Our Performance*

• BMO's average annual five-year TSR of 18.9% was up substantially from 12.9% a year ago and was better than returns from the financial services industry and the broader market.
• BMO's 20.0% one-year TSR was just below the financial services industry return but above the broader market returns.

Peer Group Comparison*

• BMO's average annual five-year TSR of 18.9% was below the Canadian peer group average of 20.1% but substantially above the North American peer group average of 12.0%.
• BMO's relative performance on this important measure improved significantly from a year ago and BMO's three-year TSR of 23% was above the average of both peer groups.

Our Performance*

• EPS rose 29% to $4.42, establishing another record high after having grown 28% a year ago, driven by a lower provision for credit losses and business growth in all operating groups.
• EPS growth of 29% (22% excluding a $170 million reduction of the general allowance for credit losses) exceeded our 2004 target of 10% to 15% growth.

Peer Group Comparison*

• BMO's EPS growth of 29% in 2004 was above the Canadian peer group average of 22% and appreciably higher than the North American peer group average of 2%.
• The North American peer group average was affected by multi-billion-dollar litigation provisions recorded by two of the largest companies in the peer group.

Our Performance*

• ROE of 19.4% was the highest since 1978 and was above our 2004 target of 16% to 18%.

Peer Group Comparison*

• ROE of 19.4% in 2004 was above the Canadian peer group average of 18.3% and the North American peer group average of 16.1%.
• BMO is the only major North American bank to earn an ROE of more than 13% in each of the past 15 years.

Our Performance*

• NEP, a measure of added economic value, rose 60% to a record $1,123 million, after having increased 92% in 2003.
• Each of the operating groups generated higher NEP in 2004.

Peer Group Comparison*

• NEP growth of 60% in 2004 was just above the Canadian peer group average of 58% and considerably above the North American peer group average of 4%.
• The North American peer group average was affected by the litigation provisions referenced above.

Our Performance*

• Revenue increased $341 million or 4% in 2004 and was higher in each of our client operating groups.
• The lower Canadian/U.S. dollar exchange rate, net of the incremental effect of acquired businesses, lowered revenue growth by 1.6 percentage points.
• Higher net investment securities gains increased revenue growth while lower net interest margins reduced growth.

Peer Group Comparison*

• Revenue growth of 3.7% in 2004 was above the Canadian peer group average of 3.3% and the North American peer group average of 3.4%.
• BMO's revenue growth outpaced the industry average in both Canada and North America in 2003 and 2004.

Our Performance*

• The productivity ratio improved 160 basis points to 64.1% in 2004. The cash productivity ratio improved 155 basis points to 63.0%, achieving our financial target and top priority for 2004 of a 150 to 200 basis point improvement.
• The productivity ratio improved in each client operating group for the second straight year.

Peer Group Comparison*

• BMO's productivity ratio of 64.1% was better than the Canadian peer group average of 67.0% but above the North American peer group average of 62.9%.
• BMO improved its advantage over the Canadian peer group average productivity ratio in 2004. The North American peer group average was affected by the litigation provisions.

Our Performance*

• The provision for credit losses improved by $558 million. Specific provisions fell $388 million and there was a $170 million reduction of the general allowance.
• The provision represented negative 7 basis points of average net loans and acceptances and the specific provision represented 4 basis points, an improvement from 30 basis points in 2003 and significantly better than our target.

Peer Group Comparison*

• BMO's provision for credit losses of (0.07)% of average net loans and acceptances was better than the Canadian peer group average of 0.10% and the North American peer group average of 0.57%.
• BMO's credit loss experience has been consistently better than both the Canadian and North American peer groups.

Our Performance*

• Gross impaired loans and acceptances were $1,119 million, compared with $1,918 million in 2003, and represented 6.7% of equity and allowances for credit losses, versus 12.2% a year ago.
• Formations of new impaired loans and acceptances, a key driver of credit provisions, were $607 million, down from $1,303 million in 2003.

Peer Group Comparison*

• BMO's ratio of 6.7% was marginally better than the Canadian peer group average of 6.9% but higher than the North American peer group average of 4.2%.
• BMO's ratio has approximated the Canadian average but been higher than the North American average in recent years.

Our Performance*

• The cash and securities-to-total assets ratio decreased to 25.8% from 29.1% in 2003.
• Liquidity remains sound and continues to be supported by broad diversification of deposits.

Peer Group Comparison*

• BMO's ratio of 25.8% was below the Canadian peer group average of 30.5% and the North American peer group average of 39.4%.
• The ratio remains higher than our minimum target ratio.

Our Performance*

• The Tier 1 Capital Ratio was 9.81%, up from 9.55% last year and above our minimum target of 8.0%.
• The Total Capital Ratio was 11.31%, down from 12.09% in 2003.

Peer Group Comparison*

• Our Tier 1 Capital Ratio at 9.81% was the highest in recent years but was below the Canadian peer group average of 10.40%.
• On a U.S.-basis, our Tier 1 Capital Ratio was 9.44% and was above the North American peer group average of 8.40%.

Our Performance*

• Our credit rating, as measured by Standard & Poor's^®7 (S&P) senior debt ratings, remained at AA-, matching two competitors and exceeding the rating of the other three major Canadian banks.
• S&P's ratings outlook on BMO remains stable.

Peer Group Comparison*

• BMO's credit rating of AA-, as measured by S&P's senior debt ratings, was consistent with the Canadian peer group median as two of the peer group are rated as highly as BMO and three are rated lower. BMO's rating remains higher than the North American peer group median rating of A+.

Our Performance*

• Our credit rating, as measured by Moody's^®8 senior debt ratings, remained at Aa3, slightly below the highest-rated Canadian bank and consistent with the highest of the remaining major Canadian banks.
• Moody's ratings outlook on BMO remains stable.

Peer Group Comparison*

• BMO's credit rating of Aa3, as measured by Moody's senior debt ratings, was comparable to the Canadian and North American peer group medians.