At BMO Financial Group we understand the best companies are human communities that can transform the world around them in positive ways. This is what this report is about.

As Canada’s first bank, our history dates back to 1817. Our company and our employees have built a distinguished and
long track record of contribution to the communities we serve. One of the most important lessons we have learned on our journey is that the creation of value for our shareholders flows directly from the value we deliver to our customers.

We also know our customers’ buying decisions are increasingly influenced by the values they hold. Our customers want to know how we invest in communities; whether we care about the environment and what we are doing about it; how we see the diverse world around us and reflect it. We know how important it is to recognize and respect customer values – and to embody them in our own values and the way we do business.

Remaining true to our customers – their needs and their values – is a conscious effort because we know it is one of the most important ingredients in our success. It is why we have set high standards for ourselves and defined them in codes of behaviour which are the foundation for our relationships with customers, suppliers, communities, and with each other.

To inspire us all to have a positive impact and to do things the right way, we embody them in FirstPrinciples: Our Code
of Business Conduct and Ethics, in our commitment to diversity, in our Brand Promise to customers and in Our Way, how we work with one another.

In this way expectations are set for all 36,000 of us and a promise is made about how everyone in this company can
expect to be treated. Most important of all, these common values create autonomy and empower our employees to take the initiative in serving our customers and communities.

Nobody needs to wait for instructions when it comes to doing the right thing.

Our employees have the confidence to make decisions on behalf of the organization wherever they work and this makes our company more responsive to the many unique and special needs of the diverse communities we serve. It also helps us attract and retain the best, diverse people.

Recently we asked employees to tell us what their dream retirement might look like. It was striking how many people
at BMO see “giving back” as a large part of the future through philanthropic initiatives and volunteerism. It is not surprising that this concept of giving back is attractive for so many in the retirement years because for many employees it is already a way of life.

We enable and encourage employee volunteerism through our Volunteer Grants and Matching Gift programs, by giving
employees time off to give back to their own communities, and by staffing and funding all of the administrative costs of the BMO Employee Charitable Foundation. Thousands of our employees get involved where they work and live and I thank them for their efforts, which embody the kind of company we are.

We know how important it is to recognize and respect customer values – and to embody them in our own values and the way we do business.

At BMO we see things clearly. To succeed today, companies must reflect the values of the customers and communities they serve and ensure they deliver both business and societal value. I hope you will enjoy reading this report and reflecting on what it says about our company. I assure you that, proud as we are of our achievements, we have no intention of standing still. We know that this generation of BMO employees is committed to moving forward as we have done so consistently over the past 190 years.

William A. Downe,
President and Chief Executive Officer
BMO Financial Group