Bank of Montreal (TSX: BMO) details key earnings coverage ratios

Rhea-AI Filing Summary

Bank of Montreal filed a report providing updated earnings coverage ratios for the 12 months ended January 31, 2026 and October 31, 2025. These ratios show how many times the bank’s earnings can cover its interest and preferred share obligations.

For the period ended January 31, 2026, interest coverage on subordinated indebtedness was 27.56 times and grossed up dividend coverage on Class B preferred shares and other equity instruments was 23.90 times. Combined interest and grossed up dividend coverage on subordinated debt, preferred shares and other equity instruments was 13.05 times, slightly higher than 12.70 times for the period ended October 31, 2025.

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FAQ

What earnings coverage ratios did Bank of Montreal (BMO) report?

Bank of Montreal reported interest coverage of 27.56 times on subordinated indebtedness and combined interest and dividend coverage of 13.05 times for the 12 months ended January 31, 2026, indicating sizeable earnings relative to these obligations.

How did BMO’s earnings coverage change versus October 31, 2025?

Coverage ratios improved modestly. Interest coverage on subordinated indebtedness rose from 26.32 times to 27.56 times, and combined interest and dividend coverage increased from 12.70 times to 13.05 times, suggesting slightly stronger capacity to meet these fixed charges.

What were Bank of Montreal’s earnings used in the coverage ratios?

For interest coverage, BMO used earnings before interest on subordinated indebtedness and income tax of $12,490.51 million for the 12 months ended January 31, 2026, and $11,989.87 million for the 12 months ended October 31, 2025, as the earnings base.

What dividend requirements did BMO have on Class B preferred shares and other equity instruments?

The bank’s dividend requirements on Class B preferred shares and other equity instruments were $503.75 million for the 12 months ended January 31, 2026, and $488.22 million for the 12 months ended October 31, 2025, each adjusted to before-tax equivalents using disclosed effective tax rates.

How much were BMO’s combined interest and grossed up dividend requirements?

For the 12 months ended January 31, 2026, Bank of Montreal’s interest requirements on subordinated debt plus grossed up dividends on preferred shares and other equity instruments totaled $957.01 million, compared with $943.75 million for the 12 months ended October 31, 2025.

Why does Bank of Montreal disclose earnings coverage ratios on Form 6-K?

The bank discloses these ratios in accordance with Section 8.4 of National Instrument 44-102 – Shelf Distributions. They help investors gauge how comfortably BMO’s earnings cover interest on subordinated debt and dividends on preferred shares and other equity instruments.

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM 6-K

Report of Foreign Private Issuer

Pursuant to Rule 13a-16 or 15d-16

of the Securities Exchange Act of 1934

For the month of: February, 2026 Commission File Number: 001-13354

BANK OF MONTREAL

(Name of Registrant)

100 King Street West
1 First Canadian Place		129 rue Saint-Jacques
Toronto, Ontario		Montreal, Quebec
Canada, M5X 1A1		Canada, H2Y 1L6
(Executive Offices)		(Head Office)

Indicate by check mark whether the registrant files or will file annual reports under cover of Form 20-F or Form 40-F:

Form 20-F ☐   Form 40-F ☒

EXHIBIT INDEX

Exhibit		Description of Exhibit
99.1		Earnings Coverage Ratio

SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.

				BANK OF MONTREAL
				By:		/s/ Rahul Nalgirkar
				Name:		Rahul Nalgirkar
				Title:		Chief Financial Officer
Date: February 25, 2026				By:		/s/ Pascale Elharrar
				Name:		Pascale Elharrar
				Title:		Corporate Secretary

Exhibit 99.1

BANK OF MONTREAL

EXHIBIT TO FINANCIAL STATEMENTS FOR THE QUARTER ENDED

JANUARY 31, 2026

EARNINGS COVERAGE RATIOS

The information in this document is disclosed in accordance with Section 8.4 of National Instrument 44-102 – Shelf Distributions.

The following consolidated financial ratios for the Bank, are calculated for the 12 months ended January 31, 2026 and October 31, 2025.

		12 Months Ended January 31, 2026 Actual		12 Months Ended October 31, 2025 Actual
Interest coverage on subordinated indebtedness		27.56 times		26.32 times
Grossed up dividend coverage on Class B Preferred Shares and other equity instruments(1)		23.90 times		23.63 times
Interest and grossed up dividend coverage on subordinated indebtedness, Class B Preferred Shares and other equity instruments		13.05 times		12.70 times

Note:

⁽¹⁾  As at January 31, 2026 and October 31, 2025, there were no Class A Preferred Shares outstanding.

In calculating the earnings coverage ratios, foreign currency amounts have been converted to Canadian dollars using rates of exchange as at the end of each month. For the 12 month periods ending January 31, 2026 and October 31, 2025 the average monthly exchange rates were $1.3892 per US$1.00 and $1.4029 per US$1.00, respectively.

The Bank’s earnings before interest on subordinated indebtedness and income tax for the 12 months ended January 31, 2026 were $12,490.51 million, which is 27.56 times the Bank’s aggregate interest on subordinated indebtedness requirement for this period. The Bank’s earnings before interest on subordinated indebtedness and income tax for the 12 months ended October 31, 2025 were $11,989.87 million, which is 26.32 times the Bank’s aggregate interest on subordinated indebtedness requirement for this period.

The Bank’s dividend requirements on all of its Class B preferred shares and other equity instruments were $503.75 million for the 12 months ended January 31, 2026, adjusted to a before-tax equivalent using an effective tax rate of 24.66% and for the 12 months ended October 31, 2025 were $488.22 million, adjusted to a before-tax equivalent using an effective tax rate of 24.45%. The Bank’s earnings before income tax for the 12 months ended January 31, 2026 were $12,037.26 million, which is 23.90 times the Bank’s aggregate dividend and interest requirements for this period. The Bank’s earnings before income tax for the 12 months ended October 31, 2025 were $11,534.34 million, which is 23.63 times the Bank’s aggregate dividend and interest requirements for this period.

The Bank’s interest requirements for its subordinated indebtedness and grossed up dividends on its preferred shares and other equity instruments for the 12 months ended January 31, 2026 were $957.01 million and for the 12 months ended October 31, 2025 were $943.75 million. The Bank’s earnings before interest on subordinated indebtedness and income tax for the 12 months ended January 31, 2026 were $12,490.51 million, which is 13.05 times the Bank’s aggregate dividend and interest requirements for this period. The Bank’s earnings before interest on subordinated indebtedness and income tax for the 12 months ended October 31, 2025 were $11,989.87 million, which is 12.70 times the Bank’s aggregate dividend and interest requirements for this period.

The amounts and ratios reported above are derived from information in the unaudited interim consolidated financial statements for the three months ended January 31, 2026 and the audited consolidated financial statements for the year ended October 31, 2025.

Filing Exhibits & Attachments

1 document

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• EX-99.1 EX-99.1 7.8 KB