STOCK TITAN
  1. Home
  2. Sec-filings
  3. FNGD
  4. [6-K] BANK OF MONTREAL /CAN/ Current Report (Foreign Issuer)

Bank of Montreal (TSX: BMO) posts higher earnings coverage ratios

Filing Impact
(Neutral)
Filing Sentiment
(Neutral)
Form Type
6-K

Rhea-AI Filing Summary

Bank of Montreal reports updated earnings coverage ratios for the 12 months ended April 30, 2026 and October 31, 2025. Earnings before interest on subordinated indebtedness and income tax were $13,368.32 million for the April 2026 period and $11,989.87 million for the October 2025 period.

Interest coverage on subordinated indebtedness was 30.12 times for April 2026 compared with 26.32 times for October 2025. Grossed up dividend coverage on Class B preferred shares and other equity instruments was 25.74 times versus 23.63 times, and combined interest and dividend coverage was 14.13 times versus 12.70 times for the same comparative periods.

Positive

  • None.

Negative

  • None.
Interest coverage (Apr 2026) 30.12 times Earnings coverage on subordinated indebtedness, 12 months ended April 30, 2026
Interest coverage (Oct 2025) 26.32 times Earnings coverage on subordinated indebtedness, 12 months ended October 31, 2025
Grossed up dividend coverage (Apr 2026) 25.74 times Class B preferred shares and other equity instruments, 12 months ended April 30, 2026
Combined interest and dividend coverage (Apr 2026) 14.13 times Subordinated debt, Class B preferred shares and other equity instruments, 12 months ended April 30, 2026
Earnings before interest and tax (Apr 2026) $13,368.32 million 12 months ended April 30, 2026, before interest on subordinated indebtedness and income tax
Dividend requirements (Apr 2026) $502.12 million Class B preferred shares and other equity instruments, 12 months ended April 30, 2026, before-tax equivalent
Interest and grossed up dividends (Apr 2026) $945.95 million Interest on subordinated indebtedness and grossed up dividends, 12 months ended April 30, 2026
FX rate used (Apr 2026 period) $1.3775 per US$1.00 Average monthly exchange rate used in coverage calculations, 12 months ended April 30, 2026
earnings coverage ratios financial
"The following consolidated financial ratios for the Bank, are calculated for the 12 months ended April 30, 2026 and October 31, 2025."
subordinated indebtedness financial
"Interest coverage on subordinated indebtedness 30.12 times and 26.32 times."
Debt that carries lower priority for repayment than other borrowings, meaning holders are paid only after higher‑priority creditors are made whole if the borrower runs into financial trouble; think of it as standing at the back of a queue at a checkout. It matters to investors because it usually carries higher interest to compensate for greater risk, affects how much creditors recover in default, and influences a borrower’s overall credit profile and cost of borrowing.
grossed up dividend coverage financial
"Grossed up dividend coverage on Class B Preferred Shares and other equity instruments (1)."
Class B Preferred Shares financial
"Grossed up dividend coverage on Class B Preferred Shares and other equity instruments (1)."
National Instrument 44-102 – Shelf Distributions regulatory
"The information in this document is disclosed in accordance with Section 8.4 of National Instrument 44-102 – Shelf Distributions."

AI-generated analysis. How Rhea-AI works. Not financial advice.

See more from StockTitan in Google Search and AI answers. Adds StockTitan as a preferred source · opens Google
Add on Google
Form 6-K: How Foreign Companies Report to the SEC →

FAQ

What earnings coverage ratios did Bank of Montreal (BMO) report?
Bank of Montreal reported interest coverage on subordinated indebtedness of 30.12 times and combined interest and dividend coverage of 14.13 times for the 12 months ended April 30, 2026, compared with 26.32 times and 12.70 times, respectively, for the 12 months ended October 31, 2025.

How strong is Bank of Montreal (BMO)’s coverage of preferred dividends?
For the 12 months ended April 30, 2026, Bank of Montreal’s earnings before income tax covered grossed up dividends on Class B preferred shares and other equity instruments 25.74 times, compared with 23.63 times for the 12 months ended October 31, 2025, based on consolidated financial information.

What were Bank of Montreal (BMO)’s earnings used in these coverage ratios?
For the 12 months ended April 30, 2026, Bank of Montreal’s earnings before interest on subordinated indebtedness and income tax were $13,368.32 million, versus $11,989.87 million for the 12 months ended October 31, 2025, forming the basis for the reported earnings coverage ratios.

How much dividend and interest did Bank of Montreal (BMO) need to cover?
Bank of Montreal’s interest requirements on subordinated indebtedness and grossed up dividends on preferred shares and other equity instruments totaled $945.95 million for the 12 months ended April 30, 2026, compared with $943.75 million for the 12 months ended October 31, 2025, according to the disclosed calculations.

What exchange rates did Bank of Montreal (BMO) use in its coverage calculations?
In calculating its earnings coverage ratios, Bank of Montreal converted foreign currency amounts using average monthly exchange rates of $1.3775 per US$1.00 for the 12 months ended April 30, 2026 and $1.4029 per US$1.00 for the 12 months ended October 31, 2025.

Which financial statements underpin Bank of Montreal (BMO)’s coverage ratios?
The reported earnings coverage ratios are derived from Bank of Montreal’s unaudited interim consolidated financial statements for the three and six months ended April 30, 2026 and its audited consolidated financial statements for the year ended October 31, 2025, as referenced in the disclosure.
 
 

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: May, 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: May 27, 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

APRIL 30, 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 April 30, 2026 and October 31, 2025.

 

     12 Months Ended
April 30, 2026
Actual		    12 Months Ended
October 31, 2025
Actual
Interest coverage on subordinated indebtedness    30.12 times    26.32 times
Grossed up dividend coverage on Class B Preferred Shares and other equity instruments(1)    25.74 times    23.63 times
Interest and grossed up dividend coverage on subordinated indebtedness, Class B Preferred Shares and other equity instruments    14.13 times    12.70 times

Note:

 

(1)

As at April 30, 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 April 30, 2026 and October 31, 2025 the average monthly exchange rates were $1.3775 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 April 30, 2026 were $13,368.32 million, which is 30.12 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 $502.12 million for the 12 months ended April 30, 2026, adjusted to a before-tax equivalent using an effective tax rate of 24.68% 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 April 30, 2026 were $12,924.48 million, which is 25.74 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 April 30, 2026 were $945.95 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 April 30, 2026 were $13,368.32 million, which is 14.13 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 and six months ended April 30, 2026 and the audited consolidated financial statements for the year ended October 31, 2025.

Source: View Original Filing on SEC EDGAR

Filing Exhibits & Attachments

1 document

Press Releases