Who We Are. 200 Years of Change

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1 Who We Are Established in 1817, is a highly diversified financial services provider based in North America. With total assets of $688 billion and more than 45,000 employees, BMO provides a broad range of personal and commercial banking, wealth management and investment banking products and services to more than 12 million customers and conducts business through three operating groups: Personal and Commercial Banking, Wealth Management and BMO Capital Markets. 200 Years of Change As we mark BMO s bicentennial, it s an opportunity to reflect on a 200-year legacy of consistently anticipating customers expectations while helping them achieve their financial goals. But this milestone is even more about continuing to move forward, as we constantly learn from all of our stakeholders, innovate to keep pace with their changing needs and refine our strategy to meet the challenges of tomorrow. history.bmo.com bmo200.com #bmo200 Reporting Excellence In 2016, for the second year in a row, BMO received the Chartered Professional Accountants of Canada s Award of Excellence in Corporate Reporting for the financial services industry th Annual Report 2016

2 Reasons to Invest in BMO Strong, diversified businesses that continue to deliver robust earnings growth and long-term value for shareholders. Large North American commercial banking business with advantaged market share. Well-established, highly profitable core banking business in Canada. Well-capitalized with an attractive dividend yield. Committed to customer experience, measured through a disciplined loyalty program. Focus on efficiency through technology innovation, process enhancement and increased digitalization across channels. Diversified U.S. banking operations wellpositioned to benefit from growth opportunities. Award-winning wealth franchise with an active presence in markets across Canada, the United States, Europe and Asia. Adherence to strong business ethics and corporate governance standards, including sustainability principles that ensure we consider social, economic and environmental impacts as we pursue sustainable growth. Competitively advantaged Canadian and growing mid-cap focused U.S. capital markets business. Our Dividend Record has the longest-running dividend payout record of any company in Canada, at 188 years. BMO common shares had an annual dividend yield of 4.0% at October 31, Compound annual growth rate: 7.7% 4.0% BMO 15-year BMO 5-year Dividends Declared ($ per share) th Annual Report

3 Our Strategic Footprint YT NT NU BMO s strategic footprint spans strong regional economies. BC OR Our three operating groups serve individuals, businesses, governments and corporate CA customers across Canada and the United States with a focus in six U.S. Midwest states Illinois, Indiana, Wisconsin, Minnesota, Missouri and Kansas. Our significant presence in North America is bolstered by operations in select global markets in Europe, Asia and the Middle East, allowing us to provide all our customers with access to economies and markets around the world. WA AB SK UT CO AZ Rio de Janeiro MB MN NE KS TX Mexico City ON WI IN IL MO NL QC PE NB NS NY MA OH MD VA GA FL Personal & Commercial Banking and Wealth Management footprint Other Commercial Banking offices Other Wealth Management offices BMO Capital Markets offices Europe and Middle East presence Asia-Pacific presence London Edinburgh Stockholm Dublin Amsterdam Frankfurt Paris Munich Zurich Madrid Lisbon Milan Luxembourg Mumbai Guangzhou Beijing Shanghai Taipei Hong Kong Singapore Abu Dhabi Sydney Melbourne 199th Annual Report

4 Sustainability is not an add-on. It s core to our strategy. The bank s activities are guided by our strategic priorities, which frame our decision-making and help us gauge progress over the long term. While these priorities may evolve to reflect the changing business environment, they are anchored by a commitment to create lasting value for all of our stakeholders. Over the past year, we ve expressed that commitment more formally through a set of sustainability principles focusing on social change, financial resilience, community-building and environmental responsibility. Extending and complementing our promise to customers, these principles reinforce the deeper sense of responsibility that informs all aspects of our business strategy. Our bank has always tried to lead by example. By giving our sustainability principles due prominence, positioned right alongside the strategic priorities that communicate how we intend to grow, we confirm that sustainability is incorporated into how we do business, manage risk and create value. William A. Downe, Chief Executive Officer, BMO s Lisa Brodtrick, Director of Aboriginal Banking, Alberta and Northwest Territories, with Chief Stanley Grier of the Piikani Nation th Annual Report 2016

5 Vision To be the bank that defines great customer experience. Strategic Priorities The clearly defined statements of purpose that guide the bank s long-term decision-making as we deliver on our vision. Sustainability Principles The guidelines we follow as a responsibly managed bank consider social, economic and environmental impacts as we pursue sustainable growth. Achieve industry-leading customer loyalty by delivering on our brand promise. Social change Helping people adapt and thrive as society evolves tailoring our products and services to reflect changing expectations, and embracing diversity and inclusion in our workplace and the communities where we do business. Enhance productivity to drive performance and shareholder value. Accelerate deployment of digital technology to transform our business. Leverage our consolidated North American platform and expand strategically in select global markets to deliver growth. Financial resilience Supporting customers needs and goals, while gauging appropriate levels of risk, as they shape their financial futures. And providing members of underserved communities with access to guidance and support that helps them and enables them to do better. Community-building Fostering social and economic well-being in the communities where we live and work by financing new enterprises, facilitating public investment, paying our fair share of taxes and, together with our employees, providing support through charitable donations, sponsorships and volunteer activities. Ensure our strength in risk management underpins everything we do for our customers. Environmental impact Reducing our environmental footprint while considering the impacts of our business activities as we work with stakeholders who share our commitment to sustainability. We balance our commitments to all stakeholders as we pursue our business strategy and strive to fulfill our broader social responsibilities. A Foundation of Trust To continue earning the trust of our stakeholders, we act with integrity, communicate with transparency and uphold the highest standards of sound, ethical governance. 199th Annual Report

6 Executive Committee * William A. Downe, C.M. David R. Casper Thomas E. Flynn Catherine Roche Chief Executive Officer, President & Chief Executive Chief Financial Officer, Head, Office of Strategic Officer, BMO Harris Bank N.A. Management, Darryl White Chief Operating Officer, and Commercial Banking Cameron Fowler Lynn Roger Patrick Cronin Canadian Personal and Chief Transformation Officer, Frank Techar Vice-Chair, BMO Capital Markets Commercial Banking, Joanna Rotenberg Alexandra Dousmanis-Curtis Gilles G. Ouellette Jean-Michel Arès Chief Technology & Operations Officer, U.S. Retail and Business Banking, BMO Harris Bank Simon A. Fish BMO Asset Management and Vice-Chair, International, BMO Wealth Management, Richard Rudderham Chief Human Resources Officer, Christopher Begy U.S. Country Head and Chief Executive Officer, General Counsel, Surjit Rajpal Chief Risk Officer, Connie Stefankiewicz Chief Marketing Officer, BMO Financial Corp. * As at November 1, th Annual Report 2016