TORONTO,ONTARIO--(Marketwire-May23,2012)MeantimeWire-BMOFinancialGroup(TSX:BMO)(NYSE:BMO)andBMOBankofMontreal-

SecondQuarter2012ReporttoShareholders

BMOFinancialGroupReportsAnotherQuarterofStrongResults,IncreasingNetIncomeby27%YearOverYearto$1.03Billion

FinancialResultsHighlights(1):

SecondQuarter2012ComparedwithSecondQuarter2011:

--Netincomeof$1,028million,up$215millionor27%

--Adjustednetincome(2)of$982million,up$212millionor28%

--ReportedEPS(3)of$1.51,up14%

--AdjustedEPS(2,3)of$1.44,up15%

--ReportedROEof16.2%,comparedwith17.5%

--AdjustedROE(2)of15.4%,comparedwith16.6%

--Provisionsforcreditlossesof$195million,down$102million

--CommonEquityRatioremainsstrongat9.90%,usingaBaselIIapproach

Year-to-Date2012ComparedwithYear-to-Date2011:

--Netincomeof$2,137million,up$499millionor31%

--Adjustednetincome(2)of$1,954million,up$367millionor23%

--ReportedEPS(3)of$3.14,up18%

--AdjustedEPS(2,3)of$2.86,up11%

--Provisionsforcreditlossesof$336million,down$284million

ForthesecondquarterendedApril30,2012,BMOFinancialGroup(TSX:BMO)(NYSE:BMO)reportedstrongnetincomeof$1,028millionor$1.51

pershare.Onanadjustedbasis,netincomewas$982millionor$1.44pershare.

"BMOproducedstrongfinancialresultsagaininthesecondquarter,"saidBillDowne,PresidentandChiefExecutiveOfficer,BMOFinancialGroup.

"Theconsistentfocuswehaveoncustomersandtheirsuccessisunderpinnedbyastrong,consistentbrandandisgroundedinthebeliefthatarelationship

bankisrelevanttohouseholdsandcompanies,astheymanagetheirfinancesandimprovetheirfinancialposition.Simplystated,theimportanceweplace

ongivingourcustomersincreasedconfidencehashelpeduscarveoutadistinctpositioninthemarketplace-andisthekeytoacceleratingprofitable

growth.

"InP&CCanada,oursaleseffortsaredrivinghighervolumesacrossmostproductsandhigherfeerevenues.Wecontinuetobenefitfromadeeperunders

tandingofcustomers'evolvingneeds.Inanticipationofmarketconditions,weactedtointroduceoffersthatwebelievearemoresuitableforallcustomers-

andwearehelpingtomovethemarketasaconsequence,toabetterplace.

"TheintegrationofourU.S.bankingplatformisontrack.Thebusinesshasbeenmateriallystrengthenedwithexpandedaccesstoexistingandnewregions,

increasedbrandawarenessandabetterabilitytocompeteinhighlyattractivemarkets.Thecommercialteamcontinuestooutperform,andthere'svisible,strong

growthinourcommercialandindustrialbook.

"BMOCapitalMarketsdeliveredgoodperformancewithhigherrevenueandnetincomethanlastquarter.Obviously,marketuncertaintypersists,butour

diversifiedportfolioofbusinessesandbroadclientbasepositionuswelltotakeadvantageofrevenueopportunities.

"PrivateClientGroup'snetincomewasupsharply-itsbestfinancialperformanceintwoyears.Theresultswerestrongandwecontinuetogrow.Weentered

intotwodefinitiveagreementstoacquirebusinessesthatfurtherenhanceourwealthmanagementcapabilitiesandexpandourgeographicreach.Earlierthis

month,weopenedarepresentativeofficeintheGulfCooperationCouncilstatestogetclosertoclientswehavebeendealingwithfordecades-andraisethe

visibilityofourglobalassetmanagementcapability.

"Ourbusinessesdeliveredstrongperformanceinahighlycompetitiveenvironment.Lastfall,weembarkedonasignificantlong-termplantofurtherincrease

thecompetitivenessofthebankandenhanceourreturnonequity;theworkiswellunderway,andwe'resimplifyingstructuresandprocesses.Ultimately,

theBMObrandandthemessageitcarriesisourbestresourceinbuildingthebusiness-andit'salsoourbestprotectionagainstuncertainty.Therecanbeno

elementmoreimportantinmanagingthecomplexityofregulatorychangethanourestablishedcommitmenttomakingmoneymakesense,"concluded

Mr.Downe.

Concurrentwiththereleaseofresults,BMOannouncedathirdquarterdividendof$0.70percommonshare,unchangedfromtheprecedingquarterand

equivalenttoanannualdividendof$2.80percommonshare.

(1)Effectivethefirstquarterof2012,BMO'sconsolidatedfinancialstatementsandtheaccompanyingInterimManagement'sDiscussionandAnalysis(MD&A)

arepreparedinaccordancewithInternationalFinancialReportingStandards(IFRS),asdescribedinNote1totheunauditedinterimconsolidatedfinancialstatements.

Amountsinrespectofcomparativeperiodsfor2011havebeenrestatedtoconformtothecurrentpresentation.ReferencestoGAAPmeanIFRS,unlessindicated

otherwise.

(2)ResultsandmeasuresinthisdocumentarepresentedonaGAAPbasis.Theyarealsopresentedonanadjustedbasisthatexcludestheimpactofcertain

items.Itemsexcludedfromsecondquarter2012resultsinthedeterminationofadjustedresultstotallednetincomeof$46millionaftertax,comprisedofa$55million

after-taxnetbenefitofcredit-relateditemsinrespectoftheacquiredMarshall&IlsleyCorporation(M&I)performingloanportfolio;costsof$74million($47million

aftertax)fortheintegrationoftheacquiredbusiness;a$33million($24millionaftertax)chargeforamortizationofacquisition-relatedintangibleassetsonallac

quisitions;thebenefitofrun-offstructuredcreditactivitiesof$76million($73millionaftertax);restructuringchargesof$31million($23millionaftertax)toalignour

coststructurewiththecurrentandfuturebusinessenvironment;andadecreaseinthecollectiveallowanceforcreditlossesof$18million($12millionaftertax).

Itemsexcludedfromtheyear-to-dateadjustedresultstotallednetincomeof$183millionaftertaxandconsistedofa$169millionafter-taxnetbenefitofcredit-

relateditemsinrespectoftheacquiredM&Iperformingloanportfolio;a$144million($90millionaftertax)chargefortheintegrationoftheacquiredbusiness;

a$67million($48millionaftertax)chargeforamortizationofacquisition-relatedintangibleassets;thebenefitofrun-offstructuredcreditactivitiesof$212

million($209millionaftertax);restructuringchargesof$99million($69millionaftertax)toalignourcoststructurewiththecurrentandfuturebusinessenvironment;

andadecreaseinthecollectiveallowanceforcreditlossesof$18million($12millionaftertax).AlloftheadjustingitemsarereflectedinresultsofCorporate

Servicesexceptfortheamortizationofacquisition-relatedintangibleassets,whichischargedacrosstheoperatinggroups.Managementassessesperformance

onbothaGAAPbasisandadjustedbasisandconsidersbothbasestobeusefulinassessingunderlying,ongoingbusinessperformance.Presentingresults

onbothbasesprovidesreaderswithanenhancedunderstandingofhowmanagementviewsresultsandmayenhancereaders'analysisofperformance.Adjusted

resultsandmeasuresarenon-GAAPandaredetailedintheAdjustedNetIncomesection,and(forallreportedperiods)intheNon-GAAPMeasuressection

oftheMD&A,wheresuchnon-GAAPmeasuresandtheirclosestGAAPcounterpartsaredisclosed.

(3)AllEarningsperShare(EPS)measuresinthisdocumentrefertodilutedEPSunlessspecifiedotherwise.Earningspershareiscalculatedusingnet

incomeafterdeductionsfornetincomeattributabletonon-controllinginterestinsubsidiariesandpreferredsharedividends.

OperatingSegmentOverview

P&CCanada

Netincomewas$446million,up$32millionor7.8%fromayearago.Resultsreflecthigherrevenuesfromincreasedvolumeacrossmostproductsandinc

reasedfeerevenue,partiallyoffsetbylowernetinterestmargins.Expenseswerebasicallyunchanged,reflectingcostmanagementdiscipline,resulting

inpositiveoperatingleverageof2.3%.

Netincomewasconsistentwiththefirstquarter,despitefewerdaysinthecurrentperiod.

Asweremainfocusedonmakingmoneymakesenseforourcustomers,weareseeingourinnovativeproductsandenhancedmultichannelcapabilities

makeadifference.Weareseeingfurtherincreasesintheaveragenumberofproductcategoriesusedbybothpersonalandcommercialcustomersandcusto

merloyalty,asmeasuredbynetpromoterscore,continuestoimproveinbothourpersonalandcommercialbusinesses.Throughthefirsthalfof2012,we

strengthenedourbranchnetwork,openingorupgrading17locationsacrossthecountryandadding200CashAutomatedBankingMachines(ABMs).Werecently

announcedplanstoaddmorethan800ABMsoverallacrossCanadabytheendof2014,whichwillincreaseournetworktoalmost3,000machines.

Inpersonalbanking,ourawardwinningmortgageproductishelpingnewandexistingcustomersbecomemortgagefreefasterwhileimprovingretention

andformingthefoundationfornewandexpandedlong-termrelationships.Fortwoyearsnow,wehavebeenactivelypromotingfixedrateproductswithshorter

amortizationperiods.Withtheseproducts,Canadianscanpaylessinterest,becomemortgagefreefaster,protectthemselvesagainstrisingratesandpotentially

retiredebtfree.

Incommercialbanking,wecontinuedtorank#2inCanadianbusinessbankingloanmarketshare.OurOpenforBusinesscampaignisunderwayandweare

making$10billionavailabletoCanadianbusinessesoverthecourseofthenextthreeyearstohelpthemboostproductivityandexpandintonewmarkets.We

sawfurthergrowthinsalesofourcashmanagementsolutionsduetoourstrongOnlineBankingforBusinesscapability,combinedwithourgrowingcashman

agementsalesforce.OurgoalistobecomethebankofchoiceforbusinessesacrossCanadabyprovidingtheknowledge,adviceandguidancethatour

customersvalue.

P&CU.S.(allamountsinUS$)

Netincomeof$122millionincreased$68millionfrom$54millioninthesecondquarterayearago.Adjustednetincomewas$137million,up$78

millionfromayearagoasaresultoftheacquisitionofMarshall&IlsleyCorporation.

Adjustednetincomedecreased$15millionfromthefirstquarterprimarilyduetoreductionsinnetinterestincomerelatedtolowerloanspreads.

Commercialloans,excludingthecommercialrealestateandrun-offportfolios,haveseentwosequentialquartersofgrowth.

Averagedepositsincreased$0.8billionfromthepriorquarter,duetocontinueddepositgrowthinourcommercialbusiness.

Duringthequarter,wecelebratedtheopeningofthefirstbranchbuiltundertheBMOHarrisBankbrand.Throughthetransparencyandopennessofits

design,thebranchlayoutsupportsourcommitmenttobethebankthatdefinesagreatcustomerexperiencebymakingiteasierforemployeestofocusonthe

customer.Thebranchismorethanjustaplacetoconductfinancialtransactions;itisadestinationforcomprehensivefinancialeducation,planningandguidance.

OurCommercialBankteamrecentlylaunchedanewinitiativethatdemonstratesourcommitmenttomarketleadership.TheThoughtLeadershipinitiative

deliverstoourcustomersandprospectsvaluableinsightsandinformationfromourindustryandfinancialexperts.ThesetoolsareavailableontheResource

CenterontheBMOHarrisCommercialBankwebsite,whichincludesfrequentlyupdatedblogs,newsletters,whitepapers,webinarsandclientsuccessstories.In

addition,we'vepartneredwiththeWallStreetJournaltocreate"BossTalk,"aweeklyeditorialsegmentwhereglobalbusinessleadersdiscusstheirpointsofview

onbusinessandindustrychallengesandopportunities.We'vealsopartneredwithForbestoproducetwocustomresearchstudiesthatwilldiveintoissues

thataffectmid-marketbusinesses.

Duringthequarter,weofficiallykickedoffphasetwoofourrebrandingefforts,duringwhichwewillrebrandallremaininglegacyM&IandHarrisBank

locationsundertheBMOHarrisBankbanneruponsystemsconversion.Themomentumandlessonslearnedfromphaseoneareservingasastrongfoundation

forourwork.

PrivateClientGroup

Netincomewas$145million,up$54millionor59%fromayearago.Adjustednetincomewas$150million,up$57millionor62%fromayearago.Adjusted

netincomeinPCGexcludinginsurancewas$98million,up$5millionfromayearago.Resultsbenefitedfromacquisitionsandhigherspread-basedandfee-

basedrevenue,partlyoffsetbylowertransactionvolumesinbrokerage.Adjustednetincomeininsurancewas$52million.Prioryearinsuranceresultswere

negativelyaffectedbythe$47millionimpactofunusuallyhighearthquake-relatedreinsuranceclaims.Comparedtothefirstquarter,adjustednetincome

wasup$40millionor37%,asthepriorquarterwasnegativelyimpactedbyunfavourablemovementsinlong-terminterestrates.

Assetsundermanagementandadministrationgrewby$159billionfromayearagoto$445billionprimarilyduetoacquisitions.Comparedtothefirstquarter,

assetsundermanagementandadministrationincreased2.4%.Wecontinuetoattractnewclientassetsandarebenefitingfromimprovedequitymarketconditions.