TORONTO, ONTARIO--(Marketwired- May 29, 2014) - BMO Financial Group (TSX: BMO)(NYSE: BMO) and Bank of Montreal -Financial Results Highlights:

Second Quarter 2014 Compared with Second Quarter 2013:

-- Net income of $1,076 million, up 12%; adjusted net income(1) of $1,097

million, up 11%

-- EPS(2) of $1.60, up 14%; adjusted EPS(1, 2) of $1.63, up 13%

-- ROE of 14.3%, compared with 14.2%; adjusted ROE(1) of 14.6%, unchanged

-- Provisions for credit losses of $162 million, compared with $144

million; adjusted provisions for credit losses(1) of $162 million,

compared with $109 million

-- Basel III Common Equity Ratio of 9.7%

-- Dividend increased by $0.02 or 3% to $0.78 per common share

Year-to-Date 2014 Compared with Year-to-Date 2013:

-- Net income of $2,137 million, up 7%; adjusted net income(1) of $2,180

million, up 8%

-- EPS(2) of $3.18, up 9%; adjusted EPS (1,2) of $3.24, up 10%

-- ROE of 14.3%, compared with 14.6%; adjusted ROE(1) of 14.6%, compared

with 14.7%

-- Provisions for credit losses of $261 million, compared with $322

million; adjusted provisions for credit losses(1) of $261 million,

compared with $205 million

For the second quarter ended April 30, 2014, BMO Financial Group reported net income of $1,076 million or $1.60 per share on a reported basis and net income of $1,097 million or $1.63 per share on an adjusted basis.

"Our customer-focused strategy continued to deliver strong performance and momentum across our operating groups," said Bill Downe, Chief Executive Officer, BMO Financial Group. "Our largest business, Canadian Personal and Commercial banking, had net income growth of 14% year over year and operating leverage above 2% for the third consecutive quarter. Commercial loan growth remained robust in Canada and the United States as we continue to see benefits from our large North American platform.

"Wealth Management and BMO Capital Markets also had strong results in the second quarter, both posting double-digit revenue and earnings growth.

"Shortly after quarter-end, we closed the acquisition of F&C Asset Management. The acquisition advances BMO Global Asset Management's strategy and growth trajectory, effectively doubling client assets. Today, our asset management business has 24 offices that are strategically located across the globe serving an increasingly global client base.

"For the quarter and year to date, continuing business momentum is reflected in positive operating leverage and good balance sheet growth. Adjusted earnings per share in the quarter were up 13% over last year," concluded Mr. Downe.

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

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

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

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

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

and their closest GAAP counterparts are disclosed.

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

EPS unless specified otherwise. EPS is calculated using net income

after deductions for net income attributable to non-controlling

interest in subsidiaries and preferred share dividends.

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

unrounded numbers.

Concurrent with the release of results, BMO announced a third quarter 2014 dividend of $0.78 per common share, up $0.02 per share from the preceding quarter and up $0.04 per share from a year ago, equivalent to an annual dividend of $3.12 per common share.

Our complete Second Quarter 2014 Report to Shareholders, including our unaudited interim consolidated financial statements for the period ended April 30, 2014, is available online at www.bmo.com/investorrelations and at www.sedar.com.

Total Bank Overview

Net income was $1,076 million for the second quarter of 2014, up $114 million or 12% from a year ago.

Adjusted net income was $1,097 million, up $113 million or 11% from a year ago. Momentum continued with strong results in Canadian P&C, Wealth Management and BMO Capital Markets, and U.S. P&C results that reflected stable revenue compared to last quarter.

Operating Segment Overview

Canadian P&C

Net income was $480 million, up $59 million or 14% from a year ago. Adjusted net income was $482 million, up $60 million or 14% from the prior year driven by higher revenue and lower credit losses. Revenue was up $87 million or 6% year over year driven by strong balance and fee volumes, partially offset by the impact of lower net interest margin. There was year-over-year loan growth of 9% and deposit growth of 10%. Expenses increased $20 million or 3%.

In personal banking, year-over-year personal loan and deposit growth remains strong at 9% and 10%, respectively. During the quarter we upgraded our BMO mobile banking application, which provides customers with enhanced capabilities including the ability to send Interac® e-Transfers and book branch appointments anywhere, anytime. The updated application has been well received by our customers, and mobile transactions have nearly doubled since its release.

In commercial banking, we continue to streamline our processes, enabling our salesforce to spend more time acquiring new customers and strengthening existing relationships. Volume growth continues to be strong with year-over-year loan and deposit growth of 10% and 9%, respectively. We remain second in Canadian business banking loan market share for small and medium-sized loans.

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

Net income of $140 million and adjusted net income of $151 million both decreased $8 million or 6% from the second quarter a year ago. The benefits from strong commercial loan growth and lower provisions for credit losses were more than offset by the effects of lower net interest margin and reduced gains on sales of newly originated mortgages.

There were year-over-year and quarterly sequential increases in average current loans and acceptances, led by continued strong double-digit growth in the core commercial and industrial (C&I) loan portfolio. The core C&I portfolio increased by $4.2 billion or 19% from a year ago to $26.3 billion.

To demonstrate our commitment to providing financial literacy outreach to the communities in which we serve, we sponsored multiple financial education and homeownership workshops throughout our markets as part of the Federal Reserve Bank's Money Smart Week. In addition, we recently partnered with the Chicago Office of the City Treasurer and the Canadian Foundation for Economic Education to launch Talk With Our Kids About Money Day, which encourages families, students and teachers to have conversations about money and personal finance.

Wealth Management

Net income of $194 million increased $54 million or 38% from a year ago. Adjusted net income of $200 million increased $53 million or 36%. Adjusted net income in traditional wealth was $139 million, up $27 million or 23% resulting from strong growth in client assets. Adjusted net income in insurance was $61 million, up $26 million from a year ago.

Assets under management and administration grew by $91 billion or 17% from a year ago to $612 billion, driven by market appreciation, the stronger U.S. dollar and growth in new client assets.


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