BMO Financial Group to Record Certain Charges and a MasterCard Gain in the Fourth Quarter



    TORONTO, Nov. 16 /CNW/ - BMO Financial Group said today that it expects
fourth quarter results (three months ended October 31, 2007) will include the
following items:

    
    -   Charges in BMO Capital Markets for certain trading activities and
        valuation adjustments of approximately $320 million pre-tax
        ($210 million after tax). The charges relate to:
        -  Trading and structured credit-related positions and preferred
           shares (approximately $170 million pre-tax).
        -  Canadian asset-backed commercial paper (approximately $135 million
           pre-tax).
        -  Capital notes in the Links Finance Corporation and Parkland
           Finance Corporation structured investment vehicles or SIVs
           (approximately $15 million pre-tax on BMO's $70 million investment
           in the approximate total of $2.2 billion of capital notes
           outstanding). In addition, BMO indicated that it will participate
           in the senior debt issued by these SIVs, up to a maximum of
           approximately $1.6 billion or 8% of the total senior debt
           currently outstanding.
    -   A gain of approximately $110 million pre-tax ($85 million after tax)
        from the sale of MasterCard International Inc. shares will be
        recorded in Personal and Commercial Banking Canada's results (P&C
        Canada). BMO also expects to record a charge of approximately
        $185 million pre-tax ($120 million after tax) to increase the
        liability for future customer redemptions related to its loyalty
        rewards program in P&C Canada's MasterCard business.
    -   BMO also noted that its strategy to reduce its commodities portfolio
        continued through the fourth quarter. Losses of approximately
        $25 million pre-tax ($15 million after tax) were recorded in BMO
        Capital Markets.
    
    These items will lower earnings per share in the fourth quarter by
approximately 50 cents.

    BMO's Tier 1 Capital Ratio remains strong.
    BMO is in the process of completing its review and final fourth quarter
closing procedures. Accordingly, the above information is based on current
estimates and is subject to change. BMO will release its fourth quarter and
fiscal 2007 results on November 27, 2007.

    CAUTION REGARDING FORWARD-LOOKING STATEMENTS

    Bank of Montreal's public communications often include written or oral
forward-looking statements. Statements of this type are included in this
document, and may be included in other filings with Canadian securities
regulators or the U.S. Securities and Exchange Commission, or in other
communications. All such statements are made pursuant to the 'safe harbor'
provisions of, and are intended to be forward-looking statements under, the
United States Private Securities Litigation Reform Act of 1995 and any
applicable Canadian securities legislation. Forward-looking statements may
involve, but are not limited to, comments with respect to our objectives and
priorities for 2007 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 28 and 29 of BMO's 2006 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.





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; Krista White, Senior
Manager, krista.white@bmo.com, (416) 867-7019


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