[PPT] - Tony Comper Tony Comper Chairman & CEO Chairman & CEO PowerPoint Presentation

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Meeting With Investment Community Meeting With Investment Community Meeting With Investment Community Meeting With Investment Community February 29, 2000

Tony Comper

Chairman & CEO

Meeting With Investment Community Meeting With Investment Community Meeting With Investment Community Meeting With Investment Community February 29, 2000

Tony Comper

Chairman & CEO

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Diversified in North America
Major Canadian bank with > 1/3 of earnings in U.S.

and > 1/2 outside Canada

Leadership in credit risk management
Harris is a key strategic asset – growing and

expanding earnings

Important position/alliance with Bancomer –

Mexico’s leading retail bank

Increasing North American economies of scale, and

cross-border initiatives among BMO/Nesbitt/Harris/ Bancomer

Diversified in North America
Major Canadian bank with > 1/3 of earnings in U.S.

and > 1/2 outside Canada

Leadership in credit risk management
Harris is a key strategic asset – growing and

expanding earnings

Important position/alliance with Bancomer –

Mexico’s leading retail bank

Increasing North American economies of scale, and

cross-border initiatives among BMO/Nesbitt/Harris/ Bancomer

Who We Are Who We Are Who We Are Who We Are Who We Are Who We Are Who We Are Who We Are

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1. Continue to aggressively build the value of Harris
2. Rapidly grow the wealth management business
3. Capitalize on our strong Canadian position in personal and

commercial banking

4. Build on strong leadership position in investment banking

in Canada and selectively grow our position in the U.S.

5. Drive e-business opportunities to build dominant positions

in national markets

6. Intensely focus on cost, capital and risk management
1. Continue to aggressively build the value of Harris
2. Rapidly grow the wealth management business
3. Capitalize on our strong Canadian position in personal and

commercial banking

4. Build on strong leadership position in investment banking

in Canada and selectively grow our position in the U.S.

5. Drive e-business opportunities to build dominant positions

in national markets

6. Intensely focus on cost, capital and risk management

Six Point Strategy Six Point Strategy Six Point Strategy Six Point Strategy Six Point Strategy Six Point Strategy Six Point Strategy Six Point Strategy

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Increase return on equity 1 - 1.5% annually
Grow earnings per share by at least 10% per annum
Increase return on equity 1 - 1.5% annually
Grow earnings per share by at least 10% per annum

Financial Goals Financial Goals Financial Goals Financial Goals Financial Goals Financial Goals Financial Goals Financial Goals

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Continue to aggressively build Continue to aggressively build Continue to aggressively build Continue to aggressively build the value of Harris… the value of Harris… the value of Harris… the value of Harris… Continue to aggressively build Continue to aggressively build Continue to aggressively build Continue to aggressively build the value of Harris… the value of Harris… the value of Harris… the value of Harris…

Become dominant full-service bank in Chicago area
Premier mid-market corporate/investment bank in the

Midwest

Expand in fast-growing Sunbelt markets
Become dominant full-service bank in Chicago area
Premier mid-market corporate/investment bank in the

Midwest

Expand in fast-growing Sunbelt markets

GOAL GOAL

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Rapidly grow the w ealth Rapidly grow the w ealth Rapidly grow the w ealth Rapidly grow the w ealth management business… management business… management business… management business… Rapidly grow the w ealth Rapidly grow the w ealth Rapidly grow the w ealth Rapidly grow the w ealth management business… management business… management business… management business…

Build on Nesbitt Burns’ investment advisory services and

Harris Bank’s private banking capabilities

Expand sales force and use of BMO channels
Expand electronic client access for investment services
Build on Nesbitt Burns’ investment advisory services and

Harris Bank’s private banking capabilities

Expand sales force and use of BMO channels
Expand electronic client access for investment services

GOAL GOAL

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Capitalize on our strong Canadian position Capitalize on our strong Canadian position Capitalize on our strong Canadian position Capitalize on our strong Canadian position in personal and commercial banking… in personal and commercial banking… in personal and commercial banking… in personal and commercial banking… Capitalize on our strong Canadian position Capitalize on our strong Canadian position Capitalize on our strong Canadian position Capitalize on our strong Canadian position in personal and commercial banking… in personal and commercial banking… in personal and commercial banking… in personal and commercial banking…

Become dominant small business and mid-market bank

in Canada

Premier mortgage and consumer lender
Rebalance channel mix creating a more customer-

convenient and cost-effective distribution system

Become dominant small business and mid-market bank

in Canada

Premier mortgage and consumer lender
Rebalance channel mix creating a more customer-

convenient and cost-effective distribution system

GOAL GOAL

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Capitalize on our strong Canadian position Capitalize on our strong Canadian position Capitalize on our strong Canadian position Capitalize on our strong Canadian position in personal and commercial banking… in personal and commercial banking… in personal and commercial banking… in personal and commercial banking… Capitalize on our strong Canadian position Capitalize on our strong Canadian position Capitalize on our strong Canadian position Capitalize on our strong Canadian position in personal and commercial banking… in personal and commercial banking… in personal and commercial banking… in personal and commercial banking…

Rebalance channel mix

Electronic Channels (# millions)

0 .3 0 .3 0 .3 0 .3 1 .2 1 .2 1 .2 1 .2 2 2 2 2 1 1 1 1 2 2 2 2 1 9 9 7 1 9 9 7 1 9 9 7 1 9 9 7 1 9 9 9 1 9 9 9 1 9 9 9 1 9 9 9 2 0 0 1 2 0 0 1 2 0 0 1 2 0 0 1

HOW HOW

Branches

9 0 0 9 0 0 9 0 0 9 0 0 1 0 9 9 1 0 9 9 1 0 9 9 1 0 9 9 7 0 0 7 0 0 7 0 0 7 0 0 1 2 0 0 1 2 0 0 1 2 0 0 1 2 0 0 1 9 9 7 1 9 9 7 1 9 9 7 1 9 9 7 1 9 9 9 1 9 9 9 1 9 9 9 1 9 9 9

In-Store (# of stores)

2 0 0 2 0 0 2 0 0 2 0 0 9 0 9 0 9 0 9 0 1 0 1 0 1 0 1 0 1 0 0 1 0 0 1 0 0 1 0 0 2 0 0 2 0 0 2 0 0 2 0 0 1 9 9 7 1 9 9 7 1 9 9 7 1 9 9 7 1 9 9 9 1 9 9 9 1 9 9 9 1 9 9 9 2 0 0 1 2 0 0 1 2 0 0 1 2 0 0 1

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Build on our strong leadership Build on our strong leadership Build on our strong leadership Build on our strong leadership position in investment banking... position in investment banking... position in investment banking... position in investment banking... Build on our strong leadership Build on our strong leadership Build on our strong leadership Build on our strong leadership position in investment banking... position in investment banking... position in investment banking... position in investment banking...

Industry leader in Canada and selectively grow our

position in U.S.

Become premier mid-market corporate/investment bank in

the Midwest

Build leading North American position with mid-market

energy and communications companies

Build strong franchise in high growth products
Industry leader in Canada and selectively grow our

position in U.S.

Become premier mid-market corporate/investment bank in

the Midwest

Build leading North American position with mid-market

energy and communications companies

Build strong franchise in high growth products

GOAL GOAL

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Drive e-business opportunities… Drive e-business opportunities… Drive e-business opportunities… Drive e-business opportunities… Drive e-business opportunities… Drive e-business opportunities… Drive e-business opportunities… Drive e-business opportunities…

Become principal conduit for public sector electronic

procurement (MERX)

Develop lead position in electronic bill presentment and

payment in Canada (EPOST)

Become premier provider of automated credit decisioning

for small and medium sized banks in the U.S. (Competix.com)

Build leadership position in delivery of “wireless”

banking, brokerage, and information services (724 Solutions)

“Capitalize” promising projects to fuel additional growth
Become principal conduit for public sector electronic

procurement (MERX)

Develop lead position in electronic bill presentment and

payment in Canada (EPOST)

Become premier provider of automated credit decisioning

for small and medium sized banks in the U.S. (Competix.com)

Build leadership position in delivery of “wireless”

banking, brokerage, and information services (724 Solutions)

“Capitalize” promising projects to fuel additional growth

GOAL GOAL

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Intensely focus on cost, capital Intensely focus on cost, capital Intensely focus on cost, capital Intensely focus on cost, capital and risk management… and risk management… and risk management… and risk management… Intensely focus on cost, capital Intensely focus on cost, capital Intensely focus on cost, capital Intensely focus on cost, capital and risk management… and risk management… and risk management… and risk management…

Rapidly reduce costs
Rapidly reduce costs
Expense base reduction in 2000: $250 million

– Cost reduction programs totaling $400 million +$250 million – Investing in the future

$150 million

– Funding from dispositions +$150 million – Expense base reduction +$250 million

Expense base reduction in 2000: $250 million

– Cost reduction programs totaling $400 million +$250 million – Investing in the future

$150 million

– Funding from dispositions +$150 million – Expense base reduction +$250 million

GOAL GOAL HOW HOW

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Meeting With Investment Community Meeting With Investment Community Meeting With Investment Community Meeting With Investment Community February 29, 2000

Tony Comper

Chairman & CEO

Meeting With Investment Community Meeting With Investment Community Meeting With Investment Community Meeting With Investment Community February 29, 2000

Tony Comper

Chairman & CEO

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This presentation includes forward-looking statements. These forward-looking statements include but are not limited to comments with respect to our objectives and strategies, financial condition, the results of our operations and our businesses, our outlook for the Canadian economy and our risk management. However, by their nature these forward-looking statements involve numerous assumptions, inherent risks and uncertainties, both general and specific, and the risk that predictions and other forward-looking statements will not be achieved. We caution readers of this presentation not to place undue reliance on these forward-looking statements as a number of important factors could cause actual future results to differ materially from the plans, objectives, expectations, estimates and intentions expressed in such forward-looking statements. Forward-looking statements may be influenced by the following factors: fluctuations in interest rates and currency values; regulatory developments; the effects of competition in the geographic and business areas in which we operate, including continued pricing pressure on loan and deposit products; and changes in political and economic conditions including, among other things, inflation and technological changes. We caution that the foregoing list of important factors is not exhaustive and that when relying on forward-looking statements to make decisions with respect to Bank of Montreal, investors and others should carefully consider the foregoing factors as well as other uncertainties and events. This presentation includes forward-looking statements. These forward-looking statements include but are not limited to comments with respect to our objectives and strategies, financial condition, the results of our operations and our businesses, our outlook for the Canadian economy and our risk management. However, by their nature these forward-looking statements involve numerous assumptions, inherent risks and uncertainties, both general and specific, and the risk that predictions and other forward-looking statements will not be achieved. We caution readers of this presentation not to place undue reliance on these forward-looking statements as a number of important factors could cause actual future results to differ materially from the plans, objectives, expectations, estimates and intentions expressed in such forward-looking statements. Forward-looking statements may be influenced by the following factors: fluctuations in interest rates and currency values; regulatory developments; the effects of competition in the geographic and business areas in which we operate, including continued pricing pressure on loan and deposit products; and changes in political and economic conditions including, among other things, inflation and technological changes. We caution that the foregoing list of important factors is not exhaustive and that when relying on forward-looking statements to make decisions with respect to Bank of Montreal, investors and others should carefully consider the foregoing factors as well as other uncertainties and events.

Forw ard-Looking Statements Forw ard-Looking Statements Forw ard-Looking Statements Forw ard-Looking Statements Forw ard-Looking Statements Forw ard-Looking Statements Forw ard-Looking Statements Forw ard-Looking Statements

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1st Quarter 2000 Presentation To Investment Community 1st Quarter 2000 Presentation To Investment Community

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Earnings: 15% EPS Growth Excluding Non-recurring Items Earnings: 15% EPS Growth Excluding Non-recurring Items

Net Income ($MM) Net Income ($MM) Net Income ($MM) Net Income ($MM) Earnings Per Share - FD ($) Earnings Per Share - FD ($) Earnings Per Share - FD ($) Earnings Per Share - FD ($) Return On Equity (% ) Return On Equity (% ) Return On Equity (% ) Return On Equity (% ) Net Income ($MM) Net Income ($MM) Net Income ($MM) Net Income ($MM) Earnings Per Share - FD ($) Earnings Per Share - FD ($) Earnings Per Share - FD ($) Earnings Per Share - FD ($) Return On Equity (% ) Return On Equity (% ) Return On Equity (% ) Return On Equity (% ) Q1 Q1 Growth Yr / Yr Growth Yr / Yr

112 0.42 3.9 112 0.42 3.9 216 0.80 9.2 216 0.80 9.2 84 93 84 93 474 1.66 19.0 474 1.66 19.0

Increase Increase

31 34 31 34

Reported Reported Growth Q1 / Q4 Growth Q1 / Q4 Increase Increase % % % % Net Income ($MM) Net Income ($MM) Net Income ($MM) Net Income ($MM) Earnings Per Share - FD ($) Earnings Per Share - FD ($) Earnings Per Share - FD ($) Earnings Per Share - FD ($) Return On Equity (% ) Return On Equity (% ) Return On Equity (% ) Return On Equity (% ) Net Income ($MM) Net Income ($MM) Net Income ($MM) Net Income ($MM) Earnings Per Share - FD ($) Earnings Per Share - FD ($) Earnings Per Share - FD ($) Earnings Per Share - FD ($) Return On Equity (% ) Return On Equity (% ) Return On Equity (% ) Return On Equity (% )

407 1.42 16.2 407 1.42 16.2

Excluding Non-recurring Items Excluding Non-recurring Items

Q1: Gain on disposition of Partners First $67MM Q1: Gain on disposition of Partners First $67MM Q1: Gain on disposition of Partners First $67MM Q1: Gain on disposition of Partners First $67MM Q4 : One- time charges $113MM; extra month Q4 : One- time charges $113MM; extra month Q4 : One- time charges $113MM; extra month Q4 : One- time charges $113MM; extra month Nesbitt Nesbitt Nesbitt Nesbitt Burns $8MM Burns $8MM Burns $8MM Burns $8MM Q1: Gain on disposition of Partners First $67MM Q1: Gain on disposition of Partners First $67MM Q1: Gain on disposition of Partners First $67MM Q1: Gain on disposition of Partners First $67MM Q4 : One- time charges $113MM; extra month Q4 : One- time charges $113MM; extra month Q4 : One- time charges $113MM; extra month Q4 : One- time charges $113MM; extra month Nesbitt Nesbitt Nesbitt Nesbitt Burns $8MM Burns $8MM Burns $8MM Burns $8MM

* *

2000 2000

45 0.18 1.1 45 0.18 1.1 44 0.17 1.9 44 0.17 1.9 12 14 12 14 12 15 12 15

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m Continued retail business volume growth Continued retail business volume growth Continued retail business volume growth Continued retail business volume growth

m P&C Canada net income up 20% P&C Canada net income up 20% P&C Canada net income up 20% P&C Canada net income up 20% m Harris Legal net income up 13% in source Harris Legal net income up 13% in source Harris Legal net income up 13% in source Harris Legal net income up 13% in source currency currency currency currency m Private Client Group net income up over Private Client Group net income up over Private Client Group net income up over Private Client Group net income up over 100% 100% 100% 100%

m Expense growth contained to 2% Expense growth contained to 2% Expense growth contained to 2% Expense growth contained to 2% m Sale of Partners First Sale of Partners First Sale of Partners First Sale of Partners First m Continued retail business volume growth Continued retail business volume growth Continued retail business volume growth Continued retail business volume growth

m P&C Canada net income up 20% P&C Canada net income up 20% P&C Canada net income up 20% P&C Canada net income up 20% m Harris Legal net income up 13% in source Harris Legal net income up 13% in source Harris Legal net income up 13% in source Harris Legal net income up 13% in source currency currency currency currency m Private Client Group net income up over Private Client Group net income up over Private Client Group net income up over Private Client Group net income up over 100% 100% 100% 100%

m Expense growth contained to 2% Expense growth contained to 2% Expense growth contained to 2% Expense growth contained to 2% m Sale of Partners First Sale of Partners First Sale of Partners First Sale of Partners First

Financial Performance Highlights Strongest Quarterly Performance Ever Financial Performance Highlights Strongest Quarterly Performance Ever

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Income Statement Income Statement

($MM) ($MM)

Net Interest Income - TEB Net Interest Income - TEB Net Interest Income - TEB Net Interest Income - TEB Other Income Other Income Other Income Other Income Total Revenues Total Revenues Total Revenues Total Revenues Provision For Credit Losses Provision For Credit Losses Provision For Credit Losses Provision For Credit Losses Non- Interest Expense Non- Interest Expense Non- Interest Expense Non- Interest Expense Income Before Taxes Income Before Taxes Income Before Taxes Income Before Taxes Taxes, MI & Taxes, MI & Taxes, MI & Taxes, MI & Amort Amort Amort

Amort. Of G/ W

. Of G/ W . Of G/ W . Of G/ W Net Income Net Income Net Income Net Income Net Economic Profit Net Economic Profit Net Economic Profit Net Economic Profit Total Bank Average Assets ($B) Total Bank Average Assets ($B) Total Bank Average Assets ($B) Total Bank Average Assets ($B) Net Interest Income - TEB Net Interest Income - TEB Net Interest Income - TEB Net Interest Income - TEB Other Income Other Income Other Income Other Income Total Revenues Total Revenues Total Revenues Total Revenues Provision For Credit Losses Provision For Credit Losses Provision For Credit Losses Provision For Credit Losses Non- Interest Expense Non- Interest Expense Non- Interest Expense Non- Interest Expense Income Before Taxes Income Before Taxes Income Before Taxes Income Before Taxes Taxes, MI & Taxes, MI & Taxes, MI & Taxes, MI & Amort Amort Amort

Amort. Of G/ W

. Of G/ W . Of G/ W . Of G/ W Net Income Net Income Net Income Net Income Net Economic Profit Net Economic Profit Net Economic Profit Net Economic Profit Total Bank Average Assets ($B) Total Bank Average Assets ($B) Total Bank Average Assets ($B) Total Bank Average Assets ($B)

Q1 2000 Q1 2000 Q4 1999 Q4 1999 Q1 1999 Q1 1999

1,089 845 1,934 80 1,232 622 260 362 130 230 1,089 845 1,934 80 1,232 622 260 362 130 230 ( ) ( ) 1,124 884 2,008 80 1,501 427 169 258 8 225 1,124 884 2,008 80 1,501 427 169 258 8 225

Yr / Yr Growth Yr / Yr Growth

0.7 23.3 9.8 25.0 1.8 23.8 14.0 30.8 54.9 0.0 0.7 23.3 9.8 25.0 1.8 23.8 14.0 30.8 54.9 0.0 % % % % 1,081 1,042 2,123 100 1,254 769 295 474 201 230 1,081 1,042 2,123 100 1,254 769 295 474 201 230 ( ) ( )

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Revenue: Up 7% In P&C Canada, Up 29% In Private Client Group Revenue: Up 7% In P&C Canada, Up 29% In Private Client Group

P&C - Canada P&C - Canada P&C - Canada P&C - Canada Harris Regional Harris Regional Harris Regional Harris Regional Bancomer Bancomer Bancomer Bancomer Total P&C Total P&C Total P&C Total P&C PCG PCG PCG PCG IBG IBG IBG IBG Corporate Support Corporate Support Corporate Support Corporate Support Total Bank Total Bank Total Bank Total Bank Harris Legal ($U.S., U.S. GAAP) Harris Legal ($U.S., U.S. GAAP) Harris Legal ($U.S., U.S. GAAP) Harris Legal ($U.S., U.S. GAAP) P&C - Canada P&C - Canada P&C - Canada P&C - Canada Harris Regional Harris Regional Harris Regional Harris Regional Bancomer Bancomer Bancomer Bancomer Total P&C Total P&C Total P&C Total P&C PCG PCG PCG PCG IBG IBG IBG IBG Corporate Support Corporate Support Corporate Support Corporate Support Total Bank Total Bank Total Bank Total Bank Harris Legal ($U.S., U.S. GAAP) Harris Legal ($U.S., U.S. GAAP) Harris Legal ($U.S., U.S. GAAP) Harris Legal ($U.S., U.S. GAAP)

Q1 00 Q1 00 Growth Yr / Yr Growth Yr / Yr 66 17 1 48 70 2 39 77

12

66 17 1 48 70 2 39 77

12

46 3 15 58 55 5 81 37

1

46 3 15 58 55 5 81 37

1

986 290 34 1,310 314 439 52 2,011

288

986 290 34 1,310 314 439 52 2,011

288

$MM $MM Growth Q1 / Q4 Growth Q1 / Q4 $MM $MM % % % % $MM $MM 7 6 3 4 29 1 4

4

7 6 3 4 29 1 4

4

5 1 80 5 22 1 2 5 1 80 5 22 1 2 ( ) ( ) ( ) ( ) ( ) ( ) ( ) ( ) ( ) ( ) ( ) ( ) ( ) ( ) ( ) ( ) ( ) ( ) ( ) ( ) ( ) ( )

* *

Excluding Non- recurring Items Excluding Non- recurring Items Excluding Non- recurring Items Excluding Non- recurring Items Excluding Non- recurring Items Excluding Non- recurring Items Excluding Non- recurring Items Excluding Non- recurring Items

Q1: Gain on disposition of Partners First $112MM Q1: Gain on disposition of Partners First $112MM Q1: Gain on disposition of Partners First $112MM Q1: Gain on disposition of Partners First $112MM Q4 : One- time charge $55MM; extra month Q4 : One- time charge $55MM; extra month Q4 : One- time charge $55MM; extra month Q4 : One- time charge $55MM; extra month Nesbitt Nesbitt Nesbitt Nesbitt Burns $89MM Burns $89MM Burns $89MM Burns $89MM Q1: Gain on disposition of Partners First $112MM Q1: Gain on disposition of Partners First $112MM Q1: Gain on disposition of Partners First $112MM Q1: Gain on disposition of Partners First $112MM Q4 : One- time charge $55MM; extra month Q4 : One- time charge $55MM; extra month Q4 : One- time charge $55MM; extra month Q4 : One- time charge $55MM; extra month Nesbitt Nesbitt Nesbitt Nesbitt Burns $89MM Burns $89MM Burns $89MM Burns $89MM

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NII: Volume Growth In P&C & PCG Shifting Balance Sheet Mix NII: Volume Growth In P&C & PCG Shifting Balance Sheet Mix

P&C - Canada P&C - Canada P&C - Canada P&C - Canada Harris Regional Harris Regional Harris Regional Harris Regional Bancomer Bancomer Bancomer Bancomer Total P&C Total P&C Total P&C Total P&C PCG PCG PCG PCG Total P&C & PCG Total P&C & PCG Total P&C & PCG Total P&C & PCG IBG IBG IBG IBG Corporate Support Corporate Support Corporate Support Corporate Support Total Bank Ex. Non- recurring Total Bank Ex. Non- recurring Total Bank Ex. Non- recurring Total Bank Ex. Non- recurring Harris Legal ($U.S., U.S. GAAP) Harris Legal ($U.S., U.S. GAAP) Harris Legal ($U.S., U.S. GAAP) Harris Legal ($U.S., U.S. GAAP) P&C - Canada P&C - Canada P&C - Canada P&C - Canada Harris Regional Harris Regional Harris Regional Harris Regional Bancomer Bancomer Bancomer Bancomer Total P&C Total P&C Total P&C Total P&C PCG PCG PCG PCG Total P&C & PCG Total P&C & PCG Total P&C & PCG Total P&C & PCG IBG IBG IBG IBG Corporate Support Corporate Support Corporate Support Corporate Support Total Bank Ex. Non- recurring Total Bank Ex. Non- recurring Total Bank Ex. Non- recurring Total Bank Ex. Non- recurring Harris Legal ($U.S., U.S. GAAP) Harris Legal ($U.S., U.S. GAAP) Harris Legal ($U.S., U.S. GAAP) Harris Legal ($U.S., U.S. GAAP)

1 1 2 2 2 1 5

1

1 1 2 2 2 1 5

1

NII NII

Growth Q1 / Q4 Growth Q1 / Q4

Margin Margin

11 12 n/m 9 67 10 11 n/m 10

2

11 12 n/m 9 67 10 11 n/m 10

2

Q4 : Extra month Q4 : Extra month Q4 : Extra month Q4 : Extra month Nesbitt Nesbitt Nesbitt Nesbitt Burns $8MM Burns $8MM Burns $8MM Burns $8MM Q4 : Extra month Q4 : Extra month Q4 : Extra month Q4 : Extra month Nesbitt Nesbitt Nesbitt Nesbitt Burns $8MM Burns $8MM Burns $8MM Burns $8MM

* *

Avg Bal. Avg Bal.

5 2 80 5 6 5 12 +100 3

4

5 2 80 5 6 5 12 +100 3

4

5 2 7 7 10 3

2

5 2 7 7 10 3

2

NII NII

Growth Yr / Yr Growth Yr / Yr

Margin Margin

6 11 n/m 8 121 5 9 n/m 1

3

6 11 n/m 8 121 5 9 n/m 1

3

Avg Bal. Avg Bal.

4 1 3 3 32 4 19 1 1

11

4 1 3 3 32 4 19 1 1

11

% % $B $B bps bps % % $B $B bps bps

( ) ( )

( ) ( ) ( ) ( ) ( ) ( ) ( ) ( ) ( ) ( )

( ) ( )

( ) ( ) ( ) ( )

( ) ( )

* *

( ) ( )

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P&C - Canada P&C - Canada P&C - Canada P&C - Canada Harris Regional Harris Regional Harris Regional Harris Regional Total P&C Total P&C Total P&C Total P&C PCG PCG PCG PCG IBG IBG IBG IBG Corporate Support Corporate Support Corporate Support Corporate Support Total Bank Total Bank Total Bank Total Bank Harris Legal ($U.S., U.S. GAAP) Harris Legal ($U.S., U.S. GAAP) Harris Legal ($U.S., U.S. GAAP) Harris Legal ($U.S., U.S. GAAP) Harris Legal Harris Legal Harris Legal Harris Legal Excl Excl Excl

Excl. Securities Gains

. Securities Gains . Securities Gains . Securities Gains P&C - Canada P&C - Canada P&C - Canada P&C - Canada Harris Regional Harris Regional Harris Regional Harris Regional Total P&C Total P&C Total P&C Total P&C PCG PCG PCG PCG IBG IBG IBG IBG Corporate Support Corporate Support Corporate Support Corporate Support Total Bank Total Bank Total Bank Total Bank Harris Legal ($U.S., U.S. GAAP) Harris Legal ($U.S., U.S. GAAP) Harris Legal ($U.S., U.S. GAAP) Harris Legal ($U.S., U.S. GAAP) Harris Legal Harris Legal Harris Legal Harris Legal Excl Excl Excl

Excl. Securities Gains

. Securities Gains . Securities Gains . Securities Gains

Q1 00 Q1 00 Growth Yr / Yr Growth Yr / Yr 292 85 377 267 235 51 930

115

292 85 377 267 235 51 930

115

$MM $MM Growth Q1 / Q4 Growth Q1 / Q4 $MM $MM % % % % $MM $MM ( ) ( )

* *

Excluding Non- recurring Items Excluding Non- recurring Items Excluding Non- recurring Items Excluding Non- recurring Items Excluding Non- recurring Items Excluding Non- recurring Items Excluding Non- recurring Items Excluding Non- recurring Items

Q1: Gain on disposition of Partners First $112MM Q1: Gain on disposition of Partners First $112MM Q1: Gain on disposition of Partners First $112MM Q1: Gain on disposition of Partners First $112MM Q4 : One- time charge $55MM; extra month Q4 : One- time charge $55MM; extra month Q4 : One- time charge $55MM; extra month Q4 : One- time charge $55MM; extra month Nesbitt Nesbitt Nesbitt Nesbitt Burns $81MM Burns $81MM Burns $81MM Burns $81MM Q1: Gain on disposition of Partners First $112MM Q1: Gain on disposition of Partners First $112MM Q1: Gain on disposition of Partners First $112MM Q1: Gain on disposition of Partners First $112MM Q4 : One- time charge $55MM; extra month Q4 : One- time charge $55MM; extra month Q4 : One- time charge $55MM; extra month Q4 : One- time charge $55MM; extra month Nesbitt Nesbitt Nesbitt Nesbitt Burns $81MM Burns $81MM Burns $81MM Burns $81MM

* *

Other Income: Volume Growth Across The Bank Other Income: Volume Growth Across The Bank

36 19 17 59 46 37 85

5 7

36 19 17 59 46 37 85

5 7

( ) ( ) ( ) ( ) 14 18 5 28 24 42 10

4 8

14 18 5 28 24 42 10

4 8

( ) ( ) ( ) ( ) ( ) ( ) 13 1 14 53 32 27 72

5

13 1 14 53 32 27 72

5

( ) ( ) 5 1 4 25 15 35 8

4

5 1 4 25 15 35 8

4

( ) ( ) ( ) ( ) ( ) ( )

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Expense: 2.6% Reduction In Normal Operating Expense Due To Cost Red. Expense: 2.6% Reduction In Normal Operating Expense Due To Cost Red.

Currency Translation Effect Currency Translation Effect Currency Translation Effect Currency Translation Effect Revenue Driven Compensation Revenue Driven Compensation Revenue Driven Compensation Revenue Driven Compensation Spending On New Strategic Spending On New Strategic Spending On New Strategic Spending On New Strategic Initiatives Initiatives Initiatives Initiatives Normal Operating Expense Normal Operating Expense Normal Operating Expense Normal Operating Expense Incl Incl Incl Incl. . . . Cost Red. Of $50 MM Or 4% Cost Red. Of $50 MM Or 4% Cost Red. Of $50 MM Or 4% Cost Red. Of $50 MM Or 4% Total Total Total Total Currency Translation Effect Currency Translation Effect Currency Translation Effect Currency Translation Effect Revenue Driven Compensation Revenue Driven Compensation Revenue Driven Compensation Revenue Driven Compensation Spending On New Strategic Spending On New Strategic Spending On New Strategic Spending On New Strategic Initiatives Initiatives Initiatives Initiatives Normal Operating Expense Normal Operating Expense Normal Operating Expense Normal Operating Expense Incl Incl Incl Incl. . . . Cost Red. Of $50 MM Or 4% Cost Red. Of $50 MM Or 4% Cost Red. Of $50 MM Or 4% Cost Red. Of $50 MM Or 4% Total Total Total Total

Q1 00 Q1 00 Growth Yr / Yr Growth Yr / Yr 13 217 14 1,036 1,254 13 217 14 1,036 1,254 $MM $MM Growth Q1 / Q4 Growth Q1 / Q4 $MM $MM % % % % $MM $MM 13 54 14 33 22 13 54 14 33 22 4 21 14 23 34 4 21 14 23 34 1.1 4.4 1.1 2.6 1.8 1.1 4.4 1.1 2.6 1.8 ( ) ( ) 0.3 1.7 1.1 1.8 2.7 0.3 1.7 1.1 1.8 2.7 ( ) ( ) ( ) ( ) ( ) ( )

Contribution To Growth Contribution To Growth

( ) ( ) ( ) ( )

* *

Excluding Non- recurring Items Excluding Non- recurring Items Excluding Non- recurring Items Excluding Non- recurring Items Excluding Non- recurring Items Excluding Non- recurring Items Excluding Non- recurring Items Excluding Non- recurring Items

( ) ( ) ( ) ( ) ( ) ( ) ( ) ( ) ( ) ( ) ( ) ( )

Excludes amortization of goodwill Excludes amortization of goodwill Excludes amortization of goodwill Excludes amortization of goodwill Excludes amortization of goodwill Excludes amortization of goodwill Excludes amortization of goodwill Excludes amortization of goodwill

* *

Q4 : One- time charge $141MM; extra month Q4 : One- time charge $141MM; extra month Q4 : One- time charge $141MM; extra month Q4 : One- time charge $141MM; extra month Nesbitt Nesbitt Nesbitt Nesbitt Burns $72MM Burns $72MM Burns $72MM Burns $72MM Q4 : One- time charge $141MM; extra month Q4 : One- time charge $141MM; extra month Q4 : One- time charge $141MM; extra month Q4 : One- time charge $141MM; extra month Nesbitt Nesbitt Nesbitt Nesbitt Burns $72MM Burns $72MM Burns $72MM Burns $72MM ( ) ( )

SLIDE 22

9 9

Financial Measures Financial Measures

Measures Measures Measures Measures (%) Measures Measures Measures Measures (%)

Total Shareholder Return (5 year) Total Shareholder Return (5 year) Total Shareholder Return (5 year) Total Shareholder Return (5 year) Total Shareholder Return (5 year) Total Shareholder Return (5 year) Total Shareholder Return (5 year) Total Shareholder Return (5 year)

Performance Performance Performance Performance Performance Performance Performance Performance

EPS Growth (fully diluted)

EPS Growth (fully diluted) EPS Growth (fully diluted) EPS Growth (fully diluted)

Return On Equity

Return On Equity Return On Equity Return On Equity Revenue Growth Revenue Growth Revenue Growth Revenue Growth Expense To Revenue Ratio Expense To Revenue Ratio Expense To Revenue Ratio Expense To Revenue Ratio PCL / (Loans + Acceptances) Ratio PCL / (Loans + Acceptances) Ratio PCL / (Loans + Acceptances) Ratio PCL / (Loans + Acceptances) Ratio Net Economic Profit Growth Net Economic Profit Growth Net Economic Profit Growth Net Economic Profit Growth

EPS Growth (fully diluted)

EPS Growth (fully diluted) EPS Growth (fully diluted) EPS Growth (fully diluted)

Return On Equity

Return On Equity Return On Equity Return On Equity Revenue Growth Revenue Growth Revenue Growth Revenue Growth Expense To Revenue Ratio Expense To Revenue Ratio Expense To Revenue Ratio Expense To Revenue Ratio PCL / (Loans + Acceptances) Ratio PCL / (Loans + Acceptances) Ratio PCL / (Loans + Acceptances) Ratio PCL / (Loans + Acceptances) Ratio Net Economic Profit Growth Net Economic Profit Growth Net Economic Profit Growth Net Economic Profit Growth

Condition Condition Condition Condition Condition Condition Condition Condition

Gross Impaired Loans / (Equity + ACL) Ratio

Gross Impaired Loans / (Equity + ACL) Ratio Gross Impaired Loans / (Equity + ACL) Ratio Gross Impaired Loans / (Equity + ACL) Ratio Capital Ratio (Tier 1) Capital Ratio (Tier 1) Capital Ratio (Tier 1) Capital Ratio (Tier 1) Liquidity Ratio Liquidity Ratio Liquidity Ratio Liquidity Ratio Credit Rating (Senior Debt) Credit Rating (Senior Debt) Credit Rating (Senior Debt) Credit Rating (Senior Debt)

Gross Impaired Loans / (Equity + ACL) Ratio

Gross Impaired Loans / (Equity + ACL) Ratio Gross Impaired Loans / (Equity + ACL) Ratio Gross Impaired Loans / (Equity + ACL) Ratio Capital Ratio (Tier 1) Capital Ratio (Tier 1) Capital Ratio (Tier 1) Capital Ratio (Tier 1) Liquidity Ratio Liquidity Ratio Liquidity Ratio Liquidity Ratio Credit Rating (Senior Debt) Credit Rating (Senior Debt) Credit Rating (Senior Debt) Credit Rating (Senior Debt)

1.3 14.1 9.0 66.7 0.22 13.4 1.3 14.1 9.0 66.7 0.22 13.4 22.0 22.0 8.5 7.72 29.2 AA - 8.5 7.72 29.2 AA -

Q1 1999 Q1 1999 Total Yr 1999 Total Yr 1999

2.4 15.1 5.6 63.7 0.22 13.8 2.4 15.1 5.6 63.7 0.22 13.8 21.6 21.6 7.3 7.41 28.6 AA - 7.3 7.41 28.6 AA - Expense excludes amortization of goodwill Expense excludes amortization of goodwill Expense excludes amortization of goodwill Expense excludes amortization of goodwill Expense excludes amortization of goodwill Expense excludes amortization of goodwill Expense excludes amortization of goodwill Expense excludes amortization of goodwill

* * * *

( ) ( )

Q1 2000 Q1 2000

33.9 19.0 9.8 59.0 0.28 54.9 33.9 19.0 9.8 59.0 0.28 54.9 17.5 17.5 8.9 7.84 29.9 AA - 8.9 7.84 29.9 AA - ( ) ( ) ( ) ( )

SLIDE 23

10 10

($MM) ($MM)

Investment Securities Investment Securities Investment Securities Investment Securities Government Debt & Other Government Debt & Other Government Debt & Other Government Debt & Other Securities Securities Securities Securities Associated Corporations ( Associated Corporations ( Associated Corporations ( Associated Corporations (Bancomer Bancomer Bancomer Bancomer) ) ) ) Designated Lesser Developed Designated Lesser Developed Designated Lesser Developed Designated Lesser Developed Countries Countries Countries Countries Equity Investment In 724 Equity Investment In 724 Equity Investment In 724 Equity Investment In 724 Solutions Inc. Solutions Inc. Solutions Inc. Solutions Inc. Total Investment Securities Total Investment Securities Total Investment Securities Total Investment Securities Investment Securities Investment Securities Investment Securities Investment Securities Government Debt & Other Government Debt & Other Government Debt & Other Government Debt & Other Securities Securities Securities Securities Associated Corporations ( Associated Corporations ( Associated Corporations ( Associated Corporations (Bancomer Bancomer Bancomer Bancomer) ) ) ) Designated Lesser Developed Designated Lesser Developed Designated Lesser Developed Designated Lesser Developed Countries Countries Countries Countries Equity Investment In 724 Equity Investment In 724 Equity Investment In 724 Equity Investment In 724 Solutions Inc. Solutions Inc. Solutions Inc. Solutions Inc. Total Investment Securities Total Investment Securities Total Investment Securities Total Investment Securities

Q1 2000 Q1 2000 Q4 1999 Q4 1999 Q1 1999 Q1 1999

251 214 56

93

251 214 56

93

330 226 18

538

330 226 18

538

461 105 40 327 199 461 105 40 327 199 ( ) ( ) ( ) ( ) ( ) ( ) ( ) ( ) ( ) ( ) ( ) ( ) ( ) ( )

Note: Conforms with the required GAAP disclosure. Does not reflect the value of assets other Note: Conforms with the required GAAP disclosure. Does not reflect the value of assets other Note: Conforms with the required GAAP disclosure. Does not reflect the value of assets other Note: Conforms with the required GAAP disclosure. Does not reflect the value of assets other than investment securities nor the value of all liabilities including deposits than investment securities nor the value of all liabilities including deposits than investment securities nor the value of all liabilities including deposits than investment securities nor the value of all liabilities including deposits Note: Conforms with the required GAAP disclosure. Does not reflect the value of assets other Note: Conforms with the required GAAP disclosure. Does not reflect the value of assets other Note: Conforms with the required GAAP disclosure. Does not reflect the value of assets other Note: Conforms with the required GAAP disclosure. Does not reflect the value of assets other than investment securities nor the value of all liabilities including deposits than investment securities nor the value of all liabilities including deposits than investment securities nor the value of all liabilities including deposits than investment securities nor the value of all liabilities including deposits

Unrealized Gains / (Losses) On Investment Securities - Bancomer & 724 Increase Unrealized Gains / (Losses) On Investment Securities - Bancomer & 724 Increase

SLIDE 24

11 11

($MM) ($MM)

Government Debt & Other Securities Government Debt & Other Securities Government Debt & Other Securities Government Debt & Other Securities Canadian Government Debt Canadian Government Debt Canadian Government Debt Canadian Government Debt Corporate Debt & Equity Corporate Debt & Equity Corporate Debt & Equity Corporate Debt & Equity Other Governments Other Governments Other Governments Other Governments U.S. Government And Agencies U.S. Government And Agencies U.S. Government And Agencies U.S. Government And Agencies Total Total Total Total Gov't Gov't Gov't Gov't Debt & Other Securities Debt & Other Securities Debt & Other Securities Debt & Other Securities Government Debt & Other Securities Government Debt & Other Securities Government Debt & Other Securities Government Debt & Other Securities Canadian Government Debt Canadian Government Debt Canadian Government Debt Canadian Government Debt Corporate Debt & Equity Corporate Debt & Equity Corporate Debt & Equity Corporate Debt & Equity Other Governments Other Governments Other Governments Other Governments U.S. Government And Agencies U.S. Government And Agencies U.S. Government And Agencies U.S. Government And Agencies Total Total Total Total Gov't Gov't Gov't Gov't Debt & Other Securities Debt & Other Securities Debt & Other Securities Debt & Other Securities

Q1 2000 Q1 2000 Q4 1999 Q4 1999 Q1 1999 Q1 1999

44 93 1 115 251 44 93 1 115 251 21 94 10 267 330 21 94 10 267 330 13 136 19 357 461 13 136 19 357 461 ( ) ( ) ( ) ( ) ( ) ( ) ( ) ( ) ( ) ( ) ( ) ( )

Note: Conforms with the required GAAP disclosure. Does not reflect the value of assets other Note: Conforms with the required GAAP disclosure. Does not reflect the value of assets other Note: Conforms with the required GAAP disclosure. Does not reflect the value of assets other Note: Conforms with the required GAAP disclosure. Does not reflect the value of assets other than investment securities nor the value of all liabilities including deposits than investment securities nor the value of all liabilities including deposits than investment securities nor the value of all liabilities including deposits than investment securities nor the value of all liabilities including deposits Note: Conforms with the required GAAP disclosure. Does not reflect the value of assets other Note: Conforms with the required GAAP disclosure. Does not reflect the value of assets other Note: Conforms with the required GAAP disclosure. Does not reflect the value of assets other Note: Conforms with the required GAAP disclosure. Does not reflect the value of assets other than investment securities nor the value of all liabilities including deposits than investment securities nor the value of all liabilities including deposits than investment securities nor the value of all liabilities including deposits than investment securities nor the value of all liabilities including deposits

Unrealized Gains / (Losses) On Investment Securities

U.S. Government Securities In Harris
Deposit Value Not Included

Unrealized Gains / (Losses) On Investment Securities

U.S. Government Securities In Harris
Deposit Value Not Included

( ) ( )

SLIDE 25

12 12