BMO Financial Group Delivers Very Good First Quarter Results

    

    First Quarter 2010 Report to Shareholders
    -------------------------------------------------------------------------
    BMO Financial Group Delivers Very Good First Quarter Results

    Demonstrates Continued Success in Execution of Strategy to Deliver an
    Excellent Customer Experience

    Strong Net Income with 4th Consecutive Quarter of Higher Revenues, and a
    Continuing Commitment to Expense Control in all Operating Groups

    Personal and Commercial Banking Canada Continues to Achieve High
    Year-over-Year Growth in Revenue and Net Income

    Tier 1 Capital Ratio Remains Strong, at 12.53%
    -------------------------------------------------------------------------

    Financial Results Highlights:

    -   Net income of $657 million, up $432 million from a year ago

    -   EPS(1) of $1.12 and cash EPS(2) of $1.13, both up $0.73 from a year
        ago

    -   Revenue exceeds $3 billion with stable expenses relative to a year
        ago

    -   Provisions for credit losses of $333 million, down $95 million from a
        year ago
    

TORONTO, March 2 /CNW/ - For the first quarter ended January 31, 2010, BMO Financial Group reported net income of $657 million or $1.12 per share. Canadian personal and commercial banking had a strong quarter, with net income of $403 million, up $88 million or 28% from a year ago. Private Client Group net income was also strong, at $113 million, up $45 million or 68% from a year ago.

Today, BMO announced a second quarter dividend of $0.70 per common share, unchanged from the preceding quarter and equivalent to an annual dividend of $2.80 per common share.

"This quarter's strong performance demonstrates the earnings power of our core businesses and reinforces the confidence we have in our strategy," said Bill Downe, President and Chief Executive Officer, BMO Financial Group. "Underpinning this performance is an unwavering commitment to our customers, which runs through every part of the company.

"P&C Canada continues to set the pace for the company. It had another strong quarter, with $403 million in net income, up 28% from a year ago. We have continued to make investments to improve the customer experience and our competitive position, while prudently managing expense growth. Revenue increased 12%, driven by volume growth across most products and improved net interest margin.

"We fully support the prudent measures announced by the Canadian Finance Minister two weeks ago to support the long-term stability of Canada's housing market and curtail any speculative excesses in mortgage borrowing. BMO continues to offer advice and develop new products that align with the government's policy of supporting the long-term stability of a sector that is vital to our economy and the financial well-being of Canadian families. It's just one more way we are making money make sense for our customers.

"BMO Capital Markets results were good, with $248 million in net income. While up sharply from a year ago, results were lower than in recent quarters, which benefited from a favourable trading environment. BMO Capital Markets has achieved ROE of at least 18% for three consecutive quarters. We are committed to high-quality earnings over the course of the business cycle and believe that steady improvement in the North American economy should lead to more favourable capital markets opportunities, particularly in investment banking.

"Private Client Group results were up strongly from a year ago due to improved equity markets, higher asset levels, higher insurance revenues and the effects of last year's charges related to our decision to support clients in the difficult market environment. Net income was $113 million, up $45 million or 68% from a year ago. Cash productivity continues to improve. It was 72.0%, better than 82.0% a year ago and 74.0% in the preceding quarter.

"In the United States, we are seeing the beginning of a recovery in the Midwest market and expect that companies will be rebuilding their capital and inventories. We have launched a strategy to take advantage of this unique opportunity at a time when many of our competitors are distracted and as we continue to build momentum in our commercial business. We have undertaken an analysis of the needs of our BMO Capital Markets borrowing clients to identify those that can be better served under a commercial banking model. We will be shifting those accounts from BMO Capital Markets to our P&C U.S. business to better align our people and capital with client needs. This will allow us to serve a much larger client base, at lower cost and more efficiently, while increasing our size and momentum in commercial banking in the United States. This will also focus the efforts of BMO Capital Markets on building its pipeline of investment banking opportunities. To put this initiative into perspective, the transfer more than doubles the size of the P&C U.S. commercial loan portfolio. The changes will help build on recent momentum in our P&C U.S. business which has seen deposit growth and stronger commercial mid-market, mortgage and auto loan originations.

"In summary, BMO's financial position is very strong, providing significant flexibility to attract new customers and invest for the future. We plan to continue to innovate and provide new products and services that customers want, creating lasting value for both customers and shareholders."

    
    (1) All Earnings per Share (EPS) measures in this document refer to
        diluted EPS unless specified otherwise.
    (2) The adjustments that change results under generally accepted
        accounting principles (GAAP) to cash results are outlined in the
        Non-GAAP Measures section at the end of Management's Discussion and
        Analysis (MD&A), where such non-GAAP measures and their closest GAAP
        counterparts are outlined.
    

Operating Segment Overview

P&C Canada

Net income was a strong $403 million, up $88 million or 28% from a year ago. We had good revenue increases across each of our personal, commercial and cards businesses, driven by volume growth across most products and improved net interest margin. There was particularly strong growth in personal and commercial deposits. Good revenue growth together with effective management of operating expenses, while investing for the future, has resulted in strong cash operating leverage of 11.1%.

Our goal is to be the bank that defines great customer experience, and our customers are telling us we are on the right track. We have narrowed the gap to the industry leader on both personal and commercial loyalty scores relative to a year ago. We have seen year-over-year increases in the average number of product categories used by both our personal and commercial customers. This is the result of our commitment to listen, understand and provide guidance to our customers.

In personal banking, we continue to focus on expanding and upgrading our branch network in priority markets, and on driving revenue growth and customer loyalty through effective use of our robust performance management system. In the current quarter, we opened three new branches, redeveloped three and closed one.

In commercial banking, we launched BMO Business Essentials and BMO SmartSteps for Business. These offers provide our business customers with solutions designed for their particular industry, aimed at their specific business needs. We continue to rank second in Canadian business lending market share and our goal is to become the bank of choice for businesses across Canada. In addition, we continue to leverage our integrated customer offer in driving success in our upper mid-market commercial business.

In the cards business, we are one of the largest MasterCard issuers in Canada. We are growing our cards business with prudent credit management and have had low credit loss rates relative to our peers.

On December 31, 2009, we completed the acquisition of the Diners Club North American franchise from Citigroup. Diners Club is recognized around the world as a premier card program for employee Travel & Entertainment expense cards. The North American franchise also benefits from worldwide MasterCard acceptance. The acquisition positions BMO among the top commercial card issuers in North America. It also allows BMO to partner with other Diners Club franchisees around the world to deliver a premier global Travel & Entertainment offering to its multinational clients, making us a compelling choice for prospective commercial customers across North America.

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

Net income was $16 million, down $12 million or 43% from a year ago. Revenues from improved loan spreads were more than offset by decreased deposit spreads, an increase in the impact of impaired loans year over year, and the first quarter 2009 reduction of the Visa litigation accrual.

Cash net income for the quarter was $35 million, adjusting for the impact of impaired loans. The cash productivity ratio for the quarter was 72.1%, adjusted on the same basis.

Our focus in 2010 is on profitable growth in both loans and deposits while maintaining effective expense control. We have seen deposit growth of $1.0 billion or 5.2% from last year, concentrated in our commercial accounts. Mortgage and auto loan originations remain strong, with an increase of more than 80% from last year in both businesses, reflecting our targeted focus on these opportunities. Our loss rates and delinquencies on consumer loans remain well below those of our peers.

We continue to focus on the customer experience as reflected in our high customer loyalty scores. Our retail net promoter score was 40 for the first quarter of 2010, compared with 43 in the fourth quarter of 2009. Our retail net promoter score remains very strong compared to the scores of our major competitors.

The 2009 Greenwich Excellence Award winners were recently announced, and our commercial banking team was recognized as a multiple award winner. More than 750 banks were evaluated, based on interviews with more than 13,000 customers. As a result, 33 banks were recognized for distinctive quality in mid-market banking, and 43 were recognized for distinctive quality in small business banking. Our commercial mid-market segment was recognized for overall satisfaction excellence on both a national and regional level. Our small business segment was recognized for excellence in financial stability and relationship manager performance on a national level. Harris treasury management was recognized for excellence in overall satisfaction on a regional level.

Private Client Group (PCG)

Net income in the first quarter was $113 million, an increase of $45 million or 68% from the same quarter a year ago. The BMO Life Assurance acquisition increased net income by $7 million.

PCG net income, excluding the insurance business, was $70 million, up $34 million or 93% from a year ago. Revenue for PCG, excluding insurance, grew by 11% due to the success of our focus on attracting new client assets and continued improvement in equity markets. Results a year ago included a charge of $17 million ($11 million after tax) related to the decision to assist some of our U.S. clients by purchasing auction-rate securities from their accounts in the weak capital markets environment.

Insurance net income was $43 million for the quarter, up $11 million or 38% from a year ago due to the BMO Life Assurance acquisition and organic growth. Assets under management and administration improved by $40 billion or 18%, after adjusting to exclude the impact of the weaker U.S. dollar.

For the fourth year in a row, BMO Mutual Funds was ranked highest for its English and French language services in Dalbar Inc.'s annual ranking of Canadian mutual fund companies. BMO InvestorLine placed second in Dalbar's direct brokerages ranking.

PCG launched nine new BMO Exchange Traded Funds (ETFs), including three fixed income funds, as well as country- and industry-specific funds that provide exposure to areas and sectors such as China, India, utilities, junior gold companies and global infrastructure. This significant expansion into the ETF market brings our product line to 22 ETFs. The expansion further demonstrates BMO's commitment to this growing industry and to providing investors with a full range of investment options.

BMO Capital Markets

BMO Capital Markets results for the quarter reflect a good start to the year. Net income was $248 million, up $71 million or 40% from a year ago. Revenue increased by $193 million to $920 million. Our strong revenue performance benefited from our continued focus on clients and maintaining a diversified portfolio of businesses. Mergers and acquisitions and debt underwriting activities rebounded due to improved market conditions. Investment securities gains were positive this year whereas the prior year included significant charges related to the weaker capital markets environment. Improved lending fees were offset by lower corporate banking net interest income due to reduced asset levels. Trading revenues were strong in the first quarter of 2009 due to a favourable trading environment, but overall trading results were lowered by certain charges related to the capital markets environment. In the first quarter of 2010, trading revenues were at more normal levels, due to reduced opportunities from lower market volatility and narrower spreads.

In the previous quarter, we announced our agreement with Paloma Securities to hire its global securities lending team. The integration began in December 2009 and complements our existing North American securities lending operations, providing a platform for future growth opportunities.

During the quarter, BMO Capital Markets was involved in 130 new issues, including 40 corporate debt and 36 government debt deals, six issues of preferred shares and 48 common equity transactions, raising $53.7 billion, up $7.9 billion from the previous quarter.

Corporate Services

Corporate Services incurred a net loss in the quarter of $124 million, largely due to provisions for credit losses and low revenue. The net loss improved $245 million from the prior year. Revenues improved $212 million or 65%, mainly due to a lower negative carry on certain asset-liability interest rate positions as a result of management actions and more stable market conditions, and to mark-to-market gains on hedging activities in the current year compared to losses in the prior year. These factors were partly offset by lower securitization revenue. Provisions for credit losses were better by $158 million as a result of lower provisions charged to Corporate Services. BMO employs a methodology for segmented reporting purposes whereby expected credit losses are charged to the client operating groups, and the difference between expected losses and actual losses is charged (or credited) to Corporate Services.

Caution

The foregoing sections contain forward-looking statements. Please see the Caution Regarding Forward-Looking Statements.

    
                    Management's Discussion and Analysis
    

MD&A commentary is as of March 2, 2010. Unless otherwise indicated, all amounts are in Canadian dollars and have been derived from financial statements prepared in accordance with Canadian generally accepted accounting principles (GAAP). The MD&A should be read in conjunction with the unaudited consolidated financial statements for the period ended January 31, 2010, included in this document, and the annual MD&A for the year ended October 31, 2009, included in BMO's 2009 Annual Report. The material that precedes this section comprises part of this MD&A.

    
    -------------------------------------------------------------------------
    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.
    -------------------------------------------------------------------------
    

Summary Data

    
    (Unaudited) (Canadian $                     Increase            Increase
     in millions, except                       (Decrease)          (Decrease)
     as noted)               Q1-2010         vs. Q1-2009         vs. Q4-2009
    -------------------------------------------------------------------------
    Net interest income        1,532       205       15%        90        6%
    Non-interest revenue       1,493       378       34%       (54)      (3%)
    -------------------------------------------------------------------------
    Revenue                    3,025       583       24%        36        1%
    Specific provision for
     credit losses               333       (95)     (22%)      (53)     (14%)
    Increase in the general
     allowance                     -         -         -         -         -
    -------------------------------------------------------------------------
    Total provision for
     credit losses               333       (95)     (22%)      (53)     (14%)
    Non-interest expense       1,839        (2)        -        60        3%
    Provision for
     income taxes                177       248     +100%        19       12%
    Non-controlling interest
     in subsidiaries              19         -         -         -         -
    -------------------------------------------------------------------------
    Net income                   657       432     +100%        10        1%

    Amortization of
     acquisition-related
     intangible assets
     (after tax)(1)                7        (1)     (16%)       (1)     (13%)
    Cash net income(2)           664       431     +100%         9        1%
    Earnings per share -
     basic ($)                  1.12      0.73     +100%         -         -
    Earnings per share -
     diluted ($)                1.12      0.73     +100%      0.01        1%
    Cash earnings per
     share - diluted ($)(2)     1.13      0.73     +100%         -         -
    Return on equity (ROE)     14.3%                9.4%                0.3%
    Cash ROE(2)                14.4%                9.2%                0.2%
    Productivity ratio         60.8%              (14.6%)               1.3%
    Cash productivity
     ratio(2)                  60.5%              (14.5%)               1.3%
    Operating leverage         24.0%                  nm                  nm
    Cash operating
     leverage(2)               23.9%                  nm                  nm
    Net interest margin on
     earning assets            1.85%               0.34%               0.12%
    Effective tax rate         20.8%               61.8%                1.6%

    Capital Ratios:
      Tier 1 Capital Ratio    12.53%               2.32%               0.29%
      Total Capital Ratio     14.82%               1.95%              (0.05%)

    Net income:
    Personal and Commercial
     Banking                     420        71       20%        (1)        -
      P&C Canada                 403        88       28%         5        1%
      P&C U.S.                    17       (17)     (51%)       (6)     (27%)
    Private Client Group         113        45       68%         7        8%
    BMO Capital Markets          248        71       40%       (40)     (14%)
    Corporate Services,
     including Technology
     and Operations (T&O)       (124)      245       66%        44       25%
    -------------------------------------------------------------------------

    BMO Financial Group
     Net Income                  657       432     +100%        10        1%
    -------------------------------------------------------------------------
    -------------------------------------------------------------------------
    (1) The amortization of non-acquisition-related intangible assets is not
        added back in the determination of cash net income.
    (2) These are non-GAAP amounts or non-GAAP measures. Please see the
        Non-GAAP Measures section at the end of the MD&A, which outlines the
        use of non-GAAP measures in this document.

    nm - not meaningful.

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

Management's Responsibility for Financial Information

BMO's CEO and CFO have signed certifications relating to the appropriateness of the financial disclosures in our interim MD&A and unaudited interim consolidated financial statements for the period ended January 31, 2010 and relating to the design of our disclosure controls and procedures and internal control over financial reporting.

BMO's internal control over financial reporting includes policies and procedures that: pertain to the maintenance of records that in reasonable detail accurately and fairly reflect the transactions and dispositions of the assets of BMO; provide reasonable assurance that transactions are recorded as necessary to permit preparation of the financial statements in accordance with Canadian generally accepted accounting principles and the requirements of the Securities and Exchange Commission in the United States, as applicable; ensure receipts and expenditures of BMO are being made only in accordance with authorizations of management and directors of BMO; and provide reasonable assurance regarding prevention or timely detection of unauthorized acquisition, use or disposition of BMO's assets that could have a material effect on the financial statements.

Because of its inherent limitations, internal control over financial reporting can provide only reasonable assurance and may not prevent or detect misstatements. Further, projections of any evaluation of effectiveness to future periods are subject to the risk that controls may become inadequate because of changes in conditions, or that the degree of compliance with the policies or procedures may deteriorate.

There were no changes in our internal control over financial reporting during the quarter ended January 31, 2010 that materially affected, or are reasonably likely to materially affect, our internal control over financial reporting.

As in prior quarters, BMO's audit committee reviewed this document, including the unaudited interim consolidated financial statements, and BMO's Board of Directors approved the document prior to its release.

A comprehensive discussion of our businesses, strategies and objectives can be found in Management's Discussion and Analysis in BMO's 2009 Annual Report, which 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.

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

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 harbour 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 2010 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 and U.S. 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; interest rate and currency value fluctuations; changes in monetary policy; the degree of competition in the geographic and business areas in which we operate; changes in laws; 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; operational and infrastructure risks; general political conditions; global capital market activities; the possible effects on our business of war or terrorist activities; disease or illness that impacts on local, national or international economies; disruptions to public infrastructure, such as transportation, communications, power or water supply; and technological changes.

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 32 and 33 of BMO's 2009 Annual Report, which outlines in detail certain key factors that may affect BMO'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 statement, 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 and our strategic priorities and objectives, and may not be appropriate for other purposes.

Assumptions about the performance of the Canadian and U.S. economies as well as overall market conditions and their combined effect on the bank's business, including those described under the heading Economic Outlook and Review, 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.

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

Regulatory Filings

Our continuous disclosure materials, including our interim filings, annual MD&A and audited consolidated financial statements, our Annual Information Form and the 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.

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

Economic Outlook and Review

Canada's economy continues to emerge from recession, supported by record-low interest rates and expansive fiscal policy. Consumer spending has trended moderately higher, with auto sales returning to normal levels. Housing sales and prices have reached record highs in response to low mortgage rates and improved labour markets. In mid-February, Canada's Finance Minister announced measures intended to improve the sustainability of strength in housing markets and curtail any speculative excesses in mortgage borrowings. Business investment is starting to pick up in response to firmer commodity prices and improved confidence, though demand for business credit remains weak. Supported by continued low interest rates, the economy is expected to grow moderately in 2010, though the high Canadian dollar and weak U.S. demand will likely restrain exports. Strengthening domestic demand should support growth in personal credit and residential mortgages. The unemployment rate will likely decline moderately this year. The Bank of Canada is expected to begin tightening monetary policy in the summer, which, along with firmer commodity prices, could lift the Canadian dollar to parity with the U.S. dollar.

As a result of expansionary monetary and fiscal policies, the U.S. economy continues to recover from its worst downturn in seven decades. Housing markets have stabilized in response to record-low mortgage rates and tax incentives. Consumer spending and business investment have increased modestly, while exports continue to strengthen in response to the weak U.S. dollar and firmer global demand. The economy is expected to grow moderately in 2010, but will be restrained by high household debt, ongoing foreclosures and continued weakness in commercial real estate markets. Consumer and business loan demand are expected to improve over the balance of the year but to remain weak. The unemployment rate is projected to remain high in 2010, encouraging the Federal Reserve to maintain overnight rates near zero until the fall. Certain capital markets activities should continue to strengthen as credit markets and the economy improve further.

This Economic Outlook section contains forward-looking statements. Please see the Caution Regarding Forward-Looking Statements.

Foreign Exchange

The Canadian dollar equivalents of BMO's U.S.-dollar-denominated net income, revenues, expenses, provisions for credit losses and income taxes were decreased relative to the first and fourth quarters of 2009 by the weakening of the U.S. dollar. The average Canadian/U.S. dollar exchange rate, expressed in terms of the Canadian dollar cost of a U.S. dollar, fell by 14% from a year ago and by 2% from the average of the fourth quarter of 2009. The following table indicates the relevant average Canadian/U.S. dollar exchange rates and the impact of changes in the rates.

Effects of U.S. Dollar Exchange Rate Fluctuations on BMO's Results

    
                                                                Q1-2010
                                                                vs.       vs.
    (Canadian $ in millions, except as noted)              Q1-2009   Q4-2009
    -------------------------------------------------------------------------
    Canadian/U.S. dollar exchange rate (average)
      Current period                                        1.0587    1.0587
      Prior period                                          1.2271    1.0827
    Increased (decreased) revenue                             (128)      (18)
    Decreased (Increased) expense                               70        10
    Decreased (Increased) provision for credit losses           31         4
    Decreased (increased) income taxes                          14         2
    -------------------------------------------------------------------------
    Increased (decreased) net income                           (13)       (2)
    -------------------------------------------------------------------------
    -------------------------------------------------------------------------
    

At the start of each quarter, BMO assesses whether to enter into hedging transactions that are expected to partially offset the pre-tax effects of exchange rate fluctuations in the quarter on our expected U.S.-dollar-denominated net income for that quarter. As such, the hedging activities partially mitigate the impact of exchange rate fluctuations within a single quarter; however, the hedging transactions are not designed to offset the impact of year-over-year or quarter-over-quarter fluctuations in exchange rates. Over the course of the current quarter, the U.S. dollar weakened slightly, as the exchange rate decreased from Cdn$1.0819 per U.S. dollar at October 31, 2009 to an average of Cdn$1.0587. As a result, hedging transactions resulted in an after-tax gain of $1 million in the quarter. The gain or loss from hedging transactions in future periods will be determined by both future currency fluctuations and the amount of underlying future hedging transactions, since the transactions are entered into each quarter in relation to expected U.S.-dollar-denominated net income for the next three months.

The effect of currency fluctuations on our investments in foreign operations is discussed in the Income Taxes section.

Other Value Measures

Net economic profit was $171 million (see the Non-GAAP Measures section), compared with $159 million in the fourth quarter and negative $219 million in the first quarter of 2009.

BMO's average annual total shareholder return for the five-year period ended January 31, 2010 was 3.5%.

Net Income

Q1 2010 vs Q1 2009

Net income was $657 million for the first quarter of 2010, up $432 million from a year ago. Earnings per share were $1.12, compared with $0.39. Results a year ago included $169 million after tax ($0.32 per share) for a charge related to a Canadian credit protection vehicle, as set out in the Notable Items section that follows at the end of this MD&A.

Provisions for credit losses were $95 million lower as the U.S. credit environment was weaker a year ago.

P&C Canada net income increased a strong $88 million or 28%. Earnings increased in each of the personal, commercial and cards segments and there were improved volumes across most businesses with increased net interest margin.

P&C U.S. net income decreased Cdn$17 million, or by US$12 million to US$16 million. Revenues from improved loan spreads were more than offset by lower deposit spreads, an increase in the impact of impaired loans year over year and the first quarter 2009 reduction of the Visa litigation accrual.

Private Client Group net income increased $45 million or 68% with stronger earnings across all of our businesses, including $7 million from the inclusion of BMO Life Assurance. Results a year ago included a charge of $17 million ($11 million after tax) associated with the decision to assist some of our U.S. clients by purchasing auction-rate securities from their accounts in the weak capital markets environment.

BMO Capital Markets net income increased $71 million or 40%. There was strong revenue growth, partially offset by higher provisions for credit losses and an increase in employee compensation costs, in line with improved revenue performance. Last year's results reflected significant charges in respect of the weaker capital markets environment.

Corporate Services net loss of $124 million was $245 million better than in the prior year, primarily due to improved revenues and reduced provisions for credit losses. There was a lower negative carry on certain asset-liability interest rate positions as a result of management actions and more stable market conditions. There were also mark-to-market gains on hedging activities in the current year, compared to losses in the prior year. These factors were partly offset by lower securitization revenue.

Q1 2010 vs Q4 2009

Net income increased $10 million or 1.4% from the fourth quarter. Provisions for credit losses decreased $53 million.

P&C Canada net income increased $5 million or 1.5%, driven by volume growth and an improved net interest margin.

P&C U.S. net income decreased Cdn$6 million, or by US$5 million to US$16 million, due to deposit spread compression and lower gains on sales of mortgages, partially offset by improved loan spreads.

Private Client Group net income increased $7 million or 8.0%. Revenue improved modestly from the previous quarter as solid growth across most of our businesses was partially offset by a number of small items negatively impacting revenues in the current quarter. Expenses fell slightly from the fourth quarter.

BMO Capital Markets net income decreased $40 million or 14%. Modest revenue growth was more than offset by higher provisions for credit losses and increased non-interest expense. Expense growth was due in large part to an increase in variable compensation as these costs were lowered in the fourth quarter to align annual variable compensation expense with final compensation awards.

Corporate Services net loss of $124 million was $44 million better than in the fourth quarter, primarily due to lower provisions for credit losses.

Revenue

BMO analyzes consolidated revenues on a GAAP basis. However, like many banks, BMO analyzes revenue of its operating groups and associated ratios computed using revenue on a taxable equivalent basis (teb). This basis includes an adjustment that increases GAAP revenues and the GAAP provision for income taxes by an amount that would raise revenues on certain tax-exempt securities to a level equivalent to amounts that would incur tax at the statutory rate. The offset to the group teb adjustments is reflected in Corporate Services revenues.

Total revenue increased $583 million or 24% from a year ago. The weaker U.S. dollar decreased revenue growth by $128 million or 5.2 percentage points year over year, primarily in BMO Capital Markets and Private Client Group. Revenue was higher in each of the operating groups except P&C U.S., which was modestly lower on a U.S. dollar basis.

Revenue increased $36 million or 1.2% from the fourth quarter of 2009. The weaker U.S. dollar decreased revenue growth by $18 million or 0.6 percentage points.

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

Net Interest Income

Net interest income increased $205 million or 15% from a year ago due to strong growth in P&C Canada and Corporate Services. BMO's overall net interest margin improved 34 basis points to 1.85%. There were increases in P&C Canada, P&C U.S. and Corporate Services. In P&C Canada, the improvement was due mainly to actions taken in 2009 to mitigate the impact of rising long-term funding costs as well as the impact of deposit growth outpacing loan growth. In P&C U.S., the improvement was due to an increase in loan spreads and a decrease in asset levels, partially offset by deposit spread compression. Corporate Services improved net interest income was mainly due to management actions to lower the negative carry on certain asset-liability interest rate positions and to more stable market conditions.

Average earning assets decreased $20 billion or 5.7% relative to a year ago, or by $2 billion adjusted to exclude the impact of the weaker U.S. dollar. On a Canadian dollar basis, the decrease was driven by a reduction in BMO Capital Markets due mainly to reduced corporate lending and trading assets and lower cash balances. There were also increases in P&C Canada, due to volume growth, and in Private Client Group due mainly to the acquisition of BMO Life Assurance.

Relative to the fourth quarter, net interest income rose $90 million or 6.2%. The increase was primarily due to higher earnings in BMO Capital Markets, with solid growth in P&C Canada. BMO's net interest margin improved 12 basis points due to increases in net interest margin in P&C Canada and BMO Capital Markets. P&C Canada's improvement was due to higher volumes in more profitable products. BMO Capital Markets margin improvement was driven largely by improved trading spreads. Average earning assets decreased $3 billion, due primarily to the impact of the weaker U.S. dollar.

Net Interest Margin (teb)*

    
                                                          Increase  Increase
                                                         (Decrease)(Decrease)
                                                                vs.       vs.
    (In basis points)                            Q1-2010   Q1-2009   Q4-2009
    -------------------------------------------------------------------------
    P&C Canada                                       295        24         5
    P&C U.S.                                         327        22         1
    -------------------------------------------------------------------------
    Personal and Commercial Client Group             300        23         4
    Private Client Group(xx)                         281      (141)      (10)
    BMO Capital Markets                              101        (6)       20
    Corporate Services, including Technology
     and Operations (T&O)(xxx)                        nm        nm        nm
    -------------------------------------------------------------------------
    Total BMO                                        185        34        12
    -------------------------------------------------------------------------
    -------------------------------------------------------------------------
    Total Canadian Retail(xxxx)                      294         3        13
    -------------------------------------------------------------------------
    -------------------------------------------------------------------------
    *    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 teb basis while
           total BMO margin is stated on a GAAP basis.
    (xx)   PCG's Q2 2009 acquisition of BMO Life Assurance added assets that
           earn non-interest revenue, accounting for 123 basis points of the
           year-over-year reduction in PCG's net interest margin. Adjusted to
           exclude the impact of the acquisition, PCG's net interest margin
           decreased 18 basis points year over year.
    (xxx)  Corporate Services net interest income is negative and lowers
           BMO's overall net interest margin to a greater degree in 2009 than
           in 2010.
    (xxxx) Total Canadian retail margin represents the net interest margin of
           the combined Canadian business of P&C Canada and Private Client
           Group.
    nm - not meaningful
    

Non-Interest Revenue

Non-interest revenue is detailed in the attached unaudited consolidated financial statements. Non-interest revenue increased $378 million or 34% from a year ago. The improvement was in part attributable to the prior year's $248 million charge related to the Canadian credit protection vehicle, as outlined in the Notable Items section. The charge was reflected as a $177 million reduction in securities gains (losses) other than trading and a $71 million decrease in trading non-interest revenue.

There was very strong growth in BMO Capital Markets non-interest revenue primarily due to the first quarter of 2009 charges related to merchant banking assets and the notable item. Investment banking activity continued to increase due to improved economic conditions and lending fees also rose. Trading revenues were at more normal levels than a year ago, reflecting reduced opportunities due to lower market volatility and narrower spreads. Private Client Group non-interest revenue also grew strongly, reflecting the contribution from the BMO Life Assurance acquisition, higher securities and commission fees and increased mutual fund revenues. In addition, results a year ago included charges of $17 million related to the decision to assist some of our U.S. clients by purchasing auction-rate securities from their accounts in the weak capital markets environment.

Securitization revenues decreased $92 million from a year ago to $172 million, in line with a $3.7 billion reduction in securitized assets. Revenues included gains of $9 million on the sale of loans for new securitizations, down $17 million from a year ago, and gains of $113 million on sales of loans to revolving securitization vehicles, down $43 million from a year ago. Securitizations have resulted in the recognition of less interest income ($133 million less) in the quarter, as well as reduced credit card fees ($117 million less) and lower provisions for credit losses ($53 million less). The combined impact of securitizing assets in the current and prior periods decreased pre-tax income in the current quarter by $25 million. We securitize loans primarily to obtain alternate sources of cost-effective funding. In the quarter, we securitized $337 million of residential mortgage loans. Securitizations are detailed in Note 3 to the attached unaudited consolidated financial statements.

Relative to the fourth quarter, non-interest revenue decreased $54 million or 3.5%. The decrease was due to reduced revenues in BMO Capital Markets and Corporate Services. There were lower BMO Capital Markets non-interest trading revenues and lower lending fees, partially offset by investment securities gains and higher merger and acquisition and debt underwriting activity, as well as improved commission revenue. Corporate Services reflected lower securitization income.

Non-Interest Expense

Non-interest expense is detailed in the attached unaudited consolidated financial statements. Non-interest expense decreased $2 million from a year ago to $1,839 million. The weaker U.S. dollar reduced expense growth by $70 million or 3.7 percentage points. Acquired businesses added $23 million of costs. Decreased expenses were reflected in lower salaries expense, due to fewer staff and reductions in severance, and lower computer costs and professional fees. Results a year ago included a $24 million severance charge in BMO Capital Markets. Performance-based compensation was higher due primarily to strength in BMO Capital Markets and Private Client Group results relative to a year ago. Reduced expenses in 2010 in part reflect the continued success of our cost management efforts including a reduction of staff levels, which related to the severance charge we recorded in the second quarter of 2009.

Cash operating leverage was 23.9% in the current quarter as revenue growth was strong with effective expense control. The cash productivity ratio was 60.5% (58.8% excluding stock-based compensation for employees eligible to retire).

Non-interest expense increased $60 million or 3.4% from the fourth quarter. Expenses were raised by $51 million of stock-based compensation costs for employees eligible to retire that are recorded annually in the first quarter, partially offset by the $10 million effect of the weaker U.S. dollar. Adjusted for these items, non interest expense increased $19 million, due mainly to an increase in variable compensation, in line with higher revenues, and higher benefits costs. BMO Capital Markets variable compensation costs were lowered in the fourth quarter to align with compensation awards.

U.S. legislators have proposed charging a Financial Crisis Responsibility Fee on U.S. financial institutions that have assets exceeding a certain threshold. As currently proposed, this levy would apply to some or all of our U.S. operations. It is unclear whether the proposal will be passed into law in its current form, if at all.

Risk Management

Financial markets continue to recover and consumer and business confidence is gradually being restored. Job losses have slowed and appear to be near an end. Job creation in Canada has been trending upward but at a low rate. In the United States, job creation remains weak and unemployment high, resulting in a continuing drag on the economy. Gross impaired loan formations are showing signs of moderating from fiscal 2009 levels, with negative migration continuing, although at a slower pace. The potential exists for some variability quarter to quarter in the levels of formations and credit migration.

The most significant risk continues to be higher credit migration across multiple portfolios, especially in the U.S. consumer and U.S. commercial real estate portfolios. Consumer delinquencies in the retail portfolios in Canada are stabilizing but remain at relatively high levels. Losses in the United States remain high but retail portfolios continue to have better credit performance than our U.S. Risk Management Association peers. We anticipate that some sectors, such as U.S. commercial real estate, forest products and manufacturing, will continue to show pressure in 2010. Our outlook remains cautious and we are managing our portfolio accordingly.

Specific provisions for credit losses in the first quarter of 2010 were $333 million, compared with $386 million in the fourth quarter of 2009 and $428 million in the first quarter of 2009. Specific provisions this quarter represent an annualized 79 basis points of average net loans and acceptances, compared with 89 basis points in the fourth quarter, 90 basis points a year ago and a 39 basis point average over the past five fiscal years.

On a geographic basis, specific provisions in Canada and other countries were $143 million in the first quarter of 2010, $126 million in the fourth quarter of 2009 and $111 million in the first quarter of 2009. Provisions in the United States for the comparable periods were $190 million, $260 million and $317 million, respectively.

BMO employs a methodology for segmented client reporting purposes whereby expected credit losses are charged to the client operating groups quarterly, based on their share of expected credit losses over an economic cycle. The difference between quarterly charges based on expected losses and required quarterly provisions based on actual losses is charged (or credited) to Corporate Services. The following paragraphs outline credit losses by client operating group based on actual credit losses, rather than their share of expected credit losses.

Actual credit losses in the first quarter of 2010 by operating group were: $190 million in P&C Canada; $131 million in P&C U.S.; $5 million in PCG; and $60 million in BMO Capital Markets. The P&C Canada losses of $190 million include credit losses of $53 million related to securitized assets which are reflected as a reduction of non-interest revenue in Corporate Services under our securitization reporting methodology and are therefore not included in BMO's $333 million of specific provisions.

Actual credit losses in the fourth quarter of 2009 by operating group were: $177 million in P&C Canada (which includes losses of $53 million on securitized assets reported as a reduction of non-interest revenue in Corporate Services); $149 million in P&C U.S.; $20 million in PCG; and $93 million in BMO Capital Markets.

Actual credit losses in the first quarter of 2009 by operating group were: $143 million in P&C Canada (which includes losses of $32 million on securitized assets reported as a reduction of non-interest revenue in Corporate Services); $192 million in P&C U.S.; $1 million in PCG and $124 million in BMO Capital Markets.

There was no general provision in the quarter, in the fourth quarter of 2009 or in the comparable quarter a year ago. The increase in the general allowance balance during the quarter was attributable to the acquisition of the Diners Club credit card receivables, offset in part by the change in foreign exchange rates.

New impaired loan formations totalled $456 million in the quarter, down from $735 million in the preceding quarter and from $712 million in the same quarter a year ago. The U.S. related formations continued to account for over half of BMO's total new formations. There were $3 million of impaired loan sales in the current quarter, $3 million in the fourth quarter of 2009 and no loan sales in the first quarter a year ago. Total gross impaired loans were $3,134 million at the end of the current reporting period, down from $3,297 million at the end of the fourth quarter but up from $2,666 million in the first quarter of 2009.

The total allowance for credit losses was $1,943 million, compared with $1,902 million in the preceding quarter. Allowances were comprised of a specific allowance of $613 million and a general allowance of $1,330 million. The general allowance is maintained to absorb impairment in the existing credit portfolio that cannot yet be associated with specific credit assets and is assessed on a quarterly basis.

BMO's loan book continues to be comprised largely of more stable consumer and commercial portfolios which are well diversified. Consumer and commercial loans represented 81.2% of the loan portfolio at the end of the quarter, up from 80.0% in the fourth quarter and 73.1% a year ago. Approximately 87.6% of the total consumer portfolio is comprised of secured loans. Excluding credit card loans, approximately 90.1% of consumer loans are secured.

In the United States, the consumer portfolio totals US$15.5 billion and is primarily comprised of three main asset classes: residential first mortgages (35%), home equity products (33%) and indirect automobile loans (27%). In the euro zone region, BMO's exposures to Portugal, Ireland, Italy, Greece and Spain are mostly related to financial institutions and governments for treasury and trade finance products. Overall exposures to these countries are considered manageable.

BMO's liquidity and funding and market risk management practices and key measures are outlined on pages 82 to 87 of BMO's 2009 Annual Report.

There have been no significant changes to the levels of liquidity and funding risk over the quarter. We remain satisfied that our liquidity and funding management framework provides us with a sound position. During the quarter our liquidity and funding positions strengthened, as reflected by growth in cash resources of $2.6 billion and core deposits of $4.4 billion. Core deposits provide a stable funding base as they are generally less responsive to changes in the market environment than larger institutional deposits. Core deposits are comprised of operating and savings deposits and small fixed-date deposits. During the quarter, global regulators issued a consultative liquidity proposal that will lead to higher liquidity and funding risk management costs if implemented in its current form. BMO is participating along with the other Canadian banks and OSFI in the completion of an international study of the impact of the proposed changes.

Reductions in positions, along with lower mark-to-market interest rate risk, are the primary reasons for the quarter-over-quarter decrease in our Trading & Underwriting Market Value Exposure (MVE). Effective for fiscal 2010, Earnings Volatility for trading and underwriting portfolios is no longer reported as it is not considered a primary market risk measure. Otherwise, there were no significant changes in our trading and underwriting management practices during the quarter.

There was no significant change in our structural market risk management practices during the quarter. There was a decrease in structural market risk, largely related to model recalibration, as demonstrated by the reduction in earnings volatility and earnings sensitivity to decreasing interest rates reflected in the attached tables.

This Risk Management section contains forward-looking statements. Please see the Caution Regarding Forward-Looking Statements.

Provisions for Credit Losses (PCL)

    
    (Canadian $ in millions, except as noted)    Q1-2010   Q4-2009   Q1-2009
    -------------------------------------------------------------------------
    New specific provisions                          401       448       483
    Reversals of previously established
     allowances                                      (23)      (20)      (19)
    Recoveries of loans previously written-off       (45)      (42)      (36)
    -------------------------------------------------------------------------
    Specific provision for credit losses             333       386       428
    Increase in the general allowance                  -         -         -
    -------------------------------------------------------------------------
    Provision for credit losses                      333       386       428
    -------------------------------------------------------------------------
    -------------------------------------------------------------------------

    Specific PCL as a % of average net loans
     and acceptances (annualized)                  0.79%     0.89%     0.90%
    PCL as a % of average net loans and
     acceptances (annualized)                      0.79%     0.89%     0.90%

    

Changes in Gross Impaired Loans and Acceptances (GIL)

    
    (Canadian $ in millions, except as noted)
    -------------------------------------------------------------------------
    GIL, Beginning of Period                       3,297     2,913     2,387
    Additions to impaired loans & acceptances        456       735       712
    Reductions in impaired loans &
     acceptances(1)                                 (265)      (16)       58
    Write-offs                                      (354)     (335)     (491)
    -------------------------------------------------------------------------
    GIL, End of Period                             3,134     3,297     2,666
    -------------------------------------------------------------------------
    -------------------------------------------------------------------------

    GIL as a % of gross loans & acceptances        1.83%     1.94%     1.39%
    GIL as a % of equity and allowances for
     credit losses                                13.11%    14.06%    11.91%
    -------------------------------------------------------------------------
    -------------------------------------------------------------------------
    (1) Includes impaired amounts returned to performing status, loan sales,
        repayments, the impact of foreign exchange fluctuations and offsets
        for consumer write-offs which have not been recognized as formations
        (Q1-10 $193MM; Q4-09 $189MM; and Q1-09 $158MM).

    

Total Trading and Underwriting MVE Summary ($ millions)*

    
                                                                       As at
                                                                     October
                            For the quarter ended January 31, 2010  31, 2009

    (Pre-tax Canadian        Quarter-                                Quarter-
     equivalent)                 end   Average      High       Low       end
    --------------------------------------------------------------- ---------
    Commodities Risk            (0.4)     (0.6)     (1.4)     (0.3)     (0.7)
    Equity Risk                 (8.0)     (7.4)    (15.8)     (5.0)    (10.2)
    Foreign Exchange Risk       (6.9)     (8.7)    (12.5)     (0.8)     (0.8)
    Interest Rate Risk
     (Mark-to-Market)(1)        (8.7)    (14.3)    (22.5)     (8.7)    (18.4)
    Diversification              8.8      14.2        nm        nm      11.4
    -------------------------------------------                     ---------
    Comprehensive Risk         (15.2)    (16.8)    (23.1)    (13.1)    (18.7)
    Interest Rate Risk
     (accrual)                  (6.4)     (5.5)     (6.9)     (3.9)     (7.3)
    Issuer Risk                 (2.1)     (2.1)     (3.1)     (1.6)     (1.9)
    -------------------------------------------                     ---------
    Total MVE                  (23.7)    (24.4)    (31.0)    (18.8)    (27.9)
    -------------------------------------------------------------------------
    -------------------------------------------------------------------------
    nm - not meaningful
    * One-day measure using a 99% confidence interval. Losses are in
        brackets and benefits are presented as positive numbers.
    (1) Measures exclude securities in the available-for-sale portfolio.

    

Structural Balance Sheet Market Value Exposure and Earnings Volatility ($ millions)*

    
    -----------------------------------------------------
                                       Jan. 31   Oct. 31
    (Canadian equivalent)                 2010      2009
    -----------------------------------------------------
    Market value exposure (MVE)
     (pre-tax)                          (575.8)   (543.2)
    12-month earnings volatility (EV)
     (after-tax)                         (41.2)    (69.0)
    -----------------------------------------------------
    -----------------------------------------------------
    * Losses are in brackets. Measured at a 99%
        confidence interval.

    

Structural Balance Sheet Earnings and Value Sensitivity to Changes in Interest Rates ($ millions)*(xx)

    
                                                                    Earnings
                                                                 sensitivity
                                          Economic value       over the next
                                             sensitivity           12 months
    (Canadian equivalent)                       (Pre-tax)         (After-tax)
    -------------------------------------------------------------------------
                                       Jan. 31   Oct. 31   Jan. 31   Oct. 31
                                          2010      2009      2010      2009
    -------------------------------------------------------------------------
    100 basis point increase            (372.2)   (353.2)     13.5      11.0
    100 basis point decrease             250.2     254.2      11.9     (75.6)

    200 basis point increase            (814.1)   (779.2)     (3.5)    (10.6)
    200 basis point decrease             437.0     392.8      15.4     (62.9)
    -------------------------------------------------------------------------
    -------------------------------------------------------------------------
    *  Losses are in brackets and benefits are presented as positive
         numbers.
    (xx) For the bank's Insurance businesses including BMO Life Assurance
         (the acquired operations of AIG Life Insurance Company of Canada), a
         100 basis point increase in interest rates results in an increase in
         after-tax earnings of $80 million and an increase in before-tax
         economic value of $239 million. A 100 basis point decrease in
         interest rates results in a decrease in after-tax earnings of
         $66 million and a decrease in before-tax economic value of
         $245 million. These impacts are not reflected in the table above.
    

Income Taxes

As explained in the Revenue section, management assesses BMO's consolidated results and associated provisions for income taxes on a GAAP basis. We assess the performance of the operating groups and associated income taxes on a taxable equivalent basis and report accordingly.

The provision for income taxes increased $248 million from the first quarter of 2009 and $19 million from the fourth quarter, to $177 million. The effective tax rate for the quarter was 20.8%, compared with a recovery rate of 41.0% in the first quarter of 2009 and a tax expense rate of 19.2% in the fourth quarter. The higher effective tax rate in the quarter, as compared to the first quarter of 2009, was primarily due to a reduction in the proportion of income from lower-tax-rate jurisdictions, partially offset by higher tax-exempt income. The higher effective tax rate in the quarter, as compared to the fourth quarter of 2009, was primarily due to lower recoveries of prior periods' income taxes, partially offset by higher tax-exempt income.

BMO hedges the foreign exchange risk arising from its investments in U.S. operations by funding the investments in U.S. dollars. Under this program, the gain or loss from hedging and the unrealized gain or loss from translation of the investments in U.S. operations are charged or credited to shareholders' equity. For income tax purposes, the gain or loss on the hedging activities attracts an income tax charge or credit in the current period, which is charged or credited to shareholders' equity, while the associated unrealized gain or loss on the investments in U.S. operations does not attract income taxes until the investments are liquidated. The income tax charge/benefit arising from a hedging gain/loss is a function of the fluctuation in U.S. rates from period to period. Hedging of the investments in U.S. operations has given rise to an income tax charge in shareholders' equity of $39 million for the quarter. Refer to the Consolidated Statement of Changes in Shareholders' Equity included in the unaudited consolidated financial statements for further details.

Summary Quarterly Results Trends

    
    (Canadian $ in millions,
     except as noted)                  Q1-2010   Q4-2009   Q3-2009   Q2-2009
    -------------------------------------------------------------------------
    Total revenue                        3,025     2,989     2,978     2,655
    Provision for credit losses -
     specific                              333       386       357       372
    Provision for credit losses -
     general                                 -         -        60         -
    Non-interest expense                 1,839     1,779     1,873     1,888
    Net income                             657       647       557       358
    -------------------------------------------------------------------------
    -------------------------------------------------------------------------
    Basic earnings per share ($)          1.12      1.12      0.97      0.61
    Diluted earnings per share ($)        1.12      1.11      0.97      0.61
    Net interest margin on earning
     assets (%)                           1.85      1.73      1.74      1.55
    Effective income tax rate (%)         20.8      19.2      16.4       4.4
    Canadian/U.S. dollar exchange
     rate (average)                       1.06      1.08      1.11      1.24

    Net income:
      P&C Canada                           403       398       362       340
      P&C U.S.                              17        23        24        22
    -------------------------------------------------------------------------
    Personal and Commercial Banking        420       421       386       362
    Private Client Group                   113       106       113        72
    BMO Capital Markets                    248       288       344       247
    Corporate Services, including T&O     (124)     (168)     (286)     (323)
    -------------------------------------------------------------------------
    BMO Financial Group                    657       647       557       358
    -------------------------------------------------------------------------
    -------------------------------------------------------------------------


    (Canadian $ in millions,
     except as noted)                  Q1-2009   Q4-2008   Q3-2008   Q2-2008
    -------------------------------------------------------------------------
    Total revenue                        2,442     2,813     2,746     2,620
    Provision for credit losses -
     specific                              428       315       434       151
    Provision for credit losses -
     general                                 -       150        50         -
    Non-interest expense                 1,841     1,818     1,782     1,680
    Net income                             225       560       521       642
    -------------------------------------------------------------------------
    -------------------------------------------------------------------------
    Basic earnings per share ($)          0.39      1.06      1.00      1.25
    Diluted earnings per share ($)        0.39      1.06      0.98      1.25
    Net interest margin on earning
     assets (%)                           1.51      1.71      1.58      1.47
    Effective income tax rate (%)        (41.0)     (9.2)    (12.2)     16.3
    Canadian/U.S. dollar exchange
     rate (average)                       1.23      1.11      1.01      1.01

    Net income:
      P&C Canada                           315       297       297       299
      P&C U.S.                              34        12        28        30
    -------------------------------------------------------------------------
    Personal and Commercial Banking        349       309       325       329
    Private Client Group                    68        77       119       115
    BMO Capital Markets                    177       291       264       188
    Corporate Services, including T&O     (369)     (117)     (187)       10
    -------------------------------------------------------------------------
    BMO Financial Group                    225       560       521       642
    -------------------------------------------------------------------------
    -------------------------------------------------------------------------
    

BMO's quarterly earning trends were reviewed in detail on pages 93 and 94 of the 2009 Annual Report. Readers are encouraged to refer to that review for a more complete discussion of trends and factors affecting past quarterly results including the modest impact of seasonal variations in results. The above table outlines summary results for the second quarter of fiscal 2008 through the first quarter of fiscal 2010.

Notable items have affected revenues in BMO Capital Markets in 2008 and 2009. The third quarter of 2008 through the fourth quarter of 2009 reflected charges related to the capital markets environment, with modest charges in the latter half of 2009. BMO Capital Markets results in 2009 were very strong as the trading environment was very favourable. In the first quarter of 2010, reduced volatility and narrower spreads have lowered trading revenues but investment banking activities have improved.

P&C Canada continued to benefit from strong volume growth over 2009 with favourable movements in market share in a number of key businesses and improvements in personal loyalty scores. In the first quarter of 2010, P&C Canada continued to achieve high year-over-year growth in revenue and net income, with volume growth and improved net interest margin.

P&C U.S. has operated in a difficult economic environment since 2008 and results in 2009 and 2010 have increasingly been impacted by the effect of impaired loans, which lowers revenues and increases expenses. P&C U.S. results in the fourth quarter of 2008 were affected by the completion of the integration of the Wisconsin acquisitions.

Private Client Group results reflected stable earnings until the fourth quarter of 2008 when revenue growth slowed on lower managed and administered assets amid challenging market conditions. Asset levels remained low in the first half of 2009 but improved somewhat in the latter half of 2009 and into 2010 as equity markets strengthened. Charges in respect of actions taken to assist some of our U.S. clients in the weak capital markets environment lowered results in the fourth quarter of 2008 and first quarter of 2009. Commencing in the second quarter of 2009, results included BMO Life Assurance.

Corporate Services results have improved from the first half of 2009 due to decreased provisions for credit losses. Results in the first nine months of 2009 were affected by lower revenues related to the impact of market rate changes on certain asset-liability interest rate positions with the impact lessening over time due to management actions and more stable market conditions. Results were also affected by $118 million of severance costs in the second quarter of 2009.

The U.S. dollar weakened in the latter half of 2009 and in the first quarter of 2010. A weaker U.S. dollar lowers the translated values of BMO's U.S.-dollar-denominated revenues and expenses.

Balance Sheet

Total assets of $398.6 billion increased $10.2 billion from October 31, 2009. The weaker U.S. dollar decreased the translated value of U.S.-dollar-denominated assets by $2.2 billion. The $10.2 billion increase primarily reflects higher securities of $8.3 billion, higher cash and cash equivalents of $2.4 billion, higher other assets of $1.2 billion, and increased net loans and acceptances of $1.8 billion. These factors were partially offset by decreases in derivative assets of $2.2 billion and securities borrowed or purchased under resale agreements of $1.5 billion.

The $8.3 billion increase in securities was primarily due to a $5.8 billion increase in trading securities and a $2.4 billion increase in available-for-sale securities.

The $2.4 billion increase in cash and cash equivalents was attributable to growth in demand deposits from corporate clients. These deposits have been invested on a short-term basis with the U.S. Federal Reserve.

The increase in net loans and acceptances of $1.8 billion was due to an increase in residential mortgages of $1.0 billion, higher consumer instalment and other personal loans of $1.0 billion, primarily due to growth in home equity loans, and an increase in credit card loans as a result of the Diners Club acquisition. The growth in the above loans was partially offset by lower loans and acceptances to businesses and governments of $1.0 billion as more corporate clients have accessed the capital markets for long-term funding and have used those funds to pay down bank debt. The acquisition of the Diners Club consumer and commercial credit card balances added $0.3 billion to credit card loans and $0.5 billion to loans to businesses and governments.

The $2.2 billion decrease in derivative financial assets was primarily due to reductions related to interest rate contracts, credit contracts and commodity contracts, partially offset by an increase related to foreign exchange contracts. There was a comparable reduction in derivative financial liabilities.

The $1.5 billion decrease in securities borrowed or purchased under resale agreements was a result of a $2.7 billion decrease due to lower trading activity, net of $1.2 billion in new activity following the addition of the Paloma Securities lending team.

Liabilities and shareholders' equity increased $10.2 billion from October 31, 2009. The weaker U.S. dollar decreased the translated value of U.S.-dollar-denominated liabilities by $2.2 billion. The $10.2 billion increase primarily reflects growth in deposits of $4.1 billion, higher securities lent or sold under repurchase agreements of $3.9 billion, higher securities sold but not yet purchased of $3.9 billion and higher shareholders' equity of $0.4 billion. These factors were partially offset by a decrease in derivative financial liabilities of $1.9 billion and lower subordinated debt of $0.5 billion.

Deposits by individuals, which account for 41% or $98.4 billion of total deposits, decreased $1.0 billion. Deposits by businesses and governments, which account for 50% or $119.6 billion of total deposits, increased $5.8 billion, with a large portion related to demand deposits from corporate clients, as noted above. Deposits by banks, which account for the remaining 9% or $22.3 billion of total deposits, decreased $0.7 billion.

The net increase in securities sold but not yet purchased was due to higher trading activities related to market opportunities. Securities lent or sold under repurchase agreements included an increase of $1.2 billion since hiring the Paloma Securities lending team.

The decrease in subordinated debt was due to the redemption of all of our outstanding 4.0% Series C Medium-Term Notes First Tranche during the quarter.

The increase in shareholders' equity of $0.4 billion largely reflects an increase in retained earnings and the issuance of common shares through our dividend reinvestment program and the exercise of stock options.

Contractual obligations by year of maturity were outlined in Table 20 on page 106 of BMO's 2009 Annual Report. There have been no material changes to contractual obligations that are outside the ordinary course of our business.

Capital Management

At January 31, 2010, BMO's Tier 1 Capital Ratio was 12.53%, with Tier 1 capital of $20.8 billion and risk-weighted assets (RWA) of $165.7 billion. The ratio remains strong, increasing 29 basis points from 12.24% in the fourth quarter primarily due to growth in net income and lower RWA. Our strong capital position provides flexibility in the execution of our business growth strategies and positions us well for potential regulatory changes in coming years. During the quarter, global regulators issued a consultative document that will lead to higher bank capital requirements if implemented in its current form. BMO is participating along with the other Canadian banks and OSFI in the completion of an international study of the impact of the proposed changes.

Tier 1 capital increased $292 million from October 31, 2009 primarily due to higher retained earnings, and the issuance of common shares issued through the Shareholder Dividend Reinvestment and Share Purchase Plan and the exercise of stock options.

RWA decreased $1.5 billion from October 31, 2009 primarily due to the impact of a stronger Canadian dollar, lower corporate and commercial loan volumes and lower trading and bank exposures, partially offset by an increase in retail loans and mortgages.

BMO's Total Capital Ratio was 14.82% at January 31, 2010. The ratio decreased 5 basis points from 14.87% in the fourth quarter. Total capital decreased $304 million to $24.6 billion, primarily due to a $500 million redemption of subordinated debt, partially offset by the increase in Tier 1 capital as outlined above. Our Tangible Common Equity to RWA ratio was 9.51%, up from 9.21% at the end of fiscal 2009.

During the quarter, 3,679,000 shares were issued through the Shareholder Dividend Reinvestment and Share Purchase Plan and the exercise of stock options, as noted above. We did not repurchase any Bank of Montreal common shares under our common share repurchase program during the quarter.

On March 2, 2010, BMO's Board of Directors declared a quarterly dividend payable to common shareholders of $0.70 per share, unchanged from a year ago and from the preceding quarter. The dividend is payable May 26, 2010, to shareholders of record on May 3, 2010. Common shareholders who, in lieu of cash, elect to have this dividend reinvested in additional common shares under BMO's Shareholder Dividend Reinvestment and Share Purchase Plan, will receive a two percent discount from the average market price of the common shares (as defined in the Plan).

This Capital Management section contains forward-looking statements. Please see the Caution Regarding Forward-Looking Statements.

Qualifying Regulatory Capital

Basel II Regulatory Capital and Risk-Weighted Assets

    
    (Canadian $ in millions)                               Q1-2010   Q4-2009
    -------------------------------------------------------------------------
    Common shareholders' equity                             17,498    17,132
    Non-cumulative preferred shares                          2,571     2,571
    Innovative Tier 1 Capital Instruments                    2,903     2,907
    Non-controlling interest in subsidiaries                    26        26
    Goodwill and excess intangible assets                   (1,584)   (1,569)
    Accumulated net after-tax unrealized losses
     on available-for-sale equity securities                     -        (2)
    -------------------------------------------------------------------------
    Net Tier 1 Capital                                      21,414    21,065
    Securitization-related deductions                         (177)     (168)
    Expected loss in excess of allowance - AIRB approach       (85)      (61)
    Substantial investments                                   (398)     (374)
    -------------------------------------------------------------------------
    Adjusted Tier 1 Capital                                 20,754    20,462
    -------------------------------------------------------------------------
    Subordinated debt                                        3,742     4,236
    Trust subordinated notes                                   800       800
    Accumulated net after-tax unrealized gains
     on available-for-sale equity securities                     2         -
    Eligible general allowance for credit losses               313       296
    -------------------------------------------------------------------------
    Total Tier 2 Capital                                     4,857     5,332
    Securitization-related deductions                          (21)       (7)
    Expected loss in excess of allowance - AIRB approach       (85)      (60)
    Substantial Investments/Investment in insurance
     subsidiaries                                             (950)     (868)
    -------------------------------------------------------------------------
    Adjusted Tier 2 Capital                                  3,801     4,397
    -------------------------------------------------------------------------
    Total Capital                                           24,555    24,859
    -------------------------------------------------------------------------
    -------------------------------------------------------------------------

    

Risk-Weighted Assets (RWA)

    
    (Canadian $ in millions)                               Q1-2010   Q4-2009
    -------------------------------------------------------------------------
    Credit risk                                            141,307   143,098
    Market risk                                              6,385     6,578
    Operational risk                                        17,974    17,525
    -------------------------------------------------------------------------
    Total risk-weighted assets                             165,666   167,201
    -------------------------------------------------------------------------
    -------------------------------------------------------------------------

    

Outstanding Shares and Securities Convertible into Common Shares

    
                                                            Number of shares
    As at February 24, 2010                                 or dollar amount
    -------------------------------------------------------------------------
    Common shares                                                555,543,000
    Class B Preferred Shares
      Series 5                                                $  200,000,000
      Series 13                                               $  350,000,000
      Series 14                                               $  250,000,000
      Series 15                                               $  250,000,000
      Series 16                                               $  300,000,000
      Series 18                                               $  150,000,000
      Series 21                                               $  275,000,000
      Series 23                                               $  400,000,000
    Convertible into common shares:
    Class B Preferred Shares(1)
      Series 10                                             US$  300,000,000
    Stock options
      - vested                                                    11,110,000
      - non-vested                                                 7,766,000
    -------------------------------------------------------------------------
    -------------------------------------------------------------------------
    (1) Convertible preferred shares may be exchanged for common shares on
        specific dates on a pro-rata basis based on 95% of the average
        trading price of common shares for the 20 days ending four days prior
        to the exchange date.

        Details on share capital are outlined in the 2009 Annual Report in
        Note 21 to the audited financial statements on pages 144 to 145.
    

Eligible Dividends Designation

For the purposes of the Income Tax Act (Canada) and any similar provincial and territorial legislation, BMO designates all dividends paid or deemed to be paid on both its common and preferred shares after December 31, 2005, as "eligible dividends" unless indicated otherwise.

Credit Rating

During the quarter, Moody's Investor Service (Moody's) downgraded the long-term ratings of Bank of Montreal and its subsidiaries one notch to Aa2 from Aa1 and returned BMO's rating outlook to stable. The ratings of the other three major rating agencies remain unchanged with a stable outlook and, like Moody's rating, are indicative of high-grade, high-quality issues. They remain: DBRS (AA); Fitch (AA-); and Standard & Poor's (A+).

Transactions with Related Parties

In the ordinary course of business, we provide certain banking services to our directors and executives and their affiliated entities, joint ventures and equity-accounted investees on the same terms that we offer our customers for these services. A select suite of customer loan and mortgage products is offered to our employees at rates normally accorded to our preferred customers. We also offer employees a fee-based subsidy on annual credit card fees.

Stock options and deferred share units granted to directors and preferred rate loan agreements for executives, relating to transfers we initiate, are both discussed in Note 28 to the audited consolidated financial statements on page 156 of the 2009 Annual Report.

Off-Balance-Sheet Arrangements

BMO enters into a number of off-balance-sheet arrangements in the normal course of operations. The most significant of these are credit instruments and VIEs, which are described on page 70 of the 2009 Annual Report and in Notes 4 and 6 to the attached unaudited interim consolidated financial statements. See the Select Financial Instruments section for comments on any significant changes to our off-balance-sheet arrangements during the quarter ended January 31, 2010.

Accounting Policies and Critical Accounting Estimates

The notes to BMO's October 31, 2009 audited consolidated financial statements outline our significant accounting policies.

Pages 71 to 73 of the 2009 Annual Report contain a discussion of certain accounting estimates that are considered particularly important as they require management to make significant judgments, some of which relate to matters that are inherently uncertain. Readers are encouraged to review that discussion.

Accounting Changes

Transition to International Financial Reporting Standards

Canadian public companies will be required to prepare their financial statements in accordance with International Financial Reporting Standards (IFRS), as issued by the International Accounting Standards Board (IASB), for fiscal years beginning on or after January 1, 2011. Effective November 1, 2011, we will adopt IFRS as the basis for preparing our consolidated financial statements. We will report our financial results for the quarter ended January 31, 2012, prepared on an IFRS basis. We will also provide comparative data on an IFRS basis, including an opening balance sheet as at November 1, 2010.

Due to the uncertainty of the extent to which existing standards may change, combined with the uncertainty surrounding the adoption dates of any new or revised standard, we are not in a position to determine the impact of adopting IFRS on either our future financial results or primary capital measures at this time.

Our enterprise-wide project to transition to IFRS remains on track. We have completed our diagnostic phase, and our implementation and education phase is well advanced. We have also begun detailed planning for the third and final phase of our transition, which is the completion of all integration changes. We will be developing controls and procedures necessary to restate our 2011 opening balance sheet and financial results on an IFRS basis in preparation for our transition to IFRS in 2012, finalizing our assessment of policy decisions available under IFRS, and developing communication plans for our internal and external stakeholders. Based on existing IFRS, we have not identified the need for any significant modifications to our financial information technology architecture or to existing internal controls over financial reporting and disclosure. However, we continue to closely monitor the work of the IASB on changes to existing IFRS and adjust our project plans to reflect these developments. Page 73 of our 2009 Annual Report contains a discussion of the key elements of our transition plan and the aspects of IFRS that have the potential to be the most significant to the bank. Readers are encouraged to review that discussion for more details.

Select Financial Instruments

Pages 65 to 69 of BMO's 2009 Annual Report provide enhanced disclosure relating to select financial instruments that, commencing in 2008, markets had come to regard as carrying higher risk. Readers are encouraged to review that disclosure to assist in understanding the nature and extent of BMO's exposures.

BMO's consumer loans, including our limited exposure to subprime mortgage loans and Alt-A first mortgage loans, were outlined in the annual report. While arrears on our U.S. mortgage loans have increased, the changes are not significant relative to our asset base and the risk in these portfolios is only modestly higher than at October 31, 2009.

There have been no significant changes to our exposure to leveraged finance loans, monoline insurers, credit derivative product companies and other select financial instruments, including CDOs, or to associated risk levels in the quarter.

The annual report and note 4 to the attached unaudited consolidated financial statements also outline our exposure to BMO-sponsored securitization vehicles including bank securitization vehicles, Canadian customer securitization vehicles, a U.S. customer securitization vehicle and a Canadian credit protection vehicle. They also outline our exposure to two BMO-managed London-based structured investment vehicles (SIVs). Except as noted below, during the quarter there were no significant changes to our exposure to them or associated risk levels.

BMO has provided undrawn committed liquidity support facilities of US$4.9 billion (US$5.7 billion at October 31, 2009) to the U.S. customer securitization vehicle. During the quarter, in accordance with the terms of the supporting liquidity agreements, BMO directly funded five of the vehicle's commercial accounts that were of a weaker credit quality. When BMO directly funds an account, our committed liquidity support facility is reduced accordingly. These five accounts represent commitments of US$296 million, of which US$277 million was drawn at January 31, 2010. One of these accounts, representing exposure of US$99 million, has been classified as impaired, and we established a US$20 million provision for credit losses on this account in the quarter. Subsequent to the quarter end, we directly funded another commercial account representing exposure of US$27 million.

Review of Operating Groups' Performance

Operating Groups' Summary Income Statements and Statistics for Q1-2010

    
                                                  Q1-2010
                              -----------------------------------------------
    (Canadian $ in                                       Corporate
     millions, except                                    including     Total
     as noted)                   P&C       PCG    BMO CM       T&O       BMO
    -------------------------------------------------------------------------
    Net interest income
     (teb)(1)                  1,219        87       408      (182)    1,532
    Non-interest revenue         448       463       512        70     1,493
    -------------------------------------------------------------------------
    Total revenue (teb)(1)     1,667       550       920      (112)    3,025
    Provision for credit
     losses                      139         2        78       114       333
    Non-interest expense         921       398       500        20     1,839
    -------------------------------------------------------------------------
    Income before income taxes
     and non- controlling
     interest in subsidiaries    607       150       342      (246)      853
    Income taxes (recovery)
     (teb)(1)                    187        37        94      (141)      177
    Non-controlling interest
     in subsidiaries               -         -         -        19        19
    -------------------------------------------------------------------------
    Net income Q1-2010           420       113       248      (124)      657
    -------------------------------------------------------------------------
    Net income Q4-2009           421       106       288      (168)      647
    -------------------------------------------------------------------------
    Net income Q1-2009           349        68       177      (369)      225
    -------------------------------------------------------------------------
    -------------------------------------------------------------------------
    Other statistics
    -------------------------------------------------------------------------
    Net economic profit          261        87       102      (279)      171
    Return on equity           28.1%     34.4%     18.4%        nm     14.3%
    Cash return on equity      28.5%     34.9%     18.4%        nm     14.4%
    Operating leverage          8.2%     13.7%     21.2%        nm     24.0%
    Cash operating leverage     7.9%     13.9%     21.2%        nm     23.9%
    Productivity ratio (teb)   55.3%     72.3%     54.4%        nm     60.8%
    Cash productivity ratio
     (teb)                     54.9%     72.0%     54.4%        nm     60.5%
    Net interest margin on
     earning assets (teb)      3.00%     2.81%     1.01%        nm     1.85%
    Average common equity      5,757     1,290     5,104     5,152    17,303
    Average earning assets
     ($ billions)              161.2      12.3     160.3      (5.0)    328.8
    Full-time equivalent
     staff                    19,415     4,675     2,314     9,769    36,173
    -------------------------------------------------------------------------
    -------------------------------------------------------------------------
    nm - not meaningful
    (1) Operating group revenues, income taxes and net interest margin are
        stated on a taxable equivalent basis (teb). The group teb adjustments
        are offset in Corporate, and Total BMO revenue, income taxes and net
        interest margin are stated on a GAAP basis.
    

The following sections review the financial results of each of our operating segments and operating groups for the first quarter of 2010.

Periodically, certain business lines and units within the business lines are transferred between client groups to more closely align BMO's organizational structure with its strategic priorities.

During the quarter, we changed the manner in which we report securitized assets in our segmented disclosure. Previously, certain securitized mortgage assets were not reported in P&C Canada's balance sheet. We now report all securitized mortgage assets in P&C Canada with offsetting amounts in Corporate, and net interest income earned on all securitized mortgage assets is included in P&C Canada net interest income. Previously, net interest income earned on certain securitized mortgage assets was included in P&C Canada non-interest revenue. These changes do not have a meaningful impact on the earnings of P&C Canada. Prior periods have been restated to conform to the current presentation.

Note 14 to the attached unaudited interim consolidated financial statements outlines how income statement items requiring allocation are distributed among the operating groups, including the allocation of the provision for credit losses. Corporate Services is generally charged (or credited) with differences between the periodic provisions for credit losses charged to the client groups under our expected loss provisioning methodology and the periodic provisions required under GAAP.

Personal and Commercial Banking (P&C)

    
    (Canadian $ in                              Increase            Increase
     millions, except                          (Decrease)          (Decrease)
     as noted)               Q1-2010         vs. Q1-2009         vs. Q4-2009
    -------------------------------------------------------------------------

    Net interest income (teb)  1,219        56        5%        18        2%
    Non-interest revenue         448        51       13%        (4)      (1%)
    -------------------------------------------------------------------------
    Total revenue (teb)        1,667       107        7%        14        1%
    Provision for credit
     losses                      139        26       23%        22       20%
    Non-interest expense         921       (13)      (1%)       (4)        -
    -------------------------------------------------------------------------
    Income before income
     taxes and non-
     controlling interest
     in subsidiaries             607        94       18%        (4)      (1%)
    Income taxes (teb)           187        23       13%        (3)      (3%)
    Non-controlling interest
     in subsidiaries               -         -         -         -         -
    -------------------------------------------------------------------------
    Net income                   420        71       20%        (1)        -
    -------------------------------------------------------------------------
    -------------------------------------------------------------------------

    Amortization of
     acquisition-related
     intangible assets
     (after tax)                   5        (2)     (27%)       (1)     (18%)
    -------------------------------------------------------------------------
    Cash net income              425        69       19%        (2)        -
    -------------------------------------------------------------------------

    Return on equity           28.1%                6.9%                0.3%
    Cash return on equity      28.5%                6.8%                0.3%
    Operating leverage          8.2%                  nm                  nm
    Cash operating leverage     7.9%                  nm                  nm
    Productivity ratio (teb)   55.3%               (4.6%)              (0.7%)
    Cash productivity
     ratio (teb)               54.9%               (4.4%)              (0.6%)
    Net interest margin on
     earning assets (teb)      3.00%               0.23%               0.04%
    Average earning assets   161,224    (5,101)      (3%)      196         -
    -------------------------------------------------------------------------
    -------------------------------------------------------------------------
    nm - not meaningful
    

Personal and Commercial Banking (P&C) represents the sum of our two retail and business banking operating segments, Personal and Commercial Banking Canada (P&C Canada) and Personal and Commercial Banking U.S. (P&C U.S.). These operating segments are reviewed separately in the sections that follow.

Personal and Commercial Banking Canada (P&C Canada)

    
    (Canadian $ in                              Increase            Increase
     millions, except                          (Decrease)          (Decrease)
     as noted)               Q1-2010         vs. Q1-2009         vs. Q4-2009
    -------------------------------------------------------------------------

    Net interest income (teb)  1,019        96       10%        27        3%
    Non-interest revenue         392        54       16%         1         -
    -------------------------------------------------------------------------
    Total revenue (teb)        1,411       150       12%        28        2%
    Provision for credit
     losses                      120        25       27%        18       20%
    Non-interest expense         709         5        1%         3         -
    -------------------------------------------------------------------------
    Income before income
     taxes and non-
     controlling interest
     in subsidiaries             582       120       26%         7        1%
    Income taxes (teb)           179        32       21%         2        1%
    Non-controlling interest
     in subsidiaries               -         -         -         -         -
    -------------------------------------------------------------------------
    Net income                   403        88       28%         5        1%
    -------------------------------------------------------------------------
    -------------------------------------------------------------------------

    Amortization of
     acquisition-related
     intangible assets
     (after tax)                   1         1       18%         1        9%
    -------------------------------------------------------------------------
    Cash net income              404        89       28%         6        1%
    -------------------------------------------------------------------------

    Personal revenue             673        64       10%         8        1%
    Commercial revenue           403        52       15%         7        2%
    Cards revenue                335        34       12%        13        4%
    Operating leverage         11.1%                  nm                  nm
    Cash operating leverage    11.1%                  nm                  nm
    Productivity ratio (teb)   50.3%               (5.5%)              (0.8%)
    Cash productivity
     ratio (teb)               50.2%               (5.6%)              (0.8%)
    Net interest margin on
     earning assets (teb)      2.95%               0.24%               0.05%
    Average earning assets   136,881     1,823        1%     1,196        1%
    -------------------------------------------------------------------------
    -------------------------------------------------------------------------
    nm - not meaningful
    

Q1 2010 vs Q1 2009

Net income was a strong $403 million, up $88 million or 28% from a year ago.

Revenue rose $150 million or 12%, driven by volume growth across most products, an improved net interest margin, the inclusion of one month of Diners Club revenues in our financial results, and higher loan and deposit fees. Year-over-year revenue growth was also attributable to mark-to-market investment securities losses in the prior year.

Net interest margin increased by 24 basis points, driven primarily by actions taken in 2009 to mitigate the impact of rising long-term funding costs as well as the impact of deposit growth outpacing loan growth.

In the personal banking segment, revenue increased $64 million or 10%, driven by volume growth in higher-spread loans and deposits. Homeowner ReadiLine growth drove personal loan growth of 13% year over year. Market share decreased from the prior year due to actions taken to maintain the quality of the portfolio.

Our mortgage loan balances decreased from a year ago, due to the runoff of our broker-channel loans and, as expected, mortgage market share decreased from a year ago. Over the long-term, our goal is to grow market share. We are highly focused on improving this business through investments in the sales force and achieving productivity gains while continuing to be prudently attentive to the credit quality of the portfolio.

Personal deposits increased 5.4% year over year while market share remained stable. The combination of improved performance management, investment in our branch network, simplified product offerings and customers' preferences for bank deposits in uncertain market conditions contributed to this growth.

In the commercial banking segment, revenue increased $52 million or 15% due to growth in deposits, actions taken in 2009 to mitigate the impact of rising long-term funding costs, and higher loan and deposit fees. Revenue growth was also attributable to mark-to-market investment securities losses in the prior year. Deposit balances grew 7.7%, reflecting our focus on meeting our customers' banking needs and our customers' attraction to the security of bank deposits in the current environment. Loan balances decreased 3.0%, reflective of current economic conditions. Market share decreased slightly from a year ago in a challenging environment. We continue to rank second in Canadian business banking market share of small and mid-size business loans.

Cards and Payment Services revenue increased $34 million or 12% due to balance growth and spread improvement, as well as the inclusion of one month of Diners Club revenues in our financial results, partially offset by lower card fees.

Non-interest expense increased a modest $5 million or 0.7%, reflecting higher initiatives and advertising costs, as well as the inclusion of Diners Club, partially offset by lower salaries expense due to reduced staff levels. The group's cash operating leverage was 11.1%. We continue to invest strategically to improve our competitive position and, mindful of the current economic environment, to tightly manage our operating expenses.

Average current loans and acceptances, including securitized loans, increased $2.4 billion or 1.7% from a year ago and personal and commercial deposits grew $5.4 billion or 5.8%.

Q1 2010 vs Q4 2009

Net income increased $5 million or 1.5%.

Revenue increased $28 million or 1.9%, driven by volume growth, an improved net interest margin and the inclusion of Diners Club, partially offset by lower card fees. Net interest margin improved 5 basis points due to higher volumes in more profitable products.

Provisions for credit losses, on an expected loss basis, increased $18 million due to growth in the portfolio and the impact of credit migration.

Non-interest expense increased $3 million or 0.3% primarily due to lower capital tax in the prior quarter, higher initiatives costs and the inclusion of Diners Club, partially offset by lower employee costs.

Average current loans and acceptances, including securitized loans, increased $0.9 billion or 0.7% from the last quarter while personal and commercial deposits increased $0.5 billion or 0.5%.

Personal and Commercial Banking U.S. (P&C U.S.)

    
    (Canadian $ in                              Increase            Increase
     millions, except                          (Decrease)          (Decrease)
     as noted)               Q1-2010         vs. Q1-2009         vs. Q4-2009
    -------------------------------------------------------------------------

    Net interest income (teb)    200       (40)     (17%)       (9)      (4%)
    Non-interest revenue          56        (3)      (5%)       (5)      (9%)
    -------------------------------------------------------------------------
    Total revenue (teb)          256       (43)     (14%)      (14)      (5%)
    Provision for credit
     losses                       19         1        5%         4       19%
    Non-interest expense         212       (18)      (8%)       (7)      (3%)
    -------------------------------------------------------------------------
    Income before income
     taxes and non-
     controlling interest
     in subsidiaries              25       (26)     (50%)      (11)     (28%)
    Income taxes (teb)             8        (9)     (48%)       (5)     (29%)
    Non-controlling interest
     in subsidiaries               -         -         -         -         -
    -------------------------------------------------------------------------
    Net income                    17       (17)     (51%)       (6)     (27%)
    -------------------------------------------------------------------------
    -------------------------------------------------------------------------

    Amortization of
     acquisition-related
     intangible assets
     (after tax)                   4        (3)     (33%)       (2)     (22%)
    -------------------------------------------------------------------------
    Cash net income               21       (20)     (48%)       (8)     (26%)
    -------------------------------------------------------------------------

    Operating leverage         (6.4%)                 nm                  nm
    Cash operating leverage    (7.3%)                 nm                  nm
    Productivity ratio (teb)   82.6%                5.7%               (1.7%)
    Cash productivity
     ratio (teb)               80.5%                6.4%               (2.2%)
    Net interest margin on
     earning assets (teb)      3.27%               0.22%               0.01%
    Average earning assets    24,343    (6,924)     (22%)   (1,000)      (4%)
    -------------------------------------------------------------------------
    -------------------------------------------------------------------------

    U.S. Select Financial
     Data (US$ in millions,
     except as noted)

    Net interest income (teb)    189        (7)      (3%)       (3)      (2%)
    Non-interest revenue          53         5       10%        (4)      (7%)
    -------------------------------------------------------------------------
    Total revenue (teb)          242        (2)      (1%)       (7)      (3%)
    Non-interest expense         200        12        7%        (1)      (1%)
    Net Income                    16       (12)     (43%)       (5)     (26%)
    Average earning assets    22,994    (2,487)     (10%)     (413)      (2%)
    -------------------------------------------------------------------------
    -------------------------------------------------------------------------
    nm - not meaningful
    

Q1 2010 vs Q1 2009

Net income decreased Cdn$17 million or 51% to Cdn$17 million. On a U.S. dollar basis, net income was $16 million, down $12 million or 43% from a year ago. Amounts in the rest of this section are outlined in U.S. dollars. Revenues from improved loan spreads were more than offset by decreased deposit spreads, an increase in the impact of higher impaired loans year over year and the first quarter 2009 reduction of the Visa litigation accrual.

Cash net income for the quarter was $35 million, adjusting for the impact of impaired loans. The cash productivity ratio was 72.1%, adjusted on the same basis.

Revenue fell $2 million or 0.8%. Adjusting for the impact of impaired loans, revenue fell $4 million or 1.3%, primarily due to deposit spread compression, largely offset by increases in loan spreads.

Non-interest expense increased $12 million or 6.6%. Adjusting for the impact of impaired loans, integration costs and changes in the Visa litigation accrual, expenses decreased $1 million or 0.2%, reflecting continued expense management.

Q1 2010 vs Q4 2009

Net income decreased Cdn $6 million or 27% from the prior quarter. On a U.S. dollar basis, net income decreased $5 million or 26% from the prior quarter. Amounts in the rest of this section are outlined in U.S. dollars.

Revenue decreased $7 million or 3.0%. Adjusting for the impact of impaired loans, revenue decreased $10 million or 3.7%, primarily driven by deposit spread compression and lower gains on the sale of mortgages, partially offset by improved loan spreads.

Non-interest expense decreased $1 million or 0.9%. Adjusting for the impact of impaired loans and changes in the Visa litigation accrual, expenses decreased $12 million or 5.7%, reflecting lower severance and marketing costs as well as continued expense management.

Private Client Group (PCG)

    
    (Canadian $ in                              Increase            Increase
     millions, except                          (Decrease)          (Decrease)
     as noted)               Q1-2010         vs. Q1-2009         vs. Q4-2009
    -------------------------------------------------------------------------

    Net interest income (teb)     87        (5)      (6%)       (1)      (1%)
    Non-interest revenue         463        76       20%         6        1%
    -------------------------------------------------------------------------
    Total revenue (teb)          550        71       15%         5        1%
    Provision for credit
     losses                        2         1       40%         1       35%
    Non-interest expense         398         4        1%        (5)      (1%)
    -------------------------------------------------------------------------
    Income before income taxes   150        66       79%         9        8%
    Income taxes (teb)            37        21     +100%         2        7%
    -------------------------------------------------------------------------
    Net income                   113        45       68%         7        8%
    -------------------------------------------------------------------------
    -------------------------------------------------------------------------

    Amortization of
     acquisition-related
     intangible assets
     (after tax)                   2         2     +100%         2     +100%
    -------------------------------------------------------------------------
    Cash net income              115        47       68%         9        8%
    -------------------------------------------------------------------------

    Return on equity           34.4%               10.7%                1.5%
    Cash return on equity      34.9%               10.9%                1.6%
    Operating leverage         13.7%                  nm                  nm
    Cash operating leverage    13.9%                  nm                  nm
    Productivity ratio (teb)   72.3%               (9.8%)              (1.8%)
    Cash productivity
     ratio (teb)               72.0%              (10.0%)              (2.0%)
    Net interest margin on
     earning assets (teb)      2.81%              (1.41%)             (0.10%)
    Average earning assets    12,332     3,650       42%       284        2%
    -------------------------------------------------------------------------
    -------------------------------------------------------------------------

    U.S. Select Financial
     Data (US$ in millions,
     except as noted)

    Total revenue (teb)           62        22       54%         2        2%
    Non-interest expense          54         2        3%        (3)      (5%)
    Net income                     5        13     +100%         2     +100%
    Cash net income                5        13     +100%         2     +100%
    Average earning assets     2,150      (120)      (5%)      (53)      (2%)
    -------------------------------------------------------------------------
    -------------------------------------------------------------------------
    nm - not meaningful
    

Q1 2010 vs Q1 2009

Net income of $113 million increased $45 million or 68% from the same quarter a year ago. Results a year ago included a charge of $17 million ($11 million after tax) related to the decision to assist some of our U.S. clients by purchasing auction-rate securities from their accounts in the weak capital markets environment. Net income in the current quarter was comprised of $70 million from PCG, excluding insurance, and $43 million from insurance, compared with net income a year ago of $36 million from PCG, excluding insurance, and $32 million from insurance.

Revenue increased $71 million or 15% due primarily to revenue growth across all of our businesses, in particular full-service investing, mutual funds and North American private banking, and the benefit of our BMO Life Assurance acquisition. Results a year ago included the impact of the previous year's charge outlined above. Net interest income declined due to lower deposit spreads in our brokerage businesses in the record-low interest rate environment. The weaker U.S. dollar lowered revenue by $11 million.

Non-interest expense increased $4 million or 1.2%. The BMO Life Assurance acquisition increased expenses by $19 million, including integration costs of $1 million. Operating costs were lowered by continued active expense management, partially offset by higher revenue-based costs in line with higher revenue. The weaker U.S. dollar reduced expenses by $9 million.

Assets under management and administration benefited from attracting new client assets and improved equity markets, growing $40 billion or 18%, after adjusting to exclude the impact of the weaker U.S. dollar.

Q1 2010 vs Q4 2009

Net income increased $7 million or 8.0% from the fourth quarter due primarily to higher earnings in PCG, excluding insurance.

Revenue of $550 million improved $5 million or 1.0% as solid growth across most businesses was partially offset by a number of small items negatively impacting revenues in the current quarter, including the effects of the weaker U.S. dollar. Revenue growth was due primarily to higher fee-based revenue in full-service investing, higher trust and investment revenue in North American private banking and higher mutual fund revenue, partially offset by lower commission revenue in the brokerage businesses.

Non-interest expense decreased $5 million or 1.5% from the previous quarter due to the benefits of continued active expense management, partially offset by stock-based compensation costs for employees eligible to retire that were recognized in the first quarter.

Assets under management and administration improved by $12 billion or 4.9% due to attracting new client assets and continuing improvement in market conditions.

BMO Capital Markets (BMO CM)

    
    (Canadian $ in                              Increase            Increase
     millions, except                          (Decrease)          (Decrease)
     as noted)               Q1-2010         vs. Q1-2009         vs. Q4-2009
    -------------------------------------------------------------------------

    Net interest income (teb)    408      (108)     (21%)       70       21%
    Non-interest revenue         512       301     +100%       (44)      (8%)
    -------------------------------------------------------------------------
    Total revenue (teb)          920       193       27%        26        3%
    Provision for credit
     losses                       78        36       83%        37       89%
    Non-interest expense         500        25        5%        66       15%
    -------------------------------------------------------------------------
    Income before income taxes   342       132       63%       (77)     (18%)
    Income taxes (teb)            94        61     +100%       (37)     (28%)
    -------------------------------------------------------------------------
    Net income                   248        71       40%       (40)     (14%)
    -------------------------------------------------------------------------
    -------------------------------------------------------------------------

    Amortization of
     acquisition-related
     intangible assets
     (after tax)                   1         1      100%         1      100%
    -------------------------------------------------------------------------
    Cash net income              249        72       40%       (39)     (14%)
    -------------------------------------------------------------------------

    Trading Products revenue     509       196       63%        15        3%
    Investment and Corporate
     Banking revenue             411        (3)       nm        11        3%
    Return on equity           18.4%                8.6%               (1.7%)
    Cash return on equity      18.4%                8.6%               (1.7%)
    Operating leverage         21.2%                  nm                  nm
    Cash operating leverage    21.2%                  nm                  nm
    Productivity ratio (teb)   54.4%              (10.9%)               5.8%
    Cash productivity
     ratio (teb)               54.4%              (10.9%)               5.9%
    Net interest margin on
     earning assets (teb)      1.01%              (0.06%)              0.20%
    Average earning assets   160,253   (30,782)     (16%)   (5,898)      (4%)
    -------------------------------------------------------------------------
    -------------------------------------------------------------------------

    U.S. Select Financial
     Data (US$ in millions,
     except as noted)

    Total revenue (teb)          362      (123)     (25%)       21        7%
    Non-interest expense         190        (4)      (2%)      (16)      (8%)
    Net Income                    83      (114)     (58%)       14       20%
    Average earning assets    53,602   (15,287)     (22%)   (7,391)     (12%)
    -------------------------------------------------------------------------
    -------------------------------------------------------------------------
    nm - not meaningful
    

Q1 2010 vs Q1 2009

Net income was $248 million, up $71 million or 40% from a year ago. There was strong revenue growth, partially offset by higher provisions for credit losses and an increase in employee compensation costs in line with improved revenue performance. ROE was 18.4%, up from 9.8% a year ago.

Revenue increased $193 million or 27% to $920 million. Our revenue growth was sustained by our continued client focus and maintaining a diversified portfolio of businesses. Non-interest revenues increased significantly as the prior year included large losses related to our Canadian credit protection vehicle. Results a year ago also included charges related to our merchant banking investments, compared to gains in the current quarter. Investment banking activity continued to improve due to better economic conditions and lending fees have also increased. In contrast, trading revenues are down from the prior year due to lower market volatility and narrower spreads. The weaker U.S. dollar decreased revenues by $68 million relative to a year ago.

Net interest income has also decreased due to more normal revenue levels from our interest-rate-sensitive businesses as well as lower corporate banking net interest income from reduced asset levels. Global treasury management revenues were also down, primarily due to lower client deposits. Net interest margin decreased by 6 basis points to 1.01%, largely as a result of tighter spreads in our interest-rate-sensitive businesses.

Non-interest expense increased $25 million or 5.4% mainly due to higher employee variable compensation, consistent with improved revenue performance. The weaker U.S. dollar decreased expenses by $27 million relative to a year ago.

Q1 2010 vs Q4 2009

Net income decreased $40 million or 14%. Modest revenue growth was more than offset by higher provisions for credit losses and expense growth.

Revenue was $26 million or 3.0% higher than in the preceding quarter due to increases in investment securities gains and merger and acquisition and debt underwriting activity. Commission revenue also improved. Trading revenues were relatively unchanged from the previous quarter as the increase in trading net interest income was offset by the decrease in trading non-interest revenue. Corporate banking net interest income increased slightly, while lending fees were down. The weaker U.S. dollar decreased revenues by $10 million.

Non-interest expense was $66 million or 15% higher due to increased employee compensation costs, as these costs were lowered in the preceding quarter to align annual variable compensation expense with final compensation rewards. In addition, the current quarter employee expenses were raised by stock-based compensation costs for employees eligible to retire, which are recorded annually in the first quarter. The weaker U.S. dollar decreased expenses by $4 million.

Corporate Services, Including Technology and Operations

    
    (Canadian $ in                              Increase            Increase
     millions, except                          (Decrease)          (Decrease)
     as noted)               Q1-2010         vs. Q1-2009         vs. Q4-2009
    -------------------------------------------------------------------------

    Net interest income (teb)   (182)      262       59%         3        1%
    Non-interest revenue          70       (50)     (41%)      (12)     (15%)
    -------------------------------------------------------------------------
    Total revenue (teb)         (112)      212       65%        (9)     (10%)
    Provision for credit
     losses                      114      (158)     (58%)     (113)     (49%)
    Non-interest expense          20       (18)     (51%)        3       21%
    -------------------------------------------------------------------------
    Loss before income taxes
     and non-controlling
     interest in subsidiaries    246      (388)     (61%)     (101)     (29%)
    Income tax recovery (teb)    141      (143)     (51%)      (57)     (29%)
    Non-controlling interest
     in subsidiaries              19         -         -         -         -
    -------------------------------------------------------------------------
    Net loss                     124      (245)     (66%)      (44)     (25%)
    -------------------------------------------------------------------------
    -------------------------------------------------------------------------

    U.S. Select Financial
     Data (US$ in millions,
     except as noted)

    Total revenue (teb)          (35)       88       72%        (5)     (19%)
    Provision for credit
     losses                      107      (117)     (52%)      (92)     (47%)
    Non-interest expense         (20)       (4)     (32%)       (4)     (20%)
    Income tax recovery (teb)     50       (78)     (62%)      (32)     (42%)
    Net loss                      77      (131)     (63%)      (58)     (42%)
    -------------------------------------------------------------------------
    -------------------------------------------------------------------------
    

Corporate Services

Corporate Services consists of the corporate units that provide enterprise-wide expertise and governance support in a variety of areas, including strategic planning, risk management, corporate finance, legal and compliance, communications and human resources. Operating results include revenues and expenses associated with certain securitization and asset-liability management activities, the elimination of taxable equivalent adjustments and the impact of our expected loss provisioning methodology.

Corporate Services is charged (or credited) with differences between the periodic provisions for credit losses charged to the client operating groups under our expected loss provisioning methodology and the required periodic provisions charged by the consolidated organization under GAAP.

Technology and Operations

Technology and Operations (T&O) manages, maintains and provides governance over information technology, operations services, real estate and sourcing for BMO Financial Group. T&O focuses on enterprise-wide priorities that improve service quality and efficiency to deliver an excellent customer experience.

Financial Performance Review

Technology and Operations operating results are included with Corporate Services for reporting purposes. Costs of T&O's services are transferred to the client operating groups (P&C, PCG and BMO Capital Markets) and only minor amounts are retained in T&O results. As such, results in this section largely reflect the corporate activities outlined above.

There was a net loss of $124 million in the quarter, which was $245 million or 66% better than in the prior year. Revenues improved $212 million or 65%. The improvement was mainly due to a lower negative carry on certain asset-liability interest rate positions as a result of management actions and more stable market conditions as well as mark-to-market gains on hedging activities in the current year compared to losses in the prior year. These factors were partly offset by lower securitization revenue. Provisions for credit losses were better by $158 million as a result of lower provisions charged to Corporate under BMO's expected loss provisioning methodology.

The net loss in the current quarter was $44 million better than the loss of $168 million in the fourth quarter of 2009. Revenues were $9 million lower primarily due to a reduction in mark-to-market gains on hedging activities. Provisions for credit losses were better by $113 million while expenses were $3 million higher.

Notable items

    
    (Canadian $ in millions, except as noted)    Q1-2010   Q4-2009   Q1-2009
    -------------------------------------------------------------------------

    Charges related to deterioration in
     capital markets environment                       -        50       248
    Related income taxes                               -        16        79
    -------------------------------------------------------------------------
    Net impact of notable items                        -        34       169
    -------------------------------------------------------------------------
    

Notable Items

As noted in the Annual Report, we chose to redefine notable items for fiscal 2009. Notable items identified for prior quarters align accordingly.

Q1 2010

No charges in respect of the capital markets environment have been designated as notable items this quarter in light of the relative insignificance of the amounts.

Q4 2009

We recorded a charge of $50 million ($34 million after tax and $0.06 per share) in respect of the Canadian credit protection vehicle Apex. This charge and a small net charge in respect of credit default swaps that mitigate credit exposure in the loan portfolio were largely offset by favourable credit valuation adjustments.

The $50 million charge was reflected in non-interest trading revenue.

Q1 2009

In the first quarter of 2009, BMO recorded charges of $248 million ($169 million after tax and $0.32 per share) in respect of the capital markets environment comprised of charges related to Apex.

The $248 million of charges outlined above reduced non-interest trading revenue ($71 million) and investment securities gains ($177 million).

GAAP and Related Non-GAAP Measures used in the MD&A

    
    (Canadian $ in millions, except as noted)    Q1-2010   Q4-2009   Q1-2009
    -------------------------------------------------------------------------

    Total non-interest expense (a)                 1,839     1,779     1,841
    Amortization of acquisition-related
     intangible assets (note 1)                       (8)      (10)      (10)
    -------------------------------------------------------------------------
    Cash-based non-interest expense (b)
     (note 2)                                      1,831     1,769     1,831
    -------------------------------------------------------------------------

    Net income                                       657       647       225
    Amortization of acquisition-related
     intangible assets, net of income taxes            7         8         8
    -------------------------------------------------------------------------
    Cash net income (note 2)                         664       655       233
    Preferred share dividends                        (35)      (38)      (23)
    Charge for capital (note 2)                     (458)     (458)     (429)
    -------------------------------------------------------------------------
    Net economic profit (note 2)                     171       159      (219)
    -------------------------------------------------------------------------

    Revenue (c)                                    3,025     2,989     2,442
    Revenue growth (%) (d)                          23.9       6.3      20.5
    Productivity ratio (%) ((a/c) x 100)            60.8      59.5      75.4
    Cash productivity ratio (%) ((b/c) x 100)
     (note 2)                                       60.5      59.2      75.0
    Non-interest expense growth (%) (e)             (0.1)     (2.2)     14.1
    Cash-based non-interest expense growth
     (%) (f) (note 2)                                  -      (2.0)     14.1
    Operating leverage (%) (d-e)                    24.0       8.5       6.4
    Cash operating leverage (%) (d-f) (note 2)      23.9       8.3       6.4
    EPS (uses net income) ($)                       1.12      1.11      0.39
    Cash EPS (note 1) (uses cash net income)
     ($) (note 2)                                   1.13      1.13      0.40
    -------------------------------------------------------------------------
    -------------------------------------------------------------------------
    Note 1: The amortization of non-acquisition-related intangible assets is
            not added back in the determination of cash net income.
    Note 2: These are non-GAAP amounts or non-GAAP measures.
    

Non-GAAP Measures

BMO uses both GAAP and certain non-GAAP measures to assess performance. Securities regulators require that companies caution readers that earnings and other measures adjusted to a basis other than GAAP do not have standardized meanings under GAAP and are unlikely to be comparable to similar measures used by other companies. The above table reconciles the non-GAAP measures, which management regularly monitors, to their GAAP counterparts.

At times, we indicate that certain amounts or measures exclude the effects of items but we generally do so in conjunction with disclosure of the nearest GAAP measure and provide details of the reconciling item. Amounts and measures stated on such a basis are considered useful as they could be expected to reflect ongoing operating results or assist readers' understanding of performance. To assist readers, we have also provided a schedule on the preceding page that summarizes notable items that have affected results in the reporting periods.

Cash earnings, cash productivity and cash operating leverage measures may enhance comparisons between periods when there has been an acquisition, particularly because the purchase decision may not consider the amortization of acquisition-related intangible assets to be a relevant expense. Cash EPS measures are also disclosed because analysts often focus on this measure, and cash EPS is used by Thomson First Call to track third-party earnings estimates that are frequently reported in the media. Cash measures add the after-tax amortization of acquisition-related intangible assets to GAAP earnings to derive cash net income (and associated cash EPS) and deduct the amortization of acquisition-related intangible assets from non-interest expense to derive cash productivity and cash operating leverage measures.

Net economic profit represents cash net income available to common shareholders, less a charge for capital, and is considered an effective measure of added economic value.

INVESTOR AND MEDIA PRESENTATION

Investor Presentation Materials

Interested parties are invited to visit our website at www.bmo.com/investorrelations to review our 2009 Annual Report, this quarterly news release, presentation materials and a supplementary financial information package online.

Quarterly Conference Call and Webcast Presentations

Interested parties are also invited to listen to our quarterly conference call on Tuesday, March 2, 2010, at 2:00 p.m. (EST). At that time, senior BMO executives will comment on results for the quarter and respond to questions from the investor community. The call may be accessed by telephone at 416-695-9753 (from within Toronto) or 1-888-789-0089 (toll-free outside Toronto). A replay of the conference call can be accessed until Tuesday, May 25, 2010, by calling 416-695-5800 (from within Toronto) or 1-800-408-3053 (toll-free outside Toronto) and entering passcode 1645426.

A live webcast of the call can be accessed on our website at www.bmo.com/investorrelations. A replay can be accessed on the site until Tuesday, May 25, 2010.

    
    -------------------------------------------------------------------------
    Annual Meeting 2010
    The Annual Meeting of Shareholders will be held on
    Tuesday, March 23, 2010, at 9:30 CDT (10:30 EDT) in Winnipeg, Manitoba.
    -------------------------------------------------------------------------

    Media Relations Contacts

    Ralph Marranca, Toronto, ralph.marranca@bmo.com, 416-867-3996
    Ronald Monet, Montreal, ronald.monet@bmo.com, 514-877-1873

    Investor Relations Contacts

    Viki Lazaris, Senior Vice-President, viki.lazaris@bmo.com,
    416-867-6656
    Steven Bonin, Director, steven.bonin@bmo.com, 416-867-5452
    Andrew Chin, Senior Manager, andrew.chin@bmo.com, 416-867-7019

    Chief Financial Officer

    Russel Robertson, Chief Financial Officer
    russ.robertson@bmo.com, 416-867-7360

    Corporate Secretary

    Blair Morrison, Senior Vice-President, Deputy General Counsel,
    Corporate Affairs and Corporate Secretary
    corp.secretary@bmo.com, 416-867-6785

    -------------------------------------------------------------------------
    Shareholder Dividend Reinvestment    For other shareholder information,
     and Share Purchase Plan             please contact
    Average market price                 Bank of Montreal Shareholder
    November 2009 $53.11 ($52.05*)     Services
    December 2009 $54.94                 Corporate Secretary's Department
    January 2010 $53.01                  One First Canadian Place, 21st Floor
    * reflects 2% discount for         Toronto, Ontario M5X 1A1
        dividend reinvestment            Telephone: (416) 867-6785
                                         Fax: (416) 867-6793
    For dividend information, change     E-mail: corp.secretary@bmo.com
    in shareholder address or to
    advise of duplicate mailings,        For further information on this
    please contact                       report, please contact
    Computershare Trust Company of       Bank of Montreal
    Canada                               Investor Relations Department
    100 University Avenue, 9th Floor     P.O. Box 1, One First Canadian
    Toronto, Ontario M5J 2Y1             Place, 18th Floor
    Telephone: 1-800-340-5021            Toronto, Ontario M5X 1A1
    (Canada and the United States)
    Telephone: (514) 982-7800            To review financial results online,
    (international)                      please visit our website at
    Fax: 1-888-453-0330                  www.bmo.com
    (Canada and the United States)
    Fax: (416) 263-9394
    (international)
    E-mail:
    service@computershare.com
    -------------------------------------------------------------------------
    (R) Registered trademark of Bank of Montreal
    

Financial Highlights

    
    (Unaudited)
     (Canadian $
     in millions,
     except as
     noted)                       For the three months ended
    -------------------------------------------------------------------------
                                                                      Change
                                                                        from
                   January   October      July     April   January   January
                  31, 2010  31, 2009  31, 2009  30, 2009  31, 2009  31, 2009
    -------------------------------------------------------------------------
    Income
     Statement
     Highlights
    Total
     revenue     $   3,025 $   2,989 $   2,978 $   2,655 $   2,442      23.9%
    Provision for
     credit losses     333       386       417       372       428     (22.1)
    Non-interest
     expense         1,839     1,779     1,873     1,888     1,841      (0.1)
    Net income         657       647       557       358       225      +100
    -------------------------------------------------------------------------
    Net Income by
     Operating
     Segment
    Personal and
     Commercial
     Banking
     Canada      $     403 $     398 $     362 $     340 $     315      28.1%
    Personal and
     Commercial
     Banking U.S.       17        23        24        22        34     (50.8)
    Private
     Client Group      113       106       113        72        68      67.6
    BMO Capital
     Markets           248       288       344       247       177      40.2
    Corporate
     Services(a)      (124)     (168)     (286)     (323)     (369)     66.0
    -------------------------------------------------------------------------
    Common Share
     Data
    Diluted
     earnings
     per share   $    1.12 $    1.11 $    0.97 $    0.61 $    0.39 $    0.73
    Diluted cash
     earnings per
     share(b)         1.13      1.13      0.98      0.63      0.40      0.73
    Dividends
     declared per
     share            0.70      0.70      0.70      0.70      0.70      0.00
    Book value
     per share       32.51     31.95     31.26     32.22     32.18      0.33
    Closing share
     price           52.00     50.06     54.02     39.50     33.25     18.75
    Total market
     value of
     common shares
     ($ billions)     28.9      27.6      29.6      21.5      17.9      11.0
    -------------------------------------------------------------------------

                                         As at
    -------------------------------------------------------------------------
                                                                      Change
                                                                        from
                   January   October      July     April   January   January
                  31, 2010  31, 2009  31, 2009  30, 2009  31, 2009  31, 2009
    -------------------------------------------------------------------------
    Balance Sheet
     Highlights
    Assets       $ 398,623 $ 388,458 $ 415,361 $ 432,245 $ 443,174    (10.1)%
    Net loans and
     acceptances   169,588   167,829   173,558   179,650   190,099    (10.8)
    Deposits       240,299   236,156   244,953   247,169   264,580     (9.2)
    Common
     shareholders'
     equity         18,054    17,626    17,144    17,561    17,371      3.9
    -------------------------------------------------------------------------

                                  For the three months ended
    -------------------------------------------------------------------------
                   January   October      July     April   January
                  31, 2010  31, 2009  31, 2009  30, 2009  31, 2009
    -------------------------------------------------------------------------
    Financial
     Measures and
     Ratios (%
     except as
     noted)(c)
    Average
     annual five
     year total
     shareholder
     return            3.5       1.8       4.0      (1.2)     (6.9)
    Diluted
     earnings per
     share growth     +100       4.7      (1.0)    (51.2)    (17.0)
    Diluted cash
     earnings per
     share growth(b)  +100       4.6      (2.0)    (50.0)    (18.4)
    Return on
     equity           14.3      14.0      12.1       8.1       4.9
    Cash return
     on equity(b)     14.4      14.2      12.3       8.4       5.2
    Net economic
     profit (NEP)
     growth(b)        +100      10.4     (35.1)    (+100)    (71.8)
    Operating
     leverage         24.0       8.5       3.3     (11.1)      6.4
    Cash operating
     leverage(b)      23.9       8.3       3.3     (11.0)      6.4
    Revenue growth    23.9       6.3       8.4       1.3      20.5
    Non-interest
     expense growth   (0.1)     (2.2)      5.1      12.4      14.1
    Cash non-interest
     expense
     growth(b)         0.0      (2.0)      5.1      12.3      14.1
    Non-interest
     expense-to-
     revenue ratio    60.8      59.5      62.9      71.1      75.4
    Cash non-interest
     expense-to-
     revenue ratio(b) 60.5      59.2      62.5      70.7      75.0
    Provision for
     credit losses-
     to-average
     loans and
     acceptances
     (annualized)     0.79      0.89      0.94      0.79      0.90
    Gross impaired
     loans and
     acceptances-
     to-equity and
     allowance for
     credit losses   13.11     14.06     12.75     12.95     11.91
    Cash and
     securities-to-
     total assets
     ratio            33.9      31.9      30.0      28.2      28.2
    Tier 1 capital
     ratio           12.53     12.24     11.71     10.70     10.21
    Total capital
     ratio           14.82     14.87     14.32     13.20     12.87
    Credit rating
      DBRS              AA        AA        AA        AA        AA
      Fitch            AA-       AA-       AA-       AA-       AA-
      Moody's          Aa2       Aa1       Aa1       Aa1       Aa1
      Standard &
       Poor's           A+        A+        A+        A+        A+
    Twelve month
     total
     shareholder
     return           67.1      25.1      21.4     (15.2)    (37.7)
    Dividend yield    5.38      5.59      5.18      7.09      8.42
    Price-to-earnings
     ratio (times)    13.6      16.3      17.8      13.0       9.0
    Market-to-book
     value (times)    1.60      1.57      1.73      1.23      1.03
    Net economic
     profit (loss)
     ($ millions)(b)   171       159        79       (87)     (219)
    Return on
     average assets   0.66      0.63      0.52      0.32      0.19
    Net interest
     margin on
     average
     earning assets   1.85      1.73      1.74      1.55      1.51
    Non-interest
     revenue-to-
     total revenue    49.3      51.7      50.8      49.7      45.6
    Equity-to-assets
     ratio             5.2       5.2       4.7       4.6       4.3
    -------------------------------------------------------------------------
    -------------------------------------------------------------------------
    All ratios in this report are based on unrounded numbers.
    (a) Corporate Services includes Technology and Operations.
    (b) Refer to the "Non-GAAP Measures" section of Management's Discussion
        and Analysis for an explanation of cash results and net economic
        profit. Securities regulators require that companies caution readers
        that earnings and other measures adjusted to a basis other than
        generally accepted accounting principles (GAAP) do not have
        standardized meanings under GAAP and are unlikely to be comparable to
        similar measures used by other companies.
    (c) For the period ended, or as at, as appropriate.


    

Interim Consolidated Financial Statements

Consolidated Statement of Income

    
    (Unaudited) (Canadian $
     in millions, except
     as noted)                         For the three months ended
    -------------------------------------------------------------------------
                             January   October      July     April   January
                            31, 2010  31, 2009  31, 2009  30, 2009  31, 2009
    -------------------------------------------------------------------------
    Interest, Dividend
     and Fee Income
    Loans                  $   1,763 $   1,835 $   1,920 $   1,955 $   2,250
    Securities                   518       448       494       665       820
    Deposits with banks           17        19        23        48        96
    -------------------------------------------------------------------------
                               2,298     2,302     2,437     2,668     3,166
    -------------------------------------------------------------------------
    Interest Expense
    Deposits                     559       672       789     1,097     1,483
    Subordinated debt             29        32        24        30        49
    Capital trust securities
     and preferred shares         20        20        20        19        21
    Other liabilities            158       136       138       187       286
    -------------------------------------------------------------------------
                                 766       860       971     1,333     1,839
    -------------------------------------------------------------------------
    Net Interest Income        1,532     1,442     1,466     1,335     1,327
    Provision for credit
     losses (Note 2)             333       386       417       372       428
    -------------------------------------------------------------------------
    Net Interest Income
     After Provision for
     Credit Losses             1,199     1,056     1,049       963       899
    -------------------------------------------------------------------------
    Non-Interest Revenue
    Securities commissions
     and fees                    263       250       240       235       248
    Deposit and payment
     service charges             200       205       206       204       205
    Trading revenues             126       163       273        63       224
    Lending fees                 142       149       140       148       119
    Card fees                     35        29        35        33        24
    Investment management
     and custodial fees           88        87        85        84        88
    Mutual fund revenues         133       128       119       106       114
    Securitization revenues      172       201       202       262       264
    Underwriting and
     advisory fees               122       116       101       103        77
    Securities gains
     (losses), other than
     trading                      47        14       (12)      (42)     (314)
    Foreign exchange,
     other than trading           21        14         1        25        13
    Insurance income              82        86        85        64        60
    Other                         62       105        37        35        (7)
    -------------------------------------------------------------------------
                               1,493     1,547     1,512     1,320     1,115
    -------------------------------------------------------------------------
    Net Interest Income and
     Non-Interest Revenue      2,692     2,603     2,561     2,283     2,014
    -------------------------------------------------------------------------
    Non-Interest Expense
    Employee compensation
     (Note 8)                  1,111     1,047     1,122     1,129     1,087
    Premises and equipment       308       302       313       339       327
    Amortization of
     intangible assets            50        50        48        54        51
    Travel and business
     development                  72        81        73        73        82
    Communications                50        58        55        57        51
    Business and capital
     taxes                        11        (3)       19        13        15
    Professional fees             77        97        91        82        92
    Other                        160       147       162       141       136
    -------------------------------------------------------------------------
                               1,839     1,779     1,883     1,888     1,841
    -------------------------------------------------------------------------
    Restructuring Reversal         -         -       (10)        -         -
    -------------------------------------------------------------------------
    Income Before Provision
     for (Recovery of)
     Income Taxes and
     Non-Controlling Interest
     in Subsidiaries             853       824       688       395       173
    Provision for (Recovery
     of) income taxes            177       158       112        18       (71)
    -------------------------------------------------------------------------
                                 676       666       576       377       244
    Non-controlling interest
     in subsidiaries              19        19        19        19        19
    -------------------------------------------------------------------------
    Net Income             $     657 $     647 $     557 $     358 $     225
    -------------------------------------------------------------------------
    -------------------------------------------------------------------------

    Preferred share
     dividends             $      35 $      38 $      33 $      26 $      23
    Net income available to
     common shareholders   $     622 $     609 $     524 $     332 $     202
    Average common shares
     (in thousands)          553,992   550,495   547,134   543,634   520,020
    Average diluted common
     shares (in thousands)   557,311   554,151   549,968   544,327   523,808
    -------------------------------------------------------------------------
    Earnings Per Share
     (Canadian $)
    Basic                  $    1.12 $    1.12 $    0.97 $    0.61 $    0.39
    Diluted                     1.12      1.11      0.97      0.61      0.39
    Dividends Declared
     Per Common Share           0.70      0.70      0.70      0.70      0.70
    -------------------------------------------------------------------------
    -------------------------------------------------------------------------
    The accompanying notes are an integral part of these interim consolidated
    financial statements.


    

Consolidated Balance Sheet

    
    (Unaudited) (Canadian $
     in millions)                                  As at
    -------------------------------------------------------------------------
                             January   October      July     April   January
                            31, 2010  31, 2009  31, 2009  30, 2009  31, 2009
    -------------------------------------------------------------------------
    Assets
    Cash and Cash
     Equivalents           $  12,341 $   9,955 $  10,758 $  10,247 $  16,951
    -------------------------------------------------------------------------
    Interest Bearing
     Deposits with Banks       3,563     3,340     3,809     3,985     9,439
    -------------------------------------------------------------------------
    Securities
    Trading                   64,874    59,071    66,152    66,704    61,752
    Available-for-sale        52,690    50,303    42,559    39,295    35,189
    Other                      1,506     1,439     1,436     1,501     1,517
    -------------------------------------------------------------------------
                             119,070   110,813   110,147   107,500    98,458
    -------------------------------------------------------------------------
    Securities Borrowed
     or Purchased Under
     Resale Agreements        34,498    36,006    45,250    38,521    32,283
    -------------------------------------------------------------------------
    Loans
    Residential mortgages     46,535    45,524    48,760    48,052    50,107
    Consumer instalment
     and other personal       46,813    45,824    44,466    44,316    44,355
    Credit cards               3,324     2,574     2,383     2,100     2,105
    Businesses and
     governments              67,690    68,169    70,705    77,271    84,557
    -------------------------------------------------------------------------
                             164,362   162,091   166,314   171,739   181,124
    Customers' liability
     under acceptances         7,169     7,640     9,042     9,736    10,716
    Allowance for credit
     losses (Note 2)          (1,943)   (1,902)   (1,798)   (1,825)   (1,741)
    -------------------------------------------------------------------------
                             169,588   167,829   173,558   179,650   190,099
    -------------------------------------------------------------------------
    Other Assets
    Derivative instruments    45,702    47,898    59,580    77,473    81,985
    Premises and equipment     1,628     1,634     1,642     1,684     1,709
    Goodwill                   1,584     1,569     1,551     1,670     1,706
    Intangible assets            712       660       647       671       676
    Other                      9,937     8,754     8,419    10,844     9,868
    -------------------------------------------------------------------------
                              59,563    60,515    71,839    92,342    95,944
    -------------------------------------------------------------------------
    Total Assets           $ 398,623 $ 388,458 $ 415,361 $ 432,245 $ 443,174
    -------------------------------------------------------------------------
    -------------------------------------------------------------------------
    Liabilities and
     Shareholders' Equity
    Deposits
    Banks                  $  22,318 $  22,973 $  23,211 $  27,874 $  31,422
    Businesses and
     governments             119,568   113,738   122,269   118,205   133,388
    Individuals               98,413    99,445    99,473   101,090    99,770
    -------------------------------------------------------------------------
                             240,299   236,156   244,953   247,169   264,580
    -------------------------------------------------------------------------
    Other Liabilities
    Derivative instruments    42,867    44,765    58,570    75,070    77,764
    Acceptances                7,169     7,640     9,042     9,736    10,716
    Securities sold but
     not yet purchased        15,953    12,064    12,717    14,131    16,327
    Securities lent or
     sold under repurchase
     agreements               50,226    46,312    48,816    46,170    36,012
    Other                     16,592    15,938    16,149    14,708    12,969
    -------------------------------------------------------------------------
                             132,807   126,719   145,294   159,815   153,788
    -------------------------------------------------------------------------
    Subordinated Debt
     (Note 9)                  3,742     4,236     4,249     4,379     4,389
    -------------------------------------------------------------------------
    Capital Trust
     Securities                1,150     1,150     1,150     1,150     1,150
    -------------------------------------------------------------------------
    Shareholders' Equity
    Share capital (Note 10)    8,939     8,769     8,626     8,099     7,676
    Contributed surplus           89        79        78        77        76
    Retained earnings         11,981    11,748    11,525    11,391    11,434
    Accumulated other
     comprehensive income
     (loss)                     (384)     (399)     (514)      165        81
    -------------------------------------------------------------------------
                              20,625    20,197    19,715    19,732    19,267
    -------------------------------------------------------------------------
    Total Liabilities and
     Shareholders' Equity  $ 398,623 $ 388,458 $ 415,361 $ 432,245 $ 443,174
    -------------------------------------------------------------------------
    -------------------------------------------------------------------------
    The accompanying notes are an integral part of these interim consolidated
    financial statements.


    

Consolidated Statement of Comprehensive Income

    
    (Unaudited) (Canadian $ in millions)          For the three months ended
    -------------------------------------------------------------------------
                                                   January 31,    January 31,
                                                         2010           2009
    -------------------------------------------------------------------------
    Net income                                    $       657    $       225
    Other Comprehensive Income
      Net change in unrealized gains (losses)
       on available-for-sale securities                   (23)            66
      Net change in unrealized gains on cash
       flow hedges                                         85            192
      Net gain (loss) on translation of net
       foreign operations                                 (47)            74
    -------------------------------------------------------------------------
    Total Comprehensive Income                    $       672    $       557
    -------------------------------------------------------------------------
    -------------------------------------------------------------------------


    

Consolidated Statement of Changes in Shareholders' Equity

    
    (Unaudited) (Canadian $ in millions)          For the three months ended
    -------------------------------------------------------------------------
                                                   January 31,    January 31,
                                                         2010           2009
    -------------------------------------------------------------------------
    Preferred Shares
    Balance at beginning of period                $     2,571    $     1,746
    Issued during the period (Note 10)                      -            150
    -------------------------------------------------------------------------
    Balance at End of Period                            2,571          1,896
    -------------------------------------------------------------------------
    Common Shares
    Balance at beginning of period                      6,198          4,773
    Issued during the period (Note 10)                      -          1,000
    Issued under the Shareholder Dividend
     Reinvestment and Share Purchase Plan                 126             35
    Issued under the Stock Option Plan                     44             10
    -------------------------------------------------------------------------
    Balance at End of Period                            6,368          5,818
    -------------------------------------------------------------------------
    Treasury shares (Note 10)                               -            (38)
    -------------------------------------------------------------------------
    Contributed Surplus
    Balance at beginning of period                         79             69
    Stock option expense/exercised                         10              5
    Premium on treasury shares                              -              2
    -------------------------------------------------------------------------
    Balance at End of Period                               89             76
    -------------------------------------------------------------------------
    Retained Earnings
    Balance at beginning of period                     11,748         11,632
    Net income                                            657            225
    Dividends - Preferred shares                          (35)           (23)
              - Common shares                            (389)          (378)
    Share issue expense                                     -            (22)
    -------------------------------------------------------------------------
    Balance at End of Period                           11,981         11,434
    -------------------------------------------------------------------------
    Accumulated Other Comprehensive Income
     (Loss) on Available-for-Sale Securities
    Balance at beginning of period                        480            (74)
    Unrealized losses on available-for-sale
     securities arising during the period
     (net of income tax recovery of $9 and $20)           (21)           (44)
    Reclassification to earnings of losses in
     the period (net of income tax (provision)
     recovery of less than $1 and $(52))                   (2)           110
    -------------------------------------------------------------------------
    Balance at End of Period                              457             (8)
    -------------------------------------------------------------------------
    Accumulated Other Comprehensive Income
     on Cash Flow Hedges
    Balance at beginning of period                         14            258
    Gains on cash flow hedges arising during
     the period (net of income tax provision
     of $(26) and $(78))                                   77            193
    Reclassification to earnings of (gains)
     losses on cash flow hedges (net of income tax
     (provision) recovery of $(6) and less than $1)         8             (1)
    -------------------------------------------------------------------------
    Balance at End of Period                               99            450
    -------------------------------------------------------------------------
    Accumulated Other Comprehensive Loss on
     Translation of Net Foreign Operations
    Balance at beginning of period                       (893)          (435)
    Unrealized gain (loss) on translation of net
     foreign operations                                  (141)           228
    Impact of hedging unrealized gain (loss) on
     translation of net foreign operations (net
     of income tax (provision) recovery of $(39)
     and $66)                                              94           (154)
    -------------------------------------------------------------------------
    Balance at End of Period                             (940)          (361)
    -------------------------------------------------------------------------
    Total Accumulated Other Comprehensive
     Income (Loss)                                       (384)            81
    -------------------------------------------------------------------------
    Total Shareholders' Equity                    $    20,625    $    19,267
    -------------------------------------------------------------------------
    -------------------------------------------------------------------------
    The accompanying notes are an integral part of these interim consolidated
    financial statements.


    

Consolidated Statement of Cash Flows

    
    (Unaudited) (Canadian $ in millions)          For the three months ended
    -------------------------------------------------------------------------
                                                   January 31,    January 31,
                                                         2010           2009
    -------------------------------------------------------------------------
    Cash Flows from Operating Activities
    Net income                                    $       657    $       225
    Adjustments to determine net cash flows
     provided by (used in) operating activities
      Impairment write-down of securities,
       other than trading                                  18            241
      Net (gain) loss on securities, other
       than trading                                       (65)            73
      Net (increase) decrease in trading
       securities                                      (6,000)         4,880
      Provision for credit losses                         333            428
      (Gain) on sale of securitized loans
       (Note 3)                                          (122)          (182)
      Change in derivative instruments
        - (Increase) decrease in derivative asset       1,637        (16,068)
        - Increase (decrease) in derivative
           liability                                   (1,409)        17,178
      Amortization of premises and equipment               65             65
      Amortization of intangible assets                    50             51
      Net (increase) decrease in future
       income taxes                                        21           (130)
      Net (increase) in current income taxes             (660)           (21)
      Change in accrued interest
        - Decrease in interest receivable                 101            208
        - Decrease in interest payable                   (268)          (137)
      Changes in other items and accruals, net            272           (513)
      (Gain) on sale of land and buildings                 (4)             -
    -------------------------------------------------------------------------
    Net Cash Provided by (Used in) Operating
     Activities                                        (5,374)         6,298
    -------------------------------------------------------------------------
    Cash Flows from Financing Activities
    Net increase in deposits                            5,572          4,919
    Net increase (decrease) in securities
     sold but not yet purchased                         3,926         (2,588)
    Net increase in securities lent or sold
     under repurchase agreements                        4,227          3,382
    Repayment of subordinated debt (Note 9)              (500)          (140)
    Redemption of preferred share liability
     (Note 10)                                              -           (250)
    Proceeds from issuance of preferred shares
     (Note 10)                                              -            150
    Proceeds from issuance of common shares
     (Note 10)                                             44          1,010
    Share issue expense                                     -            (22)
    Cash dividends paid                                  (298)          (366)
    -------------------------------------------------------------------------
    Net Cash Provided by Financing Activities          12,971          6,095
    -------------------------------------------------------------------------
    Cash Flows from Investing Activities
    Net (increase) decrease in interest bearing
     deposits with banks                                 (261)         2,523
    Purchases of securities, other than trading        (8,045)       (11,860)
    Maturities of securities, other than trading        2,322          4,030
    Proceeds from sales of securities, other
     than trading                                       2,797          5,711
    Net (increase) in loans                            (2,517)        (5,498)
    Proceeds from securitization of loans
     (Note 3)                                             333          4,637
    Net (increase) decrease in securities
     borrowed or purchased under resale
     agreements                                         1,154         (4,079)
    Proceeds from sales of land and buildings               5              -
    Premises and equipment - net purchases                (54)           (41)
    Purchased and developed software -
     net purchases                                        (43)           (46)
    Acquisitions (Note 7)                                (898)            (6)
    -------------------------------------------------------------------------
    Net Cash Used in Investing Activities              (5,207)        (4,629)
    -------------------------------------------------------------------------
    Effect of Exchange Rate Changes on Cash
     and Cash Equivalents                                  (4)            53
    -------------------------------------------------------------------------
    Net Increase in Cash and Cash Equivalents           2,386          7,817
    Cash and Cash Equivalents at Beginning
     of Period                                          9,955          9,134
    -------------------------------------------------------------------------
    Cash and Cash Equivalents at End of Period    $    12,341    $    16,951
    -------------------------------------------------------------------------
    -------------------------------------------------------------------------
    Represented by:
    Cash and non-interest bearing deposits
     with Bank of Canada and other banks          $    11,341    $    15,537
    Cheques and other items in transit, net             1,000          1,414
    -------------------------------------------------------------------------
                                                  $    12,341    $    16,951
    -------------------------------------------------------------------------
    -------------------------------------------------------------------------
    Supplemental Disclosure of Cash Flow
     Information
    Amount of interest paid in the period         $     1,039    $     1,970
    Amount of income taxes paid
     in the period                                $       810    $       140
    -------------------------------------------------------------------------
    -------------------------------------------------------------------------
    The accompanying notes are an integral part of these interim consolidated
    financial statements.
    Certain comparative figures have been reclassified to conform with the
    current period's presentation.


    

Notes to Consolidated Financial Statements

    
    January 31, 2010 (Unaudited)
    -------------------------------------------------------------------------

    Note 1: Basis of Presentation

    These interim consolidated financial statements should be read in
    conjunction with the notes to our annual consolidated financial
    statements for the year ended October 31, 2009 as set out on pages 114 to
    164 of our 2009 Annual Report. These interim consolidated financial
    statements have been prepared in accordance with Canadian generally
    accepted accounting principles ("GAAP") using the same accounting
    policies and methods of computation as were used for our annual
    consolidated financial statements for the year ended October 31, 2009.

    Note 2: Allowance for Credit Losses

    The allowance for credit losses recorded in our Consolidated Balance
    Sheet is maintained at a level which we consider adequate to absorb
    credit-related losses on our loans, customers' liability under
    acceptances and other credit instruments. The portion related to other
    credit instruments is recorded in other liabilities in our Consolidated
    Balance Sheet. As at January 31, 2010 and 2009, there was no allowance
    for credit losses related to other credit instruments included in other
    liabilities.

    A continuity of our allowance for credit losses is as follows:

    (Canadian $ in millions)
    -------------------------------------------------------------------------
                                         Credit card,
                                     consumer instalment
                      Residential         and other          Business and
                       mortgages        personal loans     government loans
    -------------------------------------------------------------------------
    For the three  January   January   January   January   January   January
     months ended 31, 2010  31, 2009  31, 2010  31, 2009  31, 2010  31, 2009
    -------------------------------------------------------------------------
    Specific
     Allowance at
     beginning of
     period       $     33  $     13  $     51  $      2  $    507  $    411
    Provision for
     credit losses       6         3       164       129       158       296
    Recoveries           -         -        32        28        13         8
    Write-offs          (2)        -      (191)     (158)     (161)     (333)
    Foreign exchange
     and other           -         -         -         -        (7)        8
    -------------------------------------------------------------------------
    Specific
     Allowance at
     end of period      37        16        56         1       510       390
    -------------------------------------------------------------------------

    General
     Allowance at
     beginning of
     period             18         8       266       242       968     1,030
    Provision for
     credit losses       5        13        44        16       (40)      (28)
    Foreign exchange
     and other(1)        -         -        24         -         -        13
    -------------------------------------------------------------------------
    General
     Allowance at
     end of period      23        21       334       258       928     1,015
    -------------------------------------------------------------------------
    Total
     Allowance    $     60  $     37  $    390  $    259  $  1,438  $  1,405
    -------------------------------------------------------------------------
    -------------------------------------------------------------------------


    -----------------------------------------------------
                       Customers'
                       liability
                   under acceptances         Total
    -----------------------------------------------------
    For the three  January   January   January   January
     months ended 31, 2010  31, 2009  31, 2010  31, 2009
    -----------------------------------------------------
    Specific
     Allowance at
     beginning of
     period       $      5  $      -  $    596  $    426
    Provision for
     credit losses       5         -       333       428
    Recoveries           -         -        45        36
    Write-offs           -         -      (354)     (491)
    Foreign exchange
     and other           -         -        (7)        8
    -----------------------------------------------------
    Specific
     Allowance at
     end of period      10         -       613       407
    -----------------------------------------------------

    General
     Allowance at
     beginning of
     period             54        41     1,306     1,321
    Provision for
     credit losses      (9)       (1)        -         -
    Foreign exchange
     and other(1)        -         -        24        13
    -----------------------------------------------------
    General
     Allowance at
     end of period      45        40     1,330     1,334
    -----------------------------------------------------
    Total
     Allowance    $     55  $     40  $  1,943  $  1,741
    -----------------------------------------------------
    -----------------------------------------------------
    (1) Included in the credit cards, consumer instalment and other personal
        loans and the business and government loans categories at January 31,
        2010 are $24 million and $9 million, respectively, related to the
        acquisition of the net cardholder receivables of the Diners Club
        North American franchise (see Note 7).

    Note 3: Securitization

    The following tables summarize our securitization activity related to our
    assets and its impact on our Consolidated Statement of Income for the
    three months ended January 31, 2010 and 2009:

    (Canadian $ in millions)
    -------------------------------------------------------------------------
                      Residential
                       mortgages       Credit card loans         Total
    -------------------------------------------------------------------------
    For the three  January   January   January   January   January   January
     months ended 31, 2010  31, 2009  31, 2010  31, 2009  31, 2010  31, 2009
    -------------------------------------------------------------------------
    Net cash
     proceeds(1)  $    331  $  4,617  $      -  $      -  $    331  $  4,617
    Investment in
     securitization
     vehicles(2)         -         -         -         -         -         -
    Deferred
     purchase price     18        89         -         -        18        89
    Servicing
     liability          (3)      (20)        -         -        (3)      (20)
    -------------------------------------------------------------------------
                       346     4,686         -         -       346     4,686
    Loans sold         337     4,660         -         -       337     4,660
    -------------------------------------------------------------------------
    Gain on sale
     of loans
     from new
     securitiz-
     ations       $      9  $     26  $      -  $      -  $      9  $     26
    -------------------------------------------------------------------------
    -------------------------------------------------------------------------
    Gain on sale
     of loans sold
     to revolving
     securitization
     vehicles     $     18  $     40  $     95  $    116  $    113  $    156
    -------------------------------------------------------------------------
    -------------------------------------------------------------------------
    (1) Net cash proceeds represent cash proceeds less issuance costs.
    (2) Includes credit card securities retained on-balance sheet by the
        bank.

    The key weighted-average assumptions used to value the deferred purchase
    price for securitizations were as follows:

    -------------------------------------------------------------------------
                                          Residential         Credit card
                                           mortgages            loans(1)
    -------------------------------------------------------------------------
                                       January   January   January   January
    For the three months ended        31, 2010  31, 2009  31, 2010  31, 2009
    -------------------------------------------------------------------------
    Weighted-average life (years)         4.87      3.15      1.00      1.00
    Prepayment rate (%)                  16.00     25.37     36.52     38.47
    Interest rate (%)                     4.19      4.21     21.47     21.43
    Expected credit losses(2)                -         -      4.45      2.76
    Discount rate (%)                     2.87      3.25      9.23     10.05
    -------------------------------------------------------------------------
    -------------------------------------------------------------------------
    (1) There were no credit card securitization transactions in the three
        months ended January 31, 2010 and 2009.
    (2) As the residential mortgages are fully insured, there are no expected
        credit losses.

    Note 4: Variable Interest Entities

    Total assets in our Variable Interest Entities ("VIEs") and our maximum
    exposure to losses are summarized in the following table which are
    described in further detail below. For additional information on our
    VIEs, refer to Note 9 on pages 127 to 129 of our 2009 Annual Report.

    (Canadian $ in millions)                                January 31, 2010
    -------------------------------------------------------------------------
                                                                       Total
                            Maximum exposure to loss                  assets
              ---------------------------------------------------------------
                                 Drawn
                            facilities   Secur-    Deriv-
                   Undrawn   and loans   ities     ative
              facilities(1) provided(2)   held    assets     Total
    -------------------------------------------------------------------------
    Unconsol-
     idated VIEs
     in which we
     have a
     significant
     variable
     interest
    Canadian
     customer
     securitization
     vehicles(3)  $  5,018  $      -  $    104  $     36  $  5,158  $  4,926
    U.S. customer
     securitization
     vehicle         5,228       442         -         2     5,672     4,685
    Bank
     securitization
     vehicles(3)     5,100         -       645        99     5,844     9,469
    Credit
     protection
     vehicle -
     Apex(4)(5)      1,030         -       924       948     2,902     2,202
    Structured
     investment
     vehicles(6)       241     6,844         -        11     7,096     6,859
    Structured
     finance
     vehicles          n/a       n/a     1,799         -     1,799     2,647
    Capital and
     funding trusts     43        12         2         -        57     1,270
    -------------------------------------------------------------------------
    Total         $ 16,660  $  7,298  $  3,474  $  1,096  $ 28,528  $ 32,058
    -------------------------------------------------------------------------
    -------------------------------------------------------------------------
    Consolidated
     VIEs
    Canadian
     customer
     securitization
     vehic-
     les(3)(7)    $    641  $      -  $    628  $      -  $  1,269  $    628
    Structured
     finance
     vehicles          n/a       n/a        53         -        53        53
    Capital and
     funding trusts  9,234     1,766       880        44    11,924     4,857
    -------------------------------------------------------------------------
    Total         $  9,875  $  1,766  $  1,561  $     44  $ 13,246  $  5,538
    -------------------------------------------------------------------------
    -------------------------------------------------------------------------


    (Canadian $ in millions)                                October 31, 2009
    -------------------------------------------------------------------------
                                                                       Total
                            Maximum exposure to loss                  assets
              ---------------------------------------------------------------
                                 Drawn
                            facilities   Secur-    Deriv-
                   Undrawn   and loans   ities     ative
              facilities(1) provided(2)   held    assets     Total
    -------------------------------------------------------------------------
    Unconsol-
     idated VIEs
     in which we
     have a
     significant
     variable
     interest
    Canadian
     customer
     securitization
     vehicles(3)  $  5,819  $      -  $    328  $     44  $  6,191  $  5,674
    U.S. customer
     securitization
     vehicle         6,214       158         -         2     6,374     4,943
    Bank
     securitization
     vehicles(3)     5,100         -       625        94     5,819     9,719
    Credit
     protection
     vehicle -
     Apex(4)(5)        918       112       833     1,236     3,099     2,322
    Structured
     investment
     vehicles(6)       247     7,230         -        12     7,489     6,968
    Structured
     finance
     vehicles          n/a       n/a     1,762         -     1,762     2,451
    Capital and
     funding trusts     43        12         2         -        57     1,270
    -------------------------------------------------------------------------
    Total         $ 18,341  $  7,512  $  3,550  $  1,388  $ 30,791  $ 33,347
    -------------------------------------------------------------------------
    -------------------------------------------------------------------------
    Consolidated
     VIEs
    Canadian
     customer
     securitization
     vehic-
     les(3)(7)    $    733  $      -  $    719  $      -  $  1,452  $    719
    Structured
     finance
     vehicles          n/a       n/a        54         -        54        54
    Capital and
     funding trusts  9,013     1,987       880        45    11,925     5,190
    -------------------------------------------------------------------------
    Total         $  9,746  $  1,987  $  1,653  $     45  $ 13,431  $  5,963
    -------------------------------------------------------------------------
    -------------------------------------------------------------------------
    (1) These facilities include senior funding facilities provided to our
        credit protection vehicle and structured investment vehicles as well
        as backstop liquidity facilities provided to our Canadian customer
        securitization vehicles and our U.S. customer securitization vehicle.
        None of the backstop liquidity facilities to our Canadian customer
        securitization vehicles related to credit support as at January 31,
        2010 and October 31, 2009. Backstop liquidity facilities to our U.S.
        customer securitization vehicle include credit support and are
        discussed in Note 6.
    (2) Amounts outstanding from backstop liquidity facilities and senior
        funding facilities are classified as Loans - Businesses and
        governments.
    (3) Securities held in our bank securitization vehicles are comprised of
        $80 million of commercial paper classified as trading securities
        ($55 million in 2009), and $293 million of deferred purchase price
        ($293 million in 2009) and $272 million of asset-backed securities
        ($277 million in 2009) classified as available-for-sale securities.
        Securities held in our Canadian customer securitization vehicles are
        comprised of commercial paper and are classified as trading
        securities. Assets held by all these vehicles relate to assets in
        Canada.
    (4) Derivatives held with this vehicle are classified as trading
        instruments. Changes in the fair value of these derivatives are
        offset by derivatives held with third-party counterparties which are
        also classified as trading instruments.
    (5) Securities held are classified as trading securities and have a face
        value of $1,415 million. A third party holds its exposure to Apex
        through a total return swap with us on $600 million of these
        securities as at January 31, 2010 and October 31, 2009. During the
        year ended October 31, 2009, we hedged our exposure to the remaining
        $815 million of notes through a credit default swap.
    (6) Securities held are comprised of capital notes, classified as
        available-for-sale securities. Our exposure was $nil as at
        January 31, 2010 and the year ended October 31, 2009.
    (7) Total assets held as at January 31, 2010 are comprised of a loan of
        $481 million ($560 million as at October 31, 2009) and $147 million
        of other assets ($159 million in 2009).
    n/a - not applicable

    U.S. Customer Securitization Vehicle

    Our exposure to our U.S. customer securitization vehicle is summarized in
    the preceding table. Included in our exposure are backstop liquidity
    facilities that we provide. We use our credit adjudication process in
    deciding whether to extend the backstop liquidity facility just as we do
    when extending credit in the form of a loan. During the quarter ended
    January 31, 2010, we provided funding of US$277 million in accordance
    with the terms of these liquidity facilities. Subsequent to quarter end,
    an additional US$27 million of funding was provided in accordance with
    the term of these liquidity facilities. The amount outstanding related to
    funding previously advanced was $145 million (US$136 million) as at
    January 31, 2010. These amounts are included in the preceding table.

    Note 5: Financial Instruments

    Change in Accounting Policy

    On August 1, 2008, we elected to transfer from trading to
    available-for-sale those securities for which we had a change in intent
    to hold the securities for the foreseeable future rather than to exit or
    trade them in the short term due to market circumstances at that time.

    A continuity of the transferred securities is as follows:

    (Canadian $ in millions)           For the three months ended
    -------------------------------------------------------------------------
                             January   October      July     April   January
                            31, 2010  31, 2009  31, 2009  30, 2009  31, 2009
    -------------------------------------------------------------------------
    Fair value of
     securities at
     beginning of period    $  1,378  $  1,493  $  1,732  $  1,737  $  1,955
    Net (sales/maturities)
     purchases                  (343)     (162)     (175)      (54)     (222)
    Fair value change
     recorded in Other
     Comprehensive Income         38        46        62        93        31
    Other than temporary
     impairment recorded
     in income                    (9)      (18)      (23)       (8)      (50)
    Impact of foreign
     exchange                    (26)       19      (103)      (36)       23
    -------------------------------------------------------------------------
    Fair value of securities
     at end of period       $  1,038  $  1,378  $  1,493  $  1,732  $  1,737
    -------------------------------------------------------------------------
    -------------------------------------------------------------------------

    Fair Value Measurement

    We use a fair value hierarchy to categorize the inputs we use in
    valuation techniques to measure fair value. Our use of quoted market
    prices (Level 1), internal models using observable market information as
    inputs (Level 2) and internal models without observable market
    information as inputs (Level 3) in the valuation of securities, fair
    value liabilities, derivative assets and derivative liabilities was as
    follows:

    (Canadian $ in millions)
    -------------------------------------------------------------------------
                  Available-for-sale       Trading             Fair value
                      securities          securities          liabilities
    -------------------------------------------------------------------------
                   January   October   January   October   January   October
                  31, 2010  31, 2009  31, 2010  31, 2009  31, 2010  31, 2009
    -------------------------------------------------------------------------
    Valued using
     quoted market
     prices       $ 38,051  $ 35,590  $ 60,058  $ 55,401  $ 15,953  $ 12,064
    Valued using
     internal
     models (with
     observable
     inputs)        12,382    12,271     4,491     3,184     3,257    2,473
    Valued using
     internal
     models
     (without
     observable
     inputs)         2,257     2,442       325       486         -         -
    -------------------------------------------------------------------------
    Total         $ 52,690  $ 50,303  $ 64,874  $ 59,071  $ 19,210  $ 14,537
    -------------------------------------------------------------------------
    -------------------------------------------------------------------------


    (Canadian $ in millions)
    -----------------------------------------------------
                        Derivative         Derivative
                          assets          liabilities
    -----------------------------------------------------
                   January   October   January   October
                  31, 2010  31, 2009  31, 2010  31, 2009
    -----------------------------------------------------
    Valued using
     quoted market
     prices       $  1,474  $  1,881  $    808  $    813
    Valued using
     internal
     models (with
     observable
     inputs)        43,739    45,438    41,883    43,779
    Valued using
     internal
     models
     (without
     observable
     inputs)           489       579       176       173
    -----------------------------------------------------
    Total         $ 45,702  $ 47,898  $ 42,867  $ 44,765
    -----------------------------------------------------
    -----------------------------------------------------

    Sensitivity analysis for the most significant items valued using internal
    models without observable inputs is described below.

    As at January 31, 2010, within available-for-sale securities is deferred
    purchase price of $699 million related to our off-balance sheet
    securitization activities. We have determined the valuation of the
    deferred purchase price based on expected future cash flows that are
    driven by prepayment rate and interest rate assumptions. The
    determination of the interest rate (excess spread) used in the discounted
    cash flow model has the most significant impact on the valuation of the
    deferred purchase price. The impact of assuming a 10 percent increase or
    decrease in the interest rate would result in a change in fair value of
    $97 million and $(97) million, respectively.

    Within trading securities was $192 million of commercial mortgage-backed
    securities designated as trading under the fair value option. We have
    determined the valuation of these securities based on expected discounted
    cash flows. The determination of the market yields used in the discounted
    cash flow model has the most significant impact on the valuation of the
    securities. The impact of assuming a 50 basis points increase or decrease
    in the market yield would result in a change in fair value of
    $(4) million and $4 million, respectively.

    Within derivative assets and derivative liabilities as at January 31,
    2010 was $478 million and $57 million, respectively, related to the
    mark-to-market of credit default swaps and total return swaps on
    structured products. We have determined the valuation of these
    derivatives based on estimates of current market spreads for similar
    structured products. The impact of assuming a 10 basis point increase or
    decrease in that spread would result in a change in fair value of
    $(4) million and $4 million, respectively.

    Financial Liabilities Designated as Held for Trading

    A portion of our structured note liabilities have been designated as
    trading under the fair value option and are accounted for at fair value,
    which better aligns the accounting result with the way the portfolio is
    managed. The change in fair value of these structured notes was a
    decrease in non-interest revenue, trading revenues of $26 million for the
    quarter ended January 31, 2010, including a charge of $6 million
    attributable to changes in our credit spread (an increase in non-interest
    revenue, trading revenues of $53 million and a charge of $158 million,
    respectively, for the twelve months ended October 31, 2009). We
    recognized offsetting amounts on derivatives and other financial
    instrument contracts that are held to hedge changes in the fair value of
    these structured notes.

    The change in fair value related to changes in our credit spread that has
    been recognized since they were designated as held for trading to
    January 31, 2010 was an unrealized loss of $49 million. Starting in 2009,
    we hedged the exposure to changes in our credit spreads and have recorded
    $160 million of gains on these hedging instruments since inception.

    The fair value and amount due at contractual maturity of structured notes
    accounted for as held for trading as at January 31, 2010 were
    $3,257 million and $3,488 million, respectively ($3,073 million and
    $3,377 million, respectively, as at October 31, 2009).

    Note 6: Guarantees

    In the normal course of business we enter into a variety of guarantees.
    The most significant guarantees are as follows:

    Standby Letters of Credit and Guarantees

    Standby letters of credit and guarantees represent our obligation to make
    payments to third parties on behalf of another party if that party is
    unable to make the required payments or meet other contractual
    requirements. The maximum amount payable under standby letters of credit
    and guarantees totalled $11,673 million as at January 31, 2010
    ($11,384 million as at October 31, 2009). Collateral requirements for
    standby letters of credit and guarantees are consistent with our
    collateral requirements for loans. A large majority of these commitments
    expire without being drawn upon. As a result, the total contractual
    amounts may not be representative of the funding likely to be required
    for these commitments.

    No amount was included in our Consolidated Balance Sheet as at
    January 31, 2010 and 2009 related to these standby letters of credit and
    guarantees.

    Backstop and Other Liquidity Facilities

    Backstop liquidity facilities are provided to asset-backed commercial
    paper ("ABCP") programs administered by either us or third parties as an
    alternative source of financing in the event that such programs are
    unable to access ABCP markets or when predetermined performance measures
    of the financial assets owned by these programs are not met. The terms of
    the backstop liquidity facilities do not require us to advance money to
    these programs in the event of bankruptcy of the borrower. The
    facilities' terms are generally no longer than one year, but can be
    several years.

    The maximum amount payable under these backstop and other liquidity
    facilities totalled $17,464 million as at January 31, 2010
    ($19,108 million as at October 31, 2009). As at January 31, 2010,
    $514 million was outstanding from facilities drawn in accordance with the
    terms of the backstop liquidity facilities ($185 million as at
    October 31, 2009), of which $442 million (US$413 million) ($158 million
    or US$146 million as at October 31, 2009) related to the U.S. customer
    securitization vehicle discussed in Note 4.

    Credit Enhancement Facilities

    Where warranted, we provide partial credit enhancement facilities to
    transactions within ABCP programs administered by either us or third
    parties. Credit enhancement facilities are included in backstop liquidity
    facilities. These facilities include amounts that relate to our U.S.
    customer securitization vehicle discussed in Note 4.

    Senior Funding Facilities

    We provide senior funding support to our structured investment vehicles
    ("SIVs") and our credit protection vehicle. The majority of these
    facilities support the repayment of senior note obligations of the SIVs.
    As at January 31, 2010, $6,844 million was drawn ($7,342 million as at
    October 31, 2009), in accordance with the terms of the funding facilities
    related to the SIVs and credit protection vehicle discussed in Note 4.

    In addition to our investment in the notes subject to the Montreal
    Accord, we have provided a senior loan facility of $300 million. No
    amounts were drawn as at January 31, 2010 and October 31, 2009.

    Note 7: Acquisitions

    We account for acquisitions of businesses using the purchase method. This
    involves allocating the purchase price paid for a business to the assets
    acquired, including identifiable intangible assets, and the liabilities
    assumed based on their fair values at the date of acquisition. Any excess
    is then recorded as goodwill. The results of operations of acquired
    businesses are included in our consolidated financial statements
    beginning on the date of acquisition.

    Diners Club

    On December 31, 2009, we completed the acquisition of the net cardholder
    receivables of the Diners Club North American franchise from Citigroup
    for total cash consideration of $882 million, subject to a post-closing
    adjustment based on net assets. The acquisition of the net cardholder
    receivables of Diners Club gives us the right to issue Diners Club cards
    to corporate and professional clients in the United States and Canada and
    will accelerate our initiative to expand in the travel and entertainment
    card sector for commercial customers across North America. As part of
    this acquisition, we acquired a customer relationship intangible asset
    which is being amortized on an accelerated basis over 15 years and a
    computer software intangible asset that is being amortized on a
    straight-line basis over five years. Goodwill related to this acquisition
    is deductible for tax purposes. Diners Club is part of our Personal and
    Commercial Banking Canada reporting segment.

    Paloma Securities L.L.C. ("Paloma")

    On December 23, 2009, we completed the acquisition of selected assets
    used in the securities lending business of Paloma for cash consideration
    of $7 million and hired their global securities lending
    team. The acquisition provides us with the opportunity to expand our
    securities lending operation. Goodwill related to this acquisition is
    deductible for tax purposes. This acquisition is part of our BMO Capital
    Markets reporting segment.

    Integra GRS ("Integra")

    On November 23, 2009, we completed the acquisition of the record keeping
    business of Integra, a wholly owned subsidiary of Integra Capital
    Management Corporation for cash consideration of $13 million, plus
    contingent consideration of up to $4 million based on revenue to be
    generated in the future. The acquisition of Integra extends our existing
    wealth management offering. As part of this acquisition, we acquired a
    customer relationship intangible asset which is being amortized on a
    straight-line basis over five years and a computer software intangible
    asset that is being amortized on a straight-line basis over three years.
    Goodwill related to this acquisition is deductible for tax purposes.
    Integra is part of our Private Client Group reporting segment.

    The estimated fair values of the assets acquired and the liabilities
    assumed at the date of acquisition are as follows:

    (Canadian $ in millions)
    -------------------------------------------------------------------------

                                             Diners Club    Paloma   Integra
    -------------------------------------------------------------------------
    Cash resources                              $      -  $      -  $      -
    Securities                                         -         -         -
    Loans                                            931         -         -
    Premises and equipment                             -         -         -
    Goodwill                                          11         7         5
    Intangible assets                                 58         -         8
    Other assets                                       8         -         -
    -------------------------------------------------------------------------
    Total assets                                   1,008         7        13
    -------------------------------------------------------------------------
    Other liabilities                                126         -         -
    -------------------------------------------------------------------------
    Total liabilities                                126         -         -
    -------------------------------------------------------------------------
    Purchase price                              $    882  $      7  $     13
    -------------------------------------------------------------------------
    The allocation of the purchase price for Diners Club, Paloma and Integra
    is subject to refinement as we complete the valuation of the assets
    acquired and liabilities assumed.

    Note 8: Employee Compensation

    Stock Options

    During the quarter ended January 31, 2010, we granted a total of
    1,737,204 stock options. The weighted-average fair value of options
    granted during the quarter ended January 31, 2010 was $9.97 per option.
    The following weighted-average assumptions were used to determine the
    fair value of options on the date of grant:

    For stock options granted during the three months ended January 31, 2010
    -------------------------------------------------------------------------
    Expected dividend yield                                              6.6%
    Expected share price volatility                                     27.5%
    Risk-free rate of return                                             2.9%
    Expected period until exercise (in years)                            6.5
    -------------------------------------------------------------------------
    -------------------------------------------------------------------------
    Changes to the input assumptions can result in different fair value
    estimates.

    Pension and Other Employee Future Benefit Expenses

    Pension and other employee future benefit expenses are determined as
    follows:

    (Canadian $ in millions)
    -------------------------------------------------------------------------
                                                            Other employee
                                        Pension benefit     future benefit
                                             plans              plans
    -------------------------------------------------------------------------
                                       January   January   January   January
    For the three months ended        31, 2010  31, 2009  31, 2010  31, 2009
    -------------------------------------------------------------------------
    Benefits earned by employees      $     33  $     30  $      5  $      4
    Interest cost on accrued benefit
     liability                              64        66        14        12
    Actuarial loss recognized in
     expense                                18        19         1         -
    Amortization of plan amendment
     costs                                   4         3        (2)       (2)
    Expected return on plan assets         (71)      (61)       (1)       (2)
    -------------------------------------------------------------------------
    Benefits expense                        48        57        17        12
    Canada and Quebec pension plan
     expense                                14        14         -         -
    Defined contribution expense             2         2         -         -
    -------------------------------------------------------------------------
    Total pension and other employee
     future benefit expenses          $     64  $     73  $     17  $     12
    -------------------------------------------------------------------------
    -------------------------------------------------------------------------

    Note 9: Subordinated Debt

    During the quarter ended January 31, 2010, we redeemed all of our 4.00%
    Series C Medium-Term Notes, First Tranche, due 2015, totalling
    $500 million. The notes were redeemed at a redemption price of
    100 percent of the principal amount plus unpaid accrued interest to the
    redemption date.

    During the quarter ended January 31, 2009, our $140 million 10.85%
    Debentures, Series 12 matured.

    Note 10: Share Capital

    During the quarter ended January 31, 2010, we did not issue or redeem any
    preferred shares.

    During the quarter ended January 31, 2009, we issued 33,340,000 common
    shares at a price of $30.00 per share, representing an aggregate issue
    price of $1.0 billion.

    During the quarter ended January 31, 2009, we issued 6,000,000 6.5%
    Non-Cumulative 5-year Rate Reset Class B Preferred shares, Series 18, at
    a price of $25.00 per share, representing an aggregate issue price of
    $150 million.

    During the quarter ended January 31, 2009, we redeemed all of our
    10,000,000 Non-Cumulative Class B Preferred shares, Series 6 that were
    classified as preferred share liabilities, at a price of $25.00 per share
    plus any declared and unpaid dividends to the date of redemption. This
    represents an aggregate redemption price of approximately $253 million.

    On November 19, 2009, we announced that we had obtained all required
    approvals from the Office of Superintendent of Financial Institutions
    ("OSFI") and the Toronto Stock Exchange to renew our normal course issuer
    bid. This will allow us to repurchase up to 15,000,000 of our common
    shares during the period from December 2, 2009 to December 1, 2010.

    We did not repurchase any common shares under the existing normal course
    issuer bid that expires on December 1, 2010 and pursuant to which we are
    permitted to purchase up to 15,000,000 common shares.

    Treasury Shares

    When we purchase our common shares as part of our trading business, we
    record the cost of those shares as a reduction in shareholders' equity.
    If those shares are resold at a value higher than their cost, the premium
    is recorded as an increase in contributed surplus. If those shares are
    resold at a value below their cost, the discount is recorded as a
    reduction first to contributed surplus and then to retained earnings for
    any amounts in excess of total contributed surplus related to treasury
    shares.

    Share Capital Outstanding(a)

    (Canadian $ in millions, except as noted)               January 31, 2010
    -------------------------------------------------------------------------
                               Number of
                                  shares    Amount  Convertible into...
    -------------------------------------------------------------------------
    Preferred Shares -
     Classified as Equity
      Class B - Series 5       8,000,000  $    200  -
      Class B - Series 10(c)  12,000,000       396  common shares(b)
      Class B - Series 13     14,000,000       350  -
      Class B - Series 14     10,000,000       250  -
      Class B - Series 15     10,000,000       250  -
      Class B - Series 16     12,000,000       300  -
      Class B - Series 18      6,000,000       150  -
      Class B - Series 21     11,000,000       275  -
      Class B - Series 23     16,000,000       400  -
    -------------------------------------------------------------------------
                                             2,571
    Common Shares            555,395,343     6,368
    -------------------------------------------------------------------------
    Share Capital                         $  8,939
    -------------------------------------------------------------------------
    Stock options issued
     under stock option plan                   n/a  19,057,503 common shares
    -------------------------------------------------------------------------
    -------------------------------------------------------------------------
    (a) For additional information refer to Notes 21 and 23 to our
        consolidated financial statements for the year ended October 31, 2009
        on pages 144 to 148 of our 2009 Annual Report.
    (b) The number of shares issuable on conversion is not determinable until
        the date of conversion.
    (c) Face value is US$300 million.
    n/a - not applicable

    Note 11: Capital Management

    Our objective is to maintain a strong capital position in a
    cost-effective structure that: meets our target regulatory capital ratios
    and internal assessment of risk-based capital; is consistent with our
    targeted credit ratings; underpins our operating groups' business
    strategies; and builds depositor confidence and long-term shareholder
    value.

    We have met our capital targets as at January 31, 2010. Our capital
    position as at January 31, 2010 is detailed in the Capital Management
    section on page 14 of Management's Discussion and Analysis of the First
    Quarter Report to Shareholders.

    Note 12: Risk Management

    We have an enterprise-wide approach to the identification, measurement,
    monitoring and management of risks faced across the organization. The key
    financial instrument risks are classified as credit and counterparty,
    market, liquidity and funding risk.

    Credit and Counterparty Risk

    We are exposed to credit risk from the possibility that counterparties
    may default on their financial obligations to us. Credit risk arises
    predominantly with respect to loans, over-the-counter derivatives and
    other credit instruments. This is the most significant measurable risk
    that we face.

    Market Risk

    Market risk is the potential for a negative impact on the balance sheet
    and/or statement of income resulting from adverse changes in the value of
    financial instruments as a result of changes in certain market variables.
    These variables include interest rates, foreign exchange rates, equity
    and commodity prices and their implied volatilities, as well as credit
    spreads, credit migration and default. We incur market risk in our
    trading and underwriting activities and structural banking activities.

    Liquidity and Funding Risk

    Liquidity and funding risk is the potential for loss if we are unable to
    meet financial commitments in a timely manner at reasonable prices as
    they fall due. It is our policy to ensure that sufficient liquid assets
    and funding capacity are available to meet financial commitments,
    including liabilities to depositors and suppliers, and lending,
    investment and pledging commitments, even in times of stress. Managing
    liquidity and funding risk is essential to maintaining both depositor
    confidence and stability in earnings.

    Key measures as at January 31, 2010 are outlined in the Risk Management
    section on pages 9 to 11 of Management's Discussion and Analysis of the
    First Quarter Report to Shareholders.

    Note 13: United States Generally Accepted Accounting Principles

    Reporting under United States GAAP would have resulted in the following:

    (Canadian $ in millions, except earnings per share figures)
    -------------------------------------------------------------------------
                                                   January 31,    January 31,
    For the three months ended                           2010           2009
    -------------------------------------------------------------------------
    Net Income - Canadian GAAP                    $       657    $       225
    United States GAAP adjustments                         (6)            78
    -------------------------------------------------------------------------
    Net Income - United States GAAP               $       651    $       303
    -------------------------------------------------------------------------
    Earnings Per Share
      Basic - Canadian GAAP                       $      1.12    $      0.39
      Basic - United States GAAP                         1.11           0.54
      Diluted - Canadian GAAP                            1.12           0.39
      Diluted - United States GAAP                       1.11           0.54
    -------------------------------------------------------------------------
    -------------------------------------------------------------------------

    Convertible Debt Instruments

    During the quarter ended January 31, 2010, we adopted new United States
    guidance issued by the Financial Accounting Standards Board ("FASB") on
    the accounting for convertible debt instruments that may be settled in
    cash (or other assets) upon conversion, including partial cash
    settlement. This guidance requires that we account for the liability and
    equity components separately. This new guidance did not have any impact
    on our United States GAAP reconciliation because we do not have any
    convertible debt instruments, as all of our convertible preferred shares
    and capital trust securities are classified as equity instruments under
    United States GAAP.

    Non-controlling Interests in Consolidated Financial Statements

    During the quarter ended January 31, 2010, we adopted the new FASB
    accounting standard on non-controlling interests. Under this new
    standard, all non-controlling interests in subsidiaries will be reported
    as equity for United States GAAP reporting purposes. Under Canadian GAAP,
    all non-controlling interests are reported as other liabilities.

    Business Combinations

    During the quarter ended January 31, 2010, we adopted the new FASB
    accounting standard on business combinations. Under this new standard, we
    will recognize the assets acquired, liabilities assumed and any
    non-controlling interest in the acquiree at their fair values as of the
    acquisition date. Under Canadian GAAP, the assets acquired and
    liabilities assumed are adjusted only for the acquirer's share of the
    fair value. Non-controlling interests are recorded at their share of the
    carrying values recorded in the accounting records of the acquiree. The
    new standard did not result in any significant United States GAAP
    reporting differences for the acquisitions that have occurred since
    adoption.

    Note 14: Operating and Geographic Segmentation

    Operating Groups

    We conduct our business through operating groups, each of which has a
    distinct mandate. We determine our operating groups based on our
    management structure and therefore these groups, and results attributed
    to them, may not be comparable with those of other financial services
    companies. We evaluate the performance of our groups using measures such
    as net income, revenue growth, return on equity, net economic profit and
    non-interest expense-to-revenue (productivity) ratio, as well as cash
    operating leverage.

    Personal and Commercial Banking

    Personal and Commercial Banking ("P&C") is comprised of two operating
    segments: Personal and Commercial Banking Canada and Personal and
    Commercial Banking U.S.

    Personal and Commercial Banking Canada

    Personal and Commercial Banking Canada ("P&C Canada") offers a full range
    of consumer and business products and services, including: everyday
    banking, financing, investing and credit cards, as well as a full suite
    of commercial and capital market products and financial advisory
    services, through a network of branches, telephone banking, online
    banking, mortgage specialists and automated banking machines. Effective
    in the third quarter of 2009, the results of our term deposits business
    are included in P&C Canada rather than Private Client Group, where the
    business is now better aligned with P&C Canada's retail product strategy.
    Prior periods have been restated to reflect this reclassification.

    Personal and Commercial Banking U.S.

    Personal and Commercial Banking U.S. ("P&C U.S.") offers a full range of
    products and services to personal and business clients in select U.S.
    Midwest markets through branches and direct banking channels such as
    telephone banking, online banking and a network of automated banking
    machines.

    Private Client Group

    Private Client Group ("PCG") brings together all of our wealth management
    businesses. Operating under the BMO brand in Canada and Harris in the
    United States, PCG serves a full range of client segments, from
    mainstream to ultra-high net worth, as well as select institutional
    market segments. We offer our clients a broad range of wealth management
    products and solutions, including full-service, online brokerage and
    insurance in Canada and private banking and investment products in Canada
    and the United States. Effective in the third quarter of 2009, all of our
    insurance operations are included within PCG, bringing our insurance
    capabilities and skill sets together as part of our wealth management
    offering. Prior periods have been restated to reflect this
    reclassification.

    BMO Capital Markets

    BMO Capital Markets ("BMO CM") combines all of our businesses serving
    corporate, institutional and government clients. In Canada and the United
    States, these clients span a broad range of industry sectors. BMO CM also
    serves clients in the United Kingdom, Europe, Asia and Australia. It
    offers clients complete financial solutions, including equity and debt
    underwriting, corporate lending and project financing, mergers and
    acquisitions, advisory services, merchant banking, securitization,
    treasury and market risk management, debt and equity research and
    institutional sales and trading.

    Corporate Services

    Corporate Services includes the corporate units that provide expertise
    and governance support in areas such as strategic planning, law, finance,
    internal audit, risk management, corporate communications, economics,
    corporate marketing, human resources and learning. Operating results
    include revenues and expenses associated with certain securitization
    activities, the hedging of foreign-source earnings, and activities
    related to the management of certain balance sheet positions and our
    overall asset liability structure.

    Technology and Operations ("T&O") manages, maintains and provides
    governance over our information technology, operations services, real
    estate and sourcing. T&O focuses on enterprise-wide priorities that
    improve quality and efficiency to deliver an excellent customer
    experience.

    Operating results for T&O are included with Corporate Services for
    reporting purposes. However, costs of T&O services are transferred to the
    three operating groups. As such, results for Corporate Services largely
    reflect the activities outlined above.

    Corporate Services also includes residual revenues and expenses
    representing the differences between actual amounts earned or incurred
    and the amounts allocated to operating groups.

    Basis of Presentation

    The results of these operating segments are based on our internal
    financial reporting systems. The accounting policies used in these
    segments are generally consistent with those followed in the preparation
    of our consolidated financial statements as disclosed in Note 1 and
    throughout the consolidated financial statements. Notable accounting
    measurement differences are the taxable equivalent basis adjustment and
    the provision for credit losses, as described below.

    Taxable Equivalent Basis

    We analyze net interest income on a taxable equivalent basis ("teb") at
    the operating group level. This basis includes an adjustment which
    increases GAAP revenues and the GAAP provision for income taxes by an
    amount that would raise revenues on certain tax-exempt securities to a
    level that incurs tax at the statutory rate. The operating groups' teb
    adjustments are eliminated in Corporate Services.

    Analysis on a teb basis neutralizes the impact of investing in tax-exempt
    or tax-advantaged securities rather than fully taxable securities with
    higher yields. It reduces distortions in net interest income related to
    the choice of tax-advantaged and taxable investments.

    Provisions for Credit Losses

    Provisions for credit losses are generally allocated to each group based
    on expected losses for that group. Differences between expected loss
    provisions and provisions required under GAAP are included in Corporate
    Services.

    Securitization Accounting

    During the quarter, we changed the manner in which we report securitized
    assets in our segmented disclosure. Previously, certain securitized
    mortgage assets were not reported in P&C Canada's balance sheet. We now
    report all securitized mortgage assets in P&C Canada with offsetting
    amounts in Corporate and net interest income earned on all securitized
    mortgage assets are included in P&C Canada net interest income.
    Previously net interest income earned on certain securitized mortgage
    assets was included in P&C Canada non-interest revenue. Prior periods
    have been restated to conform to the current period's presentation.

    Inter-Group Allocations

    Various estimates and allocation methodologies are used in the
    preparation of the operating groups' financial information. We allocate
    expenses directly related to earning revenue to the groups that earned
    the related revenue. Expenses not directly related to earning revenue,
    such as overhead expenses, are allocated to operating groups using
    allocation formulas applied on a consistent basis. Operating group net
    interest income reflects internal funding charges and credits on the
    groups' assets, liabilities and capital, at market rates, taking into
    account relevant terms and currency considerations. The offset of the net
    impact of these charges and credits is reflected in Corporate Services.

    Geographic Information

    We operate primarily in Canada and the United States but we also have
    operations in the United Kingdom, Europe, the Caribbean and Asia, which
    are grouped in Other countries. We allocated our results by geographic
    region based on the location of the unit responsible for managing the
    related assets, liabilities, revenues and expenses, except for the
    consolidated provision for credit losses, which is allocated based upon
    the country of ultimate risk.

    Our results and average assets, grouped by operating segment and
    geographic region, are as follows:

    (Canadian $ in millions)
    -------------------------------------------------------------------------
    For the three
     months ended                                                      Total
     January 31,       P&C       P&C                       Corporate   (GAAP
     2010(2)        Canada       U.S.      PCG    BMO CM  Services(1)  basis)
    -------------------------------------------------------------------------
    Net interest
     income       $  1,019  $    200  $     87  $    408  $   (182) $  1,532
    Non-interest
     revenue           392        56       463       512        70     1,493
    -------------------------------------------------------------------------
    Total Revenue    1,411       256       550       920      (112)    3,025
    Provision for
     credit losses     120        19         2        78       114       333
    Amortization        32        16         9        10        48       115
    Non-interest
     expense           677       196       389       490       (28)    1,724
    -------------------------------------------------------------------------
    Income before
     taxes and
     non-controlling
     interest in
     subsidiaries      582        25       150       342      (246)      853
    Income taxes       179         8        37        94      (141)      177
    Non-controlling
     interest in
     subsidiaries        -         -         -         -        19        19
    -------------------------------------------------------------------------
    -------------------------------------------------------------------------
    Net Income    $    403  $     17  $    113  $    248  $   (124) $    657
    -------------------------------------------------------------------------
    -------------------------------------------------------------------------
    Average
     Assets       $141,347  $ 26,396  $ 13,593  $208,299  $  4,085  $393,720
    -------------------------------------------------------------------------
    -------------------------------------------------------------------------
    Goodwill
     (As At)      $    128  $    973  $    365  $    116  $      2  $  1,584
    -------------------------------------------------------------------------
    -------------------------------------------------------------------------

    For the three
     months ended                                                      Total
     January 31,       P&C       P&C                       Corporate   (GAAP
     2009(2)        Canada       U.S.      PCG    BMO CM  Services(1)  basis)
    -------------------------------------------------------------------------
    Net interest
     income       $    923  $    240  $     92  $    516  $   (444) $  1,327
    Non-interest
     revenue           338        59       387       211       120     1,115
    -------------------------------------------------------------------------
    Total Revenue    1,261       299       479       727      (324)    2,442
    Provision for
     credit losses      95        18         1        42       272       428
    Amortization        33        20         7        11        44       115
    Non-interest
     expense           671       210       387       464        (6)    1,726
    -------------------------------------------------------------------------
    Income before
     taxes and
     non-controlling
     interest in
     subsidiaries      462        51        84       210      (634)      173
    Income taxes       147        17        16        33      (284)      (71)
    Non-controlling
     interest in
     subsidiaries        -         -         -         -        19        19
    -------------------------------------------------------------------------
    -------------------------------------------------------------------------
    Net Income    $    315  $     34  $     68  $    177  $   (369) $    225
    -------------------------------------------------------------------------
    -------------------------------------------------------------------------
    Average
     Assets       $139,982  $ 33,753  $  9,547  $288,117  $ (8,396) $463,003
    -------------------------------------------------------------------------
    -------------------------------------------------------------------------
    Goodwill
     (As At)      $    122  $  1,117  $    354  $    111  $      2  $  1,706
    -------------------------------------------------------------------------
    -------------------------------------------------------------------------

    For the three months ended                    United      Other
     January 31, 2010(2)                Canada    States  countries    Total
    -------------------------------------------------------------------------
    Net interest income               $  1,149  $    347  $     36  $  1,532
    Non-interest revenue                 1,076       333        84     1,493
    -------------------------------------------------------------------------
    Total Revenue                        2,225       680       120     3,025
    Provision for credit losses            138       190         5       333
    Amortization                            87        27         1       115
    Non-interest expense                 1,256       425        43     1,724
    -------------------------------------------------------------------------
    Income before taxes and
     non-controlling interest in
     subsidiaries                          744        38        71       853
    Income taxes                           168         1         8       177
    Non-controlling interest in
     subsidiaries                           14         5         -        19
    -------------------------------------------------------------------------
    -------------------------------------------------------------------------
    Net Income                        $    562  $     32  $     63  $    657
    -------------------------------------------------------------------------
    -------------------------------------------------------------------------
    Average Assets                    $257,126  $110,612  $ 25,982  $393,720
    -------------------------------------------------------------------------
    -------------------------------------------------------------------------
    Goodwill (As At)                  $    452  $  1,110  $     22  $  1,584
    -------------------------------------------------------------------------
    -------------------------------------------------------------------------

    For the three months ended                    United      Other
     January 31, 2009(2)                Canada    States  countries    Total
    -------------------------------------------------------------------------
    Net interest income               $    797  $    425  $    105  $  1,327
    Non-interest revenue                   797       367       (49)    1,115
    -------------------------------------------------------------------------
    Total Revenue                        1,594       792        56     2,442
    Provision for credit losses            111       317         -       428
    Amortization                            80        34         1       115
    Non-interest expense                 1,206       479        41     1,726
    -------------------------------------------------------------------------
    Income before taxes and
     non-controlling interest in
     subsidiaries                          197       (38)       14       173
    Income taxes                             1       (56)      (16)      (71)
    Non-controlling interest in
     subsidiaries                           13         6         -        19
    -------------------------------------------------------------------------
    -------------------------------------------------------------------------
    Net Income                        $    183  $     12  $     30  $    225
    -------------------------------------------------------------------------
    -------------------------------------------------------------------------
    Average Assets                    $273,968  $159,460  $ 29,575  $463,003
    -------------------------------------------------------------------------
    -------------------------------------------------------------------------
    Goodwill (As At)                  $    440  $  1,242  $     24  $  1,706
    -------------------------------------------------------------------------
    -------------------------------------------------------------------------
    (1) Corporate Services includes Technology and Operations.
    (2) Operating groups report on a taxable equivalent basis - see Basis of
        Presentation section.

    Prior periods have been restated to give effect to the current period's
    organizational structure and presentation changes.
    

SOURCE BMO BANK OF MONTREAL

For further information: For further information: Media Relations Contacts: Ralph Marranca, Toronto, ralph.marranca@bmo.com, (416) 867-3996; Ronald Monet, Montreal, ronald.monet@bmo.com, (514) 877-1873; Investor Relations Contacts: Viki Lazaris, Senior Vice-President, viki.lazaris@bmo.com, (416) 867-6656; Steven Bonin, Director, steven.bonin@bmo.com, (416) 867-5452; Andrew Chin, Senior Manager, andrew.chin@bmo.com, (416) 867-7019; Chief Financial Officer: Russel Robertson, Chief Financial Officer, russ.robertson@bmo.com, (416) 867-7360; Corporate Secretary: Blair Morrison, Senior Vice-President, Deputy General Counsel, Corporate Affairs and Corporate Secretary, corp.secretary@bmo.com, (416) 867-6785


Custom Packages

Browse our custom packages or build your own to meet your unique communications needs.

Start today.

CNW Membership

Fill out a CNW membership form or contact us at 1 (877) 269-7890

Learn about CNW services

Request more information about CNW products and services or call us at 1 (877) 269-7890