#1BMO Financial Group Investor Presentation For the Quarter Ended April 30, 2023 May 24, 2023 Q2 23 BMO M B#2Caution 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 2023 and beyond, our strategies or future actions, our targets and commitments (including with respect to our Climate Ambition and net zero emissions), expectations for our financial condition, capital position, the regulatory environment in which we operate, the results of, or outlook for, our operations or the Canadian, U.S. and international economies, plans for the combined operations of BMO and Bank of the West, the timing for converting Bank of the West customer accounts and systems onto our respective BMO platforms, and the financial, operational and capital impacts of the transaction, and include statements made by our management. Forward-looking statements are typically identified by words such as "will", "would", "should", "believe", "expect", "anticipate", "project", "intend", "estimate", "plan", "commit", "target", "may", "schedule", "forecast", "outlook", "seek" and "could" or negative or grammatical variations thereof. 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. 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: general economic and market conditions in the countries in which we operate, including labour challenges; the impact of adverse developments affecting the U.S. and global banking industry, including the risk of bank failures and liquidity concerns, the heightening of economic and market volatility, and regulatory responses to such developments; the anticipated benefits from acquisitions, including Bank of the West, such as potential synergies, accretion to adjusted earnings per share (EPS), and operational efficiencies, are not realized; changes to our credit ratings; the emergence or continuation of widespread health emergencies or pandemics, and their impact on local, national or international economies, as well as their heightening of certain risks that may affect our future results; information, privacy and cybersecurity, 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; benchmark interest rate reforms; technological changes and technology resiliency; political conditions, including changes relating to, or affecting, economic or trade matters; climate change and other environmental and social risk; the Canadian housing market and consumer leverage; inflationary pressures; global supply-chain disruptions; changes in monetary, fiscal, or economic policy; changes in laws, including tax legislation and interpretation, or in supervisory expectations or requirements, including capital, interest rate and liquidity requirements and guidance, and the effect of such changes on funding costs; weak, volatile or illiquid capital or credit markets; the level of competition in the geographic and business areas in which we operate; exposure to, and the resolution of, significant litigation or regulatory matters, our ability to successfully appeal adverse outcomes of such matters and the timing, determination and recovery of amounts related to such matters; 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, complete proposed acquisitions or dispositions and integrate acquisitions, including obtaining regulatory approvals; critical accounting estimates and judgments, and the effects of changes to accounting standards, rules and interpretations on these estimates; operational and infrastructure risks, including with respect to reliance on third parties; 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 non-financial, legal and regulatory, strategic, environmental and social, and reputation risk, in the Enterprise-Wide Risk Management section of BMO's 2022 Annual Report, and the Risk Management section in our Second Quarter 2023 Management's Discussion and Analysis ("Second Quarter 2023 MD&A"), 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 shareholders and analysts 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 include those set out in the Economic Developments and Outlook section of BMO's 2022 Annual Report, as updated in the Economic Developments and Outlook section in our Second Quarter 2023 MD&A, as well as in the Allowance for Credit Losses section of BMO's 2022 Annual Report, as updated in the Allowance for Credit Losses section in our Second Quarter 2023 MD&A. 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. Assumptions about our integration plan, the efficiency and duration of integration and the alignment of organizational responsibilities were material factors we considered in estimating pre-tax cost synergies and integration costs. Assumptions about BMO's current and expected financial performance (including balance sheet, income statement and regulatory capital figures), expected cost and revenue synergies (and timing to achieve) relating to the Bank of the West acquisition, and current and future foreign exchange rates, interest rates and shares outstanding were material factors considered in estimating adjusted EPS accretion. 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. BMOM Strategic Highlights ⚫ May 24, 2023 2#3Darryl White Chief Executive Officer Q2 23 BMO M B#4Well-positioned for continued growth Highlights Q2'23 YTD'23 Reported Adjusted¹ Reported Adjusted¹ • Successfully completed acquisition of Bank of the West (BOTW) Net Income $1.1B $2.2B $1.3B $4.5B • Canadian and U.S. P&C businesses Diluted EPS $1.30 $2.93 $1.62 $6.15 delivered continued good PPPT² performance PPPT2Y/Y Growth (64)% 7% (69)% 1% • Strong risk management and credit Efficiency Ratio³ 71.0% 60.2% 76.1% 58.8% performance • Strong capital position, following Return on Equity 5.6% 12.6% 3.4% 13.0% the closing of the largest acquisition in our history Return on Tangible Common Equity4 8.4% 17.2% 4.5% 15.7% CET15 12.2% 1 Adjusted results and measures are non-GAAP, see slide 40 for more information and slide 41 for adjustments to reported results 2 Reported and adjusted Pre-Provision Pre-Tax earnings (PPPT) are non-GAAP measures. See slide 40 for more information and slide 44 for calculation of PPPT 3 Reported and adjusted net revenue and measures calculated based on net revenue are non-GAAP measures. Net revenue is net of insurance claims, commissions and changes in policy benefit liabilities (CCPB). Efficiency ratio is calculated based on net revenue and is also a non-GAAP Measure. See slide 40 for more information and slide 43 for calculation of net revenue 4 Reported and Adjusted Return on Tangible Common Equity (ROTCE) are non-GAAP measures. See slide 40 and Non-GAAP and Other Financial Measures section of the Second Quarter 2023 MD&A for more information 5 The Common Equity Tier 1 (CET1) Ratio is disclosed in accordance with OSFI's Capital Adequacy Requirements (CAR) Guideline BMOM Strategic Highlights • May 24, 2023 4#5Strong and stable balance sheet, capital and liquidity Balance Sheet (As At) Total Assets ($B) 1,251 Deposits ($B) 875 Net Loans & Acceptances ($B) 645 Book Value Per Share ($) $96.92 950 1,042 714 657 Other Deposits 457 628 512 474 ■Customer Deposits Q2'21 Q2'22 Q2'23 Capital & Liquidity CET1 Ratio¹ (%) 13.0 16.0 Q2'21 Q2'22 Q2'23 Leverage Ratio² (%) 5.1 5.4 4.2 12.2 11% regulatory minimum 3.5% regulatory minimum 516 Q2'21 Q2'22 Q2'23 TLAC Ratio³ (%) 30.7 27.0 24.2 24.5% regulatory minimum $76.72 $89.17 Q2'21 Q2'22 Q2'23 Liquidity Coverage Ratio4 129 129 129 100% regulatory minimum Q2'21 Q2'22 Q2'23 Q2'21 Q2'22 Q2'23 Q2'21 Q2'22 Q2'23 Q2'21 Q2'22 Q2'23 1 The Common Equity Tier 1 (CET1) Ratio is disclosed in accordance with OSFI's Capital Adequacy Requirements (CAR) Guidelines; regulatory minimum of 11.0% as at Q2'23, 10.5% as at Q2'22, 9.0% as at Q2'21 2 Leverage Ratio regulatory minimum of 3.5% as at Q2'23, 3.0% as at Q2'22, 3.0% as at Q2'21 3 Total Loss Absorbing Capacity (TLAC) Ratio regulatory minimum based on OSFI capital requirements of 24.5% as at Q2'23, 24.0% as at Q2'22, and 22.5% as at Q2'21 4 Liquidity Coverage Ratio (LCR) is disclosed in accordance with OSFI's Liquidity Adequacy Requirements Guideline; regulatory minimum of 100% for all periods shown BMOM Strategic Highlights ⚫ May 24, 2023 5#6BMO U.S.-scale, growth further enhanced by Bank of the West Benefiting from the strength of BMO's trillion-dollar balance sheet Top 10 U.S. Bank1 BMO U.S. Bank Footprint in 32 States Top 5 Commercial Lender in North America² 4 million customers BMO U.S. Segment US$4193 billion in assets BMO Financial Group C$1.25 trillion in assets US$2653 billion in assets Well-positioned going forward U.S. Segment contributed ~45% of bank adjusted net income in Q2'23 (negative contribution on a reported basis) • Broad capabilities: Personal & Commercial Banking, Wealth Management and Capital Markets • Only North American bank with integrated North-South business model, driving efficiencies One-Client approach, with local market and unified cross border expertise • Presence in three of the top five U.S. markets • Digital retail and payments platforms across all 50 states OR WA WI ND MN MI NY MA NV NE • KS OH UT NJ CO MO VA MD CA AZ 10 OK O NM GA TX BMO U.S. BMO U.S. Branch (1,007) # of U.S. Banks by Assets (US$)1 >$1T $250B-$750B $100B-$250B <$100B 4 FL OTO) 6 BMOM ~20 ~4,680 1 Ranking by assets as at Mar 31, 2023 and internal analysis. Source: SNL Financial. Top 10 U.S. >$1T: JP Morgan, Bank of America, Citibank, Wells Fargo. $250B-$750B: U.S. Bank, PNC Bank, Truist Bank, TD Bank, Capital One, BMO 2 Share of commercial loans based upon publicly available U.S. regulatory filings (FR Y-9Cs and FFIEC 002s) and internal analysis 3 BMO U.S. Bank as at balances based upon BMO Harris N.A. publicly available U.S. regulatory filing (FFIEC 031) for period ending Mar 31, 2023. BMO U.S. Segment based on average balances for Q2'23 4 Adjusted results and measures are non-GAAP, see slide 40 for more information and slide 42 for adjustments to reported results BMOM Strategic Highlights • May 24, 2023 6#7Highly diversified businesses delivering resilient performance Canadian Personal & Commercial U.S. Personal & Commercial Reported Revenue (teb¹, US$MM) 1,914 Reported Revenue ($MM) 2,529 2,547 2,629 2,546 2,385 763 750 777 738 731 1,654 1,766 1,797 1,852 1,808 Q2'22 Q3'22 Q4'22 ■Personal & Business Banking Q1'23 Q2'23 Commercial Good revenue, loan and deposit growth year-over-year Announced the approval of acquisition of AIR MILESⓇ business Continued market share growth across most product categories BMO Wealth Management AUA, AUM ($B) 738 738 767 338 312 322 425 417 429 Q2'22 Q1'23 Q2'23 ■AUA AUM Good net new client asset growth • #1 in ETF net flows Q2'23 and fiscal year-to-date • Gaining market share in Mutual Funds • • • 1,297 1,334 1,234 1,147 1,159 871 895 914 829 755 318 363 402 420 Q2'22 Q3'22 Q4'22 Q1'23 Q2'23 Personal & Business Banking ■Commercial Significant One Client opportunities across all businesses Accelerating digital commercial account opening to grow deposits Increased scale and new segments with Bank of the West BMO Capital Markets Reported Revenue (teb¹, $MM) 1,718 1,564 1,586 1,405 1,264 618 636 651 554 451 1,100 928 813 851 935 Q2'22 Q3'22 ■Global Markets Q4'22 Q1'23 Q2'23 Investment and Corporate Banking Third highest quarter of revenue ever in Q2'23 • Record quarter in M&A, ranked #2 in Canada Strong growth in digital and liquid trading business 1 Operating group revenue stated on taxable equivalent basis (teb). These teb adjustments in U.S. P&C (Q2'23 US$6MM, Q1'23 US$6MM, Q4'22 US$6MM, Q3'22 US$5MM, Q2'22 US$4MM) and BMO Capital Markets (Q2'23 $84MM, Q1'23 $70MM, Q4'22 $61MM, Q3'22 $61MM, Q2'22 $60MM) are offset in Corporate Services BMOM Strategic Highlights • May 24, 2023 7#8Our Purpose comprises three bold commitments. 0000 For a Thriving Economy Providing access to capital and valuable financial advice - investing in businesses, supporting home ownership and strengthening the communities we serve, while driving innovation that makes banking easier For a Sustainable Future Being our clients' lead partner in the transition to a net zero world, delivering on our commitments to sustainable financing and responsible investing For an Inclusive Society Committing to zero barriers to inclusion through investments, products, services and partnerships that remove systemic barriers for under-represented customers, employees and communities - and drive inclusion and equitable growth for everyone BOLDLY GROW THE GOOD IN BUSINESS AND LIFE Deployed more than US$5.5B in loans and investments to address key barriers confronting minority businesses, communities and families in the United States as part of BMO Empower™, meeting our five-year commitment within the first two years with plans to go further through strategic partnerships and community involvement Launched industry-leading digital pre-arrival account opening capabilities for newcomers to Canada, as well as eligible international students, through our expanded NewStart® program Named to the UN Principles for Responsible Banking, Nature Target Setting Working Group, tasked with providing guidance to global banks for setting biodiversity and nature targets, the only Canadian bank among 34 signatories across 24 countries BMO Canadian Business Banking announced the launch of Greener Future Financing, developed to help agriculture businesses looking to build future-ready, climate resilient operations Named to Corporate Knights' 2023 Ranking of the World's 100 Most Sustainable Corporations and as the most sustainable bank in North America for the fourth year in a row Ranked one of the most sustainable companies in North America on the Dow Jones Sustainability North America Index (DJSI) Recognized by Ethisphere Institute as one of the World's Most Ethical Companies for the sixth consecutive year and the only Canadian bank to be recognized with this award since its inception in 2007 For the third consecutive year included in the Globe and Mail's 2023 Report on Business, Women Lead Here list, which recognizes Canadian businesses for excellence in executive gender diversity Included for the eighth consecutive year in the Bloomberg Gender-Equality Index (GEI) This slide contains forward-looking statements, please refer to the caution on slide 2 BMOM Strategic Highlights ⚫ May 24, 2023 8#9Financial Results For the Quarter Ended April 30, 2023 Tayfun Tuzun Chief Financial Officer Q2 23 BMO M B#10Q2 F2023 - Financial Highlights Good underlying PPPT1 growth in P&C businesses and benefit of Bank of the West • • Adjusted² EPS $2.93, down 10% Y/Y (reported $1.30, down 82%) Adjusted² net income up 1% Y/Y (reported down 78%) Bank of the West (BOTW) added $230MM to adjusted² net income (reported net loss of $909MM) Adjusted² net income excluded $517MM initial provision for credit losses on performing loans, $545MM integration costs and $77MM amortization of acquisition-related intangible assets related to the BOTW acquisition Adjusted² PPPT¹ up 7% Y/Y (reported down 64%) PPPT¹ Total PCL Reported Adjusted² ($MM) Gross Revenue Less: CCPB³ Net Revenue³ Expenses Income before Taxes 1,253 Q2 23 Q1 23 Q2 22 Q2 23 Q1 23 8,440 6,470 9,318 8,447 8,487 5,755 591 1,193 (808) 591 1,193 (808) 7,849 5,277 10,126 7,856 7,294 6,563 5,573 4,421 3,713 4,731 4,172 3,650 2,276 856 6,413 3,125 3,122 2,913 1,023 217 50 318 217 50 639 6,363 2,807 2,905 Q2 22 2,863 Net Income 1,059 247 4,756 2,216 2,272 2,187 Adjusted² net revenue³ up 20% Y/Y (reported down 23%) reflecting growth across all operating groups U.S. Segment Net Income (US$) (104) (558) 2,656 740 676 619 Diluted EPS ($) 1.30 0.30 7.13 2.93 3.22 3.23 • • Adjusted² expenses up 30% Y/Y (reported up 50%) Adjusted² operating leverage³ negative 9.8% (reported negative 72.5%) Total adjusted² provision for credit losses $318MM (reported $1,023MM) PCL on impaired loans $243MM or 16 bps4; adjusted² provision on performing loans $75MM (reported $780MM) Efficiency Ratio³ (%) 71.0 83.8 36.7 60.2 57.2 55.6 ROE (%) 5.6 1.3 34.5 12.6 13.4 15.7 ROTCE5 (%) 8.4 1.4 37.9 17.2 14.6 17.2 CET1 Ratio (%) 12.2 18.2 16.0 12.2 18.2 16.0 Net Income Trends 2,216 230 . U.S. segment contributed 45% to adjusted² earnings in the quarter (negative contribution on a reported basis) 4,756 4,483 2,187 2,132 2,136 1,365 2,272 1,986 1,059 247 Q2'22 Q3'22 Reported Net Income ($MM) Q4'22 Q1'23 ■Adjusted Net Income (SMM) Q2'23 2 BOTW 1 Reported and adjusted Pre-Provision Pre-Tax earnings (PPPT) are non-GAAP measures. See slide 40 for more information and slide 44 for calculation of PPPT 2 Adjusted results and measures are non-GAAP, see slide 40 for more information and slide 41 for adjustments to reported results 3 Reported and adjusted net revenue and measures calculated based on net revenue are non-GAAP measures. Net revenue is net of insurance claims, commissions and changes in policy benefit liabilities (CCPB). Operating leverage and efficiency ratio are both calculated based on net revenue and are also non-GAAP measures. See slide 40 for more information and slide 43 for calculation of net revenue 4 Impaired PCL ratio is calculated as impaired provision for credit losses over average net loans and acceptances, expressed in basis points 5 Reported and Adjusted Return on Tangible Common Equity (ROTCE) are non-GAAP measures. See slide 40 and Non-GAAP and Other Financial Measures section of the Second Quarter 2023 MD&A for more information 6 The Common Equity Tier 1 (CET1) Ratio is disclosed in accordance with OSFI's Capital Adequacy Requirements (CAR) Guideline BMOM Financial Results May 24, 2023 • 10#11Q2 F2023 - Bank of the West Contribution • Bank of the West (BOTW) contributed $1,072MM revenue, $755MM to adjusted¹ expenses (reported $1,581MM) and $230MM to adjusted¹ net income (reported net loss of $909MM) Revenue includes $103MM accretion of the fair value mark on loans, deposits and securities, net of the negative carry on the rate mark hedge, all recorded in Corporate Services Remain on track to complete system conversion and BMO Net Revenue³ Expenses PPPT² Total PCL Income (Loss) before Taxes Reported Adjusted¹ ($MM) BMO ex. BOTW BMO ex. BOTW BMO BOTW BMO BOTW Gross Revenue 7,368 1,072 8,440 7,375 1,072 8,447 Less: CCPB³ 591 591 591 591 6,777 1,072 7,849 6,784 1,072 7,856 3,992 1,581 5,573 3,976 755 4,731 2,785 (509) 2,276 2,808 317 3,125 293 730 1,023 293 25 318 2,492 (1,239) 1,253 2,515 292 2,807 Net Income (Loss) 1,968 (909) 1,059 1,986 230 2,216 Net Income (Loss) U.S. Segment US$ 563 (667) (104) 571 169 740 brand unification on Labour Day weekend Average Gross Loans and Acceptances 567,361 78,715 646,076 567,361 78,715 646,076 Executing our plan to achieve run rate expense synergies of US$670MM pre-tax by the start of Q2'24 Efficiency Ratio³ (%) NIM ex. Trading Average Deposits 792,947 90,279 883,226 792,947 90,279 883,226 58.9 1.68 147.5 71.0 58.6 70.4 60.2 3.48 1.88 1.69 3.48 1.88 This slide contains forward-looking statements, please refer to the caution on slide 2 1 Adjusted results and measures are non-GAAP, see slide 40 for more information and slide 41 for adjustments to reported results 2 Reported and adjusted Pre-Provision Pre-Tax earnings (PPPT) are non-GAAP measures. See slide 40 for more information and slide 44 for calculation of PPPT 3 Reported and adjusted net revenue and measures calculated based on net revenue are non-GAAP measures. Net revenue is net of insurance claims, commissions and changes in policy benefit liabilities (CCPB). Efficiency ratio is calculated based on net revenue and is also a non-GAAP measure. See slide 40 for more information and slide 43 for calculation of net revenue 4 See the Significant Events section of BMO's Second Quarter 2023 MD&A and slide 23 for more information, and slide 39 for results in USD BMOM Financial Results May 24, 2023 • 11#12Balance Sheet Strong Y/Y loan and deposit growth • Average gross loans and acceptances up 28% Y/Y, or 25% excluding the impact of the stronger U.S. dollar due to: • • Average Gross Loans and Acceptances ($B) 646.1 BOTW added $45B to Business & Government loans and $34B to consumer loans 565.4 33.8 504.8 BMO underlying business & government loans up 11% Y/Y with good growth across all operating groups 245.9 245.0 226.3 44.9 BMO underlying consumer loans up 8% Y/Y with good growth in Canadian P&C driven by mortgage and personal loan products 320.4 321.5 278.5 Average gross loans and acceptances up 14% Q/Q with BOTW contributing 14% to Q/Q growth Q2'22 Q1'23 Q2'23 As-at gross loans and acceptances up 15% Q/Q with BOTW contributing 14% to Q/Q growth Business & Government Consumer BOTW Average customer deposits up 25% Y/Y or 22% excluding the impact of the weaker U.S. dollar Average Customer Deposits ($B) 635.7 BOTW added $86B to customer deposits 550.4 80.0 507.2 10.9 BMO underlying customer deposits up 6% Y/Y driven by higher balances in Canadian P&C and BMO Capital Markets, partially offset by lower balances in U.S. P&C and BMO Wealth Management; flat Q/Q 83.9 68.6 39.7 56.6 56.8 161.7 164.6 158.2 35.2 As-at customer deposits up 15% Q/Q or BMO underlying down 1% excluding the impact of the weaker U.S. dollar, driven by lower balances in U.S. P&C, BMO Wealth Management and BMO Capital Markets, partially offset by higher Canadian P&C balances BMOM 223.6 245.3 253.0 Q2'22 Q1'23 Q2'23 P&BB Commercial Wealth Management Capital Markets BOTW Financial Results May 24, 2023 • 12#13Canadian and U.S. deposit trends Canadian P&C and BMO Wealth Management deposits CDE$B, average balances 309 314 266 290 6% 5% 3% 238 2% 21% 20% 24% 4% 24% Commercial 20% 25% 32% 35% 26% 34% P&BB/ BMO Wealth 48% 49% 42% 39% 43% Management F'20 F'21 Demand Deposits F'22 Q1'23 Q2'23 Term Deposits U.S. P&C and BMO Wealth Management deposits US$B, average balances 178 17% 120 117 118 105 86 98 33% 11% 10% 14% 11% Commercial 9% 36% 43% 43% • 40% 31% 25% P&BB / BMO Wealth 38% 34% 26% 24% 24% 25% Management 21% 19% 21% 23% 23% F'19 F'20 F'21 F'22 Q1'23 Q2'23 (1) Chequing & Savings Money Market & CD's Continued strong balance growth reflective of stability in the Canadian banking industry Continued customer balance shift to term deposits given the significant increase in interest rates, returning to historical levels • Deposits are well-diversified, further enhanced by BOTW which contributed US$63B in the current quarter Recent decline in underlying deposits at BMO and BOTW primarily reflect industry trends and expected decline in surge deposits, while remaining well above pre-pandemic levels We continue to grow new customers and deposits through competitive tools, products and channels, including national retail banking and treasury and payments solutions platforms This slide contains forward-looking statements, please refer to the caution on slide 2 1 Q2'23 US Deposits includes BOTW balances of US$26B in P&BB, US$29B in Commercial and US$8B in BMO Wealth Management BMOM Financial Results May 24, 2023 • 13#14Net Interest Margin¹ • Total Bank NIM benefitted from the impact of BOTW and net mark accretion • NIM decreased from lower net interest income in Corporate Services and continued competitive pressure in deposit pricing NII ($MM) and NIM ex. Trading % Q/Q NIM ex. Trading (%) 1.88 1.86 1.85 1.79 1.79 0.04 0.15 1.56 1.62 1.88 1.73 1.83 242 38 Reported: 1.62 Adjusted²: 1.79 122 285 350 407 3,809 4,088 4,125 4,579 3,373 Q2'22 Q3'22 2 Adjusted NII ex trading ($MM) NII Adjusting Item ($MM) Adjusted NIM ex trading (%) 2.70 Reported: 1.88 Adjusted²: 1.88 -0.08 -0.01 -0.01 (672) (389) (7) Q1'23 BOTW Q4'22 Q1'23 Q2'23 Net Mark Accretion Corporate Services P&Cs & BMOWM BMOCM Q2'23 Trading NII ($MM) Reported NIM ex trading (%) Canadian P&C NIM (%) -0.04 0.06 2.70 -0.02 3.92 Q1'23 Deposit Margins Loan Margins Mix / Other Q2'23 0.05 U.S. P&C NIM (%) 0.03 3.96 0.01 -0.05 Q1'23 BOTW Deposit Margins Loan Margins Mix / Other Q2'23 1 Net interest margin (NIM) is the ratio of net interest income (NII) to average earning assets, expressed as a percentage or in basis points. Net interest margin excluding trading excludes net interest earned on trading assets. Average earning assets represents the daily average balance of deposits at central banks, deposits with other banks, securities borrowed or purchased under resale agreements, securities, and loans 2 Adjusted results and measures are non-GAAP, see slide 40 for more information and slide 41 for adjustments to reported results BMOM Financial Results May 24, 2023 • 14#15Interest Rate Sensitivity Earnings sensitivities over the next 12 months¹ Year 1 benefit to an incremental +100bps rate shock decreased Q/Q Earnings sensitivity has decreased since Q1 pursuant to the close of the BOTW acquisition¹ Our duration position was shorter (more asset sensitive) than our neutral target as we approached acquisition date, to offset the longer duration, less asset sensitive balance sheet we were acquiring Post close, our April 30, 2023 risk metrics reflect relatively neutral positioning Year 2 benefit to rising rates (+100bps) of approximately $600MM driven by long rates and the continued reinvestment of capital and deposits • Term rates decreased in Q2'23 and continue to be volatile, but are still higher than historical rates Sustained higher long-term investment rates continue to support NIM going forward, providing some offset to increased pricing pressure on deposit products Effective deposit betas accelerated in Q2, as customers continued to rotate into higher rate products, both on and off-balance sheet Cumulative effective deposit beta³ for this interest rate cycle has been approximately 49%, comparable to our modeled assumptions 5.00 Q2'23 +25 bps 4.50 Pre-Tax CDE ($MM) +100 bps -25 bps -100 bps Short 4.00 Rates 3.50 Canada² 94 (24) (96) (1) 3.00 do 2.50 U.S. 188 (52) (228) 23 2.00 1.50 Total 281 (76) (324) 22 1.00 0.50 0.00 This slide contains forward-looking statements, please refer to the Caution Regarding Forward-Looking Statements on slide 2 1 For more details see the Structural (Non-Trading) Market Risk section of BMO's Second Quarter 2023 MD&A 2 Includes Canadian dollar and other currencies 3 Includes impact of deposit rotation out of non-interest bearing into interest bearing, as well as net deposit declines in the U.S. BMOM -CAD 5-Yr Swap Rates --CAD 5-yr Avg -USD 5-Yr -USD 5-yr Avg Apr-18 Jul-18 Oct-18 Jan-19 Apr-19 Jul-19 Oct-19 Jan-20 Apr-20 Source: Bloomberg, updated through May 08, 2023 Jul-20 Oct-20 Jan-21 Apr-21 Jul-21 Oct-21 Jan-22 Apr-22 Jul-22 Oct-22 • Financial Results May 24, 2023 15 Jan-23 Apr-23#16Q2'23 Non-Interest Expense Y/Y growth includes impact of BOTW and prior year investments to drive higher revenue growth • Adjusted¹ expenses up 30% Y/Y (reported up 50%) BOTW contributed 21% to the increase in adjusted¹ expenses (reported 43%) Higher expense includes impact from prior year investments in sales force and technology Y/Y Change in Non-Interest Expense ($MM) 5,573 Reported 21% 5,332 4,441 3% 4,731 Adjusted¹ 2% 1% 1% ----- Reported 3,713 Adjusted¹ 3,650 3% (2)% Current quarter includes one-time expense items contributing ~2% to Y/Y expense growth • Adjusted¹ expenses up 13% Q/Q (reported up 26%) BOTW contributed 18% to the increase in adjusted¹ expenses (reported 36%) BMO underlying down 5%, driven by lower employee-related costs, due to seasonal expenses in the prior quarter and fewer days in the current quarter • Adjusted¹ efficiency ratio² 60.2% (reported 71.0%) or 58.6% excluding BOTW (reported 58.9%) Q2'22 FX Impact Performance Based Compensation BOTW Salary & Benefits incl. sales Technology Advertising & All Other Q2'23 Business Development force expansion 56.7 55.6 Adjusted¹ Efficiency Ratio 1,2 (%) Trend 57.2 67.9 Reported 36.7 43.7 60.2 57.2 58.6 BMO ex BOTW 83.8 71.0 58.9 BMO ex BOTW Q2'22 Q3'22 Q4'22 Q1'23 Q2'23 1 Adjusted results and measures are non-GAAP, see slide 40 for more information and slide 41 for adjustments to reported results 2 Reported and adjusted net revenue and measures calculated based on net revenue are non-GAAP measures. Net revenue is net of insurance claims, commissions and changes in policy benefit liabilities (CCPB). Efficiency ratio is calculated based on net revenue and is also a non-GAAP measure. See slide 40 for more information and slide 43 for calculation of net revenue BMOM Financial Results May 24, 2023 • 16#171 Strong Q2'23 CET1 ratio of 12.2% Common Equity Tier 1 Ratio¹ 18.2% -680 bps ~1.2% 17.0% 12.2% +29 bps +2 bps +32 bps +12 bps +12 bps Q1'23 Bank of the West Acquisition³ Internal Capital Generation DRIP Source Currency RWA Basel III Reforms Other Q2'23 Q2'23 CET1 ratio1 of 12.2%, down from Q1'23 Primarily due to the closing of the acquisition of BOTW Partially offset by Internal capital generation and DRIP shares issued from treasury Lower source currency RWA primarily from the elimination of capital floor adjustment Lower RWA resulting from the implementation of Basel III Reforms 1 The Common Equity Tier 1 (CET1) Ratio is disclosed in accordance with OSFI's Capital Adequacy Requirements (CAR) Guideline 2 Represents the cumulative impact from fair value management activities related to the acquisition of BOTW to mitigate exposure to capital at closing. See the Significant Events section of BMO's Second Quarter 2023 MD&A for more information 3 BOTW impact includes capital deductions for goodwill and intangible assets, initial provision for credit losses on the purchased performing loan portfolio and RWA resulting from the acquisition BMOM Financial Results May 24, 2023 • 17#18Canadian Personal & Commercial Banking Good Revenue and PPPT2 performance with positive operating leverage • Adjusted¹ and reported net income down 8% Y/Y due to higher PCL ($MM) . Adjusted¹ and reported PPPT2 up 7% Y/Y • Revenue up 7% Y/Y Reported Adjusted¹ Net interest income Non-interest revenue Q2 23 Q1 23 1,983 2,030 563 599 Q2 22 Q2 23 Q1 23 Q2 22 1,763 1,983 2,030 1,763 622 2 5 563 599 622 Revenue 2,546 2,629 2,385 1,126 1,117 1,060 1,420 1,512 1,325 228 164 54 2,546 2,629 2,385 228 Income before Taxes 1,192 1,348 1,271 1,196 1,122 1,117 1,059 1,424 1,512 1,326 164 1,348 1,272 54 Net Income 861 980 940 864 980 941 Efficiency Ratio (%) ROE (%) 44.2 42.5 44.5 44.1 42.5 44.5 25.1 30.7 32.5 25.2 30.7 32.6 NII up 12% Y/Y with strong balance growth and higher margins NIM flat Q/Q and up 4 bps Y/Y NIR down 9% Y/Y due to lower gains on investments in our Commercial Banking business and lower mutual fund distribution fee revenue Adjusted¹ and reported expenses up 6% Y/Y reflecting higher employee-related expenses, including expanded sales force and higher salaries, as well as higher technology costs Adjusted¹ operating leverage 0.8% (reported 0.6%) provision of $173MM and performing provision of $55MM) Expenses PPPT² Total PCL • Total provision for credit losses $228MM (Impaired Net Income and NIM Trends 2.66 2.72 2.66 2.70 2.70 • Average loans up 10% Y/Y and 1% Q/Q Personal and Business Banking up 8% Y/Y and flat Q/Q Cards up 22% Y/Y and 2% Q/Q 940 965 917 980 861 Commercial³ up 12% Y/Y and 2% Q/Q Average deposits up 13% Y/Y and 3% Q/Q Q2'22 Q3'22 Q4'22 Q1'23 Q2'23 Reported Net Income ($MM) NIM (%) 1 Adjusted results and measures are non-GAAP, see slide 40 for more information and slide 42 for adjustments to reported results 2 Reported and adjusted Pre-Provision Pre-Tax earnings (PPPT) are non-GAAP measures. See slide 40 for more information and slide 44 for calculation of PPPT 3 Commercial loan growth excludes corporate cards and small business cards BMOM Financial Results May 24, 2023 • 18#19U.S. Personal & Commercial Strong performance including the addition from Bank of the West Figures that follow are in U.S. dollars: • Adjusted net income up $173MM or 37% Y/Y (reported up $117MM or 25%) BOTW contributed $663MM to revenue, $446MM to adjusted¹ expenses (reported $523MM) and $163MM to adjusted¹ net income (reported $107MM) Adjusted¹ PPPT² up $281MM or 48% Y/Y (reported up $205MM or 35%), mainly due to the impact of BOTW, adjusted¹ underlying results up $63MM (reported up $64MM) • Revenue³ up $767MM or 67% Y/Y • • • NII³ up $689MM or 77% Y/Y due to impact of BOTW and higher underlying net interest margins NIR up $78MM or 31% Y/Y due to impact of BOTW NIM³ up 4 bps Q/Q and 46 bps Y/Y; BOTW increased Q/Q and Y/Y NIM by 5 bps Adjusted¹ expenses up $486MM or 85% Y/Y (reported up $562MM or 98%) due to impact of BOTW and higher underlying employee- related costs Total provision for credit losses $51MM (impaired provision $48MM and provision on performing $3MM) Average loans up $58.9B or 58% Y/Y and up $51.7M or 48% Q/Q, including $55.4B from BOTW Average deposits up $49.2B or 43% Y/Y; up $52.5B or 47% Q/Q, including $55.2B from BOTW (US$MM) 3 Revenue (teb) Expenses PPPT² Total PCL (recovery) Reported Q2'23 | Q1'23 | Q2'22 Net interest income (teb) 1,589 1,109 900 Non-interest revenue 325 225 1,914 1,334 1,147 1,134 621 780 713 247 325 Adjusted¹ Q2'23 Q1'23 Q2'22 1,589 1,109 225 900 247 1,914 1,334 1,147 572 1,056 620 570 575 858 714 577 51 46 (30) 51 46 (30) Income before Taxes 729 667 605 807 668 607 Net Income 581 520 464 638 521 465 Net Income (CDE$) 789 698 588 866 699 589 Efficiency Ratio (%) ROE (%) 59.3 46.5 49.8 55.2 46.4 49.7 9.6 19.2 17.3 10.6 19.2 17.3 Net Income¹ and NIM³ Trends 3.88 3.92 3.96 638 163 581 464 465 445 446 488 489 520 521 475 Q2'22 Q3'22 Q4'22 Q1'23 Reported Net Income ($MM) Adjusted Net Income ($MM) ☐ BOTW Q2'23 --NIM (%) 3.70 3.50 1 Adjusted results and measures are non-GAAP, see slide 40 for more information and slide 42 for adjustments to reported results 2 Reported and adjusted Pre-Provision Pre-Tax earnings (PPPT) are non-GAAP measures. See slide 40 for more information and slide 44 for calculation of PPPT 3 Operating group revenue, NII, income taxes and net interest margin are stated on a taxable equivalent basis (teb). This teb adjustment (Q2'23 US$6MM, Q1'23 US$6MM, Q2'22 US$4MM) is offset in Corporate Services. Efficiency ratio is calculated based on revenue (teb) BMOM Financial Results May 24, 2023 • 19#20BMO Wealth Management Good growth in client assets partly offset by weaker markets ° Adjusted¹ and reported net income down 10% Y/Y . BOTW contributed $26MM to adjusted¹ net income (reported $25MM) Wealth and Asset Management adjusted¹ and reported net income down 11% Y/Y Revenue up 7% due to BOTW; underlying performance impacted by weaker global markets and lower online brokerage revenues, partially offset by growth from higher net interest income and new client assets AUM up 5% and AUA up 3% Q/Q due to BOTW and growth in new client assets Insurance net income down 5% Y/Y due to more favourable market movements in the prior year Adjusted¹ and reported expenses up 14% Y/Y mainly due to BOTW and prior year investments in salesforce and technology Total PCL (recovery) Reported Adjusted¹ ($MM) Gross Revenue Q2 23 1,960 Q1 23 2,504 Q2 22 484 Q2 23 Q1 23 Q2 22 1,960 2,504 484 CCPB 591 1,193 (808) 591 1,193 (808) Net Revenue² Expenses PPPT³ 1,369 1,311 1,292 1,369 1,311 1,292 993 946 874 991 945 872 376 365 418 378 366 420 4 6 1 4 6 1 Income before Taxes 372 359 417 374 360 419 Net Income 284 277 314 285 278 315 Wealth and Asset 221 207 247 222 208 248 Management NI Insurance NI AUM/AUA ($B) Efficiency Ratio² 63 70 67 63 70 67 767 738 738 767 738 738 (%) 72.5% 72.1% 67.6% 5% 72 72.4% 72.0% 67.5% ROE (%) 17.8% 19.4% 24.2% 17.9% 19.4% 24.2% Net Income¹ Trends 314 315 67 67 324 325 61 61 298 298 77 77 277 278 284 285 70 70 63 63 247 248 263 264 221 221 207 208 221 222 Reported Adjusted Reported Adjusted Reported Adjusted Reported Adjusted Reported Adjusted Q2'22 Q2'23 Q3'22 Insurance ($MM) Q4'22 Q1'23 Wealth and Asset Management ($MM) 1 Adjusted results and measures are non-GAAP, see slide 40 for more information and slide 42 for adjustments to reported results 2 Reported and adjusted net revenue and measures calculated based on net revenue are non-GAAP measures. Net revenue is net of insurance claims, commissions and changes in policy benefit liabilities (CCPB). Efficiency ratio is calculated based on net revenue and is also a non-GAAP measure. See slide 40 for more information and slide 43 for calculation of net revenue 3 Reported and adjusted Pre-Provision Pre-Tax earnings (PPPT) are non-GAAP measures. See slide 40 for more information and slide 44 for calculation of PPPT BMOM Financial Results May 24, 2023 • 20#21BMO Capital Markets Results mainly impacted by slower underwriting environment • • • Adjusted¹ net income and PPPT³ down 14% and 16% Y/Y, respectively (reported down 15% and 17%) Revenue² relatively unchanged Y/Y: Global Markets revenue relatively unchanged as higher foreign exchange and equities trading revenue were offset by lower interest rate trading revenue and lower issuance activity Investment and Corporate Banking revenue was up 2% due to higher corporate banking and advisory revenue, partly offset by lower underwriting activity Adjusted¹ and reported expenses up 14% Y/Y due to impact of the stronger U.S. dollar, higher technology costs and a legal provision • Total provision for credit losses of $17MM (nil provisions on impaired loans and performing loans $17MM) Reported Adjusted¹ ($MM)² Q2 23 Q1 23 Q2 22 Q2 23 Q1 23 Q2 22 Global Markets 935 1,100 928 935 1,100 928 I&CB 651 618 636 651 618 636 Revenue (teb) 1,586 1,718 1,564 1,586 1,718 1,564 Expenses PPPT³ 1,060 1,091 929 1,050 1,082 923 526 627 635 536 636 641 Total PCL (recovery) 17 (10) 33 17 (10) 33 Income before Taxes 509 637 602 519 646 608 Net Income 380 503 448 388 510 453 U.S. Net Income ($US) 9 104 119 12 107 124 Efficiency Ratio (%) 66.8 63.5 59.4 66.1 63.0 59.0 ROE (%) 13.3 16.2 15.9 13.6 16.4 16.1 Net Income¹ Trends 448 453 503 510 380 388 357 363 262 266 Q2'22 Q3'22 ■Reported Net Income ($MM) Q4'22 Q2'23 Q1'23 ■Adjusted Net Income ($MM) 1 Adjusted results and measures are non-GAAP, see slide 40 for more information and slide 42 for adjustments to reported results 2 Operating group revenue and income taxes are stated on a taxable equivalent basis (teb). This teb adjustment (Q2'23 $84MM, Q1'23 $70MM, Q2'22 $60MM) is offset in Corporate Services. Efficiency ratio is calculated based on revenue (teb). 3 Reported and adjusted Pre-Provision Pre-Tax earnings (PPPT) are non-GAAP measures. See slide 40 for more information and slide 44 for calculation of PPPT BMOM Financial Results May 24, 2023 • 21#22Reported Adjusted¹ Q2 23 Revenue Q1 23 (157) (2,094) 3,496 Q2 22 Q2 23 Q1 23 Q2 22 (150) (77) (67) Group teb offset (92) (78) (65) (92) (78) (65) Total Revenue (teb) Expenses (249) (2,172) 3,431 (242) (155) (132) 855 434 125 133 197 72 Total PCL (recovery) 705 (5) (1,809) (2,601) 3,305 (1,255) (2,211) 2,466 U.S. Net Income (Loss) ($US)1 (734) (1,203) 2,052 1 (5) 1 (375) (347) (205) (187) (195) (111) 49 26 9 Corporate Services • • Adjusted¹ net loss of $187MM and reported net loss of $1,255MM, compared with an adjusted¹ net loss of $111MM and reported net income of $2,466MM in the prior year Reported results in the current quarter include the impact of: $517MM ($705MM pre-tax) of initial provision for credit losses on the purchased BOTW performing loan portfolio $545MM ($722MM pre-tax) acquisition and integration costs related to the acquisition of BOTW ($MM) 2 Income before Taxes Net Income (Loss) 1 Adjusted results and measures are non-GAAP, see slide 40 for more information and slide 42 for adjustments to reported results 2 Operating group revenue, income taxes and associated measures are on a taxable equivalent basis (teb). This teb adjustment is offset in Corporate Services BMOM Financial Results May 24, 2023 • 22 22#23Bank of the West Purchase Accounting impacts • Bank of the West acquisition related valuation activities are largely complete • The rate mark hedge was effective in neutralizing the impact of interest rate changes on BMO's capital requirements at closing and in managing BMO's future P&L profile ($B) As at Feb 1, 2023 USD CDE Initial Allowance for Credit Losses (PCL - Performing) 0.5 0.7 Core Deposit and other Intangible Assets 2.2 2.9 Goodwill 8.1 10.51 Fair Value Marks / Discounts Fair value marks Loans and Deposits (2.3) (3.0) Discount on Securities (2.6) (3.5) Rate Mark Hedge 4.4 5.7 This slide contains forward-looking statements, please refer to the Caution Regarding Forward-Looking Statements on slide 2 See the Significant Events section of BMO's Second Quarter 2023 MD&A for more information 1 To mitigate changes in the Canadian dollar equivalent of the purchase price between announcement and close, we entered into forward contracts, which qualified for hedge accounting. Changes in the fair value of these forward contracts of $269 million (after-tax) was accounted for as a reduction of the Canadian dollar equivalent of the purchase price. BMOM Financial Results May 24, 2023 • 23#24Risk Review For the Quarter Ended April 30, 2023 Piyush Agrawal Chief Risk Officer Q2/23 BMO M B#25Provision for Credit Losses (PCL) PCL By Operating Group ($MM) Q2 23 Q1 23 Q2 22 $ bps $ bps $ bps Personal & Business Banking 163 32 135 26 79 17 Commercial Banking 10 4 19 7 7 3 Q2 23 PCL ratio on impaired Loans¹ is 16 bps, up 2 bps Q/Q PCL on impaired loans for BOTW is $15MM. It includes $32MM PCL in Consumer, partially offset by a recovery of $17MM in Commercial Total Canadian P&C 173 23 154 20 86 12 Personal & Business Banking 41 32 13 24 1 2 PCL on Impaired Loans ($MM) Commercial Banking 25 6 35 11 34 13 Total U.S. P&C 66 12 48 13 35 11 243 192 196 BMO Wealth Management 120 1 2 1 0 0 0 104 BMO Capital Markets 0 1 (3) (2) 1 0 Q2'22 Q3'22 Q4'22 Q1'23 Q2'23 Corporate Services 3 n.m. (4) n.m. (2) n.m. PCL Ratio (bps) PCL on Impaired Loans 243 16 196 14 120 10 65 Reported PCL on Performing Loans 780 50 21 1 (70) (6) 20 Adjusted4 Total PCL - Reported 1,023 65 217 15 50 4 16 15 BOTW Initial Allowance³ (705) 10 10 16 Total PCL - Adjusted4 14 14 318 20 8 4 Q2'22 Q3'22 Q4'22 Q1'23 Q2'23 Total PCL² n.m. stands for not meaningful 1 Provision for credit losses on impaired loans over average net loan and acceptances, annualized and expressed in basis points 2 Reported and Adjusted Provision for credit losses on total loans over average net loan and acceptances, annualized and expressed in basis points 3 Initial allowance for BOTW is as of February 1, 2023 4 Adjusted results and measures are non-GAAP, see slide 40 for more information and slide 41 for adjustments to reported results BMOM PCL on Impaired Loans' • Risk Review May 24, 2023 25#26Performing Loans (PCL) By Operating Group ($MM) Personal & Business Banking 877 43 0 920 Commercial Banking 396 12 3 411 Total Canadian P&C 1,273 55 3 1,331 Personal & Business Banking 178 6 233 417 Commercial Banking 714 (3) 470 1,181 Total U.S. P&C 892 3 703 1,598 Allowance and Provision on Performing Loans Allowance on Performing Loans (APL) and PCL on Q1 23 APL¹ Q2 23 Q2 23 Foreign Q2 23 PCL² exchange APL¹ & Other APL to Performing Loans (bps)³ • The $780MM reported provision for performing loans includes: - - $705MM charge for the initial allowance on the BOTW purchased performing portfolio On an adjusted basis, the $75 million provision for credit losses on performing loans in the current quarter reflected portfolio credit migration, model changes and economic uncertainty, partially offset by a modest improvement in macro-economic variables, including the continued benefit from risk transfer transactions Allowance on Performing Loans Ratio (bps) 45 38 42 84 71 74 BMO Wealth Management 33 3 0 36 8 51 44 43 45 44 BMO Capital Markets 307 17 9 333 43 Corporate Services 702 (694) 14 n.m. Q2'22 Q3'22 Q4'22 Q1'23 Q2'23 Total BMO - Reported 2,511 780 21 3,312 51 - BOTW Initial Allowance4 (705) --Allowance on Performing Loans Ratio (bps)³ Coverage Ratio Total BMO - Adjusted 6 75 6.35 5.90 4.90 4.10 4.25 1 Q1 23 and Q2 23 includes APL on Other Assets of $21MM and $22MM, respectively and excludes APL on Securities of $3MM and $6MM, respectively Q2'22 2 Q2 23 PCL includes a PCL on Other Assets of $2MM and excludes PCL on Securities of $2MM 3 Allowance on performing loans over total gross performing loan and acceptances, expressed in basis points 4 Initial allowance for BOTW is as of February 1, 2023 5 Trailing 4-Quarter PCL on impaired loans includes Q2 23 annualized BOTW PCL 6 Adjusted results and measures are non-GAAP, see slide 40 for more information and slide 41 for adjustments to reported results BMOM Q4'22 Q1'23 Q3'22 Q2'235 Allowance on performing loans over trailing 4-quarter PCL on impaired loans • Risk Review May 24, 2023 26#27Gross Impaired Loans and Formations Formations Gross Impaired Loans By Industry ($MM, as at Q2 23) CA & CA & U.S. Total U.S. Total Other Other¹ Consumer 228 90 318 489 341 830 Service Industries 42 26 68 231 183 414 Gross Impaired Loans (GIL) ratio³ 41 bps, up 5 bp Q/Q and flat Y/Y GIL includes BOTW impaired balances of $436MM Formations ($MM) 843 Retail Trade 10 143 153 136 235 371 521 499 Manufacturing 25 59 84 97 149 246 333 341 525 299 275 Agriculture 9 6 15 56 168 224 173 164 160 177 200 246 318 Commercial Real Estate 34 37 71 90 84 174 Q2'22 Q3'22 Q4'22 Q1'23 Q2'23 Construction (non-real estate) 7 59 Wholesale Trade 1 26 62 66 61 80 141 ■Consumer Business & Government 27 28 62 Transportation 4 28 32 17 74 Rང Gross Impaired Loans ($MM) 2,658 2,123 Oil & Gas 1,954 1,991 2,027 0 0 0 6 24 30 1,828 Other Business and Government² 1,523 5 4 9 35 12 47 1,367 1,384 1,382 600 587 607 645 830 Total Business and Government 137 388 525 757 1,071 1,828 Q2'22 Q3'22 Q4'22 Q1'23 Q2'23 Total Bank 365 478 843 1,246 1,412 2,658 ■Consumer 1 Total Business and Government includes approx. $12.7MM GIL from Other Countries 2 Other Business and Government includes industry segments that are each <1% of total GIL 3 Gross impaired loans over total gross loan and acceptances, expressed in basis points BMOM ■Business & Government GIL Ratio³ (bps) 41 41 36 35 36 Q2'22 Q3'22 Q4'22 Q1'23 Q2'23 • Risk Review May 24, 2023 27#28Loan Portfolio Overview Gross Loans & Acceptances (GL&A) Canada & Total By Industry 3 U.S.4 Other¹ BMO % of Total ($B, as at Q2 23) Residential Mortgages 143.8 22.9 166.7 26% Consumer Instalment and Other Personal 70.3 34.1 104.4 16% • Portfolio is well diversified by geography and industry Total Gross Loans and Acceptances up 15% Q/Q, with 14% contribution from Bank of the West Cards 9.8 1.3 11.1 2% Total Consumer 223.9 58.3 282.2 44% Canada & Other Countries Commercial Real Estate 33.6 33.4 67.0 10% Service Industries 27.6 39.0 66.6 10% 10% Financial 16.1 50.4 66.5 10% Manufacturing 10.1 34.3 44.4 7% 31% 59% Retail Trade 16.3 12.7 29.0 4% Wholesale Trade 7.0 17.0 24.0 4% Agriculture 12.6 5.3 17.9 3% U.S. Transportation 4.7 9.9 14.6 2% 15% 21% Utilities 7.5 4.0 11.5 2% Construction (non-real estate) 2.4 5.0 7.4 1% Other Business and Government² 11.4 6.2 17.6 3% Total Business and Government 149.3 217.2 366.5 56% 64% Total Gross Loans & Acceptances 373.2 275.5 648.7 100% 1 Includes approximately $11.7B from Other Countries 2 Other Business and Government includes all industry segments that are each <1% of total loans 3 Totals may not add due to rounding 4 Includes BOTW purchased portfolio BMOM ■P&C/BMO Wealth Management - Consumer ■P&C/BMO Wealth Management - Business & Government BMO Capital Markets • Risk Review May 24, 2023 28#29Bank of the West Loan Portfolio Overview Gross Loans & Acceptances (GL&A) By Industry (C$B, as at Q2 23) Consumer Instalment and Other Personal Residential Mortgages Cards Total Consumer Commercial Real Estate Service Industries Manufacturing Gross Loans & Acceptances 20.9 12.7 • • • 0.7 34.2 • 12.2 BOTW portfolio adds $79B of GL&A, growing and further diversifying our portfolio 43% Consumer; 57% Wholesale High quality portfolio, with low watchlist (2%) and impaired (0.5%) Well-provisioned: Initial allowance $705MM 10.7 - Credit mark on acquisition $1.1B 7.9 Agriculture 3.7 Retail Trade 3.4 Wholesale Trade 2.8 Construction 1.8 Financial 0.9 Transportation 0.9 Other Business and Government¹ 0.7 Total Business and Government Total GL&A 45.0 79.3 1 Other Business and Government includes all industry segments that are each <1% of total BOTW loans BMOM • Risk Review May 24, 2023 29#30Commercial Real Estate Portfolio Overview Commercial Real Estate (CRE) portfolio at $67B represents 10% of total bank GL&A - Portfolio is well diversified across businesses, property types and geographies Loan-to-value (LTV)³ coverage of 60% to 65% Well managed with consistent and conservative underwriting standards resulting in strong credit quality, investment grade (58%), with low watchlist (1%) and impaired (0.3%) CRE by Geography1 ONTARIO 20% BRITISH COLUMBIA 13% QUEBEC 7% Canada 50% ALBERTA 5% $67B NOVA SCOTIA 3% OTHER CANADA 2% % of Total CRE Portfolio 1,2 CALIFORNIA 14% Canada U.S. Total ($B, as at Q2 23) Gross Loans & Acceptances OTHER US 22% Multi-Residential 10.0 7.7 17.7 3% TEXAS 6% NEW YORK 3% ILLINOIS 3% ARIZONA 2% U.S. 50% Single Family Res 6.0 1.0 7.0 1% Industrial 5.7 6.4 12.1 2% Retail 3.1 3.8 7.0 1% Office by Property Type Office 2.3 7.1 9.4 1% Mixed Use 3.2 0.2 3.3 1% Other - Hospitality, Healthcare and urban 0.8 1.9 2.6 0.4% REITS 27% Diversified REIT'S 25% Other 2.6 5.3 7.9 1% $9B Total CRE 33.6 33.4 67.0 10% Medical 11% Total GLA 373.2 275.5 648.7 1 Based on the location of the collateral or the borrower for REITS 2 Totals may not add due to rounding 3 LTV calculated based on value of the property at origination and outstanding amount for loans and authorization amount for revolvers BMOM • Risk Review May 24, 2023 30 Other - suburban 37%#31Canadian RESL Portfolio: Renewal profile in the next 12 months RESL renewal risk is reduced by borrower capacity, equity and quality The impact of higher interest rates on payments is primarily realized upon renewal for both fixed and variable rate products Variable rate products with fixed payments are impacted through an extension of amortization until renewal. At renewal, the product reverts to the original amortization schedule, which may require additional payments • Canadian RESL Portfolio Renewing in next 12 months² Uninsured with Bureau Score < 680 LTV3 >70% Insured 25% Variable 43%¹ $192B Fixed 57% $23B > $1.5B $42MM Uninsured 75% Of the uninsured balances up for renewal in the next 12 months² (approximately $17B): Average Bureau Score is 798 - 91% have a score of at least 680 This slide contains forward-looking statements, please refer to the Caution Regarding Forward-Looking Statements on slide 2 The above exhibit is not to scale 1 Includes Home Equity Line of Credit, or HELOC (revolving) product 2 Renewal period: May 1st, 2023, through April 30th, 2024 3 Loan to Value (LTV) is the ratio of outstanding mortgage balance or the HELOC authorization to the original property value indexed using Teranet BMOM • Risk Review May 24, 2023 31#32Appendix BMOM • Risk Review May 24, 2023 32 32#33Canadian Residential-Secured Lending Total Canadian residential-secured lending portfolio at $191.9B, representing 30% of total loans LTV1 on uninsured of 52% 90-day delinquency rate for RESL remains low at 14 bps; loss rates for the trailing 4 quarter period were less than 1 bp 2% of uninsured RESL balances are to borrowers with <680 FICO and >70% LTV1 Residential mortgage portfolio of $143.8B 30% of portfolio insured • LTV1 on uninsured of 55% 55% of the mortgage portfolio has an effective remaining amortization of 25 years or less HELOC portfolio of $48.1B outstanding of which 73% is amortizing Condo Mortgage portfolio is $22.4B with 28% insured GTA and GVA portfolios demonstrate better LTV1, delinquency rates and bureau scores compared to the national average Residential-Secured Lending by Region ($191.9B) $91.3 $38.0 26% 26% $30.5 30% 58% 62% $20.0 41% 16% 35% $7.5 $4.6 13% 29% 49% 17% 44% 16% 35% 12% 43% 48% Atlantic Quebec Ontario Alberta British Canada Other Columbia HELOC Uninsured Mortgages Insured Mortgages Mortgage Uninsured $100.4B/ 52% HELOC - Revolving $13.1B/ 7% Avg. LTV1 Uninsured Atlantic Quebec Ontario Alberta British Columbia Canada Total Other Canada Mortgage HELOC Portfolio Origination 71% Portfolio 48% Origination 60% 56% 57% 56% 58% 52% 55% 55% $191.9B 71% 71% 73% 67% 73% 70% 51% 46% 52% 45% 47% 47% 66% 59% 59% 58% 69% 60% HELOC - Amortizing $35.0B/ 18% Mortgage - Insured $43.4B/ 23% 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 BMOM • Risk Review May 24, 2023 33#34Trading-related Net Revenues and Value at Risk Feb 1, 2023 to April 28, 2023 (pre-tax basis and in millions of Canadian dollars) 80 60 60 60 40 40 20 20 0 (60) Daily Revenue Total Trading VaR (20) (40) BMOM • Risk Review May 24, 2023 34#35• • • Advancing our Digital First strategy Continuing to deliver on our Digital First agenda Launched the NewStart® Pre-Arrival Account Opening program, an industry leading digital capability for newcomers to Canada, driving accelerated customer acquisition Launched a digital Mortgage Pre- Qualification journey; customers can get pre-qualified for a mortgage in minutes with no impact to their credit score and a market-leading 130-day rate guarantee Enhanced digital onboarding capabilities for Commercial deposit customers Optimized and modernized the BMO.com experience, driving improved customer experience, efficiency and growth • Launched ESG Insights on BMO InvestorLine and adviceDirect Driving digital engagement Active Digital Users, Retail (000)¹ 3,519 +6% 3,745 Q2'22 Q2'23 Self-serve Transaction (%)² Digital Sales Growth (%)³ 90% +41% Active Digital Users, Commercial Banking (000)4 233 +7% 249 Q2'22 Q2'23 Data does not include Bank of the West 1 Active digital users is number of retail deposit customers in North America that logged into online or mobile in the last 90 days 2 Self-serve transactions are transactions that occur in online, mobile, ATM, telephone banking; February 2023 - April 2023 Recognized for industry leadership Awarded two 2023 Celent Model Bank Awards: the Retail Digital Banking Transformation Award and the Customer Financial Resilience Award Ranked #1 in Account Management, Digital Money Management, and Alerts in the 2023 Insider Intelligence Canadian Mobile Banking Emerging Features Benchmark Claimed 6th place in Keynova's 2023 U.S. Mobile Banker Scorecard, moving ten spots over the last five years BMO's Canadian mobile banking app recognized as the overall leader in the Q4'22 Forrester Digital Experience Review™M: Canadian Mobile Banking Apps FORRESTER® keynova INSIDER INTELLIGENCE CELENT MODEL BANK 2023 3 Digital sales is 12 month rolling average for the 12 months preceding the end of the fiscal quarter and include chequing, savings, credit card, loans, mortgage, overdraft (CAD) and CD, MM (US); % growth is Q2'23 over Q2'22 4 OLBB clients in North American commercial, corporate and business banking BMOM Strategic Highlights • May 24, 2023 35#36Canadian Personal & Commercial Banking - Balances¹ Average Gross Loans & Acceptances ($B) Average Deposits ($B) 261.3 268.3 310.0 312.7 284.7 128.1 129.3 118.5 237.6 187.6 181.3 161.6 6.2 6.4 5.8 59.3 58.7 55.3 10.6 10.8 8.9 96.2 105.9 107.5 76.0 80.0 80.7 Q2'22 Q1'23 Q2'23 Q2'22 Q1'23 Q2'23 ■Commercial ■Consumer Loans Residential Mortgages ■Credit Cards Business Banking Average Loans up 10% Y/Y and 1% Q/Q - Proprietary mortgages and amortizing HELOC up 10% Y/Y and 1% Q/Q Cards up 22% Y/Y and 2% Q/Q Business Banking up 10% Y/Y and up 4% Q/Q Commercial² up 12% Y/Y and 2% Q/Q As at loans up 8% Y/Y and 1% Q/Q ■Commercial Deposits Personal & Business Banking Deposits Average deposits up 13% Y/Y and 3% Q/Q Personal & Business Banking deposits up 16% Y/Y and 3% Q/Q . Chequing and Savings down 9% Y/Y and down 4% Q/Q • Term up 61% Y/Y and 12% Q/Q Commercial deposits up 6% Y/Y and 1% Q/Q • As at deposits up 12% Y/Y and 3% Q/Q 1 Commercial lending excludes commercial and small business cards. Commercial and small business cards balances represented 13% of total credit card portfolio in Q2'22, Q1'23 and Q2'23 BMOM Financial Results May 24, 2023 • 36#37U.S. Personal & Commercial - Balances Figures on this slide are in U.S. dollars¹ Average Gross Loans & Acceptances ($B) Average Deposits ($B) 159.8 163.1 23.0 25.9 14.9 113.9 110.6 108.0 100.8 32.4 48.2 15.3 15.1 49.0 47.6 29.2 85.7 92.7 89.5 64.9 63.0 59.8 Q2'22 Avg Q1'23 Avg Q2'23 Avg ■Commercial P&BB² BOTW Q2'22 Avg Q1'23 Avg Q2'23 Avg ■Commercial P&BB BOTW • Average loans & acceptances up 58% Y/Y and 48% Q/Q - BOTW contributed 55% and 51% to Y/Y and Q/Q growth, respectively Excluding BOTW, Commercial loans up 4% Y/Y and down 4% Q/Q - Excluding BOTW, P&BB loans down 2% Y/Y and down 3% Q/Q • As at loans & acceptances up 56% Y/Y and 59% Q/Q 1 Average FX Rates (CDN/US dollar): Q2'23: 1.3654; Q1'23: 1.3426; Q2'22: 1.2665 • • Average deposits up 43% Y/Y and 47% Q/Q - BOTW contributed 48% and 50% to Y/Y and Q/Q growth, respectively Excluding BOTW, Commercial deposits down 8% Y/Y and 5% Q/Q Excluding BOTW, P&BB deposits down 2% Y/Y and up 1% Q/Q As at deposits up 40% Y/Y and 46% Q/Q 2 Personal & Business Banking Other Loans includes Indirect Auto, Credit Cards, Home Equity, Non-Strategic and other personal loans BMOM Financial Results May 24, 2023 • 37#38Asset Yields¹ and Liability Costs² Average Earning Assets ($B) and Yield¹ (%) Average Liabilities ($B) and Costs² (%) 4.85% 4.18% 3.54% 2.39% 2.87% Yield on Total Average Earning Assets 2.65% 3.08% 2.02% 0.68% 1.13% Cost on Total Liabilities 1,194 1,165 1,079 1,101 1,022 1,054 949 973 979 1,004 3.37% 3.81% 4.52% 5.14% 491 513 542 552 5.68% 634 0.32% 0.68% 1.31% 1.96% 2.18% 507 517 537 550 636 1.33% 1.83% 2.44% 3.18% 3.86% 1.28% 1.93% 3.41% 4.10% 4.93% 458 460 480 527 531 394 404 416 448 465 78 83 101 103 93 Q2'22 Q3'22 Gross Loans Q4'22 Q1'23 Q2'23 Q2'22 Q3'22 Q4'22 Q1'23 Q2'23 % in above charts indicate Yield on asset balance Deposits with other banks and other interest bearing assets, Securities, Securities borrowed or purchased under resale agreements³ Customer Deposits Wholesale funding, Securities sold but not yet purchased and securities lent or sold, Subordinated debt and other interest bearing liabilities4 Other Non-Interest Bearing % in above charts indicate cost on liability balance 1 Gross loan yield is calculated as interest income on loans as a percentage of average gross loans 2 Liabilities Cost is calculated as Total interest expense as a percentage of average liabilities 3 Deposits with other banks and other interest bearing assets, securities, and securities borrowed or purchased under resale agreements yield is calculated as interest and dividend income on deposits with other banks and other interest bearing assets, securities, and securities borrowed or purchased under resale agreements as a percentage of average deposits with other banks and other interest bearing assets, securities, and securities borrowed or purchased under resale agreements 4 Wholesale funding, securities sold but not yet purchased and securities lent or sold, subordinated debt and other interest bearing liabilities cost is calculated as interest expense on wholesale funding, securities sold but not yet purchased and securities lent or sold, subordinated debt and other interest bearing liabilities as a percentage of average wholesale funding, securities sold but not yet purchased and securities lent or sold, subordinated debt and other interest bearing liabilities BMOM Financial Results May 24, 2023 • 38#39Q2 F2023 - Bank of the West Contribution to U.S. Segment U.S. Segment Reported U.S. Segment Adjusted¹ (US$MM) BMO ex. BOTW BMO ex. BOTW BMO BOTW BMO BOTW Revenue Expenses 1,874 790 2,664 1,879 790 2,669 1,127 1,162 2,289 1,121 556 1,677 PPPT² 747 (372) 375 758 234 992 Total PCL 43 535 578 43 18 61 Income (Loss) before Taxes 704 (907) (203) 715 216 931 Net Income (Loss) 563 (667) (104) 571 169 740 Average Gross Loans and Acceptances 139,594 58,032 197,626 139,594 58,032 197,626 Average Deposits 166,609 66,554 233,163 166,609 66,554 233,163 Efficiency Ratio (%) 60.1 147.1 85.9 59.6 70.4 62.8 See the Significant Events section of BMO's Second Quarter 2023 MD&A for more information 1 Adjusted results and measures are non-GAAP, see slide 40 for more information and slide 42 for adjustments to reported results 2 Reported and adjusted Pre-Provision Pre-Tax earnings (PPPT) are non-GAAP measures. See slide 40 for more information and slide 44 for calculation of PPPT BMOM Financial Results May 24, 2023 • 39#40Non-GAAP and Other Financial Measures Results and measures in this document are presented on a GAAP basis. Unless otherwise indicated, all amounts are in Canadian dollars and have been derived from our audited annual consolidated financial statements prepared in accordance with International Financial Reporting Standards (IFRS). References to GAAP mean IFRS. We use a number of financial measures to assess our performance, as well as the performance of our operating segments, including amounts, measures and ratios that are presented on a non-GAAP basis. We believe that these non-GAAP amounts, measures and ratios, read together with our GAAP results, provide readers with a better understanding of how management assesses results. Management considers both reported and adjusted results and measures to be useful in assessing underlying ongoing business performance. Adjusted results and measures remove certain specified items from revenue, non-interest expense and income taxes, as detailed on slide 41. Adjusted results and measures presented in this document are non-GAAP. Presenting results on both a reported basis and an adjusted basis permits readers to assess the impact of certain items on results for the periods presented, and to better assess results excluding those items that may not be reflective of ongoing business performance. As such, the presentation may facilitate readers' analysis of trends. Except as otherwise noted, management's discussion of changes in reported results in this document applies equally to changes in the corresponding adjusted results. Non-GAAP amounts, measures and ratios do not have standardized meanings under GAAP. They are unlikely to be comparable to similar measures presented by other companies and should not be viewed in isolation from, or as a substitute for, GAAP result. Examples of non-GAAP amounts, measures or ratios include: efficiency, leverage and PCL ratios and growth rates calculated using revenue presented net of CCPB; pre-provision pre-tax income; tangible common equity; amounts presented net of applicable taxes; adjusted net income, revenues, non-interest expenses, provision for credit losses, earnings per share, ROE, and other adjusted measures which exclude the impact of certain items such as acquisition and integration costs, amortization of acquisition-related intangible assets, impact of divestitures, restructuring costs, management of fair value changes on the purchase of Bank of the West, and initial provision for credit losses on Bank of the West purchased loan portfolio. Bank of Montreal provides supplemental information on combined operating segments to facilitate comparisons to peers. Certain information contained in BMO's Second Quarter 2023 Management's Discussion and Analysis dated May 24, 2023, for the period ended April 30, 2023 ("Second Quarter 2023 MD&A") is incorporated by reference into this document, including the Summary Quarterly Earnings Trend section in the Second Quarter 2023 MD&A. Quantitative reconciliations of non-GAAP and other financial measures to the most directly comparable financial measures in BMO's financial statements for the period ended April 30, 2023, an explanation of how non-GAAP and other financial measures provide useful information to investors and any additional purposes for which management uses such measures, can be found in the Non-GAAP and Other Financial Measures section of the Second Quarter 2023 MD&A. Further information regarding the composition of our non-GAAP and other financial measures is provided in the Glossary of Financial Terms section of the Second Quarter 2023 MD&A. The Second Quarter 2023 MD&A is available on SEDAR at https://www.sedar.com and https://www.bmo.com/investorrelations. BMOM Financial Results May 24, 2023 • 40#41Non-GAAP and Other Financial Measures8 727 49 (7,559) (1) Reported net income included the impact of divestitures of our EMEA and U.S. Asset Management business. Q2-2022 included a gain of $6 million ($8 million pre-tax) relating to the transfer of certain U.S. asset management clients recorded in revenue, and expenses of $15 million ($18 million pre-tax), both related to the sale of our EMEA Asset Management business. Q1-2022 included a $29 million (pre-tax and after-tax) loss relating to foreign currency translation reclassified from accumulated other comprehensive income to non-interest revenue, a $3 million pre-tax net recovery of non-interest expense, including taxes of $22 million on closing of the sale of our EMEA Asset Management business. These amounts were recorded in Corporate Services. (2) Reported net income included revenue (losses) related to the acquisition of Bank of the West resulting from the management of the impact of interest rate changes between the announcement and closing on its fair value and goodwill. Q1-2023 included a loss of $1,461 million ($2,011 million pre-tax), comprising $1,628 million of pre-tax mark-to-market losses on certain interest rate swaps recorded in trading revenue and $383 million of pre-tax losses on a (21) portfolio of primarily U.S. treasuries and other balance sheet instruments recorded in net 4,117 interest income, and Q2-2022 included revenue of $2,612 million ($3,555 million pre-tax), comprising $3,433 million of pre-tax mark-to-market gains and $122 million of pre-tax net interest income. YTD-2022 included revenue of $3,025 million ($4,117 million pre-tax), comprising $3,950 million of pre-tax mark-to-market gains and $167 million of pre-tax interest income. These amounts were recorded in Corporate Services. For further information on this acquisition, refer to the Significant Events section in the Second Quarter 2023 MD&A. (3) Reported net income included the impact of a lawsuit associated with a predecessor bank, M&I Marshall and Ilsley Bank. Q2-2023 included interest expense of $6 million ($7 million pre- (15) tax) and Q1-2023 included $6 million ($8 million pre-tax), comprising interest expense of $6 million pre-tax and legal fees of $2 million pre-tax. These amounts were recorded in Corporate Services. For further information, refer to the Provisions and Contingent Liabilities section in Note 24 of the audited annual consolidated financial statements of BMO's 2022 Annual Report. (4) Reported net income included acquisition and integration costs recorded in non-interest expense. Costs related to the acquisition of Bank of the West were recorded in Corporate Services: Q2-2023 included $545 million ($722 million pre-tax), Q1-2023 included $178 million ($235 million pre-tax), and Q2-2022 included $26 million ($35 million pre-tax). YTD-2023 included $723 million ($957 million pre-tax) and YTD-2022 included $33 million ($43 million pre- tax). Costs related to Radicle and Clearpool were recorded in BMO Capital Markets: Q2-2023 included $2 million ($2 million pre-tax), Q1-2023 included $3 million ($4 million pre-tax), and Q2-2022 included $2 million ($2 million pre-tax). YTD-2023 included $5 million ($6 million pre- tax) and YTD-2022 included $5 million ($6 million pre-tax) for YTD-2022. Costs related to the announced acquisition of AIR MILESⓇ were recorded in P&C Canada: Q2-2023 included $2 million ($3 million pre-tax). (34) (5) Reported net income included amortization of acquisition-related intangible assets recorded in non-interest expense in the related operating group and was $85 million ($115 million pre- (84) tax) in Q2-2023 and $6 million ($8 million) in both Q1-2023 and Q2-2022. YTD-2023 included $91 million ($123 million pre-tax) and YTD-2022 included $12 million ($16 million pre-tax). The current quarter included $77 million ($104 million pre-tax) related to Bank of the West. (6) Q2-2023 reported net income included an initial provision for credit losses of $517 million ($705 million pre-tax) on the purchased Bank of the West performing loan portfolio, recorded in Corporate Services. 49 (7) Q1-2023 reported net income included a one-time tax expense of $371 million related to certain tax measures enacted by the Canadian government, comprising a Canada Recovery Dividend (CRD) of $312 million and $59 million related to the pro-rated fiscal 2022 impact of the 1.5% tax rate increase, net of a deferred tax asset remeasurement, recorded in Corporate Services. (7,479) (8) For more information, refer to slide 40, and the Non-GAAP and Other Financial Measures and Summary Quarterly Earnings Trend sections of the Second Quarter 2023 MD&A (Canadian $ in millions, except as noted) Q2 23 Q1 23 Q2 22 YTD 23 YTD 22 Reported Results Net interest income 4,814 4,021 3,902 8,835 Non-interest revenue 3,626 2,449 5,416 6,075 Revenue 8,440 6,470 9,318 14,910 7,921 9,120 17,041 Insurance claims, commissions and changes in policy benefit liabilities (CCPB) (591) (1,193) 808 (1,784) Revenue, net of CCPB 7,849 Provision for credit losses (1,023) 5,277 (217) 10,126 13,126 17,768 (50) (1,240) Non-interest expense (5,573) (4,421) (3,713) (9,994) Income before income taxes 1,253 639 6,363 Provision for income taxes (194) (392) (1,607) 1,892 (586) Net income 1,059 247 4,756 1,306 Diluted EPS ($) 1.30 0.30 7.13 1.62 10,258 (2,569) 7,689 11.57 Adjusting Items Impacting Revenue (Pre-tax) Impact of divestitures (1) 8 Management of fair value changes on the purchase of Bank of the West (2) Legal provision (3) (7) (2,011) (6) 3,555 (2,011) (13) Impact of adjusting items on revenue (pre-tax) (7) (2,017) 3,563 (2,024) 4,096 Adjusting Items Impacting Provision for Credit Losses (Pre-tax) Initial provision for credit losses on purchased performing loans (pre-tax) (6) (705) (705) Adjusting Items Impacting Non-Interest Expense (Pre-tax) Acquisition and integration costs (4) (727) (239) (37) (966) (49) Amortization of acquisition-related intangible assets (5) (115) (8) (8) (123) (16) Impact of divestitures (1) Legal provision (3) Impact of adjusting items on non-interest expense (pre-tax) Impact of adjusting items on reported net income (pre-tax) Adjusting Items Impacting Revenue (After-tax) Impact of divestitures (1) Management of fair value changes on the purchase of Bank of the West (2) Legal provision (3) (18) (2) (2) (842) (249) (63) (1,554) (2,266) 3,500 (1,091) (3,820) (80) 4,016 । । 6 (1,461) 2,612 (6) (5) Impact of adjusting items on revenue (after-tax) (6) (1,466) 2,618 (1,461) (11) (1,472) (23) 3,025 3,002 Adjusting Items Impacting Provision for Credit Losses (After-tax) Initial provision for credit losses on purchased performing loans (after-tax) (6) (517) (517) Adjusting Items Impacting Non-Interest Expense (After-tax) Acquisition and integration costs (4) (549) (181) (28) (730) (38) Amortization of acquisition-related intangible assets (5) (85) (6) (6) (91) (12) Impact of divestitures (1) (15) - Legal provision (3) (1) (1) Impact of adjusting items on non-interest expense (after-tax) (634) (188) (49) (822) Impact of Canadian tax measures (7) (371) (371) Impact of adjusting items on reported net income (after-tax) (1,157) (2,025) 2,569 Impact on diluted EPS ($) (1.63) (2.92) 3.90 (3,182) (4.53) 2,918 4.45 Adjusted Results Net interest income 4,821 4,410 3,780 9,231 7,754 Non-interest revenue 3,626 4,077 1,975 7,703 5,191 Revenue 8,447 8,487 5,755 16,934 12,945 Insurance claims, commissions and changes in policy benefit liabilities (CCPB) (591) (1,193) 808 (1,784) 727 Revenue, net of CCPB 7,856 7,294 6,563 15,150 13,672 Provision for credit losses (318) (217) (50) (535) Non-interest expense (4,731) (4,172) (3,650) (8,903) Income before income taxes 2,807 2,905 2,863 5,712 Provision for income taxes Net income Diluted EPS ($) BMOM (591) (633) (676) (1,224) 2,216 2,272 2,187 4,488 2.93. 3.22 3.23 6.15 6,242 (1,471) 4,771 7.12 Financial Results May 24, 2023 • 41#42Summary of Reported and Adjusted Results by Operating Group (Canadian $ in millions unless otherwise stated) Q2 23 Q1 23 Q4 22 Q3 22 Q2 22 YTD 23 YTD 22 Canadian P&C Reported Net Income 861 980 917 965 940 1,841 1,944 Acquisition and integration costs 2 2 Amortization of acquisition-related intangible assets 1 1 1 Adjusted Net Income 864 980 917 965 941 1,844 1,945 U.S. P&C (USD) Reported Net Income 581 520 488 445 464 1,101 1,000 Amortization of acquisition-related intangible assets 57 1 1 1 1 58 Adjusted Net Income 638 521 489 446 465 1,159 1,002 BMO Wealth Management Reported Net Income 284 277 298 324 314 561 629 Amortization of acquisition-related intangible assets 1 1 1 1 2 2 Adjusted Net Income 285 278 298 325 315 563 631 BMO Capital Markets Reported Net Income 380 503 357 262 448 883 1,153 Acquisition and integration costs 2 3 2 1 2 5 Amortization of acquisition-related intangible assets 6 4 4 3 3 10 7 Adjusted Net Income 388 510 363 266 453 898 1,165 Corporate Services Reported Net Income (1,255) (2,211) 2,251 (754) 2,466 (3,466) 2,694 Impact of divestitures (8) 6 9 57 Management of Fair Value Changes on the Purchase of Bank of the West 1,461 (3,336) 694 (2,612) Acquisition and integration costs 545 178 143 61 26 Legal provision 22 1 1,461 (3,025) 723 33 6 Impact of Canadian tax measures ཝངྒཱ 6 846 12 371 371 Initial provision for credit losses on purchased performing loans 517 517 Adjusted Net Income (187) Total Bank Reported Net Income 1,059 (195) 247 (104) 4,483 7 (111) (382) (241) 1,365 4,756 1,306 7,689 Impact of divestitures (8) 6 9 57 Management of Fair Value Changes on the Purchase of Bank of the West 1,461 (3,336) 694 (2,612) 1,461 (3,025) Acquisition and integration costs 549 181 145 Amortization of acquisition-related intangible assets 85 6 6 Legal Provisions 6 6 846 Impact of Canadian tax measures 371 Initial provision for credit losses on purchased performing loans 517 Adjusted Net Income 2,216 2,272 2,136 2,132 U.S. Segment Reported Net Income (104) (558) 2,306 (28) (USD) Impact of divestitures (3) Management of Fair Value Changes on the Purchase of Bank of the West Acquisition and integration costs 1,093 (2,470) 545 8ཕ| | | ལ༹ྷནྟུ། ྴ 62 28 730 38 5 6 91 12 12 371 517 2,187 4,488 4,771 2,656 (662) 3,801 (2) (42) (2,062) 1,093 (2,387) 400 132 106 49 23 532 30 Amortization of acquisition-related intangible assets 61 4 4 5 4 65 8 Legal provision 4 5 621 9 Initial provision for credit losses on purchased performing loans Adjusted Net Income 379 740 379 676 564 571 619 1,416 1,410 Refer to footnotes (1) to (8) in the Non-GAAP and other Financial Measures table on slide 41 for details on adjusting items, and the Non-GAAP and Other Financial Measures and Summary Quarterly Earnings Trend sections of the Second Quarter 2023 MD&A for further information BMOM Financial Results • May 24, 2023 42#43Net Revenue, Efficiency Ratio and Operating Leverage (Canadian $ in millions unless otherwise stated) Q2 23 Q1 23 Q4 22 Total Bank Total revenue 8,440 6,470 10,570 Q3 22 6,099 Q2 22 YTD 23 YTD 22 9,318 14,910 17,041 Reported Insurance claims, commissions and changes in policy benefit liabilities (CCPB) 591 1,193 (369) 413 (808) 1,784 (727) Revenue, net of CCPB 7,849 5,277 10,939 5,686 10,126 13,126 17,768 Non-interest expense 5,573 4,421 4,776 3,859 3,713 9,994 7,559 Efficiency ratio 66.0 % 68.3 % 45.2 % 63.3 % 39.9 % 67.0 % 44.4 % Efficiency ratio, net of CCPB 71.0 % 83.8 % 43.7% 67.9 % 36.7 % 76.1 % 42.5 % Revenue growth (9.4)% (16.2)% 60.9 % (19.4)% 53.4 % (12.5)% 30.6 % Revenue growth, net of CCPB (22.5)% (31.0)% 68.9 % (13.6)% 59.2 % (26.1)% 39.5 % Non-interest expense growth 50.0 % 15.0 % 25.6 % 4.8% (15.8)% 32.2 % (5.8)% Operating leverage (59.4)% (31.2)% 35.3 % (24.2)% 69.2 % (44.7)% 36.4 % Operating Leverage, net of CCPB (72.5)% (46.0)% 43.3 % (18.4)% 75.0 % (58.3)% 45.3 % Total Bank Adjusted (1) Total revenue 8,447 8,487 6,544 7,044 5,755 16,934 12,945 Insurance claims, commissions and changes in policy benefit liabilities (CCPB) 591 1,193 (369) 413 (808) 1,784 (727) Revenue, net of CCPB 7,856 7,294 6,913 6,631 6,563 15,150 13,672 Non-interest expense 4,731 4,172 3,954 3,761 3,650 8,903 7,479 Efficiency ratio, net of CCPB 60.2 % 57.2 % 57.2 % 56.7 % 55.6 % 58.8 % 54.7 % Revenue growth, net of CCPB 19.7 % 2.6% 6.7 % 0.8 % 3.7 % 10.8 % 7.6% Non-interest expense growth 29.5 % 9.0 % 6.3% 2.7% 1.9 % 19.0 % 4.3 % Operating Leverage, net of CCPB (9.8)% (6.4)% 0.4 % (1.9)% 1.8 % (8.2)% 3.3 % BMO Wealth Management Total revenue Reported 1,960 2,504 930 1,705 484 4,464 1,889 Insurance claims, commissions and changes in policy benefit liabilities (CCPB) 591 1,193 (369) 413 (808) 1,784 (727) Revenue, net of CCPB 1,369 1,311 1,299 1,292 1,292 2,680 2,616 Non-interest expense 993 946 901 881 874 1,939 1,782 Efficiency ratio 50.6 % 37.8 % 96.8 % 51.7 % Efficiency ratio, net of CCPB 72.5 % 72.1 % 69.3 % 68.3 % 180.5% 67.6% 43.4% 94.3% 72.3 % 68.1 % Revenue growth 305.1 % 78.2 % (39.3)% (29.7)% (56.6)% 136.3 % (38.9)% Revenue growth, net of CCPB 5.9% (0.9)% (9.7)% (10.4)% (7.5)% 2.4 % (5.7)% Non-interest expense growth 13.6 % 4.2 % (8.9)% (6.6)% (10.1)% 8.8 % (6.7)% Operating leverage 291.5 % 74.0 % (30.4)% (23.1)% (46.5)% 127.5 % (32.2)% Operating Leverage, net of CCPB (7.7)% (5.1)% (0.8)% (3.8)% 2.6% (6.4)% 1.0 % BMO Wealth Management Adjusted (1) Total revenue 1,960 2,504 930 1,705 484 4,464 1,889 Insurance claims, commissions and changes in policy benefit liabilities (CCPB) 591 1,193 (369) 413 (808) 1,784 (727) Revenue, net of CCPB 1,369 1,311 1,299 1,292 1,292 2,680 2,616 Non-interest expense 991 945 900 880 872 1,936 1,779 Efficiency ratio, net of CCPB 72.4 % 72.0 % 69.2 % 68.2 % 67.5 % 72.2 % 68.0 % Revenue growth, net of CCPB 5.9 % (0.9)% (9.7)% Non-interest expense growth 13.5 % 4.2 % (8.6)% (10.4)% (6.2)% (7.5)% (9.3)% 2.4 % 8.8% (5.7)% (5.8)% Operating Leverage, net of CCPB (7.6)% (5.1)% (1.1)% (4.2)% 1.8 % (6.4)% 0.1 % Refer to footnotes (1) to (8) in the Non-GAAP and other Financial Measures table on slide 41 for details on adjusting items, and the Non-GAAP and Other Financial Measures and Summary Quarterly Earnings Trend sections of the Second Quarter 2023 MD&A for further information BMOM Financial Results May 24, 2023 • 43#44Pre-Provision, Pre-Tax Earnings (PPPT) Reconciliation (Canadian $ in millions unless otherwise stated) Total Bank Reported Income before taxes Total provision for (recovery of) credit losses Q2 23 Q1 23 Q4 22 Q3 22 Q2 22 YTD 23 YTD 22 1,253 639 5,937 1,691 6,363 1,892 10,258 1,023 217 226 136 50 1,240 (49) Reported Pre-Provision, Pre-Tax Earnings (PPPT) 2,276 856 6,163 1,827 6,413 3,132 10,209 Impact of divestitures 6 (7) (10) (36) Management of Fair Value Changes on the Purchase of Bank of the West Acquisition and integration costs (2,011) 4,541 (945) 3,555 (2,011) 4,117 (727) (239) (193) (84) (37) (966) (49) Amortization of acquisition-related intangible assets (115) (8) (8) (7) (8) (123) (16) U.S. Segment (USD) Legal provision Adjusted Pre-Provision, Pre-Tax Earnings (PPPT) Reported Income (loss) before taxes (7) (8) (1,142) (15) 3,125 3,122 2,959 2,870 2,913 6,247 6,193 (203) (841) 3,096 (78) 3,578 (1,044) 5,088 Total provision for (recovery of) credit losses 578 36 52 52 (16) 614 (114) Reported Pre-Provision, Pre-Tax Earnings (PPPT) 375 (805) 3,148 (26) 3,562 (430) 4,974 Impact of divestitures 4 4 60 Management of Fair Value Changes on the Purchase of Bank of the West (1,505) 3,362 (742) 2,806 (1,505) 3,249 Acquisition and integration costs (530) (175) (143) (65) (30) (705) (39) Amortization of acquisition-related intangible assets (82) (5) (5) (6) (6) (87) (11) Restructuring (costs) reversals Canadian P&C Legal provision Adjusted Pre-Provision, Pre-Tax Earnings (PPPT) Reported Income before taxes Total provision for (recovery of) credit losses (5) (7) (838) 992 887 768 787 1,192 1,348 1,242 1,306 1,271 228 164 174 89 Reported Pre-Provision, Pre-Tax Earnings (PPPT) 1,420 1,512 1,416 1,395 1,325 Acquisition and integration costs (3) Amortization of acquisition-related intangible assets (1) U.S. P&C (USD) Total provision for (recovery of) credit losses Reported Pre-Provision, Pre-Tax Earnings (PPPT) Amortization of acquisition-related intangible assets Adjusted Pre-Provision, Pre-Tax Earnings (PPPT) BMO Wealth Management Reported Income before taxes Adjusted Pre-Provision, Pre-Tax Earnings (PPPT) Reported Income before taxes 1,424 1,512 1,416 1,395 1,326 729 667 634 577 51 46 46 53 780 713 680 630 (78) (1) (1) (1) 858 714 681 631 372 359 395 421 BMO Capital Markets Total provision for (recovery of) credit losses Reported Pre-Provision, Pre-Tax Earnings (PPPT) Amortization of acquisition-related intangible assets Adjusted Pre-Provision, Pre-Tax Earnings (PPPT) Reported Income before taxes 4 6 3 (10) 376 365 398 411 (2) (1) (1) (1) 378 366 399 412 509 637 458 351 Total provision for (recovery of) credit losses 17 (10) (18) (7) Reported Pre-Provision, Pre-Tax Earnings (PPPT) Acquisition and integration costs 526 627 440 344 (2) (4) (2) (2) Amortization of acquisition-related intangible assets Adjusted Pre-Provision, Pre-Tax Earnings (PPPT) (8) (5) (5) (5) ''ཎྜནྡྷ |ངྐེ࿄སྱཱནྡྲ་ྗལྱེ སྟུ ཀྐ སྐུ ལྱཙེ (12) 788 1,879 1,715 2,540 2,630 54 392 78 2,932 2,708 (3) (1) (1) (1) 2,936 2,709 605 1,396 1,299 (30) 97 (88) 575 1,493 1,211 (2) (79) (3) 577 1,572 1,214 417 731 829 10 5 418 741 834 (2) (3) (3) 420 744 837 602 1,146 1,551 7 (18) 635 1,153 1,533 (2) (6) (6) (4) (13) (9) 536 636 447 351 641 1,172 1,548 Refer to footnotes (1) to (8) in the Non-GAAP and other Financial Measures table on slide 41 for details on adjusting items, and the Non-GAAP and Other Financial Measures and Summary Quarterly Earnings Trend sections of the Second Quarter 2023 MD&A for further information BMOM Financial Results May 24, 2023 • 44#45BMO Financial Group Investor Relations Contact Information bmo.com/investorrelations E-mail: [email protected] BILL ANDERSON Director, Investor Relations 416.867.7834 [email protected] PERRY CHEN-SEE Director, Investor Relations 416.359.8074 [email protected] BMO M B