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  2006 2005 (Note 1) Five-Year Average (Note 1)
 
  BMO  Rank
of six		 Cdn. 
bank 
avg. 		 N.A.
bank
avg.		 N.A.
bank
q’tile		 BMO  Rank
of six		 Cdn.
bank
avg.		 N.A.
bank
avg.		 N.A.
bank
q’tile		 BMO Rank
of six		 Cdn.
bank
avg.		 N.A.
bank
avg.		 N.A.
bank
q’tile
 
Financial Performance Measures (%)                          
Five-year total shareholder return (TSR) 19.1  4 19.6  14.4 1 13.8  4 15.4  10.1 1 19.1 4 19.6 14.4 1
Diluted earnings per share (EPS) growth 11.2  5 59.2  21.0 3 5.2  4 (8.2) 13.4 3 14.1 2 11.5 14.4 3
Return on common shareholders’ equity (ROE) 19.2  6 23.2  17.5 3 18.8  3 15.8  15.6 2 17.4 4 16.6 16.1 2
Net economic profit (NEP) growth 10.3  5 92.1  37.7 3 0.1  5 (19.6) 17.9 3 23.2 3 23.4 26.0 2
Revenue growth 1.5  5 7.2  8.4 4 5.0  5 6.5  13.0 3 2.9 4 3.5 9.0 3
Expense-to-revenue (productivity) ratio 62.8  4 60.8  57.3 4 63.6  2 69.4  60.5 3 65.4 3 66.9 60.4 3
Provision for credit losses as a % of average net loans and acceptances 0.09  1 0.17  0.53 1 0.11 3 0.17  0.56 1 0.20 1 0.36 0.77 1
 
 
Financial Condition Measures (%)                          
Gross impaired loans and acceptances as a % of equity and allowances for credit losses 3.8  3 4.3  2.6 3 4.9  4 5.1  3.0 4 9.5 5 8.6 5.5 4
Liquidity ratio 27.2  6 33.5  31.2 3 26.5  6 32.1  31.2 3 26.8 6 31.2 30.6 3
Tier 1 Capital Ratio – Canadian 10.22  3 10.36      10.30  2 9.96      9.74 4 10.07    
Tier 1 Capital Ratio – U.S. 9.93      8.53 1 9.96      8.35 1 9.36     8.25 1
Credit rating                              
– Standard & Poor’s®5 AA-  1 AA-  AA- 1 AA-  1 AA-  AA- 1 AA- 1 AA- A+ 1
– Moody’s®6 Aa3  2 Aa3  Aa2 2 Aa3  2 Aa3  Aa2 2 Aa3 2 Aa3 Aa3 2
 

The Canadian peer group averages are based on the performance of Canada’s six largest banks: BMO Financial Group, Canadian Imperial Bank of Commerce, National Bank of Canada, RBC Financial Group, Scotiabank and TD Bank Financial Group. The North American peer group averages are based on the performance of North America’s largest banks, consisting of 15 banks in North America having shareholders’ equity that is at least 75% as large as BMO’s. It includes the Canadian peer group, except National Bank of Canada, as well as Bank of America Corporation, Citigroup Inc., J.P. Morgan Chase & Co., KeyCorp, National City Corporation, The PNC Financial Services Group Inc., SunTrust Banks Inc., U.S. Bancorp, Wachovia Corporation, and Wells Fargo & Company.

Results are as at or for the years ended October 31 for Canadian banks and as at or for the years ended September 30 for U.S. banks, as appropriate.

Note 1. Certain BMO and peer group prior year data has been restated to conform with the current year’s basis of presentation.

Canadian Peer Group Comparison

BMO’s performance in 2006 improved from 2005 on 8 of our 11 key financial performance and condition measures and was unchanged on 1. These measures are considered key because we monitor our performance on them relative to our peer groups. In 2005, our performance improved on 5 of the 11 measures and was unchanged on another.

Significant litigation provisions recorded by certain of our Canadian peers affected the peer group averages in 2005, resulting in higher peer group average growth rates in 2006. A large gain on the sale of a business by one of our Canadian peers improved the peer group averages in 2006 and also raised their average growth rates. The foregoing factors contributed to very strong peer group measures in 2006. As such, notwithstanding that 8 of BMO’s 11 key financial performance measures improved in 2006, our performance on these measures relative to our Canadian peers deteriorated from 2005.

In 2006, our performance was better than the Canadian peer group average on 1 of 7 financial performance measures, compared with above-average performance on 5 of 7 measures in 2005. Our rankings in 2006 improved on 1 of the 7 financial performance measures and were unchanged on 3 others. We were better than average on 1 of 4 financial condition measures in 2006, average on 1 and below average on 2. Our ranking improved on 1 measure, deteriorated on 1 and was unchanged on the other 2.

Our 2006 performance was better than our five-year average performance on 6 of 11 measures and was consistent with our average on another 2. Our five-year average results were better than the comparable Canadian peer group average on 4 of 7 financial performance measures but were worse than average on 3 of 4 financial condition measures.

North American Peer Group Comparison

Our 2006 rankings in the North American peer group slipped from last year. Our quartile ranking was unchanged on 4 financial performance measures and declined on the remaining 3.

Our performance was better than average on 3 of 7 financial performance measures in 2006, consistent with our performance in 2005. Our financial condition was better than average on 1 of 4 measures in 2006 and average on another, again consistent with our performance in 2005.

Our five-year average performance was better than the North American peer group average on 3 of 7 financial performance measures and on 1 of 4 financial condition measures.


BMO Financial Group Annual Report 2006 Home