Strong track record of generating consistent and stable earnings Solid credit risk management infrastructure Very good diversification by product, geography, and business line Very strong capital adequacy ratios Competition continues to intensify in the Chicagoland personal and commercial banking Exposure to U.S. corporate lending sector Operating expense ratio remains relatively high, but continues to decline Negative effect of currency translation on U.S.-denominated earnings The ratings on Bank of Montreal (BMO), including the 'A-1(High)' Canadian national scale CP and the 'P-1(Low)' Canadian preferred share ratings, reflect the bank's very strong domestic personal and commercial (P&C) bank, which provides it with a solid base for consistent earnings performance. The performance of the wholesale banking group has shown improvement, coming off of two
