One of the five dominant banks in Canada, with a stable position in commercial banking Good diversification by lines of business and geography Clearly articulated and executed business strategy Sizable exposure to U.S. mid-market commercial and indebted Canadian borrowers amid rising policy rates, and a potential correction in Canadian house prices Weaker profitability and efficiency metrics compared with those of domestic peers Fairly high dependence on wholesale funding compared with international peers, though similar to that of large Canadian peers S&P Global Ratings' outlook on Bank of Montreal (BMO) and its operating subsidiaries is stable, reflecting the expectation that over the next two years BMO will continue to generate positive operating leverage while diversifying its earnings mix; manage its S&P
