Marshall & Ilsley Corporation Announces Third Quarter Results

Marshall & Ilsley Corporation Announces Third Quarter Results
John M. Presley to Join M&I October 18 as Chief Financial Officer 


MILWAUKEE, Oct. 13  /PRNewswire-FirstCall/ -- Marshall & Ilsley Corporation
(NYSE:MI) today reported 2004 third quarter net income of $0.69 per diluted
share, or $155.4 million, as compared to $0.61 per diluted share, or $140.3
million, in the third quarter of 2003. Third quarter net income per share
increased 13.1 percent over the same period in 2003.

Net income for the nine months ended September 30, 2004 was $453.3 million, or
$2.01 per diluted share, compared to $403.0 million, or $1.77 per diluted
share, in the nine months ended September 30, 2003.

Return on average assets based on net income for the third quarter was 1.63
percent, as compared to 1.66 percent for the same period in 2003.  Return on
average equity based on net income was 17.58 percent this quarter as compared
to 16.92 percent for the third quarter of 2003.

The Corporation's provision for loan and lease losses was $6.9 million in the
third quarter of 2004, versus $7.9 million in the same period last year. Net
charge-offs for the period were $6.7 million, or 0.10 percent of total average
loans and leases outstanding this quarter, and $7.9 million a year ago or 0.13
percent of total average loans and leases.  At September 30, 2004, the
allowance for loan and lease losses was 1.27 percent of total loans and leases,
compared to 1.41 percent a year earlier.  Nonperforming loans and leases were
0.51 percent of total loans and leases at September 30, 2004, and 0.76 percent
at September 30, 2003.

Assets at September 30, 2004 were $39.0 billion, compared to $33.7 billion at
September 30, 2003.  Book value per share was $16.19 at September 30, 2004,
compared to $14.84 for the same date a year ago.  Total loans and leases were
$28.1 billion, compared to $24.6 billion at September 30, 2003.

John M. Presley to Join M&I October 18 as Chief Financial Officer

The Corporation has also announced John M. Presley will join Marshall & Ilsley
Corporation as Senior Vice President and Chief Financial Officer on Monday,
October 18.  Presley's appointment was announced in August of this year.  He
succeeds Mark F. Furlong who became President of M&I Marshall & Ilsley Bank on
July 1, 2004.  Presley previously served as Chief Financial Officer of National
Commerce Financial Corporation in Memphis, Tennessee.

Marshall & Ilsley Corporation (NYSE:MI) is a diversified financial services
corporation headquartered in Milwaukee, Wis., with $39.0 billion in assets.
Founded in 1847, M&I Marshall & Ilsley Bank has the largest banking presence in
Wisconsin with 197 offices throughout the state. In addition, M&I has 32
locations throughout Arizona; 11 offices in metropolitan Minneapolis/St. Paul,
Minn.; and, locations in Duluth, Minn.; Las Vegas, Nev.; and, Naples and Bonita
Springs, Fla. M&I's Southwest Bank affiliate has six offices in the St. Louis
area and one office in Belleville, Ill. Metavante Corporation, Marshall &
Ilsley Corporation's wholly owned technology subsidiary, provides virtually all
of the technology an organization needs to offer financial services. 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.

This press release contains forward-looking statements concerning M&I's future
operations and financial results.  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) the
factors identified in M&I's Annual Report on Form 10-K for the year ended
December 31, 2003 under the heading "Forward-Looking Statements" which factors
are incorporated herein by reference, and (ii) such other factors as may be
described from time to time in M&I's SEC filings.

Note:

Marshall & Ilsley Corporation will hold a conference call at 11:00 a.m. central
daylight time Wednesday, October 13, regarding third quarter earnings. For
those interested in listening, please call 1-800-243-6403 and ask for M&I's
quarterly earnings release conference call.  If you are unable to join us at
this time, a replay of the call will run through October 20, 5:00 p.m. central
daylight time by calling 1-800-839-6713 and entering passcode 666 28 25 to
listen.

Supplemental financial information referenced in the conference call can be
found at http://www.micorp.com/ , Investor Relations, after 8:00 a.m. on
October 13.

  M&I Corporation
  Financial Information
  (unaudited)

                     Three Months Ended         Nine Months Ended
                    September September       September September
                       30,       30,   Percent    30,       30,  Percent
                      2004      2003   Change    2004      2003  Change
  PER SHARE DATA
  Diluted:
    Net Income       $0.69     $0.61    13.1%   $2.01     $1.77    13.6%
    Income as
     Adjusted (a)     0.69      0.61    13.1     2.01      1.77    13.6
  Basic:
    Net Income        0.70      0.62    12.9     2.04      1.78    14.6
    Income as
     Adjusted (a)     0.70      0.62    12.9     2.04      1.79    14.0
  Dividend Declared  0.210     0.180    16.7    0.600     0.520    15.4
  Book Value         16.19     14.84     9.1    16.19     14.84     9.1
  Shares Outstanding
   (millions):
    Average -
     Diluted         226.2     228.9    -1.2    225.9     228.3    -1.1
    End of Period    223.1     226.1    -1.3    223.1     226.1    -1.3

  INCOME STATEMENT
   ($millions)
  Net Interest Income
   (FTE)            $289.3    $266.6     8.5%  $867.8    $810.9     7.0%
  Provision for Loan
   and Lease Losses    6.9       7.9   -12.7     25.1      53.2   -52.8

    Data Processing
     Services        239.0     166.3    43.7    622.4     481.4    29.3
    Item Processing   10.3      11.2    -8.0     32.6      31.0     5.2
    Trust Services    37.5      32.0    17.2    111.7      93.3    19.7
    Service Charge on
     Deposits         25.0      25.4    -1.6     75.6      76.8    -1.6
    Mortgage Banking   8.9      24.2   -63.2     27.5      63.5   -56.7
    Net Investment
     Securities Gains
     (Losses)          0.5      16.7     n.m.       -      15.7     n.m.
    All Other         46.7      49.2    -5.1    141.5     148.5    -4.7

  Total Non-Interest
   Revenues          367.9     325.0    13.2  1,011.3     910.2    11.1

    Salaries and
     Employee
     Benefits        231.5     199.4    16.1    647.3     587.4    10.2
    Occupancy and
     Equipment        50.8      40.3    26.1    142.6     133.0     7.2
    Intangible
     Amortization      8.3       3.4   144.1     19.2      17.8     7.9
    Other            117.5     166.9   -29.6    336.0     340.5    -1.3
  Total Non-Interest
   Expenses          408.1     410.0    -0.5  1,145.1   1,078.7     6.2

  Tax Equivalent
   Adjustment          8.2       7.9     3.8     24.0      23.8     0.8
  Pre-Tax Earnings   234.0     165.8    41.1    684.9     565.4    21.1
  Income Taxes        78.6      25.5   208.2    231.6     160.9    43.9

  Income as
   Adjusted (a)      155.4     140.3    10.8   $453.3    $404.5    12.1

  Adjustments (a)      0.0       0.0     n.m.     0.0      (1.5)    n.m.
  Net Income        $155.4    $140.3    10.8%  $453.3    $403.0    12.5%

  KEY RATIOS
  Net Interest Margin
   (FTE) / Avg.
   Earning Assets     3.42%     3.53%            3.57%     3.65%
  Interest Spread
   (FTE)              3.11      3.21             3.27      3.33

  Efficiency Ratio    62.2      69.4             61.0      62.7
  Efficiency Ratio
   without Metavante  49.0      60.6             49.0      52.5

  Return on Assets    1.63      1.66             1.67      1.63
  Return on Equity   17.58     16.92            17.64     16.85
  Return on Assets -
   Income as
   Adjusted (a)       1.63      1.66             1.67      1.63
  Return on Equity -
   Income as
   Adjusted (a)      17.58     16.92            17.64     16.91

  Equity / Assets
   (End of Period)    9.21      9.89             9.21      9.89

  Notes:  (a) See reconciliation of Income as Adjusted to Net Income.


  M&I Corporation
  Financial Information
  (unaudited)
                             As of
                      September September
                         30,       30,   Percent
   ASSETS ($millions)   2004      2003   Change
   Cash & Due From
    Banks                 $887     $866    2.4%
   Trading Securities       36       40  -10.0
   Short - Term
    Investments            162      213  -23.9
   Investment
    Securities           6,079    5,497   10.6
   Loans and Leases:
        Commercial
         Loans &
         Leases          8,326    7,279   14.4
        Commercial
         Real Estate     9,127    8,074   13.0
        Residential
         Real Estate     3,995    2,921   36.8
        Home Equity
         Loans & Lines   5,033    4,187   20.2
        Personal
         Loans and
         Leases          1,664    2,174  -23.5
   Total Loans and
    Leases              28,145   24,635   14.2
   Reserve for Loan &
    Leases Losses         (358)    (348)   2.9
   Premises and
    Equipment, net         461      435    6.0
   Goodwill and
    Intangibles          2,042    1,082   88.7
   Other Assets          1,526    1,329   14.8
   Total Assets        $38,980  $33,749   15.5%

     LIABILITIES &
     SHAREHOLDERS'
   EQUITY ($millions)
   Deposits:
        Noninterest
         Bearing        $4,753   $4,682    1.5%
        Bank Issued
         Interest
         Bearing
         Activity        9,835    9,912   -0.8
        Bank Issued
         Time            3,529    3,307    6.7
        Total Bank
         Issued
         Deposits       18,117   17,901    1.2
        Wholesale
         Deposits        6,769    4,408   53.6
   Total Deposits       24,886   22,309   11.6
   Short - Term
    Borrowings           4,622    4,366    5.9
   Long - Term
    Borrowings           4,486    2,694   66.5
   Other Liabilities     1,398    1,043   34.0
   Shareholders'
    Equity               3,588    3,337    7.5
   Total Liabilities
    &  Shareholders'
    Equity             $38,980  $33,749   15.5%

                       Three Months Ended         Nine Months Ended
                      September September        September September
                         30,       30,  Percent     30,       30,   Percent
                        2004      2003  Change     2004      2003   Change
    AVERAGE ASSETS
     ($millions)
   Cash & Due From
    Banks                 $853     $742   15.0%      $809     $751    7.7%
   Trading Securities       23       27  -14.8         23       23    0.0
   Short - Term
    Investments            166      260  -36.2        181      267  -32.2
   Investment
    Securities           5,935    5,157   15.1      5,819    5,152   12.9
   Loans and Leases:
        Commercial
         Loans &
         Leases          8,191    7,304   12.1      7,864    7,320    7.4
        Commercial
         Real Estate     8,926    8,000   11.6      8,611    7,817   10.2
        Residential
         Real Estate     3,794    2,961   28.1      3,509    2,885   21.6
        Home Equity
         Loans and
         Lines           4,894    4,100   19.4      4,674    4,074   14.7
        Personal
         Loans and
         Leases          1,695    2,231  -24.0      1,824    2,205  -17.3
   Total Loans and
    Leases              27,500   24,596   11.8     26,482   24,301    9.0
   Reserve for Loan
    & Leases Losses       (362)    (352)   2.8       (359)    (347)   3.5
   Premises and
    Equipment, net         458      438    4.6        444      441    0.7
   Goodwill and
    Intangibles          1,821    1,083   68.1      1,367    1,087   25.8
   Other Assets          1,622    1,489    8.9      1,584    1,452    9.1
   Total Assets        $38,016  $33,440   13.7%   $36,350  $33,127    9.7%

   Memo:
   Average Earning
    Assets             $33,624  $30,040           $32,505  $29,743
   Average Earning
    Assets Excluding
    Investment
    Securities
    Unrealized
    Gains/Losses       $33,616  $29,991           $32,467  $29,672

   AVG LIABILITIES &
     SHAREHOLDERS'
   EQUITY ($millions)
   Deposits:
        Noninterest
         Bearing        $4,638   $4,349    6.6%    $4,490   $4,096    9.6%
        Bank Issued
         Interest
         Bearing
         Activity        9,913   10,072   -1.6      9,967   10,081   -1.1
        Bank Issued
         Time            3,458    3,324    4.0      3,314    3,436   -3.6
        Total Bank
         Issued
         Deposits       18,009   17,745    1.5     17,771   17,613    0.9
        Wholesale
         Deposits        6,625    4,410   50.2      5,786    4,205   37.6
   Total Deposits       24,634   22,155   11.2     23,557   21,818    8.0
   Short - Term
    Borrowings           2,494    3,102  -19.6      3,058    3,304   -7.4
   Long - Term
    Borrowings           5,900    3,776   56.3      4,952    3,725   32.9
   Other Liabilities     1,470    1,117   31.6      1,350    1,083   24.7
   Shareholders'
    Equity               3,518    3,290    6.9      3,433    3,197    7.4
   Total Liabilities
    & Shareholders'
    Equity             $38,016  $33,440   13.7%   $36,350  $33,127    9.7%

   Memo:
   Average Interest
    Bearing
    Liabilities        $28,390  $24,684           $27,077  $24,751


  M&I Corporation
  Financial Information
  (unaudited)

                     Three Months Ended         Nine Months Ended
                    September September        September September
                       30,       30,    Percent   30,      30,    Percent
                      2004      2003    Change   2004     2003    Change
   CREDIT QUALITY (a)
   Net Charge-Offs
    ($millions)         $6.7      $7.9  -15.2%   $16.6    $43.5  -61.8%
   Net Charge-Offs /
    Average Loans &
    Leases              0.10%     0.13%           0.08%    0.24%
   Loan and Lease
    Loss  Reserve
    ($millions)       $358.1    $348.1    2.9%  $358.1   $348.1    2.9%
   Loan and Lease
    Loss  Reserve /
    Period-End  Loans
    & Leases            1.27%     1.41%           1.27%    1.41%
   Non-Performing
    Loans & Leases
    (NPL)($millions)  $142.5    $187.3  -23.9%  $142.5   $187.3  -23.9%
   NPL's / Period-End
    Loans & Leases      0.51%     0.76%           0.51%    0.76%
   Loan and Lease
    Loss Reserve /
    Non-Performing
    Loans & Leases       251%      186%            251%     186%

   MARGIN ANALYSIS (b)
   Loans and Leases:
        Commercial
         Loans &
         Leases         4.82%     4.55%           4.70%    4.64%
        Commercial
         Real  Estate   5.38      5.50            5.36     5.73
        Residential
         Real  Estate   5.48      5.72            5.49     6.05
        Home Equity
         Loans and
         Lines          5.15      5.49            5.24     5.75
        Personal
         Loans and
         Leases         5.09      5.23            5.07     5.50
   Total Loans and
    Leases              5.17      5.22            5.14     5.42
   Investment
    Securities          4.99      4.27            4.95     4.89
   Short - Term
    Investments         1.55      0.81            1.20     0.99
   Interest
    Income(FTE) /
    Avg. Interest
    Earning Assets      5.12%     5.02%           5.08%    5.29%
   Interest Bearing
    Deposits:
        Bank Issued
         Interest
         Bearing
         Activity       0.79%     0.64%           0.68%    0.79%
        Bank Issued
         Time           2.47      2.42            2.41     2.55
        Total Bank
         Issued
         Deposits       1.23      1.08            1.12     1.24
        Wholesale
         Deposits       1.96      1.42            1.77     1.61
   Total Interest
    Bearing Deposits    1.47      1.16            1.31     1.32
   Short - Term
    Borrowings          2.29      2.51            1.94     2.54
   Long - Term
    Borrowings          3.69      4.27            3.66     4.49
   Interest Expense /
    Avg. Interest
    Bearing
    Liabilities         2.01%     1.81%           1.81%    1.96%
   Net Interest
    Margin(FTE) /
    Avg. Earning
    Assets              3.42%     3.53%           3.57%    3.65%
   Interest Spread
    (FTE)               3.11%     3.21%           3.27%    3.33%

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

   Reconciliation of
    Income as Adjusted
    to Net Income

   Income as Adjusted $155.4    $140.3          $453.3   $404.5

   Acquisition and
    Transition
    Related
    Charges -
    Metavante            0.0       0.0             0.0     (1.5)

   Net Income         $155.4    $140.3          $453.3   $403.0


DATASOURCE: Marshall & Ilsley Corporation



CONTACT:  Mark Furlong, president M&I Marshall & Ilsley Bank,

[phone], or Don Wilson, senior vice president, corporate treasurer,

[phone], both of Marshall & Ilsley Corporation



Web site:  http://www.micorp.com/

http://www.mibank.com/ 

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