REG - Bank of Montreal - BMO Q1 2025 Earnings Coverage Ratio

Bank of MontrealAnnouncement

26/02/2025 07:00

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RNS Number : 4497Y  Bank of Montreal  25 February 2025

BANK OF MONTREAL

 

EXHIBIT TO FINANCIAL STATEMENTS FOR THE QUARTER ENDED

JANUARY 31, 2025

 

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, 2025 and October 31, 2024.

 

                                                                                    12 Months Ended January 31, 2025          12 Months Ended October 31, 2024
                                                                                    Actual                                    Actual
 Interest coverage on subordinated indebtedness                                      24.45 times                              21.88 times

 Grossed up dividend coverage on Class B Preferred Shares and other equity              22.88 times                           21.48 times
 instruments((1))

 Interest and grossed up dividend coverage on subordinated indebtedness, Class        12.07  times                            11.09 times
 B Preferred Shares and other equity instruments

 

Note:

((1)       ) As at January 31, 2025 and October 31, 2024, 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, 2025 and October 31,
2024 the average monthly exchange rates were $1.382 per US$1.00 and $1.3591
per US$1.00, respectively.

 

The Bank's earnings before interest on subordinated indebtedness and income
tax for the 12 months ended January 31, 2025 were $11,151.99 million, which is
24.45 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,
2024 were $9,982.12 million, which is 21.88 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 $467.46 million for the 12 months ended January
31, 2025, adjusted to a before-tax equivalent using an effective tax rate of
23.67% and for the 12 months ended October 31, 2024 were $443.50 million,
adjusted to a before-tax equivalent using an effective tax rate of 23.16%. The
Bank's earnings before income tax for the 12 months ended January 31, 2025
were $10,695.84 million, which is 22.88 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, 2024 were $9,525.83 million, which is
21.48 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, 2025 were $923.61 million and for the 12 months ended
October 31, 2024 were $899.79 million. The Bank's earnings before interest on
subordinated indebtedness and income tax for the 12 months ended January 31,
2025 were $11,151.99 million, which is 12.07 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, 2024 were $9,982.12 million, which is 11.09 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, 2025 and the audited consolidated financial statements for the
year ended October 31, 2024.

 

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