#1Investor Presentation October 2021 BMO M#2Forward looking statements & non-GAAP measures Caution Regarding Forward-Looking Statements Bank of Montreal's public communications often include written or oral forward-looking statements. Statements of this type are included in this document and may be included in other filings with Canadian securities regulators or the U.S. Securities and Exchange Commission, or in other communications. All such statements are made pursuant to the "safe harbor" provisions of, and are intended to be forward-looking statements under, the United States Private Securities Litigation Reform Act of 1995 and any applicable Canadian securities legislation. Forward-looking statements in this document may include, but are not limited to, statements with respect to our objectives and priorities for fiscal 2021 and beyond, our strategies or future actions, our targets, expectations for our financial condition or share price, the regulatory environment in which we operate and the results of or outlook for our operations or for the Canadian, U.S. and international economies, the expected impact of the COVID-19 pandemic on our business, operations, earnings, results, and financial performance and condition, as well as its impact on our customers, competitors, reputation and trading exposures, and include statements of our management. Forward-looking statements are typically identified by words such as "will", "would", "should", "believe", "expect", "anticipate", "project", "intend", "estimate", "plan", "goal", "target", "may" and "could." By their nature, forward-looking statements require us to make assumptions and are subject to inherent risks and uncertainties, both general and specific in nature. There is significant risk that predictions, forecasts, conclusions or projections will not prove to be accurate, that our assumptions may not be correct, and that actual results may differ materially from such predictions, forecasts, conclusions or projections. The uncertainty created by the COVID-19 pandemic has heightened this risk given the increased challenge in making assumptions, predictions, forecasts, conclusions or projections. We caution readers of this document not to place undue reliance on our forward-looking statements, as a number of factors - many of which are beyond our control and the effects of which can be difficult to predict - could cause actual future results, conditions, actions or events to differ materially from the targets, expectations, estimates or intentions expressed in the forward-looking statements. The future outcomes that relate to forward-looking statements may be influenced by many factors, including but not limited to: the severity, duration and spread of the COVID-19 pandemic, its impact on local, national or international economies, and its heightening of certain risks that may affect our future results; the possible impact on our business and operations of outbreaks of disease or illness that affect local, national or international economies; general economic and market conditions in the countries in which we operate; information, privacy and cyber security, including the threat of data breaches, hacking, identity theft and corporate espionage, as well as the possibility of denial of service resulting from efforts targeted at causing system failure and service disruption; changes in monetary, fiscal, or economic policy, and tax legislation and interpretation; interest rate and currency value fluctuations, as well as benchmark interest rate reforms; technological changes and technology resiliency; political conditions, including changes relating to or affecting economic or trade matters; the Canadian housing market and consumer leverage; climate change and other environmental and social risks; weak, volatile or illiquid capital or credit markets; the level of competition in the geographic and business areas in which we operate; changes in laws or in supervisory expectations or requirements, including capital, interest rate and liquidity requirements and guidance, and the effect of such changes on funding costs; judicial or regulatory proceedings; the accuracy and completeness of the information we obtain with respect to our customers and counterparties; failure of third parties to comply with their obligations to us; our ability to execute our strategic plans and to complete proposed acquisitions or dispositions, including obtaining regulatory approvals; critical accounting estimates and the effect of changes to accounting standards, rules and interpretations on these estimates; operational and infrastructure risks, including with respect to reliance on third parties; changes to our credit ratings; global capital markets activities; the possible effects on our business of war or terrorist activities; natural disasters and disruptions to public infrastructure, such as transportation, communications, power or water supply; and our ability to anticipate and effectively manage risks arising from all of the foregoing factors. We caution that the foregoing list is not exhaustive of all possible factors. Other factors and risks could adversely affect our results. For more information, please refer to the discussion in the Risks That May Affect Future Results section, and the sections related to credit and counterparty, market, insurance, liquidity and funding, operational, legal and regulatory, strategic, environmental and social, and reputation risk, in the Enterprise-Wide Risk Management section that starts on page 73 of BMO's 2020 Annual Report, and the Risk Management section that starts on page 34 of our Third Quarter 2021 Report to Shareholders, all of which outline certain key factors and risks that may affect our future results. Investors and others should carefully consider these factors and risks, as well as other uncertainties and potential events, and the inherent uncertainty of forward-looking statements. We do not undertake to update any forward-looking statements, whether written or oral, that may be made from time to time by the organization or on its behalf, except as required by law. The forward-looking information contained in this document is presented for the purpose of assisting our shareholders in understanding our financial position as at and for the periods ended on the dates presented, as well as our strategic priorities and objectives, and may not be appropriate for other purposes. Material economic assumptions underlying the forward-looking statements contained in this document are set out in the Economic Developments and Outlook section on page 18 of BMO's 2020 Annual Report and updated in the Economic Review and Outlook section set forth in our Third Quarter 2021 Report to Shareholders, as well as in the Allowance for Credit Losses section on page 114 of BMO's 2020 Annual Report and the Allowance for Credit Losses section set forth in our Third Quarter 2021 Report to Shareholders. Assumptions about the performance of the Canadian and U.S. economies, as well as overall market conditions and their combined effect on our business, are material factors we consider when determining our strategic priorities, objectives and expectations for our business. In determining our expectations for economic growth, we primarily consider historical economic data, past relationships between economic and financial variables, changes in government policies, and the risks to the domestic and global economy. Please refer to the Economic Review and Outlook and Allowance for Credit Losses sections in our Third Quarter 2021 Report to Shareholders. Non-GAAP Measures Bank of Montreal uses both GAAP and non-GAAP measures to assess performance. Readers are cautioned that earnings and other measures adjusted to a basis other than GAAP do not have standardized meanings under GAAP and are unlikely to be comparable to similar measures used by other companies. Reconciliations of GAAP to non-GAAP measures, the rationale for their use, as well as the effects of changes in exchange rates on BMO's U.S. segment reported and adjusted results can be found on pages 8 and 10 of BMO's Third Quarter 2021 Report to Shareholders and on pages 17 and 23 of BMO's 2020 Annual Report, all of which are available on our website at www.bmo.com/investorrelations Examples of non-GAAP amounts or measures include: efficiency and leverage ratios; revenue and other measures presented on a taxable equivalent basis (teb); amounts presented net of applicable taxes; results and measures that exclude the impact of Canadian/U.S. dollar exchange rate movements (i.e. constant currency basis or CCY), adjusted net income, revenues, non-interest expenses, earnings per share, effective tax rate, ROE, efficiency ratio, pre-provision pre-tax earnings and other adjusted measures which exclude the impact of certain items such as acquisition integration costs, amortization of acquisition-related intangible assets, impact of divestitures, reinsurance adjustment and restructuring costs. Bank of Montreal provides supplemental information on combined business segments to facilitate comparisons to peers. BMO Financial Group Investor Presentation • October 2021 2#3About Us Established in 1817, BMO Financial Group is a highly diversified financial services provider based in North America 8th largest bank in North America by assets¹ $971 billion in total assets 12+ million customers globally Operating Groups Personal & Commercial Banking BMO Wealth Management BMO Capital Markets Our Purpose Boldly Grow the Good in business and life For a thriving economy For a sustainable Future For an inclusive society Our Strategic Priorities World-class client loyalty and growth > Winning culture driven by alignment, empowerment and recognition Digital first for speed, efficiency and scale > Simplify work and eliminate complexity > Superior management of risk and capital performance Our Values > Integrity > Empathy > Diversity > Responsibility 1 Source: Bloomberg GICS screen of largest North American banks by total assets - BMO Financial Group Investor Presentation • October 2021 3#4Our Purpose BOLDLY GROW THE GOOD For a sustainable future Declared Climate Ambition, a focused commitment to drive economic transformation toward a net zero world Ranked top bank in North America on Corporate Knights' 2021 Global 100 Among first Canadian banks to sign UN Principles for Responsible Banking Joined the Partnership for Carbon Accounting Financials (PCAF) Established Energy Transition Group providing clients with expertise and support Financing innovative Green, Transition and Sustainability- Linked Loan structures supporting clients' ESG goals BMO Financial Group - IN BUSINESS AND LIFE For a thriving economy BMO announced a 10-year, $12B commitment to finance affordable housing in Canada Deployed ~US$1.8B in loans and investments against BMO EMpower, a 5-year, US$5B commitment to address key barriers faced by minority businesses, communities and families in the U.S. BMO Celebrating Women pledged $200,000 in grants to women owned businesses in Canada & U.S. Continuing to support customers with access to government relief programs helping them bridge to financial recovery, including the CEBA, PPP, HASCAP and TELP programs¹ For an inclusive society BMO was named to Canada's Best 50 Corporate Citizens Ranking by Corporate Knights Recognized as one of the World's Most Ethical Companies for the 4th consecutive year by the Ethisphere Institute Recognized for the 6th consecutive year on the Bloomberg Gender- Equality Index Issued $750MM Women in Business Bond In Support of Women-Owned Businesses Announced US$10MM donation to create the Rush BMO Institute for Health Equity in Chicago 1 CEBA: Canadian Emergency Business Assistance, PPP: U.S. Paycheck Protection Program, HASCAP: Highly Affected Sectors Credit Availability Program, TELP: Trade Expansion Lending Program Investor Presentation October 2021 4#5Reasons to Invest in BMO . Diversified businesses that continue to deliver resilient and robust earnings growth and long- term value for shareholders • Strong foundation built for growth and differentiating strengths that drive competitive advantage: Top 10 commercial lender in North America with advantaged market share in Canada and the U.S. Well-established, highly profitable flagship banking business in Canada Strong U.S. deposit market share, top 3 in our core footprint with a digital banking platform that extends nationally Diversified, high-return wealth franchise with a strong client focus and competitive position Competitively advantaged Canadian capital markets franchise with an integrated North American platform • ⚫ Well-capitalized with an attractive dividend yield Leading momentum in operating leverage and efficiency improvement through resource optimization, simplification and digitization • Leading employee engagement and winning culture • Digital first operating model where business and technology are completely integrated, driving efficiency, speed and scale Purpose-driven commitment to sustainability, applying industry-leading approaches to seize opportunities and manage risks in key areas such as sustainable finance, climate change, human rights, and diversity and inclusion BMO Financial Group Investor Presentation • October 2021 5#6Strong financial performance Medium Term Financial Objectives (Adjusted basis) Earnings per share ($) EPS Growth 7% to 10% per year 9.43 8.99 Return on Equity 8.66 8.17 15% or more 7.71 7.55 Operating Leverage 2% or more Capital Maintain strong capital ratios that exceed regulatory requirements 2018 2019 2020 Reported Adjusted Dividends Declared ($ per share) BMO has the longest-running dividend payout record of any company in Canada, at 192 years Dividend Yield1: 3.4% 1.85 2.26 2.71 2.80 2.80 2.80 2.80 2.82 1 As at September 30, 2021 2 Based on Q3'21 dividend of $1.06 annualized BMO Financial Group - 4.24 4.24² 4.06 3.78 3.56 3.40 3.24 2.94 3.08 F2020 15-year CAGR 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 6% 2017 2018 2019 2020 2021 Investor Presentation • October 2021 6#7• • • • • Advancing our digital experience in-line with customer preferences Strong digital foundation in place Top tier digital sales volumes driving customer acquisition U.S. digital deposits across all 50 States Integrated North American Treasury and Payments cash management solutions Top-2 in Canadian Digital Advice5 with adviceDirect and SmartFolio ⚫ myWealth digital client onboarding ⚫Electronic trading technology platform through Clearpool External recognition CELENT MODEL AWARDS 2021 BAI GLOBAL INNOVATION AWARDS Accelerated Digital Engagement Digital adoption, % 1 +180bps +310bps 59.0% 60.8% 48.2% 51.3% Q3 F'20 Q3 F'21 Active Mobile Users, 000s M +7% Q3 F'20 Q3 F'21 3 +13% 1,985 2,129 495 559 Q3 F'20 BMO CashTrack Q3 F'21 INSIDER INTELLIGENCE Ranked #1 for digital money management, security and alerts 20 banking technology BMO Quick Pay Self-Serve Transactions, % 1+1² 2 +10bps Q3 F20 Q3 F'21 4 +80bps . Delivering speed, efficiency and scale • Personalized, data-driven experiences, e.g. BMO CashTrack BMO Insights, Al powered tools to manage cash flows Accelerating cloud transformation with AWS to modernize operations and introduce new digital applications • BMO Business Xpress - account openings in minutes, powered by data analytics and best-in-class automatic adjudication strategies • Google Pay partnership to drive scale and innovation Partners G Pay powered by aws 91.7% 91.8% 76.6% 77.4% B blend Lively Intuit. turbotax quickbooks mint AWARDS Q2 F'20 Q3 F'21 Q3 F'20 Q3 F'21 1 Digital adoption is percent of deposit customers that logged on in last 90 days. Active mobile users is number of deposit customers that logged into mobile in the last 90 days 2 Self-Serve Transactions includes deposits, bill payments, internal funds transfers, withdrawals and e-transfers sent across ATM and Digital channels 3 Digital adoption is percent of retail deposit customers that logged on in last 90 days. Active mobile users is number of retail deposit customers that logged into mobile in the last 90 days 4 Self-Serve Transactions includes deposits, bill payments, internal funds transfers, withdrawals and Zelle payments (P2P) sent across ATM and Digital channels 5 Source: Investor Economics (previously known as Strategic Insight) March 2021 BMO Financial Group Investor Presentation • October 2021 7#8Continued operating momentum across our businesses • Advantaged and diversified business mix positioned for resilience and growth Top tier financial performance4 #1 Adjusted¹ PPPT² growth - YTD4 (%) 6.8 BMO Peer average • Leading adjusted¹ PPPT2 growth and efficiency³ improvement, better than average net revenue³ and expense growth, and continuing to invest in our businesses • Peer-leading YTD PPPT 1,2 growth in Canadian • P&C, up 14.0% U.S. P&C PPPT 1,2 up 18% YTD with strong revenue growth and expense management ⚫ Continued strong earnings in Capital Markets and Wealth Management • Very strong credit performance reflecting portfolio quality and strength in risk management Continued progress on returns and efficiency ROE improved to 16.7%¹ YTD 21.3 Efficiency 1,3 improved to 56.2%¹ from 60.2% YTD Adjusted¹ efficiency³ improvement - YTD4 (bps) 400 80 BMO Peer average #1 #2 #3 Net revenue growth - YTD4 (%) Adjusted¹ expense growth - YTD4 (%) 10.2 3.2 2.9 4.8 BMO Peer average BMO Peer average 1 On an adjusted basis. Adjusted measures are non-GAAP measures, see slide 2 for more information; Canadian PC& reported YTD PPPT growth 14.0%; US P&C reported YTD PPPT growth 19.0%; total bank reported YTD ROE 14.5% and YTD Efficiency 60.6% 2 Pre-Provision Pre-Tax earnings (PPPT) is the difference between net revenue and expenses 3 Revenue is net of insurance claims, commissions and changes in policy benefit liabilities (CCPB); efficiency ratio based on net revenue 4 Based on Q3'21 YTD performance. Peers: BNS, CIBC, NA, RBC, TD; peer average based on company disclosures and internal calculations for comparative purposes BMO Financial Group Investor Presentation • October 2021 8#9Diversified business mix with strong, resilient revenue Diversified by business % of Operating Groups Net Revenue - LTM¹ Canadian P&C 33% Canadian Personal BMO Capital Markets 24% Diversified by geography % of Net Revenue by Geography - LTM1 Other 6% U.S. P&C 21% Canadian Commercial Banking U.S. Commercial Banking Banking U.S. Personal Banking Asset Management Insurance Investment & Corporate Banking Global Markets Personal Wealth BMO Wealth Management 22% U.S. 36% 1 Net revenue is net of insurance claims, commissions and changes in policy benefit liabilities (CCPB); LTM is last twelve months; excludes Corporate Services BMO Financial Group Canada 58% Investor Presentation • October 2021 9#10Canadian P&C - Strong flagship business • ⚫ Flagship business contributing 33% of total bank revenue 1,2 and 36% of adjusted² net income YTD • ⚫ Top-tier performance and growing market share in key areas of focus • • Good expense discipline; YTD expenses up 2% Y/Y; efficiency 56.2% YTD with peer leading efficiency improvement Average loans up 5% Y/Y. Commercial up 2% Y/Y and Q/Q. Proprietary channel residential mortgages and amortizing HELOC up 12% Y/Y Average deposits up 7% Y/Y; Commercial up 18% Y/Y Strong financial performance vs peers Adjusted¹ PPPT³ growth - YTD4 (%) 14.0 5.2 #1 Adjusted¹ efficiency improvement - YTD4 (bps) 290 80 BMO Peer average #1 BMO Peer average #1 #2 Revenue growth - YTD4 (%) Adjusted¹ expense growth - YTD4 (%) 1.9 8.0 1.6 3.5 • Continuing to invest in digital innovation, providing leading, customer-centric digital experiences BMO Peer average WORLD FINANCE BEST COMMERCIAL BANK, CANADA 2015-2021 BMO Recognized as the best commercial bank in Canada for seven consecutive years BMO Peer average Awarded first place in J.D. Power's 2020 Canada Retail Banking Advice Study 1 On an adjusted basis. Adjusted measures are non-GAAP measures, see slide 2 for more information 2 Net revenue is net of insurance claims, commissions and changes in policy benefit liabilities (CCPB) 3 Pre-Provision Pre-Tax earnings (PPPT) is the difference between net revenue and expenses 4 Based on Q3'21 YTD performance. Peers: BNS, CIBC, NA, RBC, TD; peer average based on company disclosures and internal calculations for comparative purposes BMO Financial Group Investor Presentation • October 2021 10#11BMO Wealth Management - Strong & stable growth engine Well-diversified competitive businesses, contributing ~22% of BMO's net revenue mix over the last 12 months Repositioned the business to accelerate growth - - Exited select high-efficiency, lower-return businesses Unified Canadian full-service brokerage and private bank delivering a full solutions experience Digitized and streamlined client and back-office processes Leveraging leading positions to accelerate growth - WORLD FINANCE BEST PRIVATE BANK, CANADA 2011-2021 BMO BANK OF MONTREAL Deliver top-tier digital wealth management Scale our North American wealth advisory leadership Build out Asset Management in leading growth areas including ETFS, Alternatives and ESG Recognized as the Best Private Bank in Canada for 11 consecutive years 1 Wealth management excluding Insurance 2 Adjusted measures are non-GAAP measures Strong Momentum Adjusted² ROE (%) Adjusted² efficiency4 (bps) 69.5 460bps 730bps 25.0 64.9 17.7 F2020 YTD '21 F2020 YTD '21 Top Tier Performance in Traditional Wealth 1,4 Adjusted² PPPT³ growth YTD5 (%) 34.1 #1 Adjusted² efficiency4 improvement - YTD5 (bps) 500 19.1 160 BMO Peer average #1 on net new ETF flows for 10 consecutive years in Canada and Top-2 ETFs share 3 Pre-Provision Pre-Tax earnings (PPPT) is the difference between net revenue and expenses; 4 Efficiency ratio based on net revenue 5 Based on Q3'21 YTD performance. Peers: BNS, NA, RBC, TD; peer average based on company disclosures and internal calculations for comparative purposes 6 Source: Investor Economics (previously known as Strategic Insight) March 2021 BMO Peer average Top-2 in Canadian Digital Advice with adviceDirect and SmartFolio BMO Financial Group Investor Presentation • October 2021 11 #1#12U.S. segment continuing to deliver strong results Figures that follow are on a U.S. dollar basis U.S. segment adjusted¹ PPPT¹ up 34% YTD; contributed 39% of total bank adjusted¹ earnings YTD Average assets of ~$300B with over 50% of revenue from outside of core footprint³ states Adjusted¹ efficiency of 55.2%, operating leverage of 11.7% YTD #122 in U.S. commercial lending; top-tier market position in flagship U.S. markets #3 deposit market share³ in our core footprint³; #2 in Chicago and Milwaukee Leveraging strong integration and collaboration across businesses to provide integrated client offering YK NT NU U.S. Segment Adjusted¹ Net Income by Operating Group - YTD BC AB SK MB BMO CM ON QC U.S. 33% WA OR PE P&C MN WI NB 64% NS NY MA Personal and Commercial Banking and Wealth OH NJ IL IN MD Management footprint UT CO KS MO DE Additional Commercial Banking, CA Wealth Management and Capital Markets footprint AZ GA TX FL BMO WM 3% 1 Adjusted measures are non-GAAP measures, see slide 2 for more information. Pre-Provision Pre-Tax earnings (PPPT) is the difference between net revenue and expenses. On a reported basis YTD: U.S. Segment PPPT growth 35%, contributed 39% of total bank earnings, efficiency 55.2%, operating leverage 11.7%; Total bank reported net income by geography YTD: Canada 56%, U.S. 38%, Other 6%; U.S. Segment reported net income by operating group for YTD: U.S. P&C 65%, BMO CM 31%, BMO WM 4%, excludes Corporate Services 2 Based upon publicly available U.S. regulatory filings (FR Y-9Cs and FFIEC 002s) and internal analysis 3. Based on FDIC deposit share data; core footprint includes Illinois, Kansas, Wisconsin, Missouri, Indiana and Minnesota BMO Financial Group Investor Presentation • October 2021 12#13Proven strength in Commercial Banking with advantaged market share A relationship-based commercial bank; top 10 commercial lender¹ in North America In Canada: Top-tier commercial banking business, #2 market share for business loans up to $25 million² In the U.S.: Large, diversified national business, supported by industry knowledge, best-in-class customer experience, and top-tier share in flagship markets; #12 in U.S. commercial lending³ Sole or lead position on ~90% of relationships Diversified growth, consistent risk appetite and underwriting Quality and reputation of the business; deep industry expertise In Canada: new sectors and capacity creation through technology In the U.S.: focused expansion of national specialty lending sectors; strength in traditional footprint Commercial portfolio ~83% secured Commercial Banking Revenue as % of Total Bank Revenue - LTM U.S. Commercial Banking 20% Canadian Commercial Banking 17% Other 63% 1 Based on internal analysis 2 Canadian Bankers Association; loan market share $0-$25MM, as at March 2021 3 Based upon publicly available U.S. regulatory filings (FR Y-9Cs and FFIEC 002s) and internal analysis BMO Financial Group Investor Presentation • October 2021 13#14• • Net Interest Margin and Interest Rate Sensitivity Total bank NII & NIM ex trading 1.53 1.60 1.64 1.65 1.67 595 512 478 449 386 2,940 3,018 3,100 3,006 3,134 Q3'20 Q4'20 Q1'21 Q2'21 Q3'21 INII ex trading ($MM) Trading NII ($MM) NIM ex trading (%) . Term rates increased in Q3, but remain below averages of recent years If term rates remain low, NIM could continue to be pressured as higher rate fixed investments roll off and are reinvested at lower rates 5-Year U.S. and CAD swap rates CAD 5-Yr 3.50 Swap Rates ---CAD 5-yr Avg -USD 5-Yr --USD 5-yr Avg • Excluding trading, net interest margin increased 2 basis points Q/Q, primarily due to the impact of interest rate risk hedging, investment and funding activities in Treasury 3.00 2.50 Earnings sensitivities over the next 12 months 2 2.00 Q3'21 Pre-Tax CDE ($MM) +25 bps 1.50 +100 bps -25 bps Short Rates 1.00 Canada¹ 58 (49) 11 0.50 U.S. 308 (94) 102 0.00 Total 366 (143) 113 Source: Bloomberg Jul-16 Oct-16 Jan-17 Apr-17 Jul-17 Oct-17 Jan-18 Apr-18 Jul-18 Oct-18 Jan-19 Apr-19 Jul-19 Oct-19 Jan-20 Apr-20 Year 1 benefit to a +100 bps rate shock driven 2/3 by short rates Higher Year 2 benefit to rising rates (+100 bps) of approximately $785MM driven primarily by long rates and the continued reinvestment of capital and deposits BMO Financial Group - 1 Includes Canadian dollar and other currencies 2 For more details see the Structural (Non-Trading) Market Risk section of BMO's Q3 2021 Report to Shareholders Investor Presentation • October 2021 14 Jul-20 Oct-20 Jan-21 Apr-21 Jul-21#15Continuous path to building a strong, more competitive bank ROE¹ (%) Adjusted¹² efficiency (bps) CET1 (%) 13.4 16.7 61.4 13.7 300bps 520bps 200bps 56.2 11.4 F2019 YTD '21 F2019 YTD '21 F2019 YTD '21 • Targeted actions to allocate capital and resources to areas expected to generate strong returns • Continuing to make progress against our efficiency commitments through automating processes, digitizing activities and simplifying the way we do business Above target ROE with increases in all businesses 1 On an adjusted basis. Adjusted measures are non-GAAP measures, see slide 2 for more information; F2019 reported ROE 12.6% and Efficiency 64.2%; YTD F2021 reported ROE 14.5% and Efficiency 60.6% 2 Efficiency ratio based on net revenue. Net revenue is net of insurance claims, commissions and changes in policy benefit liabilities (CCPB) BMO Financial Group Investor Presentation October 2021 15#16Strong balance sheet and capital position • CET1 Ratio of 13.4%, up 40bps Q/Q; Total Capital Ratio of 17.4% • Sound leverage and liquidity ratios Leverage Ratio 5.0% -Liquidity Coverage Ratio 125% CET1 Ratio³ Credit Ratings Moody's S&P DBRS Fitch Long term deposits / legacy senior debt¹ Aa2 A+ AA AA Senior debt² Outlook +3 bps +48 bps -2 bps 13.0% Q2'21 Internal capital generation Lower source currency RWA Other A2 A- AA (low) AA- Stable Stable Stable Negative 13.4% 4.40% 9% Current OSFI expectation 1.00% Domestic Stability Buffer4 1.00% D-SIB Surcharge 2.50% Capital Conservation Buffer 4.50% Minimum CET1 Q3'21 1 Long term deposits / legacy senior debt includes: (a) Senior debt issued prior to September 23, 2018; and (b) Senior debt issued on or after September 23, 2018 which is excluded from the Bank Recapitalization (Bail-In) Regime 2 Subject to conversion under the Bank Recapitalization (Bail-In) Regime 3 Chart is not to scale 4 On June 17, 2021, OSFI announced that the Domestic Stability Buffer will increase to 2.5% from 1.0%, this change will take effect on October 31, 2021 BMO Financial Group Investor Presentation • October 2021 16#17Leading track record in risk management . ⚫ Long track record of outperforming peers on credit, with 30-year historical average loss rates well below peer banks • ⚫ Prudent underwriting, consistent approach, unparalleled expertise and industry knowledge, effectiveness of work-out process. Deep expertise across Risk and business teams ⚫ Credit risk discipline will serve us well through stress period ⚫ Credit allowances appropriately reflect diversification and underlying strength of portfolios 1.80% 1.60% 1.40% 1.20% 1.00% 0.80% 0.60% 0.40% 0.20% 0.00% PCL on Impaired Loans as a % of Avg. Net Loans & Acceptances 0.52% Cdn Peer Historical Avg. (1990-2020) 0.38% BMO Historical Avg. (1990-2020) 0.20% Cdn. Peer Avg. 0.06% BMO '90 191 192 193 '94 '95 '96 '97 '98 '99 '00 '01 '02 '03 '04 '05 '06 '07 '08 '09 '10 '11 '12 '13 '14 '15 '16 '17 '18 '19 '20 '21'21'21 BMO Cdn Peers Avg. BMO Historical Avg. (1990 - 2020) - Q1 Q2 Q3 Cdn Peers Historical Avg. (1990-2020) BMO Financial Group Investor Presentation • October 2021 17#18Q3 F2021 Highlights BMO M#19Q3 F2021 - Financial Highlights Strong results with PPPT³ up 12% Y/Y and positive operating leverage . · • • Adjusted¹ EPS $3.44, up 86% Y/Y (reported $3.41, up 89%) Adjusted¹ net income $2,292MM (reported $2,275MM) Adjusted¹ ROE 17.6%, improved 90 bps Q/Q (reported 17.5%, improved 730 bps) Adjusted¹ PPPT³ up 12% Y/Y (reported up 13%) Net revenue² up 10% Y/Y, reflecting growth across all operating groups NIM excluding Trading up 14 bps Y/Y and 2 bps Q/Q ($MM) Expenses PPPT³ Total PCL Net Income4 ROE (%) Reported Adjusted¹ Q3 21 Q2 21 Q3 20 Q3 21 Q2 21 Q3 20 Net interest income Non-interest revenue, net² Net Revenue² 3,521 3,057 2,904 2,465 6,578 6,359 6,000 3,684 4,409 3,444 2,894 1,950 2,556 (70) 60 1,054 2,275 1,303 1,232 3,455 3,535 3,521 3,455 3,057 2,875 6,578 6,330 6,000 3,662 3,583 3,407 2,916 2,747 2,593 (70) 60 1,054 3,535 2,465 2,292 2,095 1,259 Diluted EPS ($) 3.41 1.91 1.81 3.44 3.13 1.85 17.5 10.2 9.4 17.6 16.7 9.6 • Adjusted¹ expenses up 8% Y/Y (reported up 7%) ROTCE (%) 19.8 11.8 11.1 19.8 19.1 11.1 CET1 Ratio (%) 13.4 13.0 11.6 Adjusted efficiency ratio² 55.7%, improved 110 bps Y/Y (reported 56.0%, improved 140 bps) NIM excluding Trading 1.67 1.65 1.53 1.67 1.65 1.53 • Adjusted¹ operating leverage² 2.1% (reported 2.6%) Net Income¹ Trends 2,292 2,038 2,095 • Total recovery of credit losses was $70MM, compared with a provision of $1,054MM in the prior year and $60MM in the prior quarter PCL on impaired loans $71MM or 6 bps; recovery on performing loans $(141)MM - Total recovery of credit losses ratio 6 bps 1,232 1,259 Q3'20 1,610 2,017 2,275 1,584 1,303 Q4'20 Q1'21 Q2'21 Q3'21 1 Adjusted measures are non-GAAP measures, see slide 2 for more information Reported Net Income ($MM) Adjusted Net Income ($MM) 2 Net revenue and non-interest revenue, net is net of insurance claims, commissions and changes in policy benefit liabilities (CCPB). Operating leverage and efficiency ratio are based on net revenue. Reported gross revenue: Q3'21 $7,562MM; Q2'21 $6,076MM; Q3'20 $7,189MM 3 Pre-Provision Pre-Tax earnings (PPPT) is the difference between net revenue and expenses 4 Q3'21 reported net income included expenses of $18MM ($24MM pre-tax) from the impact of divestitures related to the announced sale of our EMEA Asset Management business and the sale of our Private Banking business in Hong Kong and Singapore, offset by a partial reversal of restructuring charges recorded in Q4'19 related to severance of $18MM ($24MM pre-tax); all recorded in non-interest expense, in Corporate Services 5 Return on Tangible Common Equity (ROTCE) is calculated as net income available to common shareholders adjusted for the amortization of acquisition-related intangible assets as a percentage of average tangible common equity BMO Financial Group Investor Presentation • October 2021 19#20Canadian Personal & Commercial Banking • • • • Strengths and Value Drivers Highly engaged team focused on providing a personalized banking experience, anticipating customers' needs and finding new ways to help Top-tier commercial banking business, number two ranking in Canadian market share for business loans up to $25 million Strong and growing retail banking business, accelerating digital engagement and digital sales Largest Mastercard® card issuer in Canada Consistently applied credit risk management practices, providing reliable access to appropriate financing solutions Net Income Q3'21 Highlights (Adjusted¹) $815MM Net Income Growth (Y/Y) Revenue Growth (Y/Y) 155% 14% PPPT2 Growth (Y/Y) 19% 28.6% 46.7% 5.4% $265B $227B ROE Efficiency Ratio Operating Leverage Average Loans and Acceptances Average Deposits Net Income¹ ($MM) and NIM (%) Revenue ($MM) 2.54 2.60 2.66 2.66 2.62 2,241 Reported Net 2,031 2,099 2,142 1,962 815 765 898 737 Income 807 842 745 778 648 319 Commercial 319 737 764 815 Adjusted Net Personal 647 Income 1,217 1,253 1,292 1,300 1,343 Q3'20 Q4'20 Q1'21 Q2'21 Q3'21 ►NIM Q3'20 Q4'20 Q1'21 Q2'21 Q3'21 1 Adjusted measures are non-GAAP measures, see slide 2 for more information. Q3'21 on a reported basis: Net Income $815MM; Net Income Growth 155%; PPPT Growth 19%; ROE: 28.6%; Efficiency Ratio 46.7%; Operating Leverage 5.4% 2 Pre-Provision Pre-Tax profit contribution; PPPT is the difference between revenue and expenses BMO Financial Group Investor Presentation • October 2021 20 20#21Canadian Personal & Commercial Banking Strategic Priorities Continue to improve customer loyalty by deepening primary relationships, provide necessary support to customers and employees in the new operating environment, and drive an inclusive and high-performance work culture Leverage the full suite of products, solutions and capabilities, and the unique cross-border advantage to offer a compelling value proposition to customers - - In Personal Banking, drive top-tier customer acquisition, build leading share of wallet, and enhance the digital experience In Commercial Banking, strengthen core market presence and continue to build share of wallet, strengthen digitization and digital capabilities, drive growth and enhance return on equity, while continuing to manage risk effectively, and leverage cross-bank collaboration Drive efficiencies by simplifying and streamlining operations, investing in digital capabilities and through cross-bank collaboration Performance Average Gross Loans & Acceptances ($B) Average Deposits ($B) Digital Adoption¹ 213.1 222.8 227.0 251.0 257.9 264.6 59% 61% 55% 129.4 129.7 104.6 110.1 113.3 130.4 48.3 50.0 51.6 45% 8.2 7.8 8.1 42% 38% 82.6 93.4 97.4 90.0 89.9 91.6 Q3'20 ■Commercial ■Consumer Loans Q2'21 Q3'21 ■Credit Cards Residential Mortgages Q3'20 Q2'21 ■Commercial Deposits Q3'21 Personal Deposits Q3'19 Q3'20 Q3'21 -Digital Mobile 1 Adoption is the percent of retail deposit customers that have logged in within the last 90 days; as at July 31, 2019, 2020 and 2021 BMO Financial Group Investor Presentation • October 2021 21#22U.S. Personal & Commercial Banking • • Strengths and Value Drivers Rich Midwestern heritage dating back to 1847, with a long-standing commitment to the success of our customers and communities Large-scale, diversified national commercial business, supported by in- depth industry knowledge, best-in-class customer experience, and top-tier market share in our core footprint Continued momentum in personal banking with a large and growing customer base, top-tier deposit market share and accelerating digital engagement Comprehensive, integrated control structure to actively manage risk and regulatory compliance Net Income Q3'21 Highlights (Adjusted¹) Net Income Growth (Y/Y) Revenue Growth (Y/Y) PPPT2 Growth (Y/Y) ROE Efficiency Ratio Operating Leverage Average Loans and Acceptances Average Deposits US$453MM 127% 7% 12% 16.5% 50.3% 4.8% US$92B US$112B Net Income¹ (US$MM) and NIM (%) Revenue (US$MM) 3.51 3.51 3.49 3.31 3.34 Reported 1,099 1,092 1,098 1,030 1,007 459 453 439 Net 333 328 328 Income 330 320 Personal 254 Adjusted 199 246 454 ■Commercial 434 448 Net 766 700 764 770 687 Income 192 NIM Q3'20 Q4'20 Q1'21 Q2'21 Q3'21 Q3'20 Q4'20 Q1'21 Q2'21 Q3'21 1 Adjusted measures are non-GAAP measures, see slide 2 for more information. Q3'21 on a reported basis: Net Income $448MM; Net Income Growth 133%; PPPT Growth 13%; ROE 16.3%; Efficiency Ratio 50.9%; Operating Leverage 5.4% 2 Pre-Provision Pre-Tax profit contribution; PPPT is the difference between revenue and expenses BMO Financial Group Investor Presentation • October 2021 22#23U.S. Personal & Commercial Banking Strategic Priorities • • Deliver a great experience for customers and employees, while adapting to the new operating environment, and continue to build a base of loyal customers In Personal Banking, continue to drive new customer acquisition, maintain robust deposit growth, improve profitability in consumer lending, build a flagship franchise in Small Business Banking and increase digital engagement In Commercial Banking, strengthen core market presence and continue to build share of wallet, strengthen digitization and digital capabilities, drive growth and enhance return on equity, while continuing to manage risk prudently ⚫ Drive efficiencies by simplifying and streamlining operations, investing in digital capabilities and through cross-bank collaboration Performance Average Gross Loans and Acceptances¹ (US$B) Average Deposits (US$B) Digital Adoption² 106.1 110.0 111.7 93.3 93.4 91.8 51% 16.0 15.1 48.2 15.2 48.0 48% 50.5 45% 40% 77.3 78.3 76.6 36% 61.8 63.7 33% 55.6 Q3'20 Q2'21 Q3'21 ■Commercial Personal & Business Banking Q3'20 ■Commercial Q2'21 Personal & Business Banking Q3'21 Q3'19 Q3'20 Q3'21 Digital -Mobile 1 Certain loan and deposit balances have been re-classified from Personal to Commercial within U.S. P&C reflecting a re-alignment of our Business Banking segment 2 Adoption is the percent of deposit customers that have logged in within the last 90 days; as at July 31, 2019, 2020, and 2021 BMO Financial Group Investor Presentation • October 2021 23#24BMO Wealth Management Q3'21 Highlights (Adjusted¹) • • Strengths and Value Drivers Planning and advice-based approach that integrates investment, insurance, specialized wealth management and core banking solutions, offered by a team of highly skilled professionals Diversified products and services, from digital investing to integrated full-service investment management, banking and wealth advisory services for retail, business and institutional clients Global asset manager with a commitment in responsible investing delivering innovative investment solutions to institutional and individual clients including BMO Mutual Funds and BMO Exchange Traded Funds across a range of channels Robust risk management framework supporting alignment with heightened regulatory expectations Net Income¹ ($MM) Net Income Net Income Growth (Y/Y) Revenue² Growth (Y/Y) PPPT3 Growth (Y/Y) ROE Efficiency Ratio² Operating Leverage² AUA / AUM Average Loans/Deposits 401 406 341 349 70 70 358 366 320 328 72 72 346 353 50 50 73 73 67 67 $406MM 16% 11% 14% 28.9% 63.0% 1.3% $985B $29B / $50B Balances, AUA, AUM ($B) 979 985 909 525 527 498 271 279 253 261 286 294 296 303 328 333 45 51 50 27 28 29 411 454 458 Reported Adjusted Reported Adjusted Reported Adjusted Reported Adjusted Reported Adjusted Q3'20 Q4'20 Q1'21 Q2'21 Traditional Wealth Insurance Q3'21 Q3'20 Q2'21 Q3'21 Q3'20 Q2'21 Q3'21 Avg Gross Loans and Acceptances Avg Deposits ■ AUA AUM 1 Adjusted measures are non-GAAP measures, see slide 2 for more information. Q3'21 on a reported basis: Net Income $401MM; Net Income Growth 18%; PPPT Growth 16%; ROE 28.6%; Efficiency Ratio 63.3%; Operating Leverage 2.1% 2 Revenue, efficiency ratio and operating leverage based on net revenue. Net revenue is net of insurance claims, commissions and changes in policy benefit liabilities (CCPB) 3 Pre-Provision Pre-Tax profit contribution; PPPT is the difference between net revenue and expenses BMO Financial Group Investor Presentation • October 2021 24#25BMO Wealth Management Strategic Priorities • • Deliver a differentiated client experience, providing outstanding support and working together to plan, grow, protect and transition their wealth with confidence Extend our advantage as a solutions provider, delivering innovative asset management and insurance offerings that anticipate clients' evolving needs and exceed their expectations Build on a strong foundation and continue to evolve, simplify and streamline businesses to drive value, efficiency and returns Activate and drive an inclusive, high-performance culture, focused on strong collaboration and alignment across the enterprise and a commitment to building diverse and inclusive teams to bring the best of BMO to all clients Net Revenue¹ by Business - LTM 11% 29% 9% BMO Wealth Management U.S. ■BMO Insurance BMO Private Wealth Diversification ~62% Fee-based Revenues² BMO 8% InvestorLine 43% ■BMO Global Asset Management 1 Net revenue is net of insurance claims, commissions and changes in policy benefit liabilities (CCPB) 2% of Traditional Wealth revenues (LTM as of July 31, 2021) ETF #1 in net new assets in Canadian market4 3 Investment Asset Class as of October F2020 4 Net new assets as of F2020 BMO Financial Group BMO GAM Investment Asset Class³ Fixed Income 36% Multi-Asset 24% Alternatives Equity 31% 4% Liquidity Management 5% Investor Presentation • October 2021 25#26BMO Capital Markets Strengths and Value Drivers A valued financial partner to our clients; leveraging our people, innovative solutions and capital to help them overcome their challenges and achieve their goals Unified coverage and integrated North American platform, delivering a seamless and exceptional client experience Well diversified platform and business mix by sector, geography, product and currency, including a strong and scalable U.S. business Strong first line of defense risk management and regulatory and compliance capabilities High performance culture with strong focus on diversity and inclusion Net Income Q3'21 Highlights (Adjusted¹) Net Income Growth (Y/Y) Revenue Growth (Y/Y) PPPT2 Growth (Y/Y) Efficiency Ratio Operating Leverage $564MM 30% 4% (6)% 57.5% (8.5)% Average Gross Loans and Acceptances U.S. Revenue Contribution³ $57B 46% Net Income¹ ($MM) 570 564 489 435 387 Revenue ($MM) 1,528 1,574 1,538 1,584 1,378 547 543 Reported Net 619 703 524 Income and Investment Corporate Banking 563 558 483 426 379 Adjusted Net Income 981 1,031 919 854 881 ■Global Markets Q3'20 Q4'20 Q1'21 Q2'21 Q3'21 Q3'20 Q4'20 Q1'21 Q2'21 Q3'21 1 Adjusted measures are non-GAAP measures, see slide 2 for more information. Q3'21 on a reported basis: Net Income $558MM; Net Income Growth 31%; PPPT Growth (5)%; Efficiency Ratio 58.0%; Operating Leverage (7.7)% 2 Pre-Provision Pre-Tax profit contribution; PPPT is the difference between revenue and expenses 3 U.S. Revenue as a % of Total BMO Capital Markets (Q3'21) BMO Financial Group Investor Presentation • October 2021 26#27BMO Capital Markets • • Strategic Priorities Continue to invest where BMO Capital Markets has the strengths and capabilities to deliver value-added solutions and meet client needs Build on a foundation to work smarter and simplify how BMO Capital Markets does business, to enhance efficiency and return on equity with a particular focus on digitization Activate and drive an inclusive, high performance culture - focused on urgency and accountability to clients, strong partnership and alignment across the enterprise, and a commitment to eliminate barriers to diversity and inclusion Continue to be prudent managers of capital and risk for clients, employees and shareholders Power, Utilities & Infrastructure Industrials Revenue by Sector¹ Real Estate Diversified Industries Healthcare Government Global Mining Food, Consumer & Retail "Excluding non- client revenues Financial Institutions Diversified Performance U.S. Contribution Energy 48% of Revenue ~52% of Capital³ Technology, Business Services & Media ~44% of FT 1 As a % of last twelve months (LTM) revenue as at July 31, 2021, excluding non-client revenues & investor-only clients 2 U.S. Revenue as a % of Total (LTM as of July 31, 2021) 3 U.S. Capital as a % of Total (LTM as of July 31, 2021) 4 U.S. FTE as a % of Total (LTM as of Q3'21) 5 As a % of LTM Q3'21 revenue excluding 'Other' BMO Financial Group Corporate Banking Investment Banking Revenue by Product5 Merchant Banking Global Equity & Financing Solutions Global Fixed Income, Currency & Commodities Investor Presentation • October 2021 27#28Risk Overview BMO M#29Provision for Credit Losses (PCL) PCL By Operating Group ($MM) Q3'21 Q2'21 Q3'20 $ bps $ bps $ bps PCL in bps Total Canadian P&C 101 15 154 24 257 41 =4 94 89 88 Total U.S. P&C (9) (3) 6 2 109 35 37 BMO Wealth Management 0 (1) 1 2 1 1 19 13 35 38 29 BMO Capital Markets (19) (13) (6) (4) 79 45 14 5 Corporate Services (2) n.m. 0 n.m. 0 n.m. Q2'20 Q3'20 Q4'20 Q1'21 Q2'21 Q3'21 PCL on Impaired Loans 71 6 155 13 446 38 PCL on Impaired Loans -Total PCL on Performing Loans (141) (12) (95) (8) 608 51 Total PCL (70) (6) 60 1,054 89 PCL on Impaired Loans as a 2.00% % of Average Net Loans & 1.50% Acceptances • BMO's PCL loss rates have 1.00% been lower than peer average over time 0.50% BMO Financial Group 0.00% PCL on Impaired Loans as a % of Avg. Net Loans & Acceptances 0.52% Cdn Peer Historical Avg. (1990-2020) 0.38% BMO Historical Avg. (1990-2020) 0.20% Cdn. Peer Avg. 0.06% BMO '90'91 '92'93 '94'95 '96'97 '98 '99 '00 '01'02 '03 '04 '05 '06 '07 '08 '09 '10'11'12 '13 '14 '15 '16 '17'18'19'20'21'21'21 BMO BMO Historical Avg. (1990-2020) ---- Cdn Peers Avg. Cdn Peers Historical Avg. (1990-2020) Q1 Q2 Q3 Investor Presentation October 2021 29#30Allowance and Provision on Performing Loans Allowance on Performing Loans (APL) and PCL on Performing Loans (PCL) By Operating Group ($MM) 2 APL to Q2 21 APL¹ Q3 21 PCL Q3 21 Foreign Exchange Q3 21 APL¹ Performing Loans (bps) Consumer - Canadian P&C 900 (26) 874 50 The APL decreased $126MM to $2,703MM, driven by a reduction in PCL on performing loans The $141MM recovery of credit losses on performing loans reflected an improving economic outlook and positive credit migration, partially offset by the impact of the uncertain economic environment on future credit conditions and balance growth Allowance for Performing Loans Commercial - Canadian P&C 520 19 3 542 58 Total Canadian P&C 1,420 (7) 3 1,416 53 (bps) Consumer - U.S. P&C 126 (17) 2 111 63 63 65 67 65 62 57 49 Commercial - U.S. P&C 794 (36) 9 767 80 60 Total U.S. P&C 920 (53) 11 878 77 Q2'20 Q3'20 Q4'20 Q1'21 Q2'21 Q3'21 BMO Wealth Management 38 (2) 36 12 Coverage Ratios BMO Capital Markets 448 (75) 1 374 64 3.47 2.45 1.99 2.13 2.04 2.12 Corporate Services 3 (4) (1) n.m. Total 2,829 (141) 15 2,703 57 Q2'20 Q3'20 Q4'20 Q1'21 Q2'21 Q3'21 1 Q2'21 and Q3'21 includes APL on Other Assets of $20MM and $17MM respectively and excludes APL on Securities of $4MM for both periods 2 Q3'21 PCL includes PCL on Other Assets of $4MM and excludes PCL on Securities of $0.1MM -O-APL as a % of Trailing 4-Quarter PCL on Impaired Loans - BMO Financial Group Investor Presentation • October 2021 30#31Gross Impaired Loans and Formations Gross Impaired Loans (GIL) ratio 51 bps, down 14 bps Q/Q Formations Gross Impaired Loans By Industry ($MM, as at Q3 21) Canada & Canada & Formations ($MM) U.S. Total U.S. Total Other Other¹ Consumer 149 23 172 400 283 683 Service Industries 72 31 103 210 245 455 1,760 1,396 Retail Trade 2 2 4 181 76 257 662 665 425 390 Oil & Gas 0 45 45 69 182 251 Q2'20 Q3'20 Q4'20 Q1'21 Q2'21 Q3'21 Agriculture 8 1 9 77 152 229 Manufacturing 24 0 24 118 59 177 Gross Impaired Loans ($MM) Transportation 1 7 8 17 88 105 Commercial Real Estate 11 1 12 34 21 55 Wholesale Trade 5 2 7 27 51 78 4,413 3,645 Construction (non-real estate) 3,638 3,442 1 2 3 43 24 67 3,000 2,430 Mining 1 0 1 1 30 31 Financial 0 0 0 11 8 19 19 Q2'20 Q3'20 Q4'20 Q1'21 Q2'21 Q3'21 Other Business and 1 1 2 19 4 23 Government² GIL (bps) Total Business and 126 92 218 807 940 1,747 94 Government 74 78 74 65 51 Total Bank 275 115 390 1,207 1,223 2,430 1 Total Business and Government includes nil GIL from Other Countries 2 Other Business and Government includes industry segments that are each <1% of total GIL BMO Financial Group Q2'20 Q3'20 Q4'20 Q1'21 Q2'21 Q3'21 Investor Presentation ⚫ October 2021 31#32Loan Portfolio Overview Gross Loans & Acceptances Canada & By Industry U.S. Total % of Total Other¹ ($B, as at Q3 21) Residential Mortgages 126.4 8.0 134.4 28% • Consumer Instalment and Other 62.1 13.0 75.1 16% Personal • Portfolio is well diversified by geography and industry Business & Government loans up 2% Q/Q or up 1% excluding the impact of foreign exchange movement Cards 7.4 0.4 7.8 2% Total Consumer 195.9 21.4 217.3 46% Financial 13.0 39.1 52.1 11% Service Industries 23.6 22.5 46.1 10% Commercial Real Estate 26.9 14.4 41.3 9% Manufacturing 7.8 18.6 26.4 6% Loans by Geography and Operating Group ($B) Retail Trade 11.6 5.8 17.4 4% 194.4 Wholesale Trade Agriculture 5.1 9.4 14.5 3% 96.2 101.4 12.5 1.4 13.9 3% 25.6 33.6 21.5 Transportation 3.7 8.9 12.6 3% Oil & Gas 5.6 3.4 9.0 2% Canada & Other Countries U.S. Other Business and Government² 10.5 11.6 22.1 5% Total Business and Government 120.3 135.1 255.4 54% Total Gross Loans & Acceptances 316.2 156.5 472.7 100.0% 1 Includes $8.6B from Other Countries 2 Other Business and Government includes all industry segments that are each <2% of total loans BMO Financial Group ■P&C/BMO Wealth Management - Consumer ■P&C/BMO Wealth Management - Commercial BMO Capital Markets Investor Presentation • October 2021 32#33Canadian Residential-Secured Lending Residential-Secured Lending by Region ($166.6B) HELOC $76.1 Uninsured Mortgages ■Insured Mortgages 25% $26.4 $33.1 25% 29% $19.6 55% 17% 60% 33% • • 42% $6.8 $4.6 12% 50% 16% 20% • 44% 29% 15% 38% 44% 46% • Atlantic Quebec Ontario Alberta British Columbia All Other Canada Avg. LTV¹ Atlantic Quebec Ontario Alberta Uninsured British All Other Columbia Canada Total Canada Mortgage Portfolio 54% 55% 51% 60% 48% 53% 52% - Origination 73% 73% 69% 74% 68% 74% 70% HELOC - Portfolio 44% 50% 42% 54% 42% 45% 45% Origination 71% 74% 63% 67% 61% 70% 65% Total Canadian residential-secured lending portfolio at $166.6B, representing 35% of total loans (peer average ~48%) - - LTV1 on uninsured of 48% 90-day delinquency rate for RESL remains good at 14 bps; loss rate for the trailing 4 quarter period was 1 bp Residential mortgage portfolio of $126.3B - 34% of portfolio insured - - LTV1 on uninsured of 52% 79% of the mortgage portfolio has an effective remaining amortization of 25 years or less HELOC portfolio of $40.3B outstanding of which 69% is amortizing GTA and GVA portfolios demonstrate better LTV¹, delinquency rates and bureau scores compared to the national average 1 LTV is the ratio of outstanding mortgage balance or the HELOC authorization to the original property value indexed using Teranet data. Portfolio LTV is the combination of each individual mortgage or HELOC LTV weighted by the mortgage balance or HELOC authorization BMO Financial Group Investor Presentation • October 2021 33#34Oil and Gas Industry Overview Industry by Sub-sector 11% 24% $8.9 B 58% 7% Exploration & Development Manufacturing & Refining ■Pipelines ■Services Industry by Risk Rating 54% $8.9 B 3% 43% ■Investment Grade Sub-Investment Grade Impaired The Oil and Gas Portfolio is geographically well diversified; 54% in Canada, 38% in the U.S. and the remaining in other geographies Of the $5.3B in Exploration and Development (E&D) gross loans and acceptances, 65% is borrowing-base lending: ~100% of U.S. E&D loans 43% of Canada and other countries E&D loans; 78% of non-borrowing base E&D loans in Canada and other countries are investment grade BMO Financial Group - Investor Presentation • October 2021 34#35Sectors Impacted by COVID-19 Pandemic By Industry of Heightened Focus Gross Loans & Acceptances % of Total GL&A . ($B, as at Q3 21) (GL&A) Hotels 4.5 1.0% Restaurants 4.9 1.0% Amusement & Recreational 3.2 0.7% CRE Lodging REITS 0.6 0.1% CRE - Retail REITS 1.5 0.3% - CRE Retail Property Types 2.5 0.5% Retail Trade excl. Auto, Grocers & Pharmacies 4.5 1.0% Airlines 0.3 0.1% Total Industries of Heightened Focus 22.1 4.7% Total Business & Government 255.4 54.0% Gross Loans & Acceptances Total Gross Loans & Acceptances 472.7 100.0% BMO Financial Group Sectors highly impacted by COVID-19 make up less than 5% of the portfolio Portfolio is diversified and well-secured by real estate in some sectors Loss rates remain manageable Investor Presentation • October 2021 35#36Economic and Housing Market Overview BMO M#37Economic outlook and indicators1 Canada United States Eurozone Economic Indicators (%) 1,2 2020 2021E² 2022E² 2020 2021E² 2022E² 2020 2021E² 2022E² GDP Growth (5.3) 5.0 4.5 (3.4) 5.8 3.5 (6.5) 5.0 4.5 Inflation 0.7 3.1 3.0 1.2 4.4 4.1 0.3 2.2 1.8 Interest Rate (3mth Tbills) 0.44 0.10 0.20 0.37 0.05 0.05 (0.44) (0.55) (0.56) Unemployment Rate 9.6 7.5 6.0 8.1 5.5 4.1 7.9 7.8 7.0 Current Account Balance / GDP³ (1.8) 0.7 0.6 (2.9) (3.5) (3.8) 2.3 2.8 2.7 Budget Surplus/ GDP³ (16.1) (6.4) (2.3) (14.9) (12.6) (6.0) (7.6) (6.7) (3.3) Canada After contracting in Q2, real GDP is expected to rebound in Q3 amid support from expansionary fiscal policy and still-elevated resource prices, though rising virus cases will temper the expansion The jobless rate is expected to fall from 7.1% in August to below 6% at the end of 2022, near pre-pandemic levels The Bank of Canada is expected to keep policy rates steady until October 2022 to support a full recovery in labour markets 1 This slide contains forward looking statements. See caution on slide 2 2 Data is annual average. Estimates as of October 1, 2021 3 Eurozone estimates provided by IMF BMO Financial Group • United States • Although rising virus cases will dampen the economic recovery, substantial fiscal stimulus and high personal savings should result in continued strong GDP growth The unemployment rate is projected to decline from 5.2% in August toward pre-pandemic levels of 3.5% by the end of 2022 Despite higher inflation, the Federal Reserve is expected to keep policy rates near zero until early 2023 to support a broad recovery in employment Investor Presentation • October 2021 37#38• • Canada's housing market is strong National existing home sales have pulled back in the summer from record highs in March but remain well above normal levels. Record-low mortgage rates and shifts in demand arising from remote working have supported the market • Benchmark prices have accelerated 21% in the past year amid historically low supply relative to sales • • Home sales growth should moderate amid less pent-up demand, eroding affordability, and a higher minimum qualifying rate on federally-regulated mortgages. However, prices are likely to continue to increase due to low supply Substantial fiscal income-support and mortgage deferral programs have kept foreclosure rates low Mortgage arrears remain near record lows, though they could rise moderately due to elevated unemployment Debt servicing costs (relative to income) have eased from all-time highs Debt Service Ratio Mortgage Delinquencies/Unemployment 16.0 14.0 12.0 10.0 8.0 6.0 4.0 2.0 0.0 1990 1991 1992- 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006- 2007 2008 Total Interest only Source: BMO CM Economics and Canadian Bankers' Association as at October 1, 2021 This slide contains forward looking statements. See caution on slide 2 BMO Financial Group 2013 2014 2015 2017 2018 2019 2020 2021 0.50 0.45 0.40 0.35 0.30 0.25 0.20 0.15 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 Canada: Percent of Arrears to Total Number of Residential Mortgages (%) Canada: Unemployment Rate: Both Sexes, 15 Years and Over (SA, %) Investor Presentation • October 2021 38 14.0 13.0 12.0 11.0 10.0 9.0 8.0 7.0 6.0 5.0#395.0 4.0 3.0 2.0 1.0 0.0 1998 1999 2000 2001 BMO Financial Group 6.0 • • • • • Structure of the Canadian residential mortgage market with comparisons to the United States Conservative lending practices, strong underwriting and documentation discipline have led to low delinquency rates Over the last 30 years, Canada's 90-day residential mortgage delinquency rate has never exceeded 0.7% versus the U.S. peak rate of 5% in 2010 Mandatory government-backed insurance for high loan to value (LTV >80%) mortgages covering the full balance Government regulation including progressive tightening of mortgage rules to promote a healthy housing market Shorter term mortgages (avg. 5 years), renewable and re-priced at maturity, compared to 30 years in the U.S. market No mortgage interest deductibility for income tax purposes (reduces incentive to take on higher levels of debt) In Canada mortgages are held on balance sheet; in the U.S. they may be sold or securitized in the U.S. market Arrears to Total Number of Residential Mortgages (%) 2007 • Recourse back to the borrower in most provinces • Prepayment penalties borne by the borrower whereas U.S. mortgages may be prepaid without penalty Mortgage Delinquencies Equity Ownership (%) 2008 2009 2010 -Canada -United States Source: BMO CM Economics and Canadian Bankers' Association as at October 1, 2021 This slide contains forward looking statements. See caution on slide 2 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 80.0 75.0 70.0 65.0 60.0 55.0 50.0 45.0 40.0 35.0 1991 1992 1993 1994 1995- 1996 1997 1998 . 666 L 2000 2001 2002 2003 2004 2005 Canada . 900Z 2007 2008 2009 COLOZ 2011 United States 2012 2013 2014 2015 2016 2017 2018 2019 Investor Presentation • October 2021 39 .OZOZ 2021 -#40Environmental, Social and Governance BMO M#41Our Commitment to Sustainability NO POVERTY BMO has designed products and services tailored to underrepresented segments including women and Indigenous communities. At BMO, our Purpose to Boldly Grow the Good, in business and life is inspired by the Sustainable Development Goals (SDGs), and they are shaping our business and sustainability activities. We believe we can have the greatest impact on the SDGS that align with our strategic priorities, and we focus our efforts on the SDGs shown here. SUSTAINABLE DEVELOPMENT GOALS BMO's 2020 Sustainability Report is available on our website. 8 DECENT WORK AND ECONOMIC GROWTH M REDUCED 10 INEQUALITIES GENDER FOULALITY SUSTAINABLE CITIES AND COMMUNITIES 13 ACTION CLIMATE AFFORDABLE AND CLEAN ENERGY PEACE. JUSTICE 16 AND STRONG INSTITUTIONS PARTNERSHIPS FOR THE GOALS BMO promotes economic growth by creating fair employment opportunities in our own operations and in the broader economy through our support of small businesses and entrepreneurs. We take steps to address forced labour, modern slavery and human trafficking through our approach to human rights, and encourage our peers and value chain partners to do the same. BMO has adopted policies and practices that aim to remove barriers to social and economic inclusion among our employees. For our customers, we have designed products and services tailored to underrepresented segments, and we are partnering with charitable organizations on initiatives focused on inclusive local economic opportunity. BMO is a champion of diversity and inclusion in our workforce. We also support women-owned businesses by providing access to financial services, and actively support initiatives aimed at empowering women and girls. BMO manages our environmental impact and resource use, and we partner with our customers to build more sustainable buildings and promote community development initiatives. We are raising awareness, building our capacity to manage climate change risks and opportunities, and mobilizing capital in support of a lower-carbon economy. We are actively partnering with industry peers to advance climate- related analytical methodologies. BMO advises on, finances, and invests in renewable energy projects and clean energy technologies. We are also committed to stimulating market demand and driving industry growth by purchasing renewable energy equivalent to our global electricity use. BMO upholds high standards of ethical and responsible conduct for ourselves, our customers and our partners to enhance the effectiveness and accountability of institutions. BMO is committed to playing a role as a convener and catalyst of efforts to achieve the SDGs through partnerships that mobilize and share knowledge, expertise, technology and financial resources in support of the goals. BMO Financial Group - Investor Presentation October 2021 41#42Progress against Our Purpose commitments SUSTAINABLE FUTURE THRIVING ECONOMY INCLUSIVE SOCIETY MOBILIZE $400 BILLION FOR SUSTAINABLE FINANCE INCREASE OUR SUPPORT FOR SMALL BUSINESS, WOMEN ENTREPRENEURS, INDIGENOUS AND MILITARY CUSTOMERS COMMIT TO ZERO BARRIERS TO INCLUSION Since the beginning, BMO has been guided by a sense of purpose: to be a champion of progress and a catalyst for change. Grounded in BMO's values of integrity, empathy, diversity and responsibility, our Purpose to Boldly Grow the Good in business and life drives everything we do. Our Bold Commitments to a more sustainable future, an inclusive society and to helping the economy thrive are our direct response to today's pressing challenges. most $445 billion $5.4 billion 21.5 thousand 83.5% 1.2% Target $250 billion Mobilize $250 billion in client investments to align with sustainable objectives Target $10 billion Double small business lending in Canada to $10 billion Target 40 thousand Double small business lending customers in the U.S. $107 billion $6.4 113 thousand billion Target 100% Foster an inclusive workplace where all employees complete "Learn from Difference for All" training Target 1.6% Increase the representation of the Indigenous workforce in Canada by 2020 Target $150 billion Provide $150 billion in capital to companies pursuing sustainable outcomes Target $8 billion Double the size of the bank's Indigenous Banking business Target 179 thousand Double the number of women-owned businesses that we support across our footprint (Canada only) 20.3% Target 20% Increase the representation of People of Colour in U.S. senior roles by 2020 5,000 employees Target 20,000 employees Equip employees for the future through engagement in the BMO Forward "future of work" learning program BMO Financial Group $25 million Target $250 million Create an impact investment fund and seed with $250 million in capital 74.3 thousand Target 100 thousand Double the number of Canadian defence community customers Investor Presentation • October 2021 42#43BMO's Net Zero Ambition Be our Clients' Lead Partner in the Transition to a Net Zero World Commitment Building on our Purpose commitment to a sustainable future, BMO makes a new, focused commitment to drive economic transformation toward a net zero world. > Align greenhouse gas emissions from our operations and our financing with the ambition of a net zero world by 2050 > Set intermediate (2030) and long term (2050) targets with our clients > Commit to transparency in emissions measurement and performance Capabilities BMO Climate Institute provides thought leadership at the intersection of climate adaptation and finance, allowing us to be the premier advisor to clients and partners on climate risk and opportunity. > Leverage BMO's sophisticated capabilities to analyze climate change >Provide climate insights for our business, clients and partners to enhance climate resilience >Provide thought leadership informed by data-driven research and expertise Client Partnership We are committed to helping our clients adapt to climate change impacts and contribute to the transition to a net zero global economy with tailored products and services. > Engage with customers to advance climate adaptation strategies > Enable our clients' net zero transitions with a tailored suite of green advisory, investment and lending products > Be a 'One-stop-shop' for clients to meet full range of ESG needs Convening for Climate Action As a global leader, BMO will drive insights and bring together industry, government, academia and investors to unlock solutions that advance climate transition and enhance resilience. > Unite individuals and equip them with information to encourage meaningful climate policy and business decisions > Focus on climate solutions for climate sensitive sectors in North America > Explore the synergies between climate and social justice goals BMO Financial Group BOLDLY GROW THE GOOD IN BUSINESS AND LIFE Investor Presentation • October 2021 43#44Liquidity & Wholesale Funding Mix BMO M#45Liquidity and Funding Strategy Cash and Securities to Total Assets Ratio (%) 33.7 33.3 32.1 32.3 31.7 Q3'20 Q4'20 Q2'21 Q3'21 Q1'21 Customer Deposits¹ ($B) 489.7 461.5 468.0 472.0 474.4 Q3'20 Q4'20 Q1'21 Q2'21 Q3'21 BMO's Cash and Securities to Total Assets Ratio reflects a strong and stable liquidity position BMO's large base of customer deposits, along with our strong capital base, reduces reliance on wholesale funding 1 Customer deposits are operating and savings deposits, including term investment certificates and retail structured deposits, primarily sourced through our retail, commercial, wealth and corporate banking businesses. - BMO Financial Group Investor Presentation • October 2021 45#46• • Canadian Bail-in Regime Canadian bail-in regime effective since September 23, 2018 (implementation date) Bail-in eligible senior unsecured debt that is issued after the implementation date will be subject to conversion in a resolution scenario - Bail-in eligible debt includes senior unsecured debt issued by the parent bank with an original term >400 days and marketable (with a CUSIP/ISIN) Key exclusions are Covered bonds, structured notes, derivatives and consumer deposits Bail-in eligible debt will be issued under existing programs (US MTN, EMTN, AMÒN etc.) governed by local laws, with the exception of bail-in conversion requirements which will be governed by Canadian law Bail-in eligible debt has a statutory conversion feature that provides the Canada Deposit Insurance Corporation (CDIC) the power to trigger conversion of bail-in securities into common shares of the bank (no write-down provision) The statutory conversion supplements the existing Non-Viable Contingent Capital (NVCC) regime which contractually requires the conversion of subordinated debt and preferred equity into common equity upon the occurrence of certain trigger events The notional amount of bail-in securities to be converted and the corresponding number of common shares issued in a resolution scenario will be determined by CDIC at the time of conversion (unlike NVCC securities, where the calculation for the number of shares issued is already defined). Any outstanding NVCC capital must be converted, in full, prior to conversion of bail-in securities Conversion maintains the creditor hierarchy (no creditor worse off principle is respected) 1 Pari passu ranking in liquidation. Canadian Approach Statutory Contractual Subordination CDIC Insured Deposits Other unsecured liabilities¹ Structured Notes¹ Other Deposits (including legacy senior debt)1 Sr. Debt (bail-inable)1 Tier 2 Additional Non-Common Tier 1 Common Equity Tier 1 BMO Financial Group Investor Presentation October 2021 46#47Manageable TLAC Requirements and no incremental funding Canadian D-SIBS will be required to meet a Supervisory Target ratio by November 1, 2021 Risk-based TLAC ratio of 24% (Minimum 21.5% of RWA TLAC ratio plus a Domestic Stability 30.0% Profile as at July 31, 2021 Buffer of 2.50% of total RWA) 1 27.5% Minimum TLAC Leverage ratio of 6.75% 25.0% Supervisory target risk- based TLAC 24% TLAC eligible securities will have a minimum remaining term of 365 days 22.5% No incremental funding required to meet the TLAC obligations 20.0% 17.5% Tier 1 Capital, BMO will only be issuing one class of medium and long term senior debt that will over time replace the legacy senior debt outstanding 1.7% 15.0% 12.5% Similar to US TLAC securities, Canadian bail-in securities will retain the clause regarding acceleration of payments, subject to a minimum 30-business-day cure period, in case of events of default relating to non- payment of scheduled principal and/or interest 10.0% 7.5% CET1, 13.4% 5.0% TLAC eligible debt will be issued at the parent bank operating company level whereas US Fls issue TLAC debt at the holding company level 2.5% 0.0% Tier 2 Capital, 2.3% 1 On June 17, 2021, OSFI announced an increase of the Domestic Stability Buffer from 1.00% to 2.50% of total risk-weighted assets effective October 31, 2021 - BMO Financial Group Bail-in Eligible (RT<1yr) 1.2% TLAC Eligible Unsecured 8.7% Bail-in Debt (BID) Investor Presentation • October 2021 47#48Diversified Wholesale Term Funding Program BMO's wholesale funding principles seek to match the term of assets with the term of funding. Loans for example are funded with customer deposits and capital, with any difference funded with longer-term wholesale funding BMO has a well diversified wholesale funding platform across markets, products, terms, currencies and maturities Wholesale Capital Market Term Funding Composition ($101B) as at July 31, 2021 Senior Debt (Global Issuances) 34% C$ Senior Debt 21% Covered Bonds 21% Mortgage, Credit Card, Auto, TF & HELOC Securitization + FHLB advances 24% Wholesale Capital Market Term Funding Maturity Profile 1,2 as at July 31, 2021 26 22 22 21 8 14 F2021 F2022 F2023 F2024 F2025 ≥ F2026 Term Debt Securitization 1 Wholesale capital market term funding primarily includes non-structured funding for terms greater than or equal to two years and term ABS. Excludes capital issuances 2 BMO term debt maturities includes term unsecured and Covered Bonds BMO Financial Group Investor Presentation • October 2021 48#49• • Europe, Australia & Asia¹ Note Issuance Programme (US$20B) Australian MTN Programme (A$5B) Global Registered Covered Bond Program (US$30B)² Diversified Wholesale Funding Platform Programs provide BMO with diversification and cost effective funding Canada¹ Canadian MTN Shelf (C$10B) Fortified Trust (C$5B) Other Securitization (RMBS, Canada Mortgage Bonds, Mortgage Backed Securities) U.S.1 SEC Registered U.S. Shelf (US$25B) Global Registered Covered Bond Program (US$30B) Securitization (Credit cards, Auto, Transportation Finance) Recent Notable Transactions • • US$1.15 billion 3-yr Fixed Rate Senior Unsecured Notes at 0.625% US$550 million 3-yr Floating SOFR Rate Senior Unsecured Notes US$740.74 million Master Credit Card Trust II Notes EUR€1.25 billion 3-yr Fixed Rate Covered Bond at 0.050% C$1.25 billion 5-yr Fixed Rate Senior Unsecured Notes at 1.551% US$400 million 2-yr Floating SOFR Rate Senior Unsecured Notes C$750 million 5-yr Fixed Rate Women in Business Bond at 1.758% US$1.00 billion 6NC5 Senior Unsecured Bail-in Notes at 0.949% C$1.25 billion 60-year Limited Recourse Capital Notes at 4.30% C$1.25 billion 10-year Fixed Rate NVCC Subordinated Notes at 2.077% C$1.50 billion 5-yr Fixed Rate Senior Unsecured Notes at 2.37% 1 Indicated dollar amounts beside each wholesale funding program denotes program issuance capacity limits BMO Financial Group Investor Presentation • October 2021 49#50Investor Relations Contact Information http://www.bmo.com/investorrelations E-mail: [email protected] IR magazine BMO M Award winner Canada 2021