Bank of Montreal at National Bank Financial Services Conference Transcript

The following is excerpted from the question-and-answer section of the transcript.

Question: Gabriel Dechaine - National Bank Financial, Inc., Research Division - Analyst : I will start off with Bank of the West, that acquisition, obviously, big news. Is there any -- we've seen some of the U.S. acquisitions from other banks, the regulatory approval time line getting pushed back. Are you feeling the same or any different than what you were when you announced the deal?

Question: Gabriel Dechaine - National Bank Financial, Inc., Research Division - Analyst : Okay. As far as the nuts and bolts of the acquisition, and this is something I hear from investors is the synergy number was pretty big as a percentage of the... REFINITIV STREETEVENTS | www.refinitiv.com | Contact Us consent of Refinitiv. 'Refinitiv' and the Refinitiv logo are registered trademarks of Refinitiv and its affiliated companies. MARCH 22, 2022 / 3:05PM, BMO.TO - Bank of Montreal at National Bank Financial Services Conference

Question: Gabriel Dechaine - National Bank Financial, Inc., Research Division - Analyst : Yes. U.S.

Question: Gabriel Dechaine - National Bank Financial, Inc., Research Division - Analyst : So is that a number you feel ambitious? Or is it you've got a very clear line of sight on where you're getting it from and ultra-confident in getting it.

Question: Gabriel Dechaine - National Bank Financial, Inc., Research Division - Analyst : And the number itself, not aside from the size, but the pace is expected to be achieved within the first year. Is that really because you're flicking off a switch on their IT side, or... REFINITIV STREETEVENTS | www.refinitiv.com | Contact Us consent of Refinitiv. 'Refinitiv' and the Refinitiv logo are registered trademarks of Refinitiv and its affiliated companies. MARCH 22, 2022 / 3:05PM, BMO.TO - Bank of Montreal at National Bank Financial Services Conference

Question: Gabriel Dechaine - National Bank Financial, Inc., Research Division - Analyst : And I should have started with this question, but what are you doing now as far as integration. I -- you can't integrate anything. But as far as preparing for the...

Question: Gabriel Dechaine - National Bank Financial, Inc., Research Division - Analyst : And then last one on the synergy stuff. But if I plug in, quick merge of the models, income statements and then plug in the synergy number, I get to about a 50% pro forma efficiency ratio, which is below where both entities are running. Is that you're expecting...

Question: Gabriel Dechaine - National Bank Financial, Inc., Research Division - Analyst : So on to the more fun stuff. The...

Question: Gabriel Dechaine - National Bank Financial, Inc., Research Division - Analyst : Well, now it's the growth part. So you've got an acquisition inorganic growth, but the question that investors and I have is how does this improve your future organic growth potential. And an obvious thing to look at is how Bank of the West has not really grown much. BMO is going to plug in their systems and accelerate its growth somehow. Like how does that work out? Is there a playbook for better sales culture or what?

Question: Gabriel Dechaine - National Bank Financial, Inc., Research Division - Analyst : Last question on Bank of the West. There was a -- shortly after your deal, another one was announced TD's, and there was some disclosure on employee retention. Do you have any structures like that in place in this and... REFINITIV STREETEVENTS | www.refinitiv.com | Contact Us consent of Refinitiv. 'Refinitiv' and the Refinitiv logo are registered trademarks of Refinitiv and its affiliated companies. MARCH 22, 2022 / 3:05PM, BMO.TO - Bank of Montreal at National Bank Financial Services Conference

Question: Gabriel Dechaine - National Bank Financial, Inc., Research Division - Analyst : Okay. Another big topic that's come up in BMO's results, especially in 2021, was the securities gains that were boosted by private equity-related co-investments or whatever term you would use as one you will use. How big is that portfolio in the P&C bank?

Question: Gabriel Dechaine - National Bank Financial, Inc., Research Division - Analyst : Actually, If I can pause, the $500 million you referenced, that's the -- when you're ...

Question: Gabriel Dechaine - National Bank Financial, Inc., Research Division - Analyst : Yes, yes. It's very, very helpful. The lending aspect of it. So there's -- I know the capital markets business does leverage lending, that's the originate-to-distribute model. But at the commercial bank, both in Canada and the U.S., you lend to buy it -- leveraged loans to buy out these investment companies, right, or...

Question: Gabriel Dechaine - National Bank Financial, Inc., Research Division - Analyst : Correct. That's what I meant. How big are those -- those are balance sheet loans, right?

Question: Gabriel Dechaine - National Bank Financial, Inc., Research Division - Analyst : So we keep referencing John... REFINITIV STREETEVENTS | www.refinitiv.com | Contact Us consent of Refinitiv. 'Refinitiv' and the Refinitiv logo are registered trademarks of Refinitiv and its affiliated companies. MARCH 22, 2022 / 3:05PM, BMO.TO - Bank of Montreal at National Bank Financial Services Conference

Question: Gabriel Dechaine - National Bank Financial, Inc., Research Division - Analyst : What did John say? I asked them, and I'll ask you the whole -- what are your clients saying, doing, they're facing a whole bunch of -- and this is Canada, U.S. answer I'm sure is different. Inflationary pressures, geopolitical backdrop, concerning China, experiencing or contributing to supply chain constraints. A whole -- I can go on, is this -- despite some of the growth numbers we're seeing, is this restricting growth at all?

Question: Gabriel Dechaine - National Bank Financial, Inc., Research Division - Analyst : Has inflation been a net positive? I know you hear about it as a risk, but if you're lending to a trucking company, you've got to buy a new truck, they cost more...

Question: Gabriel Dechaine - National Bank Financial, Inc., Research Division - Analyst : Or they want to expand their plant and building costs. REFINITIV STREETEVENTS | www.refinitiv.com | Contact Us consent of Refinitiv. 'Refinitiv' and the Refinitiv logo are registered trademarks of Refinitiv and its affiliated companies. MARCH 22, 2022 / 3:05PM, BMO.TO - Bank of Montreal at National Bank Financial Services Conference

Question: Gabriel Dechaine - National Bank Financial, Inc., Research Division - Analyst : Stock splits. Is there a possibility that BMO announces a stock split, now you couldn't... Unidentified Analyst (inaudible)

Question: Gabriel Dechaine - National Bank Financial, Inc., Research Division - Analyst : What is it -- time flies when you're having fun?

Question: Gabriel Dechaine - National Bank Financial, Inc., Research Division - Analyst : Yes, I think we're -- we have to -- we have another speaker...