Acquisition of Marshall & Ilsley Corp.
Capital Overview
Capital ratios remain strong after the transaction
Pro-forma Capital Ratios
Tier 1
Ratio (%)
Common Equity
Ratio (%)
BASEL II1
Q4'10 Reported
Transaction Impact
Q4'10 Pro-forma
13.4%
10.3%
~170 bps
~110 bps
11.7%
9.2%
ā BMO remains well-capitalized and is well-
positioned to meet applicable Basel III capital
requirements when implemented
O BMO intends to raise approximately $800
million in additional common equity before the
transaction is completed, which has been
reflected in the pro-forma ratios
the benefit of anticipated retained earnings
growth prior to closing has not been
reflected
On a Basel II basis, the pro-forma Q4 2010
Tier 1 Ratio is ~11.7%
On a Basel III basis, the pro-forma Q4 2010
Common Equity Ratio is ~6.7%
BASEL III1,2
Q4'10 Estimate
Transaction impact
Q4'10 Pro-forma
10.4%
7.8%
~150 bps
~110 bps
8.9%
6.7%
1. Includes M&I's estimated risk weighted assets at closing.
2. Basel III figures as at October 31, 2010 are estimated based on Basel III 2019 rules announced prior to December 16th and the impact of certain key changes associated with the adoption
of IFRS. Refer to Bank of Montreal Management's Discussion and Analysis for fiscal 2010 for further details.
BMO
Financial Group
Acquisition of Marshall & Ilsley Corp. December 17, 2010
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