INSIGHTS FROM YOUR MANAGE MENT BOARD  EXECUTIVE COMMITTEE The BMO Financial Group Management Board  Executive Committee  ( MBEC ) comprises 10 members – our Chairman and Chief Executiv e Officer, Tony Comper and nine senior  executives from across our organization. Togeth er, the members of MBEC are responsible for the leadership of BMO Financial Group. Just as important, through the development of robust  capabilities and product offerings in Canada and the  United States, we have begun to actively execute our growth strategy of building an integrated, full-service, mid-market North American investment bank, capitalizing on industry specialties and distinctive capabilities. Financial leadership is about achieving top-tier performance for our shareholders. It means following the best practices possible in applying accounting standards. And it means making a commitment to providing full disclosure of all business activities. Finally, financial leadership means being open and honest in explaining results – both positive and negative.  BMO Financial Group is absolutely committed to financial leadership. And we are delivering on that commitment.  KAREN E. MAIDMENT Executive Vice-President and Chief Financial Officer,  BMO Financial Group YVAN J.P. BOURDEAU President and Chief Operating Officer, BMO Nesbitt Burns LLOYD F. DARLINGTON President and Chief Executive Officer,  Technology and Solutions, and Head, E-Business  There is no question that this period of weak capital mar - kets has created special challenges for market-sensitive businesses such as ours.That said, we are looking forward with confidence – and going forward from a position  of strength.  Our 10-year track record shows that we are better managers of credit risk than any of our competitors. Since 2000, we have reduced our risk-weighted assets to $56 billion from  $85 billion through a stringent asset portfolio discipline. Our strong history of effectively delivering highly  competitive technology support and processing solutions was reinforced again this year with several implementa- tions that support BMO Financial Group’s financial and business strategies. The rollout of Pathway Connect, a state-of-the-art retail platform, is but one example of how technology is being leveraged to support our customer satisfaction and produc- tivity strategies and goals. We also successfully integrated  a number of acquisitions this year including Joliet and CSFB direct . With an enterprise-wide technology mandate, we are able to focus on the highest value-creating technology invest- ment opportunities across the company, leveraging scale possibilities and maximizing value. Our human resource practices, our staffing and our commitment to training and development, and our IT strategy and process disciplines give us today an organization and cadre of professionals well positioned to support the company going forward. In 2002, we were able to decrease our expenses by 5% from the previous year while providing enhanced capa- bilities and handling a significant increase in customer transaction processing. 4 BMO FINANCIAL GROUP ANNUAL REPORT 2002