Strong asset quality metrics and balanced risk appetite, with loss rates consistently lower than domestic peer average Canada's fourth-largest bank, with a strong commercial banking franchise Good diversification of revenue and loans by business lines and geography Weaker profitability and efficiency metrics compared with those of domestic peers Higher-than-peer exposure to the Canadian and U.S. midmarket corporate segment Higher dependence on wholesale funding compared with U.S. peers', albeit in line with domestic peers' Our stable outlook on Bank of Montreal (BMO) and its operating subsidiaries reflects our expectation that, over the next two years operating revenues and capitalization will remain stable, and asset quality will remain relatively good compared with the Canadian domestic systemically important bank (D-SIB) average, reflecting conservative
