”, “plan”, “goal”, “commit”, “target”, “may”, “might”, “forecast” and “could” or adverse or grammatical variations thereof.

     By their nature, forward-looking statements require us to make assumptions and are topic to inherent dangers and uncertainties, each common and particular in nature. There is critical threat that predictions, forecasts, conclusions or projections won’t show to be correct, that our assumptions is probably not appropriate, and that precise outcomes might differ materially from such predictions, forecasts, conclusions or projections. The uncertainty created by the COVID-19 pandemic has heightened this threat, given the elevated problem in making assumptions, predictions, forecasts, conclusions or projections. We warning readers of this doc to not place undue reliance on our forward-looking statements, as numerous elements – lots of that are past our management and the consequences of which may be troublesome to foretell – may trigger precise future outcomes, situations, actions or occasions to vary materially from the targets, expectations, estimates or intentions expressed within the forward-looking statements.

     The future outcomes that relate to forward-looking statements could also be influenced by many elements, together with, however not restricted to: common financial and market situations within the nations wherein we function, together with labour challenges; the severity, period and unfold of the COVID-19 pandemic, and presumably different outbreaks of illness or sickness, and its influence on native, nationwide or worldwide economies, in addition to its heightening of sure dangers that will have an effect on our future outcomes; data, privateness and cyber safety, together with the specter of information breaches, hacking, id theft and company espionage, in addition to the potential of denial of service ensuing from efforts focused at inflicting system failure and repair disruption; benchmark rate of interest reforms; technological adjustments and know-how resiliency; political situations, together with adjustments regarding, or affecting, financial or commerce issues; local weather change and different environmental and social threat; the Canadian housing market and shopper leverage; inflationary pressures; international supply-chain disruptions; adjustments in financial, fiscal, or financial coverage; adjustments in legal guidelines, together with tax laws and interpretation, or in supervisory expectations or necessities, together with capital, rate of interest and liquidity necessities and steering, and the impact of such adjustments on funding prices; weak, risky or illiquid capital or credit score markets; the extent of competitors within the geographic and business areas wherein we function; judicial or regulatory proceedings; the accuracy and completeness of the data we acquire with respect to our clients and counterparties; failure of third events to adjust to their obligations to us; our potential to execute our strategic plans and to finish proposed acquisitions or inclinations, together with acquiring regulatory approvals; crucial accounting estimates and the consequences of adjustments to accounting requirements, guidelines and interpretations on these estimates; operational and infrastructure dangers, together with with respect to reliance on third events; the chance that our proposed acquisition of Bank of the West doesn’t shut when anticipated or in any respect as a result of required regulatory approvals and different situations to closing usually are not obtained or glad on a well timed foundation or in any respect or are obtained topic to opposed situations or necessities; the anticipated advantages from the proposed acquisition of Bank of the West, such because it creating synergies and operational efficiencies, usually are not realized; our potential to carry out efficient truthful worth administration actions and unexpected penalties arising from such actions; adjustments to our credit score scores; international capital markets actions; the doable results on our business of conflict or terrorist actions; pure disasters and disruptions to public infrastructure, corresponding to transportation, communications, energy or water provide; and our potential to anticipate and successfully handle dangers arising from the entire foregoing elements.

     We warning that the foregoing checklist just isn’t exhaustive of all doable elements. Other elements and dangers may adversely have an effect on our outcomes. For extra data, please seek advice from the dialogue within the Risks That May Affect Future Results part, and the sections associated to credit score and counterparty, market, insurance, liquidity and funding, operational non-financial, authorized and regulatory, strategic, environmental and social, and fame threat, within the Enterprise-Wide Risk Management part of BMO’s 2021 Annual Report, and the Risk Management part in our Third Quarter 2022 Report to Shareholders, all of which define sure key elements and dangers that will have an effect on our future outcomes. Investors and others ought to fastidiously contemplate these elements and dangers, in addition to different uncertainties and potential occasions, and the inherent uncertainty of forward-looking statements. We don’t undertake to replace any forward-looking statements, whether or not written or oral, which may be made every now and then by the group or on its behalf, besides as required by regulation. The forward-looking data contained in our Third Quarter 2022 Report to Shareholders, is offered for the aim of aiding shareholders and analysts in understanding our monetary place as at and for the intervals ended on the dates offered, in addition to our strategic priorities and aims, and is probably not acceptable for different functions.

     Material financial assumptions underlying the forward-looking statements contained in our Third Quarter 2022 Report to Shareholders embrace these set out within the Economic Developments and Outlook part of BMO’s 2021 Annual Report, as up to date within the Economic Developments and Outlook part in our Third Quarter 2022 Report to Shareholders, in addition to within the Allowance for Credit Losses part of BMO’s 2021 Annual Report, as up to date within the Allowance for Credit Losses part in our Third Quarter 2022 Report to Shareholders. Assumptions concerning the efficiency of the Canadian and U.S. economies, in addition to total market situations and their mixed impact on our business, are materials elements we contemplate when figuring out our strategic priorities, aims and expectations for our business. Assumptions about Bank of the West’s steadiness sheet, product combine and margins, and rate of interest sensitivity have been materials elements we thought-about in estimating the truthful worth and goodwill and intangibles quantities at closing, and assumptions about our integration plan, the effectivity and period of integration and the alignment of organizational obligations have been materials elements we thought-about in estimating pre-tax value synergies.

     In figuring out our expectations for financial progress, we primarily contemplate historic financial information, previous relationships between financial and monetary variables, adjustments in authorities insurance policies, and the dangers to the home and international economy. Please seek advice from the Economic Developments and Outlook and Allowance for Credit Losses sections in our Third Quarter 2022 Report to Shareholders.

Interested events are invited to go to BMO’s web site at www.bmo.com/investorrelations to overview the 2021 Annual MD&A and audited annual consolidated monetary statements, quarterly presentation supplies and supplementary monetary and regulatory data bundle.

Interested events are additionally invited to take heed to our quarterly convention name on Tuesday, August 30, 2022, at 8.00 a.m. (ET). The name could also be accessed by phone at 416-406-0743 (from inside Toronto) or 1-800-898-3989 (toll-free exterior Toronto), coming into Passcode: 2522858#. A replay of the convention name may be accessed till September thirtieth, 2022, by calling 905-694-9451 (from inside Toronto) or 1-800-408-3053 (toll-free exterior Toronto) and coming into Passcode: 2979715#.

     A stay webcast of the decision may be accessed on our web site at www.bmo.com/investorrelations. A replay will also be accessed on the web site.

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Media Relations Contacts, Jeff Roman, Director, Enterprise Media Relations, [email protected], 416-867-3996; Investor Relations Contacts, Christine Viau, Head, Investor Relations, [email protected], 416-867-6956; Bill Anderson, Director, Investor Relations, [email protected], 416-867-7834

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