Mr. Jeff Roman report

BMO CLOSES SALE OF TRANSPORTATION AND VENDOR FINANCE BUSINESSES

Bank of Montreal has closed the previously announced sale of its transportation finance and vendor finance businesses to Stonepeak.

At closing, BMO transferred approximately 75 per cent ($11-billion) of the estimated $14.5-billion total combined loan and lease portfolio to Stonepeak, with the remaining balances expected to transfer in the first quarter of fiscal 2027, subject to customary conditions. In addition, BMO and Stonepeak have entered into a transitional services agreement under which BMO will provide certain services to support an orderly transition for clients.

As previously announced, BMO now holds a 19.9-per-cent interest in the Stonepeak-managed entity that acquired the businesses, enabling BMO to continue participating in their long-term value creation. The businesses will operate under the name Longview Capital Solutions.

The transaction is expected to improve the bank's common equity Tier 1 ratio by approximately 23 basis points in the fourth quarter of fiscal 2026.

About Bank of Montreal

BMO Financial Group is the eighth-largest bank in North America by assets, with total assets of $1.5-trillion as of July 31, 2026. Serving clients for more than 200 years, BMO provides a broad range of personal and commercial banking, wealth management, global markets, and investment banking products and services across Canada, the United States and select markets globally. BMO is innovating for business value by deploying and integrating human, digital and artificial intelligence to personalize client experiences, augment teams and automate its business responsibly. Driven by its purpose, "to boldly grow the good in business and life," BMO is committed to driving positive change in the world and making progress for a thriving economy, sustainable future and stronger communities.

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