MARSHALL & ILSLEY CORPORATION REPORTS NET LOSS OF $1.52 PER

MILWAUKEE, July 16, 2008 /PRNewswire-FirstCall via COMTEX News Network/ — Marshall & Ilsley Corporation (NYSE: MI) (M&I) today reported a 2008 second quarter net loss of $393.8 million, or $1.52 per share, as compared to income from continuing operations of $178.9 million, or $0.68 per share, in the second quarter of 2007.
During the second quarter of 2008, the Corporation experienced continued stress on its construction and development portfolio due to the ongoing deterioration in the housing market. The following actions were taken:

A provision for loan and lease losses of $886 million was taken, representing $485 million in excess of charge-offs of $401 million.

Approximately $20 million was added to the reserve for unfunded commitments.

Allowance to loan ratio was boosted to 2.05 percent — up 105 basis points versus the second quarter of 2007.

2008 Second Quarter Key Performance Highlights

On an acquisition-adjusted basis, average loans and leases increased 11 percent over the second quarter of 2007.

Net interest margin rose 5 basis points on a linked quarter basis and was down 1 basis point from the second quarter of 2007.

Net interest income increased 12 percent compared to the same period last year.

Wealth Management total revenue increased 14 percent over the second quarter of 2007.

Adjusted efficiency ratio was 51.3 percent, up 0.4 percentage points from the adjusted efficiency ratio for the same period last year.

Tangible common equity ratio was 7.0 percent at June 30, 2008 — up 1.2 percentage points from June 30, 2007.

Loan and Core Deposit Growth

On an acquisition-adjusted basis, M&I’s average loans and leases totaled $49.9 billion for the second quarter of 2008, reflecting an increase of $4.9 billion or 11 percent compared to the second quarter of 2007. The Corporation’s average bank-issued deposits totaled $29.5 billion on an acquisition-adjusted basis for the second quarter of 2008, essentially unchanged versus the second quarter of 2007.

Net Interest Income

The Corporation’s net interest income (FTE) rose $47.8 million to $454.6 million in the second quarter of 2008 — up 12 percent compared to the second quarter of 2007. The net interest margin was 3.14 percent, up 5 basis points on a linked quarter basis, and down 1 basis point from the same period last year.

Asset Quality

M&I’s construction and development portfolio continued to experience deterioration in the estimated collateral values and repayment abilities of some of the Corporation’s customers, particularly among small and mid-sized local developers. M&I’s provision for loan and lease losses was $886.0 million in the second quarter of 2008. Net charge-offs for the period were $400.7 million, or 3.23 percent of total average loans and leases. At June 30, 2008 and 2007, the allowance for loan and lease losses was 2.05 percent and 1.00 percent, respectively, of total loans and leases. Non-performing loans and leases were 2.07 percent of total loans and leases at June 30, 2008, compared to 0.89 percent at June 30, 2007.

Wealth Management Revenue

The Corporation’s Wealth Management business produced solid results during the second quarter of 2008. Wealth Management total revenue was $74.8 million for the current quarter, an increase of $9.2 million or 14 percent over the second quarter of 2007. Assets Under Management finished the quarter at $25.4 billion and Assets Under Administration ended at $106.4 billion.

Other Non-Interest Income

M&I’s service charges on deposits were $37.9 million for the second quarter of 2008, an increase of $7.8 million or 26 percent from the same period last year.

Non-Interest Expense

The Corporation’s non-interest expense was $380.4 million for the second quarter of 2008, an increase of $86.1 million from the second quarter of 2007. After adjusting for certain non-recurring expenses, which include the reserve for unfunded commitments, M&I’s efficiency ratio was 55.0 percent. Further adjusting second quarter of 2008 and 2007 for credit-related expenses, which include other real estate owned, the Corporation’s efficiency ratio was 51.3 percent — up 0.4 percentage points from the same period last year.

Year-to-Date Results

M&I reported a net loss of $247.6 million, or $0.95 per share, as compared to income from continuing operations of $347.7 million, or $1.32 per share, for the six months ended June 30, 2008 and 2007, respectively.

Balance Sheet and Capital Management

The Corporation’s consolidated assets and common shareholders’ equity were $64.3 billion and $6.5 billion, respectively, at June 30, 2008, compared to $58.3 billion and $6.4 billion, respectively, at June 30, 2007. There were 259.4 million common shares outstanding at June 30, 2008, compared to 257.1 million outstanding at June 30, 2007. The Corporation has a Stock Repurchase Program authorization under which up to 12 million shares of the Corporation’s common stock can be repurchased annually. In the second quarter of 2008, the Corporation did not repurchase any shares. M&I’s tangible common equity ratio was 7.0 percent at June 30, 2008 — up 1.2 percentage points from June 30, 2007.

Conference Call

Marshall & Ilsley Corporation will hold a conference call at 11:00 a.m. Central Daylight Time Wednesday, July 16, regarding second quarter results. For those interested in listening, please call 1-888-711-1825 and ask for M&I’s quarterly results release conference call. If you are unable to join us at this time, a replay of the call will be available beginning at 2:30 p.m. on July 16 and will run through 5:00 p.m. July 23, by calling 1-800-642-1687 and entering pass code 532 69 798.

Supplemental financial information referenced in the conference call can be found at http://www.micorp.com, Investor Relations, after 8:00 a.m. on July 16.

About Marshall & Ilsley Corporation

Marshall & Ilsley Corporation (NYSE: MI) is a diversified financial services corporation headquartered in Milwaukee, Wis., with $64.3 billion in assets. Founded in 1847, M&I Marshall & Ilsley Bank is the largest Wisconsin-based bank, with 193 offices throughout the state. In addition, M&I has 51 locations throughout Arizona; 32 offices in Indianapolis and nearby communities; 31 offices along Florida’s west coast and in central Florida; 15 offices in Kansas City and nearby communities; 24 offices in metropolitan Minneapolis/St. Paul, and one in Duluth, Minn.; and one office in Las Vegas, Nev. M&I’s Southwest Bank subsidiary has 17 offices in the greater St. Louis area. M&I also provides trust and investment management, equipment leasing, mortgage banking, asset-based lending, financial planning, investments, and insurance services from offices throughout the country and on the Internet (http://www.mibank.com or http://www.micorp.com). M&I’s customer-based approach, internal growth, and strategic acquisitions have made M&I a nationally recognized leader in the financial services industry.

Forward-Looking Statements

This press release contains forward-looking statements within the meaning of the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. Such forward-looking statements include, without limitation, statements regarding expected financial and operating activities and results that are preceded by, followed by, or that include words such as “may,” “expects,” “anticipates,” “estimates” or “believes.” Such statements are subject to important factors that could cause M&I’s actual results to differ materially from those anticipated by the forward-looking statements. These factors include (i) M&I’s exposure to the volatile commercial and residential real estate markets, which could result in increased charge-offs and increases in M&I’s allowance for loan and lease losses to compensate for potential losses in its real estate loan portfolio, (ii) adverse changes in the financial performance and/or condition of M&I’s borrowers, which could impact repayment of such borrowers’ outstanding loans, (iii) those factors referenced in Item 1A. Risk Factors in M&I’s annual report on Form 10-K for the year ended December 31, 2007 and as may be described from time to time in M&I’s subsequent SEC filings, which factors are incorporated herein by reference. Readers are cautioned not to place undue reliance on these forward-looking statements, which reflect only M&I’s belief as of the date of this press release. Except as required by federal securities law, M&I undertakes no obligation to update these forward-looking statements or reflect events or circumstances after the date of this report.

Marshall & Ilsley Corporation
Financial Information
(unaudited)

Three Months Six Months
Ended June 30, Percent Ended June 30, Percent
2008 2007 Change 2008 2007 Change

PER SHARE DATA

Diluted:
(Loss) Income
from
Continuing
Operations ($1.52) $0.68 n.m.% ($0.95) $1.32 n.m.%
Net (Loss)
Income (1.52) 0.83 n.m. (0.95) 1.66 n.m.

Basic:
(Loss) Income
from Continuing
Operations (1.52) 0.69 n.m. (0.95) 1.35 n.m.
Net (Loss)
Income (1.52) 0.85 n.m. (0.95) 1.70 n.m.

Dividend Declared 0.32 0.31 3.2 0.63 0.58 8.6
Book Value 25.26 25.20 0.2 25.26 25.20 0.2
Shares Outstanding
(millions):
Average –
Diluted 258.6 264.8 -2.4 259.3 263.1 -1.4
End of Period 259.4 257.1 0.9 259.4 257.1 0.9

INCOME STATEMENT
($millions)

Net Interest
Income (FTE) $454.6 $406.8 11.8% $892.1 $808.3 10.4%
Provision for Loan
and Lease Losses 886.0 26.0 n.m. 1,032.3 43.2 n.m.
Wealth Management 74.8 65.6 14.0 146.6 126.3 16.1
Service Charge
on Deposits 37.9 30.1 25.9 73.6 57.8 27.4
Mortgage Banking 6.6 12.0 -44.7 16.0 22.1 -27.7
Net Investment
Securities Gains 0.5 19.4 -97.7 26.2 21.0 24.4
All Other 67.2 59.4 13.2 135.8 114.9 18.2
Total Non-Interest
Revenues 187.0 186.5 0.2 398.2 342.1 16.4

Salaries and
Employee
Benefits 186.6 168.9 10.5 361.2 319.1 13.2
Occupancy and
Equipment 31.2 28.1 11.1 62.5 55.5 12.5
Intangible
Amortization 6.0 5.2 15.3 11.9 9.7 23.1
Other 156.6 92.1 69.9 260.6 191.0 36.4
Total Non-Interest
Expenses 380.4 294.3 29.2 696.2 575.3 21.0

Tax Equivalent
Adjustment 7.0 7.0 -0.8 14.1 14.1 0.1
Pre-Tax (Loss)
Income (631.8) 266.0 n.m. (452.3) 517.8 n.m.
(Benefit)
Provision for
Income Taxes (238.0) 87.1 n.m. (204.7) 170.1 n.m.
(Loss) Income
from Continuing
Operations (393.8) 178.9 n.m. (247.6) 347.7 n.m.

Discontinued
Operations, net
of tax:
Separation
Transactions
Costs – (1.5) – (2.7)
Metavante Net
Income – 42.9 – 92.1
Discontinued
Operations,
net of tax – 41.4 – 89.4
Net (Loss)
Income ($393.8) $220.3 n.m.% ($247.6) $437.1 n.m.%

KEY RATIOS

Net Interest
Margin (FTE) /
Avg. Earning
Assets 3.14% 3.15% 3.11% 3.18%
Interest Spread
(FTE) 2.71 2.49 2.62 2.52

Based on Income
from Continuing
Operations
Efficiency Ratio 59.3% 51.3% 55.0% 50.9%
Return on Assets n.m. 1.28 n.m. 1.26
Return on Equity n.m. 11.00 n.m. 10.97

Based on Net Income
Return on Assets n.m.% 1.53% n.m.% 1.54%
Return on Equity n.m. 13.54 n.m. 13.79

Equity / Assets
(End of Period) 10.1% 11.0% 10.1% 11.0%

Marshall & Ilsley Corporation
Financial Information
(unaudited)
As of June 30, Percent
2008 2007 Change
ASSETS ($millions)
Cash & Due From Banks $1,316 $1,196 10.1%
Trading Securities 133 51 160.1
Short – Term Investments 596 539 10.7
Investment Securities 7,695 7,492 2.7
Loan to Metavante – 982 n.m.
Loans and Leases:
Commercial Loans & Leases 15,842 13,031 21.6
Commercial Real Estate 17,246 14,989 15.1
Residential Real Estate 10,246 9,482 8.1
Home Equity Loans & Lines 4,992 4,206 18.7
Personal Loans and Leases 1,907 1,574 21.1
Total Loans and Leases 50,233 43,282 16.1
Reserve for Loan & Lease Losses (1,029) (431) 138.7
Premises and Equipment, net 524 457 14.9
Goodwill and Intangibles 2,242 1,745 28.4
Other Assets 2,550 1,605 58.9
Total Assets of Continuing
Operations 64,260 56,918 12.9
Assets of Discontinued
Operations – 1,380 n.m.
Total Assets $64,260 $58,298 10.2%

LIABILITIES & SHAREHOLDERS’
EQUITY ($millions)
Deposits:
Noninterest Bearing $6,390 $5,739 11.3%
Bank Issued Interest Bearing
Activity 14,679 13,332 10.1
Bank Issued Time 9,218 8,841 4.3
Total Bank Issued Deposits 30,287 27,912 8.5
Wholesale Deposits 10,886 7,627 42.7
Total Deposits 41,173 35,539 15.9
Short – Term Borrowings 6,598 8,172 -19.3
Long – Term Borrowings 9,003 7,205 25.0
Other Liabilities 972 921 5.5
Liabilities of Discontinued
Operations – 23 n.m.
Shareholders’ Equity 6,514 6,438 1.2
Total Liabilities &
Shareholders’ Equity $64,260 $58,298 10.2%

Three Months Ended Six Months Ended
June 30, Percent June 30, Percent
2008 2007 Change 2008 2007 Change
AVERAGE ASSETS
($millions)
Cash & Due From
Banks $879 $1,004 -12.5% $916 $1,000 -8.4%
Trading Securities 162 58 177.7 170 50 241.2
Short – Term
Investments 371 270 37.1 352 272 29.1
Investment
Securities 7,735 7,548 2.5 7,823 7,460 4.9
Loan to Metavante – 982 n.m. – 982 n.m.
Loans and Leases:
Commercial Loans
& Leases 15,603 13,001 20.0 15,256 12,840 18.8
Commercial Real
Estate 17,126 14,782 15.9 17,035 14,600 16.7
Residential Real
Estate 10,475 9,389 11.6 10,386 9,276 12.0
Home Equity Loans
and Lines 4,835 4,223 14.5 4,753 4,259 11.6
Personal Loans
and Leases 1,892 1,509 25.4 1,840 1,530 20.2
Total Loans and
Leases 49,931 42,904 16.4 49,270 42,505 15.9
Reserve for Loan
& Lease Losses (682) (432) 57.7 (620) (428) 44.8
Premises and
Equipment, net 521 457 14.0 515 449 14.9
Goodwill and
Intangibles 2,244 1,741 28.9 2,243 1,656 35.4
Other Assets 2,329 1,671 39.4 2,252 1,660 35.7
Total Assets of
Continuing
Operations 63,490 56,203 13.0 62,921 55,606 13.2
Assets of
Discontinued
Operations – 1,500 n.m. – 1,505 n.m.
Total Assets $63,490 $57,703 10.0% $62,921 $57,111 10.2%

Memo:
Average Earning
Assets $58,199 $51,762 $57,615 $51,269
Average Earning
Assets Excluding
Investment
Securities
Unrealized
Gains/Losses $58,198 $51,808 $57,598 $51,317

AVG LIABILITIES &
SHAREHOLDERS’
EQUITY
($millions)
Deposits:
Noninterest
Bearing $5,828 $5,460 6.7% $5,728 $5,400 6.1%
Bank Issued
Interest
Bearing
Activity 14,781 13,272 11.4 14,866 13,125 13.3
Bank Issued
Time 8,887 8,685 2.3 8,873 8,544 3.9
Total Bank
Issued
Deposits 29,496 27,417 7.6 29,467 27,069 8.9
Wholesale
Deposits 9,557 6,259 52.7 8,923 6,315 41.3
Total Deposits 39,053 33,676 16.0 38,390 33,384 15.0
Short – Term
Borrowings 6,799 4,297 58.2 6,607 4,273 54.6
Long – Term
Borrowings 9,639 11,942 -19.3 9,830 11,783 -16.6
Other Liabilities 1,033 1,082 -4.5 1,097 1,068 2.7
Liabilities of
Discontinued
Operations – 182 n.m. – 211 n.m.
Shareholders’
Equity 6,966 6,524 6.8 6,997 6,392 9.5
Total Liabilities
& Shareholders’
Equity $63,490 $57,703 10.0% $62,921 $57,111 10.2%

Memo:
Average Interest
Bearing
Liabilities $49,663 $44,455 $49,099 $44,040

Marshall & Ilsley Corporation
Financial Information
(unaudited)

Three Months Ended Six Months Ended
June 30, Percent June 30, Percent
2008 2007 Change 2008 2007 Change
CREDIT QUALITY

Net Charge-Offs
($millions) $400.7 $23.6 n.m.% $531.8 $38.3 n.m.%
Net Charge-Offs
/ Average Loans
& Leases 3.23% 0.22% 2.17% 0.18%
Loan and Lease
Loss Reserve
($millions) $1,028.8 $431.0 138.7% $1,028.8 $431.0 138.7%
Loan and Lease
Loss Reserve /
Period-End Loans
& Leases 2.05% 1.00% 2.05% 1.00%
Nonaccrual Loans
& Leases
($millions) $1,006.8 $373.4 169.6% $1,006.8 $373.4 169.6%
Nonaccrual Loans
& Leases /
Period-End Loans
& Leases 2.00% 0.86% 2.00% 0.86%
Loan and Lease
Loss Reserve /
Nonaccrual Loans
& Leases 102% 115% 102% 115%
Non-Performing
Loans & Leases
(NPL)
($millions)(a) $1,041.0 $384.0 171.1% $1,041.0 $384.0 171.1%
NPL’s /
Period-End
Loans &
Leases (a) 2.07% 0.89% 2.07% 0.89%
Loan and Lease
Loss Reserve /
Non-Performing
Loans &
Leases (a) 99% 112% 99% 112%

MARGIN ANALYSIS (b)

Loans and Leases:
Commercial Loans
& Leases 5.37% 7.58% 5.80% 7.60%
Commercial Real
Estate 6.03 7.58 6.30 7.59
Residential Real
Estate 6.02 7.28 6.22 7.30
Home Equity Loans
and Lines 6.27 7.52 6.58 7.53
Personal Loans
and Leases 6.38 7.81 6.67 7.83
Total Loans and
Leases 5.86 7.52 6.17 7.53
Loan to Metavante – 4.41 – 4.43
Investment
Securities 4.77 5.30 4.90 5.34
Short – Term
Investments 1.96 4.63 2.38 4.67
Interest Income
(FTE) / Avg.
Interest Earning
Assets 5.68% 7.11% 5.96% 7.13%
Interest Bearing
Deposits:
Bank Issued
Interest Bearing
Activity 1.44% 3.61% 1.94% 3.62%
Bank Issued Time 4.07 4.94 4.31 4.90
Total Bank Issued
Deposits 2.43 4.14 2.82 4.12
Wholesale
Deposits 3.21 5.09 3.57 5.09
Total Interest
Bearing Deposits 2.65 4.35 3.03 4.34
Short – Term
Borrowings 2.25 5.23 2.79 5.23
Long – Term
Borrowings 4.58 5.05 4.75 5.03
Interest Expense /
Avg. Interest
Bearing
Liabilities 2.97% 4.62% 3.34% 4.61%
Net Interest
Margin(FTE) /
Avg. Earning
Assets 3.14% 3.15% 3.11% 3.18%
Interest Spread
(FTE) 2.71% 2.49% 2.62% 2.52%

Notes:
(a) Includes Loans past due 90 days or more.
(b) Based on average balances excluding fair value adjustments for
available for sale securities.

SOURCE Marshall & Ilsley Corporation