Annual Meeting - BMO The total provision for credit losses was $160 million, a decrease of $91 million from the prior year. Changes in the provision for credit losses on performing loans under this methodology will not be considered an adjusting item. Net non-interest revenue of $2,863 million increased $316 million or 12%. For further information see the Other Regulatory Developments section on page 27 of our Second Quarter 2018 Report to Shareholders. Total personal lending balances (excluding retail cards) were relatively unchanged, reflecting certain participation choices, including reduced participation in non-proprietary mortgage channels, offset by 3% growth in proprietary mortgages and amortizing home equity line of credit (HELOC) loans. The CET1 Ratio decreased from 11.4% at the end of the third quarter, as retained earnings growth, net of share repurchases, was more than offset by higher risk-weighted assets, including an acquisition. BMO Capital MarketsReported and adjusted net income of $286 million both decreased 8% from a year ago. Personal deposit balances increased 3%, including growth of 5% in chequing account balances, while commercial deposit balances increased 9%. Adjusted net income excludes the amortization of acquisition-related intangible assets. In prior periods, changes to the collective allowance were an adjusting item. Before and after-tax amounts for each operating group are provided on pages 15, 16, 18, 20 and 22 of our Second Quarter 2018 Report to Shareholders. Personal and Commercial Banking (U.S. P&C), Net interest margin on average earning assets (%) (teb). Certain fees have been reclassified from deposit and payment service charges to card fees within non-interest revenue in Canadian P&C. Capital Adjusted results in this Income Taxes section are non-GAAP amounts or non-GAAP measures. Net interest income of $2,669 million increased $62 million or 2%, compared with the prior quarter. The 2018 ESG Report provides BMO's environmental, social and governance (ESG) disclosure, focused on issues identified by our stakeholders as most affecting our sustainability. BMO Wealth ManagementReported net income of $219 million increased $44 million or 25% and adjusted net income of $229 million increased $40 million or 21% from the prior year. The CET1 Ratio increased from 11.1% in the first quarter driven by the elimination of the Basel I floor and higher retained earnings, partially offset by higher risk-weighted assets primarily from business growth and share repurchases during the quarter. "Looking ahead to 2019, we will continue to build on this strong foundation and our differentiating strengths, including an integrated North American platform and deep relationships in our wealth, capital markets and P&C businesses, to deliver sustainable and competitive long-term performance," concluded Mr. White. The NCIB is a regular part of BMO's capital management strategy. Provision for Credit Losses by Operating Group (1), Provision for (recovery of) credit losses on impaired loans, Provision for (recovery of) credit losses on performing loans, Total provision for (recovery of) credit losses, Total specific and collective provision for (recovery of) credit losses, Total specific and collective provision for (recovery of) credit losses (2). Amortization of acquisition-related intangible assets (2), Net interest margin on average earning assets (teb) (%). Under IFRS 9, we refer to the provision for credit losses on impaired loans and the provision for credit losses on performing loans. Results for prior periods are restated to conformwith the current presentation. 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. Assumptions about the performance of the Canadian and U.S. economies, as well as overall market conditions and their combined effect on our business, are material factors we consider when determining our strategic priorities, objectives and expectations for our business. Q4 2018 vs Q4 2017Reported net income of $298 million decreased $18 million or 6%, and adjusted net income of $309 million decreased $7 million or 2% from a year ago, as higher Investment and Corporate Banking revenue and lower taxes were more than offset by higher expenses and lower Trading Products revenue. Total net recovery of credit losses was $7 million, compared with total net provisions of $4 million in the prior year. Year-over-year loans and deposits grew by 16% and 2%, respectively, as we continue to diversify our product mix. Factors contributing to the change in GIL are outlined in the following table. Canadian P&C Commercial loan balances (excluding corporate cards) increased 12%. Return on equity (ROE) was 12.6%, unchanged from the prior year and adjusted ROE was 14.9% up from 13.1%. Prior periods have not been restated. Traditional wealth reported net income was $192 million compared with $202 million in the prior quarter and adjusted net income was $202 million, compared with $212 million in the prior quarter, primarily due to lower fee based revenue partially offset by the benefit of a favourable U.S. tax item. Corporate Services consists of Corporate Units and Technology and Operations (T&O). In determining our expectations for economic growth, both broadly and in the financial services sector, we primarily consider historical economic data provided by governments, historical relationships between economic and financial variables, and the risks to the domestic and global economy. Insurance revenue, net of CCPB, of $79 million increased $36 million from the prior year due to the drivers noted above. BMO analyzes revenue at the consolidated level based on GAAP revenue reflected in the audited annual consolidated financial statements rather than on a taxable equivalent basis (teb), which is consistent with our Canadian peer group. BMO Capital MarketsReported net income of $298 million decreased $18 million or 6%, and adjusted net income of $309 million decreased $7 million or 2% from a year ago, as higher Investment and Corporate Banking revenue and lower taxes were more than offset by higher expenses and lower Trading Products revenue. Also, cash collateral balances were reclassified from loans and deposits to other assets and other liabilities in BMO Capital Markets. Total provision for credit losses of $103 million decreased $27 million from the prior year. A restructuring charge in Q4-17 was also taken as we continued to accelerate the use of technology to enhance customer experience and focused on driving operational efficiencies. The provision for credit losses in periods prior to the first quarter of 2018 is comprised of both specific and collective provisions. Before tax amounts of $1 million in Q4-2018, $nil in Q3-2018 and Q4-2017, $2 million for fiscal 2018 and $3 million for fiscal 2017 are included in non-interest expense. Results for prior periods and related ratios have been reclassified to conformwith the current presentation. Reported results decreased due to the restructuring charge in the current quarter and the drivers noted above. The total provision for credit losses was $160 million, a decrease of $91 million from the prior year. We grew our U.S. segment at an accelerated pace, increased momentum in our Commercial banking business, adding relationships, loans and deposits, and delivered real value to our personal customers with new and enhanced digital capabilities. Recent Quarterly Earnings Reports News Releases. "I am confident that with our team of dedicated employees, and through ongoing investment in our technology and innovation agenda, we will continue to enhance loyalty, increase efficiency and deliver sustainable shareholder value," concluded Mr. White. Boards. BMO's overall net interest margin decreased 8 basis points, and 7 basis points on an excluding trading basis, primarily driven by lower spreads in BMO Capital Markets, mainly due to higher volumes of lower spread assets. Unless otherwise indicated, all amounts are in Canadian dollars, and they have been derived from our audited annual consolidated financial statements prepared in accordance with International Financial Reporting Standards (IFRS). The current quarter includes above-trend securities gains. There was a $2 million net recovery of credit losses on performing loans in the current quarter. We generally focus on analyzing revenue net of CCPB given the extent to which insurance revenue can vary and that this variability is largely offset in CCPB. The net recovery of credit losses on impaired loans was $3 million, compared with a provision of $3 million in the prior quarter. Results for prior periods and related ratios have been reclassified to conformwith the current period's presentation. Results reflect good revenue growth, partially offset by higher expenses. OSFI capital Refer to the Changes in Accounting Policies section on page 121 of BMO's 2018 Annual MD&A for further details. We caution that the foregoing list is not exhaustive of all possible factors. Investment and Corporate Banking revenue increased, mainly due to higher corporate banking-related revenue, while underwriting and advisory revenue decreased slightly from a strong quarter a year ago. Changes in Gross Impaired Loans (GIL) and Acceptances (1), Transferred to not impaired during the period, Recoveries of loans and advances previously written-off. The call may be accessed by telephone at 416-641-2144 (from within Toronto) or 1-888-789-9572 (toll-free outside Toronto) Passcode: 5126346. Reported results increased due to the remeasurement benefit in the current quarter partially offset by the drivers noted above. Before tax amounts of $13 million in Q4-2018 and Q3-2018, $18 million in Q4-2017, $52 million for fiscal 2018 and $80 million for fiscal 2017 are included in non-interest expense. Other Capital Developments There was a $4 million net recovery of credit losses on performing loans in the current quarter. 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, as well as our strategic priorities and objectives, and may not be appropriate for other purposes. We generally focus on analyzing revenue net of CCPB given the extent to which insurance revenue can vary and that this variability is largely offset in CCPB. Q4 2018 vs Q4 2017 Periodically, certain business lines and units within the business lines are transferred between client and corporate support groups to more closely align BMO's organizational structure with its strategic priorities. Quarterly Conference Call and Webcast PresentationsInterested parties are also invited to listen to our quarterly conference call on Wednesday, May 30, 2018, at 2:00 p.m. (EDT). Adjusted non-interest expense of $3,452 million increased $194 million or 6%, or 5% excluding the impact of the stronger U.S. dollar, largely reflecting higher employee-related expenses, including an acquisition, higher technology costs and a gain on sale of an office building in the prior year. 77% of retail CFD accounts lose money. As outlined below, net income in the current quarter was impacted by elevated reinsurance claims and a legal provision. Effective the first quarter of 2018, the bank prospectively adopted IFRS 9, Financial Instruments (IFRS 9). Reports - BMO Harris Non-interest expense increased $5 million or 1%, reflecting continued investment in the business. All Earnings per Share (EPS) measures in this document refer to diluted EPS, unless specified otherwise. For institutions using advanced approaches for credit risk or operational risk, there is a capital floor as prescribed in OSFI's CAR Guideline. The following additional reclassifications were made effective the first quarter of 2018. Acquisition costs are recorded in non-interest expense. Net of income tax (provision) recovery of $7 million, $(12) million, $12 million for the three months ended, and $6 million, $53 million for the twelve months ended, respectively. Adjusted net income excludes the amortization of acquisition-related intangible assets. 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; the Canadian housing market, weak, volatile or illiquid capital and/or credit markets; interest rate and currency value fluctuations; changes in monetary, fiscal, or economic policy and tax legislation and interpretation; the level of competition in the geographic and business areas in which we operate; changes in laws or in supervisory expectations or requirements, including capital, interest rate and liquidity requirements and guidance, and the effect of such changes on funding costs; judicial or regulatory proceedings; the accuracy and completeness of the information we obtain with respect to our customers and counterparties; failure of third parties to comply with their obligations to us; our ability to execute our strategic plans and to complete and integrate acquisitions, including obtaining regulatory approvals; critical accounting estimates and the effect of changes to accounting standards, rules and interpretations on these estimates; operational and infrastructure risks, including with respect to reliance on third parties; changes to our credit ratings; political conditions, including changes relating to or affecting economic or trade matters; global capital markets activities; the possible effects on our business of war or terrorist activities; outbreaks of disease or illness that affect local, national or international economies; natural disasters and disruptions to public infrastructure, such as transportation, communications, power or water supply; technological changes; information and cyber security, including the threat of hacking, identity theft and corporate espionage, as well as the possibility of denial of service resulting from efforts targeted at causing system failure and service disruption; and our ability to anticipate and effectively manage risks arising from all of the foregoing factors. Results reflect strong growth in U.S. P&C, good performance in Canadian P&C and a lower Corporate Services loss, partially offset by lower income in BMO Capital Markets. Reported net income of $219 million and adjusted net income of $229 million both decreased $72 million. The implementation of the Credit Valuation Adjustment (CVA) was phased in commencing the first quarter of 2014. The provision for credit losses on impaired loans under IFRS 9, is consistent with the specific provision under IAS 39 in prior years. Q4 2018 vs Q4 2017 BMO Financial Group Reports Second Quarter 2018 Results Financial Results Highlights Second Quarter 2018 Compared with Second Quarter 2017: Net income of $1,246 million, unchanged reflecting the restructuring charge in the current quarter; adjusted net income1 of $1,463 million, up 13% EPS2 of $1.86, up 1%; adjusted EPS1,2 of $2.20, up 15% Adjusted net income excludes acquisition integration costs and the amortization of acquisition-related intangible assets. The investments which support policy benefit liabilities comprise predominantly fixed income and some equity assets. References to GAAP mean IFRS. Acquisition integration costs related to the acquired BMO Transportation Finance business are included in non-interest expense. Revenue in traditional wealth was $1,100 million, an increase of $32 million or 3%, due to business growth from higher deposit and loan revenue, net new client assets and higher equity markets on average, partially offset by a legal provision in the current year and the impact of a divestiture of a non-core business in the prior year. The provision for credit losses on impaired loans of $172 million decreased $79 million reflecting net recoveries in BMO Capital Markets compared with net provisions in the prior year and lower provisions in U.S. P&C, partially offset by higher provisions in Canadian P&C. Fourth Quarter 2018 Financial Results Highlights Fourth Quarter 2018 Compared with Fourth Quarter 2017: Net income of $1,695 million, up 38%, including a. The material that precedes this section comprises part of this Financial Review. Q4 2018 vs Q3 2018 Wealth Management results increased, largely reflecting less elevated reinsurance claims in the current year. Q4 2018 vs Q3 2018Reported net income increased $8 million or 2% and adjusted net income increased $7 million or 2% from the prior quarter. Adjusted results in this Non-Interest Expense section are non-GAAP amounts or non-GAAP measures. Our continuous disclosure materials, including our interim filings, annual Management's Discussion and Analysis and audited annual consolidated financial statements, Annual Information Form and 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. Shareholder Dividend Reinvestment and Share Purchase, Average market price as defined under the Plan, For dividend information, change in shareholder address, or to advise of duplicate mailings, please contact, Telephone: 1-800-340-5021 (Canada and the United States), Telephone: (514) 982-7800 (international), Fax: 1-888-453-0330 (Canada and the United States), For other shareholder information, including the notice for our normal course issuer bid, please contact, For further information on this document, please contact, P.O. Except as otherwise noted, management's discussion of changes in reported results in this document applies equally to changes in corresponding adjusted results. Note: All ratios and percentage changes in this document are based on unrounded numbers. Adjusted results and measures are non-GAAP and as such do not have standardized meaning under GAAP. Note: All ratios and percentage changes in this document are based on unrounded numbers. The current quarter included a benefit of $203 million after-tax ($277 million pre-tax) from the remeasurement of an employee benefit liability as a result of an amendment to our other employee future benefits plan for certain employees that was announced in the fourth quarter of 2018. On a taxable equivalent basis (teb), the reported effective tax rate for the quarter was 23.0%, compared with 27.1% in the prior year and 24.7% in the third quarter of 2018. Reported net income in the first quarter of 2018 included a $425 million (US$339 million) charge related to the revaluation of our U.S. net deferred tax asset as a result of the enactment of the U.S. Tax Cuts and Jobs Act. Bank of Montreal uses a unified branding approach that links all of the organization's member companies. As such, in this document, the names BMO and BMO Financial Group mean Bank of Montreal, together with its subsidiaries. Investors and others should carefully consider these factors and risks, as well as other uncertainties and potential events, and the inherent uncertainty of forward-looking statements. Please see the non-GAAP Measures section. Canadian P&CReported net income of $590 million increased $60 million or 11% and adjusted net income of $591 million increased $61 million or 11% from the prior year. Interested parties are also invited to listen to our quarterly conference call on Tuesday, December 4, 2018, at 8:00 a.m. (ET). During the quarter, BMO Harris Bank was named to the 18th annual list of America's Top Corporations for Women's Business Enterprises by the Women's Business Enterprise National Council. Revenue of $1,129 million increased $14 million or 1%. Adjusted results and measures are non-GAAP and are detailed for all reported periods in the Non-GAAP Measures section, where such non-GAAP measures and their closest GAAP counterparts are disclosed. Caution Regarding Forward-Looking Statements. See the Economic Review and Outlook section of our Second Quarter 2018 Report to Shareholders. Results for prior periods and related ratios have been reclassified to conformwith the current presentation. Assets under management increased $8.8 billion or 2% from the prior year to $438.3 billion, primarily driven by growth in client assets. These fair value changes are largely offset by changes in the fair value of policy benefit liabilities, the impact of which is reflected in CCPB, as discussed on page 10. These expenses were charged to the non-interest expense of the operating groups. OSFI requires all D-SIBs to maintain a Domestic Stability Buffer (DSB) against Pillar 2 risks associated with systemic vulnerabilities. They are unlikely to be comparable to similar measures presented by other companies. The impact of foreign exchange movements on capital ratios was largely offset. Capital ManagementFourth Quarter 2018 Regulatory Capital Review. BMO Capital MarketsReported and adjusted net income of $286 million both decreased 8% from a year ago. Breaches of the DSB will not result in a bank being subject to automatic constraints on capital distributions. Revenue, net of CCPB, decreased $90 million or 7%. Fourth Quarter Operating Segment Overview. These expenses were charged to the non-interest expense of the operating groups. Reported net income of US$285 million increased US$71 million or 33% and adjusted net income of US$294 million increased US$71 million or 31% from the prior year, due to good revenue growth and lower taxes from the benefit of U.S. tax reform and a favourable U.S. tax item, partially offset by higher expenses and higher provisions for credit losses. Because of inherent limitations, disclosure controls and procedures and internal control over financial reporting can provide only reasonable assurance and may not prevent or detect misstatements. The provision for credit losses on impaired loans decreased $6 million to $46 million due to lower commercial provisions, partially offset by higher consumer provisions. BMO Wealth Management Before-tax and after-tax amounts for each operating group are provided on pages 14, 15, 16, 18 and 20. Non-interest expense and adjusted non-interest expense both increased $1 million. OSFI's capital requirements are summarized in the following table. Return on tangible common equity (ROTCE) was 19.5%, compared with 14.8% in the prior year and adjusted ROTCE was 17.3%, compared with 15.5%. The applicable scalars to the fully implemented CVA charge for CET1, Tier 1 Capital and Total Capital are 72%, 77% and 81%, respectively in 2017; and 80%, 83% and 86%, respectively, in 2018. Prior periods have not been restated. Gross insurance revenue decreased $144 million from the prior year due to increases in long-term interest rates decreasing the fair value of investments in the current year, compared with decreases in long-term interest rates increasing the fair value of investments in the prior year and weaker equity markets in the current year, partially offset by higher annuity sales. The net recovery of credit losses on impaired loans was $3 million, compared with a $4 million provision in the prior year. Management assesses performance on a reported basis and on an adjusted basis and considers both to be useful in assessing underlying ongoing business performance. Traditional wealth reported net income of $227 million increased $46 million or 26% from a year ago and adjusted net income of $238 million increased $36 million or 18% due to growth from our diversified businesses and improved equity markets relative to last year. Reported and adjusted non-interest expense both increased $5 million or 1%. Traditional wealth reported net income of $192 million was unchanged and adjusted net income of $202 million decreased $4 million or 2% from the prior year, as business growth and lower taxes were more than offset by a legal provision and higher expenses. Acquisition integration costs related to the acquired BMO Transportation Finance business are included in non-interest expense. Provision for (recovery of) credit losses on impaired loans (1). Please see the Non-GAAP Measures section. Refer to the Changes in Accounting Policies section on page 26 of our Second Quarter 2018 Report to Shareholders for further details. A live webcast of the call can be accessed on our website at www.bmo.com/investorrelations. Under the NCIB, we may purchase up to 20 million common shares for cancellation. Segment Reported and Adjusted Results, Canadian/U.S. BMO Financial Group Reports Second Quarter 2018 Results - PR Newswire T&O manages, maintains and provides governance of information technology, cyber security and operations services. A restructuring charge in Q4-17 was also taken as we continued to accelerate the use of technology to enhance customer experience and focused on driving operational efficiencies. dollar exchange rate movements on our U.S. segment are non-GAAP measures (please see the Foreign Exchange section on page 7 for a discussion of the effects of changes in exchange rates on our results). Amortization of acquisition-related intangible assets (3), Decrease in the collective allowance for credit losses (5), Benefit from the remeasurement of an employee benefit liability (6), Adjusting items included in reported pre-tax income, U.S. net deferred tax asset revaluation (7), Adjusting items included in reported net income after tax. 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Results and measures that exclude the impact of Canadian/U.S. BMO's overall net interest margin of 1.49% was unchanged. Q4 2018 vs Q4 2017 In 2017 and prior years, the collective provision and allowance was held in Corporate Services. Revenue of $1,569 million decreased $115 million or 7% from the prior year. All amounts in the remainder of this section are on a U.S. dollar basis. The report can be downloaded athttps://corporate-responsibility.bmo.com/reports/. Insurance revenue, net of CCPB, of $79 million increased $36 million from the prior year due to the drivers noted above. If you have a specific question about your BMO account, please send us a message by signing into BMO Online . The October 31, 2018 Leverage Ratio was down from 4.4% at October 31, 2017, mainly due to higher leverage exposures driven by business growth. Results and measures in this document are presented on a GAAP basis. A replay of the conference call can be accessed until Monday, February 25, 2019, by calling 905-694-9451 (from within Toronto) or 1-800-408-3053 (toll-free outside Toronto) and entering Passcode:5740558. Average gross loans and acceptances increased $2.1 billion or 3% due to growth in commercial and personal loan volumes. Forward-looking statements may involve, but are not limited to, comments with respect to our objectives and priorities for fiscal 2018 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, U.S. and international economies. On May 1, 2018, we entered into an agreement to acquire KGS-Alpha Capital Markets, a U.S. fixed income broker-dealer specializing in U.S. mortgage and asset-backed securities in the institutional investor market. The DSB can range from 0% to 2.5% of total RWA and is currently set at 1.5%. The Personal and Commercial Banking (P&C) operating group represents the sum of our two retail and commercial operating segments, Canadian Personal and Commercial Banking (Canadian P&C) and U.S. Adjusted results increased mainly due to higher revenue excluding the teb adjustment and lower expenses. Excluding trading revenue, net non-interest revenue decreased $55 million or 2%, primarily due to lower net insurance revenue and underwriting and advisory fees. In Q2-18, we recorded a restructuring charge, primarily related to severance costs, as a result of an ongoing bank-wide initiative to simplify how we work, drive increased efficiency and invest in technology to move our business forward. Reported net income in the current year also includes a $425 million charge related to the revaluation of our U.S. net deferred tax asset5 which was also excluded from adjusted earnings. How BMO Reports Operating Group Results Please see the non-GAAP Measures section. Annual Meeting - BMO The total provision for credit losses was $160 million, a decrease of $91 million from the prior year. Changes in the provision for credit losses on performing loans under this methodology will not be considered an adjusting item. Net non-interest revenue of $2,863 million increased $316 million or 12%. For further information see the Other Regulatory Developments section on page 27 of our Second Quarter 2018 Report to Shareholders. Total personal lending balances (excluding retail cards) were relatively unchanged, reflecting certain participation choices, including reduced participation in non-proprietary mortgage channels, offset by 3% growth in proprietary mortgages and amortizing home equity line of credit (HELOC) loans. The CET1 Ratio decreased from 11.4% at the end of the third quarter, as retained earnings growth, net of share repurchases, was more than offset by higher risk-weighted assets, including an acquisition. BMO Capital MarketsReported and adjusted net income of $286 million both decreased 8% from a year ago. Personal deposit balances increased 3%, including growth of 5% in chequing account balances, while commercial deposit balances increased 9%. Adjusted net income excludes the amortization of acquisition-related intangible assets. In prior periods, changes to the collective allowance were an adjusting item. Before and after-tax amounts for each operating group are provided on pages 15, 16, 18, 20 and 22 of our Second Quarter 2018 Report to Shareholders. Personal and Commercial Banking (U.S. P&C), Net interest margin on average earning assets (%) (teb). Certain fees have been reclassified from deposit and payment service charges to card fees within non-interest revenue in Canadian P&C. Capital Adjusted results in this Income Taxes section are non-GAAP amounts or non-GAAP measures. Net interest income of $2,669 million increased $62 million or 2%, compared with the prior quarter. The 2018 ESG Report provides BMO's environmental, social and governance (ESG) disclosure, focused on issues identified by our stakeholders as most affecting our sustainability. BMO Wealth ManagementReported net income of $219 million increased $44 million or 25% and adjusted net income of $229 million increased $40 million or 21% from the prior year. The CET1 Ratio increased from 11.1% in the first quarter driven by the elimination of the Basel I floor and higher retained earnings, partially offset by higher risk-weighted assets primarily from business growth and share repurchases during the quarter. "Looking ahead to 2019, we will continue to build on this strong foundation and our differentiating strengths, including an integrated North American platform and deep relationships in our wealth, capital markets and P&C businesses, to deliver sustainable and competitive long-term performance," concluded Mr. White. The NCIB is a regular part of BMO's capital management strategy. Provision for Credit Losses by Operating Group (1), Provision for (recovery of) credit losses on impaired loans, Provision for (recovery of) credit losses on performing loans, Total provision for (recovery of) credit losses, Total specific and collective provision for (recovery of) credit losses, Total specific and collective provision for (recovery of) credit losses (2). Amortization of acquisition-related intangible assets (2), Net interest margin on average earning assets (teb) (%). Under IFRS 9, we refer to the provision for credit losses on impaired loans and the provision for credit losses on performing loans. Results for prior periods are restated to conformwith the current presentation. 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. Assumptions about the performance of the Canadian and U.S. economies, as well as overall market conditions and their combined effect on our business, are material factors we consider when determining our strategic priorities, objectives and expectations for our business. Q4 2018 vs Q4 2017Reported net income of $298 million decreased $18 million or 6%, and adjusted net income of $309 million decreased $7 million or 2% from a year ago, as higher Investment and Corporate Banking revenue and lower taxes were more than offset by higher expenses and lower Trading Products revenue. Total net recovery of credit losses was $7 million, compared with total net provisions of $4 million in the prior year. Year-over-year loans and deposits grew by 16% and 2%, respectively, as we continue to diversify our product mix. Factors contributing to the change in GIL are outlined in the following table. Canadian P&C Commercial loan balances (excluding corporate cards) increased 12%. Return on equity (ROE) was 12.6%, unchanged from the prior year and adjusted ROE was 14.9% up from 13.1%. Prior periods have not been restated. Traditional wealth reported net income was $192 million compared with $202 million in the prior quarter and adjusted net income was $202 million, compared with $212 million in the prior quarter, primarily due to lower fee based revenue partially offset by the benefit of a favourable U.S. tax item. Corporate Services consists of Corporate Units and Technology and Operations (T&O). In determining our expectations for economic growth, both broadly and in the financial services sector, we primarily consider historical economic data provided by governments, historical relationships between economic and financial variables, and the risks to the domestic and global economy. Insurance revenue, net of CCPB, of $79 million increased $36 million from the prior year due to the drivers noted above. BMO analyzes revenue at the consolidated level based on GAAP revenue reflected in the audited annual consolidated financial statements rather than on a taxable equivalent basis (teb), which is consistent with our Canadian peer group. BMO Capital MarketsReported net income of $298 million decreased $18 million or 6%, and adjusted net income of $309 million decreased $7 million or 2% from a year ago, as higher Investment and Corporate Banking revenue and lower taxes were more than offset by higher expenses and lower Trading Products revenue. Also, cash collateral balances were reclassified from loans and deposits to other assets and other liabilities in BMO Capital Markets. Total provision for credit losses of $103 million decreased $27 million from the prior year. A restructuring charge in Q4-17 was also taken as we continued to accelerate the use of technology to enhance customer experience and focused on driving operational efficiencies. The provision for credit losses in periods prior to the first quarter of 2018 is comprised of both specific and collective provisions. Before tax amounts of $1 million in Q4-2018, $nil in Q3-2018 and Q4-2017, $2 million for fiscal 2018 and $3 million for fiscal 2017 are included in non-interest expense. Results for prior periods and related ratios have been reclassified to conformwith the current presentation. Reported results decreased due to the restructuring charge in the current quarter and the drivers noted above. The total provision for credit losses was $160 million, a decrease of $91 million from the prior year. We grew our U.S. segment at an accelerated pace, increased momentum in our Commercial banking business, adding relationships, loans and deposits, and delivered real value to our personal customers with new and enhanced digital capabilities. Recent Quarterly Earnings Reports News Releases. "I am confident that with our team of dedicated employees, and through ongoing investment in our technology and innovation agenda, we will continue to enhance loyalty, increase efficiency and deliver sustainable shareholder value," concluded Mr. White. Boards. BMO's overall net interest margin decreased 8 basis points, and 7 basis points on an excluding trading basis, primarily driven by lower spreads in BMO Capital Markets, mainly due to higher volumes of lower spread assets. Unless otherwise indicated, all amounts are in Canadian dollars, and they have been derived from our audited annual consolidated financial statements prepared in accordance with International Financial Reporting Standards (IFRS). The current quarter includes above-trend securities gains. There was a $2 million net recovery of credit losses on performing loans in the current quarter. We generally focus on analyzing revenue net of CCPB given the extent to which insurance revenue can vary and that this variability is largely offset in CCPB. The net recovery of credit losses on impaired loans was $3 million, compared with a provision of $3 million in the prior quarter. Results for prior periods and related ratios have been reclassified to conformwith the current period's presentation. Results reflect good revenue growth, partially offset by higher expenses. OSFI capital Refer to the Changes in Accounting Policies section on page 121 of BMO's 2018 Annual MD&A for further details. We caution that the foregoing list is not exhaustive of all possible factors. Investment and Corporate Banking revenue increased, mainly due to higher corporate banking-related revenue, while underwriting and advisory revenue decreased slightly from a strong quarter a year ago. Changes in Gross Impaired Loans (GIL) and Acceptances (1), Transferred to not impaired during the period, Recoveries of loans and advances previously written-off. The call may be accessed by telephone at 416-641-2144 (from within Toronto) or 1-888-789-9572 (toll-free outside Toronto) Passcode: 5126346. Reported results increased due to the remeasurement benefit in the current quarter partially offset by the drivers noted above. Before tax amounts of $13 million in Q4-2018 and Q3-2018, $18 million in Q4-2017, $52 million for fiscal 2018 and $80 million for fiscal 2017 are included in non-interest expense. Other Capital Developments There was a $4 million net recovery of credit losses on performing loans in the current quarter. 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, as well as our strategic priorities and objectives, and may not be appropriate for other purposes. We generally focus on analyzing revenue net of CCPB given the extent to which insurance revenue can vary and that this variability is largely offset in CCPB. Q4 2018 vs Q4 2017 Periodically, certain business lines and units within the business lines are transferred between client and corporate support groups to more closely align BMO's organizational structure with its strategic priorities. Quarterly Conference Call and Webcast PresentationsInterested parties are also invited to listen to our quarterly conference call on Wednesday, May 30, 2018, at 2:00 p.m. (EDT). Adjusted non-interest expense of $3,452 million increased $194 million or 6%, or 5% excluding the impact of the stronger U.S. dollar, largely reflecting higher employee-related expenses, including an acquisition, higher technology costs and a gain on sale of an office building in the prior year. 77% of retail CFD accounts lose money. As outlined below, net income in the current quarter was impacted by elevated reinsurance claims and a legal provision. Effective the first quarter of 2018, the bank prospectively adopted IFRS 9, Financial Instruments (IFRS 9). Reports - BMO Harris Non-interest expense increased $5 million or 1%, reflecting continued investment in the business. All Earnings per Share (EPS) measures in this document refer to diluted EPS, unless specified otherwise. For institutions using advanced approaches for credit risk or operational risk, there is a capital floor as prescribed in OSFI's CAR Guideline. The following additional reclassifications were made effective the first quarter of 2018. Acquisition costs are recorded in non-interest expense. Net of income tax (provision) recovery of $7 million, $(12) million, $12 million for the three months ended, and $6 million, $53 million for the twelve months ended, respectively. Adjusted net income excludes the amortization of acquisition-related intangible assets. 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; the Canadian housing market, weak, volatile or illiquid capital and/or credit markets; interest rate and currency value fluctuations; changes in monetary, fiscal, or economic policy and tax legislation and interpretation; the level of competition in the geographic and business areas in which we operate; changes in laws or in supervisory expectations or requirements, including capital, interest rate and liquidity requirements and guidance, and the effect of such changes on funding costs; judicial or regulatory proceedings; the accuracy and completeness of the information we obtain with respect to our customers and counterparties; failure of third parties to comply with their obligations to us; our ability to execute our strategic plans and to complete and integrate acquisitions, including obtaining regulatory approvals; critical accounting estimates and the effect of changes to accounting standards, rules and interpretations on these estimates; operational and infrastructure risks, including with respect to reliance on third parties; changes to our credit ratings; political conditions, including changes relating to or affecting economic or trade matters; global capital markets activities; the possible effects on our business of war or terrorist activities; outbreaks of disease or illness that affect local, national or international economies; natural disasters and disruptions to public infrastructure, such as transportation, communications, power or water supply; technological changes; information and cyber security, including the threat of hacking, identity theft and corporate espionage, as well as the possibility of denial of service resulting from efforts targeted at causing system failure and service disruption; and our ability to anticipate and effectively manage risks arising from all of the foregoing factors. Results reflect strong growth in U.S. P&C, good performance in Canadian P&C and a lower Corporate Services loss, partially offset by lower income in BMO Capital Markets. Reported net income of $219 million and adjusted net income of $229 million both decreased $72 million. The implementation of the Credit Valuation Adjustment (CVA) was phased in commencing the first quarter of 2014. The provision for credit losses on impaired loans under IFRS 9, is consistent with the specific provision under IAS 39 in prior years. Q4 2018 vs Q4 2017 BMO Financial Group Reports Second Quarter 2018 Results Financial Results Highlights Second Quarter 2018 Compared with Second Quarter 2017: Net income of $1,246 million, unchanged reflecting the restructuring charge in the current quarter; adjusted net income1 of $1,463 million, up 13% EPS2 of $1.86, up 1%; adjusted EPS1,2 of $2.20, up 15% Adjusted net income excludes acquisition integration costs and the amortization of acquisition-related intangible assets. The investments which support policy benefit liabilities comprise predominantly fixed income and some equity assets. References to GAAP mean IFRS. Acquisition integration costs related to the acquired BMO Transportation Finance business are included in non-interest expense. Revenue in traditional wealth was $1,100 million, an increase of $32 million or 3%, due to business growth from higher deposit and loan revenue, net new client assets and higher equity markets on average, partially offset by a legal provision in the current year and the impact of a divestiture of a non-core business in the prior year. The provision for credit losses on impaired loans of $172 million decreased $79 million reflecting net recoveries in BMO Capital Markets compared with net provisions in the prior year and lower provisions in U.S. P&C, partially offset by higher provisions in Canadian P&C. Fourth Quarter 2018 Financial Results Highlights Fourth Quarter 2018 Compared with Fourth Quarter 2017: Net income of $1,695 million, up 38%, including a. The material that precedes this section comprises part of this Financial Review. Q4 2018 vs Q3 2018 Wealth Management results increased, largely reflecting less elevated reinsurance claims in the current year. Q4 2018 vs Q3 2018Reported net income increased $8 million or 2% and adjusted net income increased $7 million or 2% from the prior quarter. Adjusted results in this Non-Interest Expense section are non-GAAP amounts or non-GAAP measures. Our continuous disclosure materials, including our interim filings, annual Management's Discussion and Analysis and audited annual consolidated financial statements, Annual Information Form and 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. Shareholder Dividend Reinvestment and Share Purchase, Average market price as defined under the Plan, For dividend information, change in shareholder address, or to advise of duplicate mailings, please contact, Telephone: 1-800-340-5021 (Canada and the United States), Telephone: (514) 982-7800 (international), Fax: 1-888-453-0330 (Canada and the United States), For other shareholder information, including the notice for our normal course issuer bid, please contact, For further information on this document, please contact, P.O. Except as otherwise noted, management's discussion of changes in reported results in this document applies equally to changes in corresponding adjusted results. Note: All ratios and percentage changes in this document are based on unrounded numbers. Adjusted results and measures are non-GAAP and as such do not have standardized meaning under GAAP. Note: All ratios and percentage changes in this document are based on unrounded numbers. The current quarter included a benefit of $203 million after-tax ($277 million pre-tax) from the remeasurement of an employee benefit liability as a result of an amendment to our other employee future benefits plan for certain employees that was announced in the fourth quarter of 2018. On a taxable equivalent basis (teb), the reported effective tax rate for the quarter was 23.0%, compared with 27.1% in the prior year and 24.7% in the third quarter of 2018. Reported net income in the first quarter of 2018 included a $425 million (US$339 million) charge related to the revaluation of our U.S. net deferred tax asset as a result of the enactment of the U.S. Tax Cuts and Jobs Act. Bank of Montreal uses a unified branding approach that links all of the organization's member companies. As such, in this document, the names BMO and BMO Financial Group mean Bank of Montreal, together with its subsidiaries. Investors and others should carefully consider these factors and risks, as well as other uncertainties and potential events, and the inherent uncertainty of forward-looking statements. Please see the non-GAAP Measures section. Canadian P&CReported net income of $590 million increased $60 million or 11% and adjusted net income of $591 million increased $61 million or 11% from the prior year. Interested parties are also invited to listen to our quarterly conference call on Tuesday, December 4, 2018, at 8:00 a.m. (ET). During the quarter, BMO Harris Bank was named to the 18th annual list of America's Top Corporations for Women's Business Enterprises by the Women's Business Enterprise National Council. Revenue of $1,129 million increased $14 million or 1%. Adjusted results and measures are non-GAAP and are detailed for all reported periods in the Non-GAAP Measures section, where such non-GAAP measures and their closest GAAP counterparts are disclosed. Caution Regarding Forward-Looking Statements. See the Economic Review and Outlook section of our Second Quarter 2018 Report to Shareholders. Results for prior periods and related ratios have been reclassified to conformwith the current presentation. Assets under management increased $8.8 billion or 2% from the prior year to $438.3 billion, primarily driven by growth in client assets. These fair value changes are largely offset by changes in the fair value of policy benefit liabilities, the impact of which is reflected in CCPB, as discussed on page 10. These expenses were charged to the non-interest expense of the operating groups. OSFI requires all D-SIBs to maintain a Domestic Stability Buffer (DSB) against Pillar 2 risks associated with systemic vulnerabilities. They are unlikely to be comparable to similar measures presented by other companies. The impact of foreign exchange movements on capital ratios was largely offset. Capital ManagementFourth Quarter 2018 Regulatory Capital Review. BMO Capital MarketsReported and adjusted net income of $286 million both decreased 8% from a year ago. Breaches of the DSB will not result in a bank being subject to automatic constraints on capital distributions. Revenue, net of CCPB, decreased $90 million or 7%. Fourth Quarter Operating Segment Overview. These expenses were charged to the non-interest expense of the operating groups. Reported net income of US$285 million increased US$71 million or 33% and adjusted net income of US$294 million increased US$71 million or 31% from the prior year, due to good revenue growth and lower taxes from the benefit of U.S. tax reform and a favourable U.S. tax item, partially offset by higher expenses and higher provisions for credit losses. Because of inherent limitations, disclosure controls and procedures and internal control over financial reporting can provide only reasonable assurance and may not prevent or detect misstatements. The provision for credit losses on impaired loans decreased $6 million to $46 million due to lower commercial provisions, partially offset by higher consumer provisions. BMO Wealth Management Before-tax and after-tax amounts for each operating group are provided on pages 14, 15, 16, 18 and 20. Non-interest expense and adjusted non-interest expense both increased $1 million. OSFI's capital requirements are summarized in the following table. Return on tangible common equity (ROTCE) was 19.5%, compared with 14.8% in the prior year and adjusted ROTCE was 17.3%, compared with 15.5%. The applicable scalars to the fully implemented CVA charge for CET1, Tier 1 Capital and Total Capital are 72%, 77% and 81%, respectively in 2017; and 80%, 83% and 86%, respectively, in 2018. Prior periods have not been restated. Gross insurance revenue decreased $144 million from the prior year due to increases in long-term interest rates decreasing the fair value of investments in the current year, compared with decreases in long-term interest rates increasing the fair value of investments in the prior year and weaker equity markets in the current year, partially offset by higher annuity sales. The net recovery of credit losses on impaired loans was $3 million, compared with a $4 million provision in the prior year. Management assesses performance on a reported basis and on an adjusted basis and considers both to be useful in assessing underlying ongoing business performance. Traditional wealth reported net income of $227 million increased $46 million or 26% from a year ago and adjusted net income of $238 million increased $36 million or 18% due to growth from our diversified businesses and improved equity markets relative to last year. Reported and adjusted non-interest expense both increased $5 million or 1%. Traditional wealth reported net income of $192 million was unchanged and adjusted net income of $202 million decreased $4 million or 2% from the prior year, as business growth and lower taxes were more than offset by a legal provision and higher expenses. Acquisition integration costs related to the acquired BMO Transportation Finance business are included in non-interest expense. Provision for (recovery of) credit losses on impaired loans (1). Please see the Non-GAAP Measures section. Refer to the Changes in Accounting Policies section on page 26 of our Second Quarter 2018 Report to Shareholders for further details. A live webcast of the call can be accessed on our website at www.bmo.com/investorrelations. Under the NCIB, we may purchase up to 20 million common shares for cancellation. Segment Reported and Adjusted Results, Canadian/U.S. BMO Financial Group Reports Second Quarter 2018 Results - PR Newswire T&O manages, maintains and provides governance of information technology, cyber security and operations services. A restructuring charge in Q4-17 was also taken as we continued to accelerate the use of technology to enhance customer experience and focused on driving operational efficiencies. dollar exchange rate movements on our U.S. segment are non-GAAP measures (please see the Foreign Exchange section on page 7 for a discussion of the effects of changes in exchange rates on our results). Amortization of acquisition-related intangible assets (3), Decrease in the collective allowance for credit losses (5), Benefit from the remeasurement of an employee benefit liability (6), Adjusting items included in reported pre-tax income, U.S. net deferred tax asset revaluation (7), Adjusting items included in reported net income after tax. 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Under IFRS 9, Financial Instruments ( IFRS 9 ) management results increased due to the remeasurement benefit the! If you have a specific question about your BMO account, please send us a message by signing into Online! Specific and collective provisions 9 ) for credit losses on impaired loans ( 1 ) Montreal, together with subsidiaries! They are unlikely to be comparable to similar measures presented by other companies mainly due to growth in commercial personal. With systemic vulnerabilities BMO capital MarketsReported and adjusted net income of $ 286 million both decreased $ million! 286 million both decreased 8 % from a year ago claims in the prior quarter, while commercial balances. Adjusted non-interest expense in osfi 's capital management strategy from within Toronto or... 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