TORONTO, ONTARIO--(Marketwired - Dec 3, 2013) - BMO Financial Group (TSX: BMO)(NYSE: BMO) and Bank of Montreal -

Financial Results Highlights:

Fiscal 2013 Compared with Fiscal 2012:

-- Net income of $4,248 million, up 1%; adjusted net income(1) of $4,276

million, up 5%

-- EPS(2) of $6.26, up 2%; adjusted EPS(1,2) of $6.30, up 5%

-- ROE of 14.9%, compared with 15.9%; adjusted ROE(1) of 15.0%, compared

with 15.5%

-- Provisions for credit losses of $589 million, compared with $765

million; adjusted provisions for credit losses(1) of $359 million,

compared with $471 million

-- Basel III Common Equity Tier 1 Ratio of 9.9%

Fourth Quarter 2013 Compared with Fourth Quarter 2012:

-- Net income of $1,088 million, up 1%; adjusted net income(1) of $1,102

million, down 2%

-- EPS(2) of $1.62, up 2%; adjusted EPS(1,2) of $1.64, down 1%

-- ROE of 15.0%, compared with 15.6%; adjusted ROE(1) of 15.2%, compared

with 16.3%

-- Provisions for credit losses of $189 million, compared with $192

million; adjusted provisions for credit losses(1) of $140 million,

compared with $113 million

For fiscal 2013, net income was $4,248 million and EPS was $6.26. Adjusted net income was $4,276 million and adjusted EPS was $6.30. For the fourth quarter ended October 31, 2013, BMO Financial Group reported net income of $1,088 million or $1.62 per share on a reported basis and net income of $1,102 million or $1.64 per share on an adjusted basis.

"BMO's fourth quarter results mark the finish to a year in which the Bank achieved record revenue, net income and earnings per share, while generating the best one-year total shareholder return among the Canadian banks at 29 per cent," said Bill Downe, Chief Executive Officer, BMO Financial Group. "This performance reflects a well-executed growth strategy and the benefits of a diversified business model.

"Canadian Personal and Commercial Banking had record earnings in the year. We delivered robust volume growth contributing to notably stronger revenue and income in the second half of the year. Wealth Management had a record year with earnings up significantly and increased market share, supported by strong asset growth and customer loyalty.

"Adjusted earnings from BMO's U.S. segment generated over $1 billion in 2013, benefiting from continued business growth, particularly strong results in Wealth Management and Capital Markets, and good credit performance. With the pace of U.S. economic growth expected to be higher and with consumers continuing to deleverage, we're well positioned given BMO's geographic diversification, large commercial banking business and integrated North American platform with a strong unified brand.

"Looking ahead, we have clear opportunities for growth across a diversified North American footprint," concluded Mr. Downe. "I want to thank our customers for their loyalty and all our employees for their commitment to the bank and to our customers."

(1) Results and measures in this document are presented on a GAAP basis.

They are also presented on an adjusted basis that excludes the impact

of certain items. Adjusted results and measures are non-GAAP and are

detailed in the Adjusted Net Income section, and (for all reported

periods) in the Non-GAAP Measures section, where such non-GAAP

measures and their closest GAAP counterparts are disclosed.

(2) All Earnings per Share (EPS) measures in this document refer to

diluted EPS unless specified otherwise. EPS is calculated using net

income after deductions for net income attributable to non-controlling

interest in subsidiaries and preferred share dividends.

Note: All ratios and percentage changes in this document are based on

unrounded numbers.

Concurrent with the release of results, BMO announced a first quarter 2014 dividend of $0.76 per common share, up $0.02 from the preceding quarter and up $0.04 per share from a year ago, equivalent to an annual dividend of $3.04 per common share.

BMO's 2013 audited annual consolidated financial statements and accompanying management's discussion & analysis (MD&A) will be available online at www.bmo.com/investorrelations along with the supplementary financial information report.

Total Bank Overview

Net income was $1,088 million for the fourth quarter of 2013, up $6 million or 1% from a year ago.

Adjusted net income was $1,102 million, down $23 million or 2% from a year ago. There was continued momentum in Wealth Management and in Canadian P&C. There was lower income in BMO Capital Markets reflecting lower trading revenues and higher taxes compared to the same quarter a year ago. There were also higher securities gains, provisions for credit losses were above trend in the P&C businesses and recoveries of credit losses on the purchased credit impaired loan portfolio were lower.

Operating Segment Overview

Canadian P&C

Net income was $469 million in the fourth quarter, up $27 million or 6% from a year ago. Adjusted net income was $472 million, up $28 million or 6% from the prior year. Revenue increased $68 million or 4% year over year driven by strong volume growth across most products, partially offset by the impact of lower net interest margin. Provisions for credit losses in the quarter increased $20 million or 13% mainly due to one commercial account, offset in part by modestly lower consumer provisions. Expenses increased modestly by $12 million or 2% due to higher employee-related expenses and continued selective investment in the business, partially offset by productivity benefits from good expense management. This year we expanded our branch network capacity by opening or upgrading 86 locations across the country.

Stronger revenue growth in the second half of 2013 was driven by good balance sheet growth throughout the year and reduced margin compression. Continued momentum in revenue growth, combined with our focus on process simplification, is expected to drive future net income growth.

In personal banking, there was strong loan and deposit growth of 11% and 6%, respectively. Our recent 'Make the BMOst of Summer' Campaign attracted multi-product customers to BMO. We are making significant improvements to our processes, enabling front-line employees to spend more time acquiring new customers and strengthening existing relationships.

In commercial banking, there was strong growth in both commercial loans and deposits of 11% and 14%, respectively. We recently launched the 'BMO Biz Starter for Small Business' Campaign offering integrated products, services and advice to help small business customers grow their businesses. We rank second in Canadian business banking loan market share for small and medium-sized loans with a 20% market share.

In September, BMO was presented with a Gold level standing in the Progressive Aboriginal Relations (PAR) program by the Canadian Council for Aboriginal Business (CCAB) for its efforts to enhance partnerships with Canada's First Peoples.

U.S. P&C (all amounts in US$)

Net income of $102 million, decreased $39 million or 28% from $141 million a year ago. Adjusted net income of $113 million declined $43 million or 28% from a year ago due to above trend commercial provisions for credit losses in the current quarter and reduced revenue and expenses.

There were year-over-year and quarterly sequential increases in average current loans and acceptances, led by continued strong growth in the core commercial and industrial (C&I) loan portfolio. This portfolio increased by $3.8 billion or 19% from a year ago to $23.7 billion.

Growth in our commercial business and personal chequing and savings accounts was more than offset by planned reductions in higher cost deposit products resulting in a slight decline in deposits.

During the quarter, the Federal Deposit Insurance Corporation released their annual deposit market share results. In the Chicago area we maintained our strong second place ranking, as BMO Harris Bank's deposit market share improved to 12.1%. In Wisconsin we also held the second place ranking with an even higher deposit market share of 14.1%. We maintained our number four market share ranking within our primary footprint of Wisconsin, Illinois, Missouri, Kansas, Indiana, and Minnesota.

Wealth Management

Net income for the quarter of $312 million was almost double the level of a year ago. Adjusted net income of $319 million increased $150 million or 89% from a year ago. Net income for the quarter included a $121 million after-tax security gain resulting from a change from the equity to available-for-sale accounting treatment as a result of the dilution of an investment. Other wealth businesses also continued to produce strong performance with adjusted net income of $129 million, up $36 million or 38% driven by growth in client assets, increased transaction volumes and a continued focus on productivity. Adjusted net income in insurance was $69 million, down $7 million or 9% from a year ago.

Assets under management and administration grew by $66 billion or 14% from a year ago to $553 billion, driven by market appreciation, growth in new client assets and the stronger U.S. dollar.

BMO InvestorLine was named the 'Best Online Discount Brokerage Firm in Canada' by Surviscor's Online Discount Brokerage scorCard. BMO InvestorLine received three category honours with best marks in the 'Getting Started', 'Account Services' and 'Website Transactions' categories.

BMO Private Bank has been named the "Best Domestic Private Bank, U.S." by Global Financial Market Review and "Best Private Bank-U.S. (Midwest) 2013" by World Finance Magazine.

BMO Capital Markets

Net income was $229 million, down $85 million or 27% from a strong fourth quarter a year ago. The prior year included strong trading revenues and a recovery of prior periods' income taxes. Revenues were lower as higher mergers and acquisitions and debt underwriting fees were more than offset by lower trading revenues reflecting market uncertainty associated with the tapering of quantitative easing and the U.S. debt ceiling, as well as lower securities gains and equity underwriting fees.

We continue to demonstrate our commitment to our clients as BMO Capital Markets was selected during the quarter as a 2013 Greenwich Quality Leader in Canadian Fixed Income Research and a 2013 Greenwich Share Leader in Canadian Fixed Income, reflecting client recognition for providing high quality service and the industry's best coverage in fixed income research.

BMO Capital Markets participated in 362 new global issues in the quarter, including 169 corporate debt deals, 128 government debt deals and 65 equity transactions, raising $771 billion.

Corporate Services

Corporate Services net loss for the quarter was $28 million, compared with net income of $22 million a year ago. On an adjusted basis, the net loss was $36 million, compared with net income of $41 million a year ago. The decrease in reported results was smaller than the decrease in adjusted results primarily due to lower integration costs in the current quarter. Adjusting items are detailed in the Adjusted Net Income section and in the Non-GAAP Measures section. Adjusted results declined primarily due to lower revenues, due to a decline in treasury-related items and a variety of other items, none of which were individually significant.

Caution

This Operating Segment Overview section contains forward-looking statements. Please see the Caution Regarding Forward-Looking Statements.

Adjusted results in this Operating Segment Overview section are non-GAAP amounts or non-GAAP measures. Please see the Non-GAAP Measures section.

Adjusted Net Income

Adjusted net income was $1,102 million for the fourth quarter of 2013, down $23 million or 2% from a year ago. Adjusted earnings per share were $1.64, down $0.01 from $1.65 a year ago.

Management has designated certain amounts as adjusting items and has adjusted GAAP results so that we can discuss and present financial results without the effects of adjusting items to facilitate understanding of business performance and related trends. Management assesses performance on a GAAP basis and on an adjusted basis and considers both to be useful in the assessment of underlying business performance. Presenting results on both bases provides readers with a better understanding of how management assesses results. Adjusted results and measures are non-GAAP and, together with items excluded in determining adjusted results, are disclosed in more detail in the Non-GAAP Measures section, along with comments on the uses and limitations of such measures. Items excluded from fourth quarter 2013 results in the determination of adjusted results totalled $14 million of net loss or $0.02 per share, and were comprised of:

-- the $30 million after-tax net benefit for credit-related items in

respect of the M&I purchased performing loan portfolio (the acquired

loan portfolio), consisting of $98 million for the recognition in net

interest income of a portion of the credit mark on the portfolio

(including $53 million for the release of the credit mark related to

early repayment of loans), net of a $49 million specific provision for

credit losses and income taxes of $19 million. These credit-related

items in respect of the acquired M&I performing loan portfolio can

significantly impact both net interest income and the provision for

credit losses in different periods over the life of the M&I purchased

performing loan portfolio;

-- costs of $60 million ($37 million after tax) for the integration of M&I

including amounts related to restructuring and other employee-related

charges, technology costs post conversion and marketing costs related to

rebranding activities;

-- $5 million for income taxes related to the collective allowance on loans

other than the M&I purchased loan portfolio;

-- the $26 million ($20 million after tax) benefit from run-off structured

credit activities; and

-- the amortization of acquisition-related intangible assets of $31 million

($22 million after tax).

All of the above adjusting items were recorded in Corporate Services except the amortization of acquisition-related intangible assets, which is charged to the operating groups.

The impact of adjusting items for comparative periods is summarized in the Non-GAAP Measures section.

Financial Review

The Financial Review commentary is as of December 3, 2013. Unless otherwise indicated, all amounts are in Canadian dollars and have been derived from financial statements prepared in accordance with International Financial Reporting Standards (IFRS). References to GAAP mean IFRS. The Financial Review should be read in conjunction with the audited consolidated financial statements for the year ended October 31, 2013, and Management's Discussion and Analysis (MD&A) for fiscal 2013. The material that precedes this section comprises part of this Financial Review.

The annual MD&A for fiscal 2013 includes a comprehensive discussion of our businesses, strategies and objectives, and can be accessed on our website at www.bmo.com/investorrelations. Readers are also encouraged to visit the site to view other quarterly financial information.

Bank of Montreal's Audit and Conduct Review Committee reviewed this document and Bank of Montreal's Board of Directors approved the document prior to its release.

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Table of Contents

4 Summary Data - Reported 13 Capital Management

5 Summary Data - Adjusted 15 Review of Operating

6 Caution Regarding Forward-Looking Groups' Performance

Statements 15 Operating Groups' Summary

7 Foreign Exchange Income Statements and

7 Net Income Statistics for Q4-2013

8 Revenue 16 Personal and Commercial

8 Net Interest Income Banking (P&C)

9 Non-Interest Revenue 16 Canadian Personal and

9 Non-Interest Expense Commercial Banking

9 Income Taxes (Canadian P&C)

10 Risk Management 18 U.S. Personal and

10 Provisions for Credit Losses Commercial Banking (U.S. P&C)

11 Impaired Loans 19 Wealth Management

11 Market Risk 20 BMO Capital Markets

21 Corporate Services, Including

Technology and Operations

23 Non-GAAP Measures

24 Other Investor and

Media Information

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Regulatory Filings

Our continuous disclosure materials, including our interim filings, annual MD&A and audited consolidated financial statements, Annual Information Form and Notice of Annual Meeting of Shareholders and Proxy Circular are available on our website at www.bmo.com/investorrelations, on the Canadian Securities Administrators' website at www.sedar.com and on the EDGAR section of the SEC's website at www.sec.gov.

Bank of Montreal uses a unified branding approach that links all of the organization's member companies. Bank of Montreal, together with its subsidiaries, is known as BMO Financial Group. As such, in this document, the names BMO and BMO Financial Group mean Bank of Montreal, together with its subsidiaries.

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Summary Data - Reported Table 1

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(Canadian $ % Increase % Increase

in millions, (Decrease) (Decrease)

except as noted) Q4-2013 Q4-2012 vs Q4-2012 Q3-2013 vs Q3-2013

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Summary Income Statement

Net interest income 2,085 2,145 (3) 2,146 (3)

Non-interest revenue 2,103 2,031 4 1,904 10

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Revenue 4,188 4,176 - 4,050 3

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Specific provision for

credit losses 189 216 (13) 57 (+100)

Collective provision for

(recovery of) credit

losses - (24) +100 20 (+100)

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Total provision for

credit losses 189 192 (2) 77 +100

Non-interest expense 2,597 2,701 (4) 2,542 2

Provision for income

taxes 314 201 56 294 7

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Net income 1,088 1,082 1 1,137 (4)

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Attributable to bank

shareholders 1,075 1,064 1 1,121 (4)

Attributable to non-

controlling interest

in subsidiaries 13 18 (25) 16 (10)

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Net income 1,088 1,082 1 1,137 (4)

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Common Share Data ($

except as noted)

Earnings per share 1.62 1.59 2 1.68 (4)

Dividends declared per

share 0.74 0.72 3 0.74 -

Book value per share 43.69 40.25 9 42.38 3

Closing share price 72.62 59.02 23 63.87 14

Total market value of

common shares ($

billions) 46.8 38.4 22 41.3 13

Dividend yield (%) 4.1 4.9 nm 4.6 nm

Price-to-earnings ratio

(times) 11.6 9.6 nm 10.3 nm

Market-to-book value

(times) 1.7 1.5 nm 1.5 nm

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Financial Measures and

Ratios (%)

Return on equity 15.0 15.6 (0.6) 15.6 (0.6)

Revenue growth - 9 nm 4 nm

Non-interest expense

growth (4) 11 nm 2 nm

Efficiency ratio 62.0 64.7 (2.7) 62.8 (0.8)

Operating leverage 4.2 (1.7) nm 2.2 nm

Net interest margin on

earning assets 1.67 1.83 (0.16) 1.75 (0.08)

Effective tax rate 22.4 15.7 6.7 20.6 1.8

Return on average assets 0.76 0.77 (0.01) 0.80 (0.04)

Provision for credit

losses-to-average loans

and acceptances

(annualized) 0.27 0.31 (0.04) 0.11 0.16

Gross impaired loans and

acceptances-to-equity

and allowance for credit

losses 7.61 9.30 (1.69) 8.14 (0.53)

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Value Measures (% except

as noted)

Average annual three year

total shareholder return 11.5 10.8 0.7 5.4 6.1

Twelve month total

shareholder return 28.8 5.2 23.6 16.5 12.3

Net economic profit ($

millions) (1) 335 361 (7) 382 (12)

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Balance Sheet (as at $

billions)

Assets 537 525 2 549 (2)

Net loans and acceptances 279 254 10 272 2

Deposits 367 324 13 358 2

Common shareholders'

equity 28.1 26.2 7 27.4 3

Cash and securities-to-

total assets ratio (%) 31.2 29.4 1.8 30.8 0.4

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Basel Basel Basel

Capital Ratios (%) III II III

Common Equity Tier 1

Capital Ratio 9.9 10.5 nm 9.6 0.3

Tier 1 Capital Ratio 11.4 12.6 nm 11.2 0.2

Total Capital Ratio 13.7 14.9 nm 13.5 0.2

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Net Income by Operating

Group

Canadian P&C 469 442 6 497 (6)

U.S. P&C 106 140 (24) 153 (31)

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Personal and Commercial

Banking 575 582 (1) 650 (12)

Wealth Management 312 164 91 218 43

BMO Capital Markets 229 314 (27) 280 (18)

Corporate Services,

including Technology and

Operations (T&O) (28) 22 (+100) (11) (+100)

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BMO Financial Group net

income 1,088 1,082 1 1,137 (4)

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% Increase

(Canadian $ (Decrease)

in millions, Fiscal- Fiscal- vs Fiscal-

except as noted) 2013 2012 2012

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Summary Income Statement

Net interest income 8,545 8,808 (3)

Non-interest revenue 7,718 7,322 5

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Revenue 16,263 16,130 1

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Specific provision for

credit losses 599 762 (21)

Collective provision for

(recovery of) credit

losses (10) 3 (+100)

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Total provision for

credit losses 589 765 (23)

Non-interest expense 10,297 10,238 1

Provision for income

taxes 1,129 938 20

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Net income 4,248 4,189 1

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Attributable to bank

shareholders 4,183 4,115 2

Attributable to non-

controlling interest

in subsidiaries 65 74 (12)

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Net income 4,248 4,189 1

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Common Share Data ($

except as noted)

Earnings per share 6.26 6.15 2

Dividends declared per

share 2.94 2.82 4

Book value per share 43.69 40.25 9

Closing share price 72.62 59.02 23

Total market value of

common shares ($

billions) 46.8 38.4 22

Dividend yield (%) 4.0 4.8 nm

Price-to-earnings ratio

(times) 11.6 9.6 nm

Market-to-book value

(times) 1.7 1.5 nm

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Financial Measures and

Ratios (%)

Return on equity 14.9 15.9 (1.0)

Revenue growth 1 16 nm

Non-interest expense

growth 1 17 nm

Efficiency ratio 63.3 63.5 (0.2)

Operating leverage 0.2 (1.4) nm

Net interest margin on

earning assets 1.77 1.91 (0.14)

Effective tax rate 21.0 18.3 2.7

Return on average assets 0.75 0.76 (0.01)

Provision for credit

losses-to-average loans

and acceptances

(annualized) 0.22 0.31 (0.09)

Gross impaired loans and

acceptances-to-equity

and allowance for credit

losses 7.61 9.30 (1.69)

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Value Measures (% except

as noted)

Average annual three year

total shareholder return 11.5 10.8 0.7

Twelve month total

shareholder return 28.8 5.2 23.6

Net economic profit ($

millions) (1) 1,298 1,439 (10)

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Balance Sheet (as at $

billions)

Assets 537 525 2

Net loans and acceptances 279 254 10

Deposits 367 324 13

Common shareholders'

equity 28.1 26.2 7

Cash and securities-to-

total assets ratio (%) 31.2 29.4 1.8

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Basel Basel

Capital Ratios (%) III II

Common Equity Tier 1

Capital Ratio 9.9 10.5 nm

Tier 1 Capital Ratio 11.4 12.6 nm

Total Capital Ratio 13.7 14.9 nm

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Net Income by Operating

Group

Canadian P&C 1,854 1,775 4

U.S. P&C 596 580 3

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Personal and Commercial

Banking 2,450 2,355 4

Wealth Management 834 524 59

BMO Capital Markets 1,094 1,021 7

Corporate Services,

including Technology and

Operations (T&O) (130) 289 (+100)

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BMO Financial Group net

income 4,248 4,189 1

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(1) Net economic profit is a non-GAAP measure and is discussed in the Non-

GAAP Measures section below.

nm - not meaningful

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Summary Data - Adjusted (1) Table 2

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(Canadian $ % Increase % Increase

in millions, (Decrease) (Decrease)

except as noted) Q4-2013 Q4-2012 vs Q4-2012 Q3-2013 vs Q3-2013

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Adjusted Summary Income

Statement

Net interest income 1,968 1,956 1 1,993 (1)

Non-interest revenue 2,092 1,964 6 1,899 10

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Revenue 4,060 3,920 4 3,892 4

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Specific provision and

total provision for

credit losses 140 113 23 13 +100

Non-interest expense 2,502 2,436 3 2,458 2

Provision for income

taxes 316 246 28 285 11

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Net income 1,102 1,125 (2) 1,136 (3)

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Attributable to bank

shareholders 1,089 1,107 (2) 1,120 (3)

Attributable to non-

controlling interest

in subsidiaries 13 18 (25) 16 (10)

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Net income 1,102 1,125 (2) 1,136 (3)

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Adjusted Common Share

Data ($)

Earnings per share 1.64 1.65 (1) 1.68 (2)

Adjusted Financial

Measures and Ratios (%)

Return on equity 15.2 16.3 (1.1) 15.6 (0.4)

Revenue growth 4 7 nm 6 nm

Non-interest expense

growth 3 4 nm 5 nm

Efficiency ratio 61.6 62.2 (0.6) 63.2 (1.6)

Operating leverage 0.9 2.7 nm 0.9 nm

Net interest margin on

earning assets 1.58 1.67 (0.09) 1.63 (0.05)

Effective tax rate 22.3 17.9 4.4 20.1 2.2

Provision for credit

losses-to-average loans

and acceptances

(annualized) 0.22 0.20 0.02 0.02 0.20

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Adjusted Net Income By

Operating Group

Canadian P&C 472 444 6 500 (6)

U.S. P&C 118 156 (24) 165 (29)

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Personal and Commercial

Banking 590 600 (2) 665 (11)

Wealth Management 319 169 89 225 42

BMO Capital Markets 229 315 (27) 281 (18)

Corporate Services,

including T&O (36) 41 (+100) (35) (1)

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BMO Financial Group net

income 1,102 1,125 (2) 1,136 (3)

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% Increase

(Canadian $ (Decrease)

in millions, Fiscal- Fiscal- vs Fiscal-

except as noted) 2013 2012 2012

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Adjusted Summary Income

Statement

Net interest income 7,888 8,029 (2)

Non-interest revenue 7,684 7,038 9

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Revenue 15,572 15,067 3

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Specific provision and

total provision for

credit losses 359 471 (24)

Non-interest expense 9,826 9,513 3

Provision for income

taxes 1,111 991 12

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Net income 4,276 4,092 5

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Attributable to bank

shareholders 4,211 4,018 5

Attributable to non-

controlling interest

in subsidiaries 65 74 (12)

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Net income 4,276 4,092 5

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Adjusted Common Share

Data ($)

Earnings per share 6.30 6.00 5

Adjusted Financial

Measures and Ratios (%)

Return on equity 15.0 15.5 (0.5)

Revenue growth 3 10 nm

Non-interest expense

growth 3 13 nm

Efficiency ratio 63.1 63.1 -

Operating leverage 0.1 (2.8) nm

Net interest margin on

earning assets 1.63 1.74 (0.11)

Effective tax rate 20.6 19.5 1.1

Provision for credit

losses-to-average loans

and acceptances

(annualized) 0.14 0.21 (0.07)

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Adjusted Net Income By

Operating Group

Canadian P&C 1,864 1,785 4

U.S. P&C 646 644 -

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Personal and Commercial

Banking 2,510 2,429 3

Wealth Management 861 545 58

BMO Capital Markets 1,096 1,022 7

Corporate Services,

including T&O (191) 96 (+100)

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BMO Financial Group net

income 4,276 4,092 5

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(1) The above results and statistics are presented on an adjusted basis.

These are non-GAAP amounts or non-GAAP measures. Please see the Non-

GAAP Measures section.

nm - not meaningful

Caution Regarding Forward-Looking Statements

Bank of Montreal's public communications often include written or oral forward-looking statements. Statements of this type are included in this document, and may be included in other filings with Canadian securities regulators or the U.S. Securities and Exchange Commission, or in other communications. All such statements are made pursuant to the "safe harbor" provisions of, and are intended to be forward-looking statements under, the United States Private Securities Litigation Reform Act of 1995 and any applicable Canadian securities legislation. Forward-looking statements may involve, but are not limited to, comments with respect to our objectives and priorities for 2014 and beyond, our strategies or future actions, our targets, expectations for our financial condition or share price, and the results of or outlook for our operations or for the Canadian, U.S. and international economies.

By their nature, forward-looking statements require us to make assumptions and are subject to inherent risks and uncertainties. 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 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; weak, volatile or illiquid capital and/or credit markets; interest rate and currency value fluctuations; changes in monetary, fiscal or economic policy; the degree of competition in the geographic and business areas in which we operate; changes in laws or in supervisory expectations or requirements, including capital, interest rate and liquidity requirements and guidance; judicial or regulatory proceedings; the accuracy and completeness of the information we obtain with respect to our customers and counterparties; our ability to execute our strategic plans and to complete and integrate acquisitions; critical accounting estimates and the effect of changes to accounting standards, rules and interpretations on these estimates; operational and infrastructure risks; changes to our credit ratings; general political conditions; global capital markets activities; the possible effects on our business of war or terrorist activities; disease or illness that affects local, national or international economies; natural disasters and disruptions to public infrastructure, such as transportation, communications, power or water supply; technological changes; and our ability to anticipate and effectively manage risks associated with all of the foregoing factors.

We caution that the foregoing list is not exhaustive of all possible factors. Other factors could adversely affect our results. For more information, please see the discussion on pages 30 to 31 of BMO's 2013 annual MD&A, which outlines in detail certain key factors that may affect Bank of Montreal's future results. When relying on forward-looking statements to make decisions with respect to Bank of Montreal, investors and others should carefully consider these factors, as well as other uncertainties and potential events, and the inherent uncertainty of forward-looking statements. Bank of Montreal does not undertake to update any forward-looking statements, whether written or oral, that may be made from time to time by the organization or on its behalf, except as required by law. The forward-looking information contained in this document is presented for the purpose of assisting our shareholders in understanding our financial position as at and for the periods ended on the dates presented, as well as our strategic priorities and objectives, and may not be appropriate for other purposes.

Assumptions about the level of default and losses on default were material factors we considered when establishing our expectations regarding the future performance of the transactions into which our credit protection vehicle has entered. Among the key assumptions were that the level of default and losses on default will be consistent with historical experience. Material factors that were taken into account when establishing our expectations regarding the future risk of credit losses in our credit protection vehicle and risk of loss to Bank of Montreal included industry diversification in the portfolio, initial credit quality by portfolio, the first-loss protection incorporated into the structure and the hedges into which Bank of Montreal has entered.

Assumptions about the performance of the Canadian and U.S. economies, as well as overall market conditions and their combined effect on our business, are material factors we consider when determining our strategic priorities, objectives and expectations for our business. In determining our expectations for economic growth, both broadly and in the financial services sector, we primarily consider historical economic data provided by the Canadian and U.S. governments and their agencies. See the Economic Developments and Outlook section on page 32 of BMO's 2013 annual MD&A.

Foreign Exchange

The Canadian dollar equivalents of BMO's U.S.-dollar-denominated net income, revenues, expenses, recoveries of credit losses and income taxes were increased relative to the third quarter of 2013 and the fourth quarter of 2012 by the strengthening of the U.S. dollar. The average Canadian/U.S. dollar exchange rate for the quarter, expressed in terms of the Canadian dollar cost of a U.S. dollar, increased by 5.3% from a year ago and 0.3% from the average of the third quarter. BMO may execute hedging transactions to mitigate the impact of foreign exchange rate movements on net income. The following table indicates the relevant average Canadian/U.S. dollar exchange rates and the impact of changes in the rates.

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Effects of Changes in Exchange Rates on BMO's Reported and Table 3

Adjusted Results

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Q4-2013

(Canadian $ in millions, except as noted) vs Q4-2012 vs Q3-2013

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Canadian/U.S. dollar exchange rate (average)

Current period 1.0421 1.0421

Prior period 0.9894 1.0385

Effects on reported results

Increased net interest income 38 3

Increased non-interest revenue 28 2

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Increased revenues 66 5

Increased expenses (49) (3)

Decreased provision for credit losses 1 -

Increased income taxes (2) -

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Increased net income before impact of hedges 16 2

Hedging Losses (1) (1)

Income taxes thereon - -

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Increased reported net income 15 1

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Effects on adjusted results

Increased net interest income 33 2

Increased non-interest revenues 28 2

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Increased revenues 61 4

Increased expenses (44) (3)

Decreased provision for credit losses 1 -

Increased income taxes (2) -

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Increased adjusted net income before impact of

hedges 16 1

Hedging Losses (1) (1)

Income taxes thereon - -

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Increased adjusted net income 15 -

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Adjusted results in this section are non-GAAP amounts or non-GAAP measures.

Please see the Non-GAAP Measures section.

Net Income

Q4 2013 vs Q4 2012

Net income was $1,088 million for the fourth quarter of 2013, up $6 million or 1% from a year ago. Earnings per share were $1.62, up 2% from $1.59 a year ago.

Adjusted net income was $1,102 million, down $23 million or 2% from a year ago. Adjusted earnings per share were $1.64, in line with $1.65 a year ago. Adjusted results and items excluded in determining adjusted results are disclosed in detail in the preceding Adjusted Net Income section and in the Non-GAAP Measures section, together with comments on the uses and limitations of such measures.

On an adjusted basis, there was particularly strong growth in Wealth Management, including higher securities gains, and good growth in Canadian P&C, offset by lower income in BMO Capital Markets and higher provisions for credit losses in the P&C businesses. Canadian P&C had good results, driven by strong volume growth across most products, partially offset by lower net interest margin, higher provisions for credit losses and modestly higher expenses. Wealth Management net income was up significantly, driven by a security gain and strong performance in the other wealth and insurance underlying businesses. BMO Capital Markets adjusted net income declined from strong results a year ago, primarily due to lower trading revenues reflecting market uncertainty. The prior year included strong trading revenues and a recovery of prior periods' income taxes. U.S. P&C results declined primarily due to an increase in the provision for credit losses, which were above trend in the current quarter, and lower revenue. Corporate Services adjusted results declined primarily due to lower revenues.

Q4 2013 vs Q3 2013

Net income and earnings per share decreased $49 million or 4%, and $0.06 or 4%, respectively. Adjusted net income and earnings per share decreased $34 million or 3%, and $0.04 or 2%, respectively.

The change in adjusted net income reflects higher provisions for credit losses and a modest increase in expenses that more than offset higher revenues. Canadian P&C adjusted net income decreased primarily due to higher provisions for credit losses, as revenue and expenses were relatively unchanged from the prior quarter. Wealth Management adjusted net income increased $94 million or 42%, from the third quarter. Adjusted net income in wealth businesses was up $119 million or 89% due to a security gain. Insurance results declined due to the $42 million after-tax benefit from increases in long-term rates in the prior quarter, compared with a $12 million after-tax charge in the current quarter. There were also higher benefits from changes in our investment portfolio to improve asset-liability management in the current quarter. BMO Capital Markets results reflect lower trading revenues reflecting market uncertainty, partially offset by higher recoveries of previously written-off amounts in the current quarter. U.S. P&C adjusted net income declined primarily due to higher provisions for credit losses which were above trend in the current quarter. Corporate Services adjusted results were essentially unchanged from the prior quarter.

Adjusted results in this Net Income section are non-GAAP amounts or non-GAAP measures. Please see the Non-GAAP Measures section.

Revenue

Total revenue of $4,188 million increased $12 million from the fourth quarter last year. Adjusted revenue increased $140 million or 4% to $4,060 million. Canadian P&C had good results with strong volume growth across most products partially offset by lower net interest margin. Revenue significantly increased in Wealth Management reflecting a $191 million security gain and a 12% increase in the other wealth businesses. Revenue decreased in BMO Capital Markets, as higher mergers and acquisitions and debt underwriting fees were more than offset by lower trading revenues reflecting market uncertainty associated with the tapering of quantitative easing and U.S. debt ceiling, as well as lower securities gains and equity underwriting fees. U.S. P&C revenues declined as commercial loan growth was more than offset by lower net interest margin, planned reductions in certain portfolios and lower mortgage-related non-interest revenue. Corporate Services adjusted revenues decreased due to a decline in treasury-related items and a variety of other items, none of which were individually significant. The stronger U.S. dollar increased adjusted revenue growth by $60 million, net of hedging impacts.

Revenue increased $138 million or 3% from the third quarter. Adjusted revenue increased $168 million or 4%. Canadian P&C had moderate revenue growth with increased net interest income resulting from higher balances across most products partially offset by lower net interest margin. Non-interest revenue decreased due to lower card fees. Wealth Management revenue increased significantly due to a security gain and continued strong revenue in the other wealth businesses. Insurance revenues were down as the prior quarter included a significant benefit from an increase in long-term interest rates. There were also higher benefits from changes in our portfolio to improve asset-liability management in the current quarter. BMO Capital Markets revenues decreased mainly due to lower trading revenues reflecting market uncertainty in the current quarter. U.S. P&C revenues decreased mostly due to lower mortgage-related non-interest revenue. Adjusted revenues were improved in Corporate Services due to a lower group teb offset and a variety of other items, none of which were individually significant. The stronger U.S. dollar increased adjusted revenue growth by $3 million, net of hedging impacts.

Changes in net interest income and non-interest revenue are reviewed in the sections that follow.

Adjusted amounts in this Revenue section are non-GAAP amounts or non-GAAP measures. Please see the Non-GAAP Measures section.

Net Interest Income

Net interest income decreased $60 million from a year ago to $2,085 million in the fourth quarter of 2013. Adjusted net interest income excludes amounts for the recognition of a portion of the credit mark on the M&I purchased performing loan portfolio. Adjusted net interest income increased $12 million or 1% to $1,968 million.

BMO's overall net interest margin decreased on a reported basis by 16 basis points from a year ago to 1.67%. Adjusted net interest margin decreased by 9 basis points to 1.58%. Changes are discussed in the Review of Operating Groups' Performance section.

Average earning assets in the fourth quarter of 2013 increased $29.6 billion or 6% relative to a year ago, including a $9.5 billion increase as a result of the stronger U.S. dollar. There was strong growth in Canadian P&C and Wealth Management, growth in BMO Capital Markets and U.S. P&C and a reduction in Corporate Services.

Relative to the third quarter, net interest income decreased $61 million. Adjusted net interest income decreased $25 million or 1%.

BMO's overall net interest margin decreased by 8 basis points from the third quarter, while adjusted net interest margin decreased 5 basis points.

Average earning assets increased $9 billion or 2% from the third quarter, of which $0.6 billion related to the stronger U.S. dollar. There was good growth in Canadian P&C, with moderate increases in the other operating groups and Corporate Services.

Adjusted results in this section are non-GAAP amounts or non-GAAP measures. Please see the Non-GAAP Measures section.

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Adjusted Net Interest Margin on Earning Assets (teb)(i) Table 4

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% Increase % Increase

(Decrease) (Decrease)

(In basis points) Q4-2013 Q4-2012 vs Q4-2012 Q3-2013 vs Q3-2013

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Canadian P&C 255 268 (13) 258 (3)

U.S. P&C 391 430 (39) 401 (10)

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Personal and Commercial

Banking 289 310 (21) 294 (5)

Wealth Management 292 285 7 294 (2)

BMO Capital Markets 56 55 1 69 (13)

Corporate Services,

including T&O(ii) nm nm nm nm nm

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Total BMO adjusted net

interest margin (1) 158 167 (9) 163 (5)

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Total BMO reported net

interest margin 167 183 (16) 175 (8)

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Total Canadian Retail

(reported and

adjusted)(iii) 255 267 (12) 259 (4)

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% Increase

(Decrease)

Fiscal- Fiscal- vs Fiscal-

(In basis points) 2013 2012 2012

-------------------------------------------------------

Canadian P&C 259 279 (20)

U.S. P&C 407 440 (33)

-------------------------------------------------------

Personal and Commercial

Banking 297 322 (25)

Wealth Management 291 314 (23)

BMO Capital Markets 61 61 -

Corporate Services,

including T&O(ii) nm nm nm

-------------------------------------------------------

Total BMO adjusted net

interest margin (1) 163 174 (11)

-------------------------------------------------------

-------------------------------------------------------

Total BMO reported net

interest margin 177 191 (14)

-------------------------------------------------------

Total Canadian Retail

(reported and

adjusted)(iii) 259 279 (20)

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(i) Net interest margin is disclosed and computed with reference to

average earning assets, rather than total assets. This basis provides

a more relevant measure of margins and changes in margins. Operating

group margins are stated on a taxable equivalent basis (teb) while

total BMO margin is stated on a GAAP basis.

(ii) Corporate Services adjusted net interest income is negative in all

periods and its variability affects changes in net interest margin.

(iii) Total Canadian retail margin represents the net interest margin of the

combined Canadian businesses of Canadian Personal and Commercial

Banking and Wealth Management.

(1) These are non-GAAP amounts or non-GAAP measures. Please see the Non-

GAAP Measures section.

nm - not meaningful

Non-Interest Revenue

Non-interest revenue of $2,103 million increased $72 million from the fourth quarter a year ago. Adjusted non-interest revenue increased $128 million or 6% to $2,092 million. There were higher securities gains, up $154 million including a large security gain in Wealth Management, and higher mutual fund revenues, partially offset by lower trading revenues in BMO Capital Markets. Most other types of non-interest revenue were also up, with the exception of insurance income, card fees and other. The stronger U.S. dollar increased adjusted non-interest revenue growth by $27 million, net of hedging impacts.

Relative to the third quarter, non-interest revenue increased $199 million or 10%, and adjusted non-interest revenue increased $193 million or 10%. There was an increase in securities gains, partially offset by lower trading revenues and lower insurance revenue as the prior quarter included a large benefit from favourable movements in long-term interest rates.

Adjusted results in this section are non-GAAP amounts or non-GAAP measures. Please see the Non-GAAP Measures section.

Non-Interest Expense

Non-interest expense decreased $104 million or 4% from the fourth quarter a year ago to $2,597 million. Adjusted non-interest expense increased $66 million or 3% to $2,502 million. Excluding the impact of the stronger U.S. dollar, adjusted non-interest expenses increased by a modest $22 million or 1%, primarily due to higher employee-related costs, including pension, and higher regulatory-related costs.

Relative to the third quarter, non-interest expense increased $55 million or 2%. Adjusted non-interest expense increased $44 million or 2%, primarily due to higher technology costs and higher advertising expenses. The stronger U.S. dollar increased adjusted non-interest expense growth by $3 million.

Year-over-year operating leverage on a reported basis was 4.2% and adjusted operating leverage was 0.9%. Quarter-over-quarter operating leverage on a reported basis was 1.2% and adjusted operating leverage was 2.5%.

Adjusted results in this section are non-GAAP amounts or non-GAAP measures. Please see the Non-GAAP Measures section.

Income Taxes

The provision for income taxes of $314 million increased $113 million from the fourth quarter of 2012 and increased $20 million from the third quarter of 2013. The effective tax rate for the quarter was 22.4%, compared with 15.7% a year ago and 20.6% in the third quarter.

The adjusted provision for income taxes of $316 million increased $70 million from a year ago and increased $31 million from the third quarter. The adjusted effective tax rate was 22.3% in the current quarter, compared with 17.9% a year ago and 20.1% in the third quarter of 2013. The higher adjusted effective tax rate in the current quarter relative to the fourth quarter of 2012 was primarily due to lower recoveries of prior periods' income taxes and an increased proportion of income from higher tax-rate jurisdictions. The higher adjusted effective tax rate in the current quarter relative to the third quarter was primarily due to lower tax-exempt income from securities and an increased proportion of income from higher tax-rate jurisdictions. The adjusted tax rate is computed using adjusted net income rather than net income in the determination of income subject to tax.

Adjusted results in this section are non-GAAP amounts or non-GAAP measures. Please see the Non-GAAP Measures section.

Risk Management

Our risk management practices and key measures are outlined on pages 77 to 99 of BMO's 2013 Annual MD&A.

Provisions for Credit Losses

Q4 2013 vs Q4 2012

The provision for credit losses (PCL) was $189 million, a decrease of $3 million from the prior year. Adjusted PCL was $140 million, an increase of $27 million. Adjusting items this quarter included a $49 million specific provision on the M&I purchased performing loan portfolio. There was no net change in the collective allowance during the quarter. The increase in adjusted PCL was mainly due to above trend provisions in Canadian P&C and U.S. P&C, coupled with lower recovery of credit losses on the purchased credit impaired loan portfolio in Corporate Services.

Canadian P&C provisions of $166 million increased by $20 million mainly due to one commercial account offset in part by modestly lower consumer provisions. U.S. P&C provisions of $96 million increased by $21 million, primarily due to above trend commercial provisions in the current quarter. Wealth Management provisions decreased by $10 million driven by higher than usual PCL in the fourth quarter of 2012. BMO Capital Markets recoveries increased by $13 million due to higher recoveries of previously written-off amounts. Corporate Services adjusted recoveries of credit losses decreased $9 million including lower recoveries on the purchased credit impaired loan portfolio.

Q4 2013 vs Q3 2013

The PCL increased $112 million from the prior quarter. Adjusted PCL was up $127 million from the prior quarter mainly due to above trend provisions in Canadian P&C and U.S. P&C coupled with lower recoveries of credit losses on the purchased credit impaired loan portfolio.

Canadian P&C provisions increased by $40 million primarily due to one commercial account and a modest increase in consumer provisions. U.S. P&C provisions increased by $56 million with above trend provisions in the consumer portfolios due in part to a $24 million PCL for current loans where borrowers have declared bankruptcy but continue to make payments on their loans. Commercial PCL was also above trend for the quarter. Wealth Management provisions were relatively stable quarter over quarter. BMO Capital Markets provisions decreased by $19 million due to higher recoveries of previously written-off amounts in the current quarter. Corporate Services adjusted recoveries of credit losses decreased $48 million including lower recoveries on the purchased credit impaired loan portfolio.

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Provision for Credit Losses Table 5

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(Canadian $

in millions, Fiscal- Fiscal-

except as noted) Q4-2013 Q3-2013 Q4-2012 2013 2012

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New specific provisions 455 358 506 1,638 1,860

Reversals of previously

established allowances (64) (72) (60) (267) (252)

Recoveries of loans

previously written-off (202) (229) (230) (772) (846)

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Specific provision for

credit losses 189 57 216 599 762

Increase (decrease) in

collective allowance - 20 (24) (10) 3

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Provision for credit

losses (PCL) 189 77 192 589 765

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Adjusted provision for

credit losses (1) 140 13 113 359 471

PCL as a % of average net

loans and acceptances

(annualized) (2) 0.27 0.11 0.31 0.22 0.31

PCL as a % of average net

loans and acceptances

excluding purchased

portfolios (annualized)

(2) (3) 0.37 0.30 0.39 0.32 0.42

Specific PCL as a % of

average net loans and

acceptances (annualized)

(2) 0.27 0.08 0.34 0.23 0.31

Adjusted specific PCL as a

% of average net loans

and acceptances

(annualized) (1) (2) 0.22 0.02 0.20 0.14 0.21

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(1) Adjusted provision for credit losses excludes provisions related to

the M&I purchased performing loan portfolio and changes in the

collective allowance.

(2) Certain ratios for 2012 were restated in the first quarter of 2013 to

conform to the reclassified balance sheet presentation.

(3) Ratio is presented excluding purchased portfolios, to provide for

better historical comparisons.

This table contains adjusted results and measures, which are Non-GAAP.

Please see the Non-GAAP Measures section.

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Provision for Credit Losses by Operating Group (1) Table 6

----------------------------------------------------------------------------

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(Canadian $

in millions, Fiscal- Fiscal-

except as noted) Q4-2013 Q3-2013 Q4-2012 2013 2012

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Canadian P&C 166 126 146 574 615

U.S. P&C 96 40 75 223 274

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Personal and Commercial

Banking 262 166 221 797 889

Wealth Management 1 (1) 11 3 22

BMO Capital Markets (17) 2 (4) (36) 6

Corporate Services,

including T&O

Impaired real estate

loan portfolio (14) (26) 1 (43) 19

Interest on impaired

loans 12 12 16 48 44

Purchased credit

impaired loans (104) (140) (132) (410) (509)

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Adjusted provision for

credit losses 140 13 113 359 471

Specific provisions on

purchased performing

loans (2) 49 44 103 240 291

Change in collective

allowance - 20 (24) (10) 3

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Provision for credit

losses 189 77 192 589 765

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(1) Effective Q1-2013, provisions in the operating groups are reported on

an actual loss basis and interest on impaired loans is allocated to

the operating groups. Prior periods have been restated accordingly.

(2) Provisions for th