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| ☐ | Registration statement pursuant to Section 12 of the Securities Exchange Act of 1934 |
| ☒ | Annual report pursuant to Section 13(a) or 15(d) of the Securities Exchange Act of 1934 |
| For the fiscal year ended October 31, 2025 | Commi ssion File Number 001-13354 |
Title Of Each Class |
Trading Symbol |
Name Of Each Exchange On Which Registered | ||
Common Shares |
BMO |
New York Stock Exchange |
| Common Shares |
708,905,679 | |||
| Class B Preferred Shares Series 44 (Non-Viability Contingent Capital (NVCC)) |
16,000,000 | |||
| Class B Preferred Shares Series 48 (Non-Viability Contingent Capital (NVCC)) 1
|
1,250,000 | |||
| Class B Preferred Shares Series 49 (Non-Viability Contingent Capital (NVCC)) |
750,000 | |||
| Class B Preferred Shares Series 50 (Non-Viability Contingent Capital (NVCC)) |
500,000 | |||
| Class B Preferred Shares Series 51 (Non-Viability Contingent Capital (NVCC)) |
1,000,000 | |||
| Class B Preferred Shares Series 52 (Non-Viability Contingent Capital (NVCC)) |
650,000 | |||
| Class B Preferred Shares Series 53 (Non-Viability Contingent Capital (NVCC)) |
1,000,000 | |||
| Class B Preferred Shares Series 54 (Non-Viability Contingent Capital (NVCC)) |
750,000 | |||
| Class B Preferred Shares Series 55 (Non-Viability Contingent Capital (NVCC)) 2
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1,000,000 |
| DISCLOSURE CONTROLS AND PROCEDURES |
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| INTERNAL CONTROL OVER FINANCIAL REPORTING |
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| AUDIT AND CONDUCT REVIEW COMMITTEE FINANCIAL EXPERT |
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| CODE OF ETHICS |
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| PRINCIPAL ACCOUNTANT FEES AND SERVICES |
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| OFF-BALANCE SHEET ARRANGEMENTS |
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| CONTRACTUAL AND OTHER OBLIGATIONS |
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| IDENTIFICATION OF THE AUDIT AND CONDUCT REVIEW COMMITTEE |
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| SUMMARY OF SIGNIFICANT CORPORATE GOVERNANCE DIFFERENCES |
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| UNDERTAKING |
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| EXHIBIT INDEX |
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| Bank of Montreal Clawback and Recoupment Policy |
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| Annual Information Form |
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| Management’s Discussion and Analysis for the Fiscal Year Ended October 31, 2025 |
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| Consolidated Financial Statements for the Fiscal Year Ended October 31, 2025 |
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| Consent of Independent Registered Public Accounting Firm dated December 4, 2025 |
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| Section 302 Certifications of Chief Executive Officer |
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| Section 302 Certifications of Chief Financial Officer |
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| Section 906 Certifications |
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| Code of Conduct |
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| Inline Interactive Data File |
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| Cover Page Interactive Data File |
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| SIGNATURES |
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Exhibits |
Description | |
97.1 |
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99.1 |
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99.2 |
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99.3 |
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99.4 |
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99.5 |
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99.6 |
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99.7 |
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99.8 |
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101 |
Inline Interactive Data File (the instance document does not appear in the Interactive Data File because its XBRL tags are embedded within the Inline XBRL document) | |
104 |
Cover Page Interactive Data File (formatted as Inline XBRL and contained in Exhibit 101) | |
By: |
/s/ Tayfun Tuzun | |
Tayfun Tuzun | ||
Chief Financial Officer | ||
Date: December 4, 2025 | ||
Exhibit 99.1
BANK OF MONTREAL
ANNUAL INFORMATION FORM
FOR THE YEAR ENDED OCTOBER 31, 2025
Dated December 4, 2025
| Annual Information Form |
2025 Financial Statements11 |
2025 MD&A1 | ||||
| EXPLANATORY NOTES AND CAUTIONS |
2 | |||||
| Caution Regarding Forward-Looking Statements |
2 | 17 | ||||
| CORPORATE STRUCTURE |
3 | Note 26 | ||||
| GENERAL DEVELOPMENT OF THE BUSINESS |
3 | 18, 34-51 | ||||
| Three-Year History |
3 | |||||
| DESCRIPTION OF THE BUSINESS |
4 | |||||
| Business |
4 | Note 25 | 18, 34-51 | |||
| Supervision and Regulation in Canada |
4 | 59-61, 69, 102-103 | ||||
| Supervision and Regulation in the United States |
4 | 59-61, 69, 102-103, 111 | ||||
| International Supervision and Regulation |
5 | 59-61, 69, 102-103 | ||||
| Competition |
5 | |||||
| Sustainability and Climate Governance |
6 | 68-69, 105-107 | ||||
| Risk Factors |
6 | 67-107 | ||||
| DIVIDENDS |
6 | Note 16 | 64-65 | |||
| DESCRIPTION OF CAPITAL STRUCTURE |
6 | Notes 16 and 19 | 61-65 | |||
| Description of Common Shares |
6 | Note 16 | ||||
| Description of Preferred Shares |
7 | Note 16 | ||||
| Certain Conditions of the Class A Preferred Shares as a Class |
7 | Note 16 | ||||
| Certain Conditions of the Class B Preferred Shares as a Class |
7 | Note 16 | ||||
| Description of Other Equity Instruments – Additional Tier 1 Capital Notes |
8 | Note 16 | ||||
| Certain Provisions of the Additional Tier 1 Capital Notes |
8 | |||||
| Description of Other Equity Instruments – Limited Recourse Capital Notes |
8 | Note 16 | ||||
| Certain Provisions of the Limited Recourse Capital Notes |
9 | |||||
| Restraints on Bank Shares under the Bank Act |
10 | |||||
| Ratings |
11 | Note 7 | 93 | |||
| MARKET FOR SECURITIES |
12 | |||||
| Trading Price and Volume |
12 | |||||
| Prior Sales |
12 | Notes 15 and 16 | 57 | |||
| ESCROWED SECURITIES AND SECURITIES SUBJECT TO CONTRACTUAL RESTRICTION ON TRANSFER |
13 | |||||
| DIRECTORS AND EXECUTIVE OFFICERS |
13 | |||||
| Board of Directors |
13 | |||||
| Board Committee Members |
14 | |||||
| Executive Officers |
14 | |||||
| Shareholdings of Directors and Executive Officers |
14 | |||||
| Additional Disclosure for Directors and Executive Officers |
14 | |||||
| LEGAL PROCEEDINGS AND REGULATORY ACTIONS |
15 | Note 24 | ||||
| TRANSFER AGENT AND REGISTRAR |
15 | |||||
| INTERESTS OF EXPERTS |
15 | |||||
| AUDIT AND CONDUCT REVIEW COMMITTEE INFORMATION |
15 | |||||
| Composition of the Audit and Conduct Review Committee |
15 | |||||
| Shareholders’ Auditors Pre-Approval Policies and Procedures and Fees |
16 | 112 | ||||
| ADDITIONAL INFORMATION |
16 | |||||
| APPENDIX I: BANK OF MONTREAL AUDIT AND CONDUCT REVIEW COMMITTEE CHARTER |
I-1 | |||||
| APPENDIX II: CREDIT RATING CATEGORIES |
II-1 | |||||
1 As indicated, parts of the Bank’s Consolidated Financial Statements (2025 Financial Statements) and Management’s Discussion and Analysis (2025 MD&A) for the fiscal year ended October 31, 2025 are incorporated by reference into this Annual Information Form. The 2025 Financial Statements and the 2025 MD&A are available on SEDAR+ (www.sedarplus.ca).
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EXPLANATORY NOTES AND CAUTIONS
Unless specifically stated otherwise in this Annual Information Form:
| ● | all amounts are in Canadian dollars |
| ● | BMO Financial Group, the Bank, BMO, we, or our means Bank of Montreal and, as applicable, its subsidiaries |
| ● | information is as at October 31, 2025 |
Caution Regarding Forward-Looking Statements
Bank of Montreal’s public communications often include written or oral forward-looking statements. Statements of this type are included in this document, and may be included in other filings with Canadian securities regulators or the U.S. Securities and Exchange Commission, or in other communications. All such statements are made pursuant to the “safe harbor” provisions of, and are intended to be forward-looking statements under, the United States Private Securities Litigation Reform Act of 1995 and any applicable Canadian securities legislation. Forward-looking statements in this document may include, but are not limited to, statements with respect to our objectives and priorities for fiscal 2026 and beyond, our strategies or future actions, our targets and commitments (including with respect to net zero emissions), expectations for our financial condition, capital position, the regulatory environment in which we operate, the results of, or outlook for, our operations or the Canadian, U.S. and international economies, and include statements made by our management. Forward-looking statements are typically identified by words such as “will”, “would”, “should”, “believe”, “expect”, “anticipate”, “project”, “intend”, “estimate”, “plan”, “goal”, “commit”, “target”, “may”, “might”, “schedule”, “forecast”, “outlook”, “timeline”, “suggest”, “seek” and “could” or negative or grammatical variations thereof.
By their nature, forward-looking statements require us to make assumptions and are subject to inherent risks and uncertainties, both general and specific in nature. There is significant risk that predictions, forecasts, conclusions or projections will not prove to be accurate, that our assumptions may not be correct, and that actual results may differ materially from such predictions, forecasts, conclusions or projections. We caution readers of this document not to place undue reliance on our forward-looking statements, as a number of factors – many of which are beyond our control and the effects of which can be difficult to predict – could cause actual future results, conditions, actions or events to differ materially from the targets, expectations, estimates or intentions expressed in the forward-looking statements.
The future outcomes that relate to forward-looking statements may be influenced by many factors, including, but not limited to: general economic and market conditions in the countries in which we operate, including labour challenges and changes in foreign exchange and interest rates; political conditions, including changes relating to, or affecting, economic or trade matters, including tariffs, countermeasures and tariff mitigation policies; changes to our credit ratings; cyber and information security, including the threat of data breaches, hacking, identity theft and corporate espionage, as well as the possibility of denial of service resulting from efforts targeted at causing system failure and service disruption; technology resilience, innovation and competition; failure of third parties to comply with their obligations to us; disruptions of global supply chains; environmental and social risk, including climate change; the Canadian housing market and consumer leverage; inflationary pressures; changes in laws, including tax legislation and interpretation, or in supervisory expectations or requirements, including capital, interest rate and liquidity requirements and guidance, including if the bank were designated a global systemically important bank, and the effect of such changes on funding costs and capital requirements; changes in monetary, fiscal or economic policy; weak, volatile or illiquid capital or credit markets; the level of competition in the geographic and business areas in which we operate; exposure to, and the resolution of, significant litigation or regulatory matters, our ability to successfully appeal adverse outcomes of such matters and the timing, determination and recovery of amounts related to such matters; the accuracy and completeness of the information we obtain with respect to our customers and counterparties; our ability to successfully execute our strategic plans, complete acquisitions or dispositions and integrate acquisitions, including obtaining regulatory approvals, and realize any anticipated benefits from such plans and transactions; critical accounting estimates and judgments, and the effects of changes in accounting standards, rules and interpretations on these estimates; operational and infrastructure risks, including with respect to reliance on third parties; global capital markets activities; the emergence or continuation of widespread health emergencies or pandemics, and their impact on local, national or international economies, as well as their heightening of certain risks that may affect our future results; the possible effects on our business of war or terrorist activities; natural disasters, such as earthquakes or flooding, and disruptions to public infrastructure, such as transportation, communications, power or water supply; and our ability to anticipate and effectively manage risks arising from all of the foregoing factors.
We caution that the foregoing list is not exhaustive of all possible factors. Other factors and risks could adversely affect our results. For further information, please refer to the discussion in the Risks That May Affect Future Results section, and the sections related to credit and counterparty, market, liquidity and funding, operational non-financial, legal and regulatory compliance, strategic, environmental and social, and reputation risk in the Enterprise-Wide Risk Management section of the 2025 MD&A, as may be updated by quarterly reports, all of which outline certain key factors and risks that may affect our future results. Investors and others should carefully consider these factors and risks, as well as other uncertainties and potential events, and the inherent uncertainty of forward-looking statements. We do not undertake to update any forward-looking statements, whether written or oral, that may be made from time to time by the organization or on its behalf, except as required by law. The forward-looking information contained or incorporated by reference in this document is presented for the purpose of assisting shareholders and analysts in understanding our financial position as at and for the periods ended on the dates presented, as well as our strategic priorities and objectives, and may not be appropriate for other purposes.
Material economic assumptions underlying the forward-looking statements contained or incorporated by reference in this document include those set out in the Economic Developments and Outlook section of the 2025 MD&A as well as in the Allowance for Credit Losses section of the 2025 MD&A, each as may be updated by quarterly reports. Assumptions about the performance of the Canadian and U.S. economies, as well as overall market conditions and their combined effect on our business, are material factors we consider when determining our strategic priorities, objectives and expectations for our business. In determining our expectations for economic growth, we primarily consider historical economic data, past relationships between economic and financial variables, changes in government policies, and the risks to the domestic and global economy.
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CORPORATE STRUCTURE
Bank of Montreal started business in Montreal in 1817 and was incorporated in 1821 by an Act of Lower Canada as the first Canadian chartered bank. Since 1871, the Bank has been a chartered bank under the Bank Act (Canada) (the Bank Act) and is named in Schedule I of the Bank Act. The Bank Act is the charter of the Bank and governs its operations.
The Bank’s head office is 129 rue Saint Jacques, Montreal, Québec, H2Y 1L6. Its executive offices are 100 King Street West, 1 First Canadian Place, Toronto, Ontario, M5X 1A1.
Bank of Montreal brands the organization’s member companies as BMO Financial Group. Note 26 of the 2025 Financial Statements lists the intercorporate relationships among Bank of Montreal and its significant subsidiaries. The Bank incorporates this Note herein by reference. These subsidiaries are incorporated or organized under the laws of the state or country of their principal office, except for: BMO Financial Corp. and BMO Capital Markets Corp., which are incorporated under the laws of the state of Delaware, United States.
GENERAL DEVELOPMENT OF THE BUSINESS
Three-Year History
On June 8, 2022, BMO announced the appointment of Piyush Agrawal as Deputy Chief Risk Officer effective July 1, 2022 and, after a transition period with Patrick Cronin, became Chief Risk Officer effective November 1, 2022.
On February 1, 2023, BMO completed the acquisition of Bank of the West and its subsidiaries from BNP for a cash purchase price of US$13.8 billion.
On February 15, 2023, BMO announced the appointment of Nadim Hirji as Group Head, BMO Commercial Bank, North America and Co-Head, Personal and Commercial Banking, effective March 1, 2023.
On April 20, 2023, BMO announced the appointment of Darrel Hackett as U.S. Chief Executive Officer of BMO Financial Group, President & CEO of BMO Bank N.A., and CEO of BMO’s U.S. holding company, BMO Financial Corp., effective June 1, 2023.
On June 1, 2023, BMO completed the acquisition of the AIR MILES Reward Program (AIR MILES) business of LoyaltyOne Co. for a cash purchase price of US$160 million. The AIR MILES business operates as a wholly-owned subsidiary of BMO.
On August 30, 2023, BMO announced the appointment of Hazel Claxton, former Executive Vice-President and Chief Human Resources Officer of Morneau Shepell Inc. (now part of TELUS Health), to its Board of Directors, effective August 30, 2023.
On October 10, 2023, BMO announced the appointment of Alan Tannenbaum as Chief Executive Officer & Group Head, BMO Capital Markets, effective November 1, 2023.
On October 29, 2024, BMO announced the appointment of Diane L. Cooper and Brian McManus to its Board of Directors, effective October 28, 2024. Ms. Cooper was formerly President and CEO of GE Capital’s Commercial Distribution business and an officer of GE Company. Mr. McManus is the Executive Chair of Polycor Inc., a global leader in the natural stone industry.
On June 5, 2025, BMO announced the following appointments: Aron Levine was appointed Group Head and President, BMO, U.S.; Nadim Hirji was appointed Vice-Chair, BMO Commercial Banking; Sharon Haward-Laird was appointed Group Head, Canadian Commercial Banking and North American Shared Services and Co-Head, Canadian Personal & Commercial Banking; Mat Mehrotra was appointed Group Head, Canadian Personal & Business Banking and Co-Head, Canadian Personal & Commercial Banking; Mona Malone was appointed Chief Administrative Officer and Chief Human Resources Officer; Paul Noble was appointed General Counsel and Group Head, Legal & Regulatory Compliance. Each of these appointments was effective July 7, 2025.
On September 17, 2025, BMO announced the appointment of Rahul Nalgirkar as Chief Financial Officer of BMO Financial Group effective January 1, 2026, as successor to Tayfun Tuzun, who announced his intention to retire in early 2026.
On October 16, 2025, BMO entered into a definitive agreement to sell 138 BMO branches in certain U.S. markets to First-Citizens & Trust Company (First Citizens Bank). The transaction is expected to close in mid-calendar 2026, subject to regulatory approvals and customary closing conditions.
On November 1, 2025, BMO completed the acquisition of Burgundy Asset Management Ltd. (Burgundy), a leading independent wealth manager in Canada, providing discretionary investment management for private clients, foundations, endowments, pensions and family offices. The purchase price was $625 million, payable in shares of a wholly-owned subsidiary of BMO that are exchangeable into BMO common shares, including a $125 million holdback to be paid subject to Burgundy maintaining certain assets under management 18 months post-closing. An earn-out component may also be paid in the future based on the achievement of certain growth targets.
On December 4, 2025, BMO announced the appointment of Tammy L. Brown, former Partner of KPMG LLP, to its Board of Directors, effective December 4, 2025.
During the years ended October 31, 2023 and 2024, the Bank did not have share buyback programs in place and did not purchase any of its common shares for cancellation. On January 17, 2025, the Bank announced a share buyback program to purchase up to 20 million common shares for cancellation (January 2025 program). On September 2, 2025, the Bank announced the termination of the January 2025 program effective September 4, 2025 and a new share buyback program to purchase up to 30 million common shares for cancellation commencing September 5, 2025, and ending no later than September 4, 2026 (September 2025 program). During the year ended October 31, 2025, the Bank purchased and cancelled 16.4 million common shares under the January 2025 program before its termination and 5.8 million common shares under the September 2025 program, for a total of 22.2 million common shares.
For additional information on the general development of BMO’s business and its strategies for the upcoming year, see pages 18 and 34 to 51 of the 2025 MD&A, which pages the Bank incorporates herein by reference.
This Three-Year History section contains forward-looking statements. Please see the Caution Regarding Forward-Looking Statements on page 2.
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DESCRIPTION OF THE BUSINESS
Business
BMO Financial Group is a highly diversified financial services provider based in North America, providing a broad range of personal and commercial banking, wealth management, global markets and investment banking products and services directly and through Canadian and non-Canadian subsidiaries, offices, and branches. As at October 31, 2025, BMO had more than 53,000 full-time equivalent employees. The Bank serves its clients through more than 1,800 bank branches, BMO automated banking machines, as well as online and mobile digital banking platforms. It operates in Canada, the United States and select markets globally. BMO Financial Corp. (BFC) is headquartered in Chicago and wholly-owned by Bank of Montreal. BFC operates primarily through its subsidiary BMO Bank N.A. (BBNA), which provides banking, financing, investing, and cash management services in the United States. BMO provides a range of investment dealer services through entities, including BMO Nesbitt Burns Inc., a major fully integrated Canadian investment dealer, and BMO Capital Markets Corp., Bank of Montreal’s wholly-owned registered broker dealer in the United States.
BMO conducts business through four operating segments: Canadian Personal and Commercial Banking; U.S. Banking; Wealth Management; and Capital Markets; supported by Corporate Services, including Technology and Operations.
For additional information regarding BMO’s businesses, see pages 18 and 34 to 51 of the 2025 MD&A and Note 25 of the 2025 Financial Statements. The Bank incorporates these pages and Note herein by reference.
This Business section contains forward-looking statements. Please see the Caution Regarding Forward-Looking Statements on page 2.
Supervision and Regulation in Canada
Bank of Montreal’s activities in Canada are governed by the Bank Act.
Under the Bank Act, a bank can operate its regular banking business as well as some additional activities, such as dealing with real property and various financial technology and information services. A bank is restricted when it undertakes certain activities, including fiduciary activities, dealing in securities, insurance activities, and personal property leasing. For example, other than for authorized types of insurance, a bank may not offer insurance products through its branch system or bank website.
The Bank Act grants a bank broad power to invest in the securities of other corporations and entities, but limits substantial investments. Under the Bank Act, a bank generally has a substantial investment in a body corporate when (1) the bank and entities controlled by the bank beneficially own more than 10% of the voting shares of the body corporate or (2) the bank and entities controlled by the bank beneficially own shares representing more than 25% of the total shareholders’ equity of the body corporate. A bank can have a substantial investment in entities that meet the substantial investment requirements as set out in Part IX of the Bank Act. In certain cases, the Minister of Finance or the Superintendent of Financial Institutions (Canada) (the Superintendent) must approve before a bank can make an investment.
The Superintendent is responsible to the Minister of Finance for administering the Bank Act. The Superintendent provides guidelines for disclosing a bank’s financial information. The Superintendent must also examine each bank annually to ensure compliance with the Bank Act and that each bank is in sound financial condition and has adequate policies and procedures to protect itself against threats to its integrity or security. The Superintendent’s examination report is submitted to the Minister of Finance.
The Bank’s Canadian trust, loan and insurance subsidiaries are federally regulated financial institutions governed by the Trust and Loan Companies Act (Canada) and the Insurance Companies Act (Canada), respectively, and under provincial laws in respect of their activities in the provinces. The Bank and its Canadian trust, loan and insurance subsidiaries are also subject to regulation by the Financial Consumer Agency of Canada (the FCAC). The FCAC enforces consumer-related provisions of the federal statutes which govern these financial institutions. Certain activities of the Bank and its subsidiaries acting as securities brokers, dealers, underwriters, advisors and investment fund managers are regulated in Canada under provincial securities legislation and, in some cases, by a national self-regulatory organization (the Canadian Investment Regulatory Organization).
Under Canadian bank resolution powers, the Canada Deposit Insurance Corporation (CDIC) may, in circumstances where the Bank has ceased, or is about to cease, to be viable, assume temporary control or ownership of the Bank and may be granted broad powers by one or more orders of the Governor in Council (Canada), including the power to sell or dispose of all or a part of the assets of the Bank, and the power to carry out or cause the Bank to carry out a transaction or a series of transactions the purpose of which is to restructure the business of the Bank. As part of the Canadian bank resolution powers, certain provisions of, and regulations under the Bank Act, the Canada Deposit Insurance Corporation Act (CDIC Act) and certain other Canadian federal statutes pertaining to banks (collectively, the “Bail-in Regime”) provide for a bank recapitalization regime for banks designated by the Superintendent as domestic systemically important banks. Effective September 23, 2018, under the Bail-in Regime, subject to an order of the Governor in Council (Canada) having been issued, CDIC may, having assumed temporary control or ownership of the Bank, amongst other actions, carry out a conversion, by converting or causing the Bank to convert, in whole or in part – by means of a transaction or series of transactions and in one or more steps – the shares and liabilities of the Bank that are subject to the Bail-in Regime into common shares of the Bank or any of its affiliates. For a more detailed description of Canadian bank resolution powers and the consequent risk factors attaching to certain liabilities of the Bank, reference is made to https://www.bmo.com/ir/files/F18%20Files/Bail_In_TLAC_Disclosure.pdf. The information on the Bank’s website does not form a part of this Annual Information Form.
Additional information about supervision and regulation in Canada is found under the headings “Regulatory Capital Requirements”, “Regulatory Capital and Total Loss Absorbing Capacity Ratios”, “Regulatory Capital and Total Loss Absorbing Capacity Elements” and “Regulatory Capital Developments” in the Enterprise-Wide Capital Management section on pages 59 to 61, “Regulatory Environment and Changes” in the Risks That May Affect Future Results section on page 69, and “Legal and Regulatory Compliance Risk” on pages 102 to 103 of the 2025 MD&A, which pages the Bank incorporates herein by reference.
Supervision and Regulation in the United States
In the United States, the operations of Bank of Montreal and its subsidiaries are supervised, regulated, and examined by regulatory and government agencies at the federal and state level. As a foreign bank, Bank of Montreal is subject to various U.S. laws and regulations, including the United States International Banking Act of 1978, the United States Bank Holding Company Act of 1956, and related regulations. The Board of Governors of the Federal Reserve System, including the Federal Reserve Banks (the Federal Reserve), and state banking regulators oversee Bank of Montreal’s branches and agency operations in the United States. The U.S. Securities and Exchange Commission (the SEC), the Financial Industry Regulatory Authority, and state securities regulators regulate Bank of Montreal’s broker-dealer subsidiaries. The SEC and state securities regulators regulate Bank of Montreal’s registered investment advisor subsidiaries.
Bank of Montreal and its subsidiaries own two Federal Deposit Insurance Corporation (FDIC) insured depository institutions in the United States, BBNA and BMO Harris Central N.A. (BHC). BBNA provides banking, financing, investing, and cash management services across the United States. BHC provides limited cash management services.
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They are both supervised and regulated by the Office of the Comptroller of the Currency (OCC). The Federal Reserve generally needs to approve acquiring (a) more than 5% of voting shares, (b) control, or (c) all (or substantially all) of the assets of a bank holding company, bank, or savings association.
The Bank is also subject to the Dodd-Frank Wall Street Reform and Consumer Protection Act (Dodd-Frank) and related regulations. Dodd-Frank provides for consumer protections, regulation of over-the-counter derivatives markets, restrictions on proprietary trading and the ownership and sponsorship of private investment funds by banks and their affiliates (referred to as the Volcker Rule), imposition of heightened prudential standards, and broader application of leverage and risk-based capital requirements.
Bank of Montreal is subject to the Federal Reserve’s rule regarding the supervision and regulation of foreign banking organizations (FBO Rule), promulgated to implement Dodd Frank’s requirements for enhanced prudential standards for the U.S. operations of non-U.S. banks, such as BMO. The rule establishes requirements relating to an intermediate holding company structure, risk-based capital and leverage requirements, capital stress testing requirements, U.S. risk management and risk governance, liquidity risk management and liquidity stress testing frameworks.
BMO Financial Corp. (BFC) is a Category III institution under the Enhanced Prudential Standards issued by the Federal Reserve Board (FRB) and is required to meet certain regulatory standards related to capital, liquidity and risk management, including complying with FRB single counterparty credit limits. BFC is also subject to the Comprehensive Capital Analysis and Review and Dodd-Frank Act Stress Test requirements of the FRB on an annual basis.
OCC guidelines establish heightened standards for large national banks with average total consolidated assets of US$50 billion or more, including BBNA. The guidelines set out minimum standards for the design and implementation of a bank’s risk governance framework and minimum standards for oversight of that framework by a bank’s board of directors. The framework must ensure the bank’s risk profile is easily distinguished and separate from that of its parent for risk management purposes. A bank’s board of directors is responsible for informed oversight of, and providing credible challenge to, management’s risk management recommendations and decisions.
Additional information about supervision and regulation in the United States is found under the headings “Regulatory Capital Requirements”, “Regulatory Capital Developments” and “Regulatory Capital and Total Loss Absorbing Capacity Review” in the Enterprise-Wide Capital Management section on pages 59 to 61, “Regulatory Environment and Changes” in the Risks That May Affect Future Results section on page 69, “Legal and Regulatory Compliance Risk” on pages 102 to 103, and “Other Regulatory Developments” on page 111 of the 2025 MD&A, which pages the Bank incorporates herein by reference.
This Supervision and Regulation in the United States section contains forward-looking statements. Please see the Caution Regarding Forward-Looking Statements on page 2.
International Supervision and Regulation
Outside Canada and the U.S., each of Bank of Montreal’s branches, agencies and subsidiaries must comply with the regulatory requirements of the country or jurisdiction where it conducts business. These include the Basel Committee on Banking Supervision capital, liquidity and prudential rules (Basel III), or local variations on Basel III, which are intended to strengthen the banking sector’s capital and liquidity frameworks. Since the first quarter of 2013, regulatory capital requirements for Bank of Montreal have been determined on a Basel III basis as advised by the Superintendent. Additional information about international supervision and regulation is found under the headings “Regulatory Capital Requirements”, “Regulatory Capital and Total Loss Absorbing Capacity Ratios”, “Regulatory Capital and Total Loss Absorbing Capacity Elements” and “Regulatory Capital Developments” in the Enterprise-Wide Capital Management section on pages 59 to 61, “Regulatory Environment and Changes” in the Risks That May Affect Future Results section on page 69, and “Legal and Regulatory Compliance Risk” on pages 102 to 103 of the 2025 MD&A, which pages the Bank incorporates herein by reference.
Competition
Canada’s financial services industry is highly competitive. It includes domestic banks and foreign bank subsidiaries, branches, and lending branches, as well as trust companies, credit unions, online and full-service brokerages, investment dealers, insurance companies, mutual fund dealers, and large monoline financial institutions, as well as non-bank competitors, among others. Bank of Montreal competes with most of these companies in some form across its businesses. However, the Bank’s range of services compares most directly to those of the other five major Canadian banks, and they are direct competitors in almost all the Bank’s businesses and markets in Canada. Bank of Montreal is the third largest chartered bank in Canada and seventh largest in North America as measured by market capitalization, as at October 31, 2025.
The six major banks play a prominent role in the Canadian banking system, each maintaining an extensive branch network, augmented by automated banking machines, dedicated contact centres and digital and mobile banking platforms. The industry is considered mature with moderate growth. Although the major banks offer similar products and services, they compete on product offerings, pricing, service models, digital capabilities and client experience, with a goal of attracting and retaining clients, gaining a strategic advantage and growing market share and scale. The financial services industry continues to operate in a rapidly changing environment as the advancement of technological capabilities is shaping the future of everyday banking for individuals and businesses.
The financial services landscape in the United States is also highly competitive. As a top 10 full-service U.S. bank1, BMO offers Personal, Commercial, Wealth Management and Capital Markets services and national digital platforms, competing with large U.S. banks, regional banks as well as community banks and non-bank financial service providers.
In Canadian Personal and Commercial Banking, BMO serves clients across Canada. Canadian Personal and Business Banking (Canadian P&BB) provides clients with a wide range of banking solutions, including deposits, lending, cash management, everyday financial and investment advice and other banking services, with a focus on providing clients with an exceptional experience and helping them make real financial progress. Canadian P&BB serves clients across Canada through integrated branch, contact centre and digital channels. Canadian Commercial Banking provides clients with a comprehensive range of commercial products and services, including a variety of financing options and treasury and payment solutions, as well as risk management products.
U.S. Banking includes U.S. Personal and Business Banking (P&BB), U.S. Commercial Banking and U.S. Private Wealth, and serves clients across the United States. U.S. P&BB provides clients with a wide range of products and services, including deposits, home lending, consumer credit, small business lending, credit cards and cash management, with a focus on providing exceptional client experience and helping clients make real financial progress. U.S. P&BB serves clients through an integrated network of branches, contact centres, digital banking platforms, with nationwide access to BMO and Allpoint® automated teller machines. U.S. Commercial Banking offers a range of commercial products and services, including a variety of financing options, treasury and payment solutions and risk management products. U.S. Private Wealth provides a suite of financial services and wealth management solutions to mass affluent, high net worth and ultra-high net worth individuals, families and business owners.
Wealth Management serves a range of clients across Canada, from individuals and families to business owners and institutions, and offers a wide spectrum of wealth, asset management and insurance products and services. BMO competes with domestic banks, insurance companies, trust companies, global private banks, investment counselling and advisory firms, and investment fund and asset management companies, among others. Private Wealth provides full-service investing, banking and wealth advisory services to mass affluent, high net worth and ultra-high net worth clients in Canada. BMO InvestorLine provides a range of digital investing services that compete with online brokerages and digital advice providers in Canada.
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Global Asset Management provides investment management services in Canada to institutional, retail and high net worth investors, offering a range of innovative, client-focused solutions and strategies to help clients meet their investment objectives. BMO Insurance competes with Canadian insurance companies in providing individual life, critical illness, annuity products, segregated funds and pension de-risking solutions.
Capital Markets offers a range of products and services to corporate, institutional and government clients, including investment and corporate banking services, as well as global markets sales and trading solutions. It primarily focuses on the North American market and select global markets and competes with a diverse range of competitors, including large money centre banks and boutique investment firms. Investment and Corporate Banking offers debt and equity capital-raising services to clients, as well as loan origination and syndication, balance sheet management solutions and treasury management services. It also provides clients with strategic advice on mergers and acquisitions, restructurings and recapitalizations, trade finance and risk mitigation services, along with a wide range of banking and other operating services tailored to North American and international financial institutions. Global Markets offers research and access to financial markets for institutional, corporate and retail clients through an integrated suite of sales and trading solutions related to debt, foreign exchange, interest rates, credit, equities, securitization and commodities. New product development and origination services are also offered, as well as risk management and advisory services for hedging strategies, including in interest rates, foreign exchange rates and commodities prices. In addition, Global Markets provides funding and liquidity management services to clients.
1 Top 10 U.S. Banks by assets as at October 31, 2025: JP Morgan, Bank of America, Citibank, Wells Fargo, U.S. Bank, PNC Bank, Truist Bank, The Toronto-Dominion Bank, Capital One, Bank of Montreal.
Sustainability and Climate Governance
The Bank publishes Sustainability and Climate Reporting, including Public Accountability Statements, outlining how the Bank is addressing environmental, social, and governance topics. Other related information is available on the Bank’s website, www.bmo.com. The information on the Bank’s website does not form a part of this Annual Information Form. Additional information about the Bank’s environmental and social risk governance and management is under the heading “Environmental and Social Risk” in the Risks That May Affect Future Results section on pages 68 to 69 and “Environmental and Social Risk” in the Enterprise-Wide Risk Management section on pages 105 to 107 of the 2025 MD&A, which pages the Bank incorporates herein by reference.
Risk Factors
A description of certain key factors and risks faced by the Bank and its businesses can be found in the “Enterprise-Wide Risk Management” section on pages 67 to 107 of the 2025 MD&A, which pages the Bank incorporates herein by reference.
DIVIDENDS
You can find information about the Bank’s dividends paid or payable per share on the common shares and each outstanding series of preferred shares in each of the three most recently completed years under the heading “Common Shares and NVCC Instruments” on pages 64 to 65 of the 2025 MD&A, which pages the Bank incorporates herein by reference. Information about restrictions on the payment of dividends appears under the heading “Share Redemption and Dividend Restrictions” in Note 16 of the 2025 Financial Statements, which Note is incorporated herein by reference.
The Bank cannot (a) declare dividends on its preferred or common shares if paying those dividends would contravene the capital adequacy, liquidity, or other regulations under the Bank Act; (b) pay common share dividends unless the Bank has paid all dividends declared and payable on its preferred shares or set aside sufficient funds to do so; and (c) in certain circumstances, pay Class B Preferred Share dividends unless the Bank pays dividends on the Class B Preferred Shares Series 49 (NVCC), Class B Preferred Shares Series 51 (NVCC), Class B Preferred Shares Series 53 (NVCC), Class B Preferred Shares Series 54 (NVCC) and Class B Preferred Shares Series 55 (NVCC) (each as defined below). In the event that interest due and payable on the Bank’s Additional Tier 1 Capital Notes (as defined below) is not paid in full, the Bank will not declare dividends on its common shares or preferred shares or, subject to certain exceptions, redeem, purchase or otherwise retire such shares until the month commencing after such interest payments have been made in full. The Board of Directors determines the amount and payment of future dividends. The determination by the Board of Directors depends on the Bank’s operations, financial condition, cash requirements, future regulatory restrictions on the payment of dividends, and other factors the Board of Directors finds relevant. You can find information about the Bank’s dividends and dividend payout range on page 65 of the 2025 MD&A, which page the Bank incorporates herein by reference.
Currently, these limitations do not restrict the payment of dividends on common or preferred shares.
DESCRIPTION OF CAPITAL STRUCTURE
The following summarizes certain provisions of the Bank’s common shares, preferred shares, Additional Tier 1 Capital Notes and Limited Recourse Capital Notes. This summary is qualified in its entirety by the Bank’s by-laws and the actual terms and conditions of such securities. For more detail on the Bank’s capital structure, see pages 61 to 65 of the 2025 MD&A and Notes 16 and 19 of the 2025 Financial Statements. The Bank incorporates those pages and Notes herein by reference.
Description of Common Shares
The authorized capital of the Bank includes an unlimited number of common shares without nominal or par value for unlimited consideration. The holders of common shares are entitled to:
| (i) | Vote at all Bank shareholders’ meetings, except for meetings where only holders of a specified class or series of shares are entitled to vote. |
| (ii) | Receive dividends as and when declared by the Board of Directors, subject to the preference of the Bank’s holders of preferred shares. |
| (iii) | Receive the remaining property of the Bank if it is liquidated, dissolved, or wound up, only after paying the Bank’s holders of preferred shares and paying all outstanding debt. |
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Description of Preferred Shares
The authorized capital of the Bank includes an unlimited number of Class A Preferred Shares and Class B Preferred Shares without nominal or par value, in series, for unlimited consideration. Class B Preferred Shares may be issued in a foreign currency. The following describes certain general terms and conditions of the preferred shares.
Certain Conditions of the Class A Preferred Shares as a Class
Issuable in Series
From time to time, the Board of Directors may resolve to issue Class A Preferred Shares in one or more series with rights, privileges, restrictions, and conditions, which the Board of Directors may also decide. As at December 3, 2025, there were no outstanding Class A Preferred Shares.
The Class A Preferred Shares of each series rank equally to all other series of Class A and Class B Preferred Shares and are entitled to preference over the common shares and over any other shares ranking junior to the Class A Preferred Shares and the Class B Preferred Shares with respect to the payment of dividends and in the distribution of property in the event of the liquidation, dissolution or winding up of the Bank.
Creating and Issuing Shares
Under the Bank Act, the Bank needs approval from the holders of Class A Preferred Shares to create any other class of shares with equal or superior rank to Class A Preferred Shares. Shareholders must give this approval as set out below in “Shareholder Approvals.” The Bank Act and other laws may also require other forms of approval.
The Bank does not require shareholder approval to create or issue additional Class A Preferred Shares or shares of equal rank if, on the date they are created or issued, the Bank has declared and paid or set apart for payment all dividends payable on cumulative and non-cumulative Class A Preferred Shares, including for the most recently completed fiscal period.
Voting Rights
The holders of the Class A Preferred Shares only have voting rights as a class on certain matters (see below) or as the law requires.
Shareholder Approvals
Holders of the Class A Preferred Shares can give their approval if 66 2/3% or more holders casting vote in favour of doing so at a meeting where the majority of Class A Preferred Shares is represented, or if no quorum is present at such a meeting, at an adjourned meeting at which no quorum requirements apply.
Certain Conditions of the Class B Preferred Shares as a Class
Issuable in Series
From time to time, the Board of Directors may resolve to issue Class B Preferred Shares in one or more series with rights, privileges, restrictions, and conditions, which the Board of Directors may also decide.
The Class B Preferred Shares of each series rank equally to all the other series of Class B and Class A Preferred Shares and are entitled to preference over the common shares and any other shares ranking junior to the Class A Preferred Shares and the Class B Preferred Shares with respect to the payment of dividends and in the distribution of property in the event of the liquidation, dissolution or winding up of the Bank.
Creating and Issuing Shares
Under the Bank Act, the Bank needs approval from holders of Class B Preferred Shares to create any other class of shares with equal or superior rank to Class B Preferred Shares. The Bank Act or other laws may also require other forms of approval.
The Bank does not require shareholder approval to create or issue additional Class B Preferred Shares or shares of equal rank if, on the date they are created or issued, the Bank has declared and paid or set apart for payment all dividends payable on cumulative and non-cumulative Class B Preferred Shares, including for the most recently completed fiscal period. As at December 3, 2025, none of the outstanding Class B Preferred Shares have the right to cumulative dividends.
Voting Rights
The holders of the Class B Preferred Shares only have voting rights as a class on certain matters (see below) or as the law requires.
Shareholder Approvals
Holders of the Class B Preferred Shares can give their approval if 66 2/3% or more holders casting vote in favour of doing so at a meeting where the majority of Class B Preferred Shares is represented, or if no quorum is present at such meeting, at an adjourned meeting at which no quorum requirements apply.
Contingent Conversion of Certain Series of Class B Preferred Shares
Upon the occurrence of certain specified trigger events relating to the viability of the Bank, Class B Preferred Shares Series 44 (Non-Viability Contingent Capital (NVCC)), Class B Preferred Shares Series 49 (Non-Viability Contingent Capital (NVCC)), Class B Preferred Shares Series 50 (Non-Viability Contingent Capital (NVCC)), Class B Preferred Shares Series 51 (Non-Viability Contingent Capital (NVCC)), Class B Preferred Shares Series 52 (Non-Viability Contingent Capital (NVCC)), Class B Preferred Shares Series 53 (Non-Viability Contingent Capital (NVCC)), Class B Preferred Shares Series 54 (Non-Viability Contingent Capital (NVCC)) and Class B Preferred Shares Series 55 (Non-Viability Contingent Capital (NVCC)) will immediately and automatically be converted into common shares of the Bank. The number of common shares into which such Class B Preferred Shares would be converted upon the occurrence of such a trigger event will be determined in accordance with a pre-determined conversion formula specified at the time of issuance of such Class B Preferred Shares.
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Description of Other Equity Instruments – Additional Tier 1 Capital Notes
The Bank currently has outstanding US$500 million 4.800%1 Fixed Rate Resetting Non-Cumulative Subordinated Additional Tier 1 Capital Notes (Non-Viability Contingent Capital (NVCC)) (“Additional Tier 1 Capital Notes”) which are classified as equity and form part of the Bank’s additional tier 1 non-viability contingent capital. The Additional Tier 1 Capital Notes are compound financial instruments that have both equity and liability features. For more details, see “Other Equity Instruments” in Note 16 of the 2025 Financial Statements.
The Additional Tier 1 Capital Notes are direct unsecured obligations of the Bank and, in the event of the Bank’s insolvency or winding-up, will rank subordinate to all of the Bank’s subordinated indebtedness and in right of payment equally with and not prior to indebtedness that ranks equally in right of payment with, or is subordinated to, the Additional Tier 1 Capital Notes (other than indebtedness which by its terms ranks subordinate to the Additional Tier 1 Capital Notes, including but not limited to the Limited Recourse Capital Notes). The Additional Tier 1 Capital Notes will constitute subordinated indebtedness for the purposes of the Bank Act. In the event of the Bank’s insolvency or winding-up, the Additional Tier 1 Capital Notes will rank ahead of the Bank’s common shares and Preferred Shares.
Upon the occurrence of certain specified trigger events relating to the viability of the Bank, the Additional Tier 1 Capital Notes will immediately and automatically be converted into common shares of the Bank. The number of common shares into which the Additional Tier 1 Capital Notes would be converted upon the occurrence of such a trigger event will be determined in accordance with a pre-determined conversion formula specified at the time of issuance of the Additional Tier 1 Capital Notes.
Certain Provisions of the Additional Tier 1 Capital Notes
Distributions and Restrictions on Dividend and Retirement of Shares
Interest on the Additional Tier 1 Capital Notes was payable semi-annually in arrears for the initial five years, which ended on August 25, 2024 (the “First Reset Date”). Following the First Reset Date, the interest rate will reset every five years and interest will accrue at a fixed rate. While interest is payable on a semi-annual basis, the Bank may, at its discretion, with prior notice, cancel the payments. If the Bank does not pay the interest in full to the note holders, the Bank will not declare dividends on its common shares or preferred shares or redeem, purchase or otherwise retire such shares until the month commencing after the Bank resumes full interest payments on the Additional Tier 1 Capital Notes.
Maturity and Redemption
The Additional Tier 1 Capital Notes have no scheduled maturity or redemption date. Accordingly, the Bank is not required to make any repayment of the principal amount of the Additional Tier 1 Capital Notes except in the event of bankruptcy or insolvency and provided that the NVCC requirements have not been triggered. The Additional Tier 1 Capital Notes are redeemable at par on any interest payment date on or after the First Reset Date solely at the option of the Bank, or following certain regulatory or tax events, in accordance with their terms. All redemptions are subject to regulatory consent.
Purchase for Cancellation
Subject to regulatory consent, the Bank may at any time, purchase for cancellation any Additional Tier 1 Capital Notes at any price in the open market.
Events of Default
An event of default in respect of the Additional Tier 1 Capital Notes will occur only if the Bank becomes bankrupt or insolvent or becomes subject to the provisions of the Winding-up and Restructuring Act (Canada), or if the Bank goes into liquidation, either voluntarily or under an order of a court of competent jurisdiction, passes a resolution for the winding-up, liquidation or dissolution of the Bank or otherwise acknowledges its insolvency. Neither a failure to make a payment on the Additional Tier 1 Capital Notes when due (including any interest payment, whether as a result of cancellation or otherwise) nor an NVCC automatic conversion upon the occurrence of a trigger event will constitute an event of default.
Issuance of other Senior or Pari Passu Securities
The terms governing the Additional Tier 1 Capital Notes do not limit the Bank’s ability to incur additional indebtedness or issue or repurchase securities, other than the restriction on retirement of shares noted above. The Bank may incur additional indebtedness without the authorization of the holders of the Additional Tier 1 Capital Notes.
Voting Rights
The holders of Additional Tier 1 Capital Notes are not entitled to any rights of holders of common shares, including any rights of shareholders to receive notice, to attend or to vote at any meeting of the shareholders of the Bank. If the Additional Tier 1 Capital Notes are converted into common shares of the Bank under NVCC requirements, holders of the Additional Tier 1 Capital Notes will become holders of the Bank’s common shares and will only have rights as holders of common shares.
Description of Other Equity Instruments – Limited Recourse Capital Notes
The Bank currently has outstanding $750 million 5.625% Limited Recourse Capital Notes, Series 2 (Non-Viability Contingent Capital (NVCC)) (“LRCN 2”), $1 billion 7.325% Limited Recourse Capital Notes, Series 3 (Non-Viability Contingent Capital (NVCC)) (“LRCN 3”), US$1 billion 7.700% Limited Recourse Capital Notes, Series 4 (Non-Viability Contingent Capital (NVCC)) (“LRCN 4”), and US$750 million 7.300% Limited Recourse Capital Notes, Series 5 (Non-Viability Contingent Capital (NVCC)) (“LRCN 5”) and US$1 billion 6.875% Limited Recourse Capital Notes, Series 6 (Non-Viability Contingent Capital (NVCC)) (“LRCN 6”, collectively with the LRCN 2, LRCN 3, LRCN 4 and LRCN 5, the “Limited Recourse Capital Notes”) which are classified as equity and form part of the Bank’s additional tier 1 non-viability contingent capital. The Limited Recourse Capital Notes are compound financial instruments that have both equity and liability features. For more details, see “Other Equity Instruments” in Note 16 of the 2025 Financial Statements.
The Limited Recourse Capital Notes are direct unsecured obligations of the Bank and, in the event of the Bank’s insolvency or winding-up (prior to the occurrence of specified trigger events), will rank: (a) subordinate in right of payment to the prior payment in full of all indebtedness, including certain subordinated indebtedness (including but not limited to the Additional Tier 1 Capital Notes); and (b) in right of payment, equally with and not prior to indebtedness which by its terms ranks equally in right of payment with, or is subordinate to, the Limited Recourse Capital Notes (other than indebtedness which by its terms ranks subordinate to the Limited Recourse Capital Notes) in each case, from time to time outstanding, and will be subordinate in right of payment to the claims of the Bank’s depositors and other unsubordinated creditors. The Limited Recourse Capital Notes will constitute subordinated indebtedness for the purposes of the Bank Act. In the event of the Bank’s insolvency or winding-up, the Limited Recourse Capital Notes will rank ahead of the Bank’s common shares and Preferred Shares.
1 The Additional Tier 1 Capital Notes had an initial interest rate of 4.800% and reset on August 25, 2024 to 6.709%.
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In the event of a non-payment by the Bank of the principal amount of, or interest on the Limited Recourse Capital Notes when due, while a holder of Limited Recourse Capital Notes will have a claim against the Bank for the principal amount of the Limited Recourse Capital Notes and any accrued and unpaid interest (which will then be due and payable), the sole remedy of each holder of Limited Recourse Capital Notes is the delivery of such holder’s proportionate share of the assets of a limited recourse trust. As of the date hereof, the limited recourse trust’s assets in respect of the LRCN 2 consist of 750,000 Class B Preferred Shares, Series 49 (Non-Viability Contingent Capital (NVCC)) (“Class B Preferred Shares Series 49 (NVCC)”), in respect of the LRCN 3 consist of 1,000,000 Class B Preferred Shares, Series 51 (Non-Viability Contingent Capital (NVCC)) (“Class B Preferred Shares Series 51 (NVCC)”), in respect of the LRCN 4 consist of 1,000,000 Class B Preferred Shares, Series 53 (Non-Viability Contingent Capital (NVCC)) (“Class B Preferred Shares Series 53 (NVCC)”), in respect of the LRCN 5 consist of 750,000 Class B Preferred Shares, Series 54 (Non-Viability Contingent Capital (NVCC)) (“Class B Preferred Shares Series 54 (NVCC)”) and in respect of the LRCN 6 consist of 1,000,000 Class B Preferred Shares, Series 55 (Non-Viability Contingent Capital (NVCC)) (“Class B Preferred Shares Series 55 (NVCC)”).
Upon the occurrence of certain specified trigger events relating to the viability of the Bank, the Class B Preferred Shares Series 49 (NVCC), Class B Preferred Shares Series 51 (NVCC), Class B Preferred Shares Series 53 (NVCC), Class B Preferred Shares Series 54 (NVCC) and Class B Preferred Shares Series 55 (NVCC) will immediately and automatically be converted into common shares of the Bank. The number of common shares into which the Class B Preferred Shares Series 49 (NVCC), Class B Preferred Shares Series 51 (NVCC), Class B Preferred Shares Series 53 (NVCC), Class B Preferred Shares Series 54 (NVCC) and Class B Preferred Shares Series 55 (NVCC) would be converted upon the occurrence of such a trigger event will be determined in accordance with a pre-determined conversion formula specified at the time of the issuance of the Class B Preferred Shares Series 49 (NVCC), Class B Preferred Shares Series 51 (NVCC), Class B Preferred Shares Series 53 (NVCC), Class B Preferred Shares Series 54 (NVCC) and Class B Preferred Shares Series 55 (NVCC). Subject to certain limitations, each holder of the Limited Recourse Capital Notes would receive such holder’s proportionate share of such common shares of the Bank.
Certain Provisions of the Limited Recourse Capital Notes
Distributions and Restrictions on Dividend and Retirement of Shares
Interest on the Limited Recourse Capital Notes is paid semi-annually in arrears for the initial five years. Thereafter, the interest will reset every five years and accrue at a fixed rate.
Until revoked, the trustee of the limited recourse trust has waived its right to receive any and all dividends on the Class B Preferred Shares Series 49 (NVCC). Accordingly, until such waiver is revoked by the trustee of the limited recourse trust, no dividends are expected to be declared or paid on the Class B Preferred Shares Series 49 (NVCC). To the extent the waiver is no longer in effect and the limited recourse trust is the sole holder of the Class B Preferred Shares Series 49 (NVCC), if the Bank does not declare and pay dividends on the Class B Preferred Shares Series 49 (NVCC), it will not declare and pay dividends on any of the other outstanding series of Class B Preferred Shares of the Bank.
Until revoked, the trustee of the limited recourse trust has waived its right to receive any and all dividends on the Class B Preferred Shares Series 51 (NVCC). Accordingly, until such waiver is revoked by the trustee of the limited recourse trust, no dividends are expected to be declared or paid on the Class B Preferred Shares Series 51 (NVCC). To the extent the waiver is no longer in effect and the limited recourse trust is the sole holder of the Class B Preferred Shares Series 51 (NVCC), if the Bank does not declare and pay dividends on the Class B Preferred Shares Series 51 (NVCC), it will not declare and pay dividends on any of the other outstanding series of Class B Preferred Shares of the Bank.
Until revoked, the trustee of the limited recourse trust has waived its right to receive any and all dividends on the Class B Preferred Shares Series 53 (NVCC). Accordingly, until such waiver is revoked by the trustee of the limited recourse trust, no dividends are expected to be declared or paid on the Class B Preferred Shares Series 53 (NVCC). To the extent the waiver is no longer in effect and the limited recourse trust is the sole holder of the Class B Preferred Shares Series 53 (NVCC), if the Bank does not declare and pay dividends on the Class B Preferred Shares Series 53 (NVCC), it will not declare and pay dividends on any of the other outstanding series of Class B Preferred Shares of the Bank.
Until revoked, the trustee of the limited recourse trust has waived its right to receive any and all dividends on the Class B Preferred Shares Series 54 (NVCC). Accordingly, until such waiver is revoked by the trustee of the limited recourse trust, no dividends are expected to be declared or paid on the Class B Preferred Shares Series 54 (NVCC). To the extent the waiver is no longer in effect and the limited recourse trust is the sole holder of the Class B Preferred Shares Series 54 (NVCC), if the Bank does not declare and pay dividends on the Class B Preferred Shares Series 54 (NVCC), it will not declare and pay dividends on any of the other outstanding series of Class B Preferred Shares of the Bank.
Until revoked, the trustee of the limited recourse trust has waived its right to receive any and all dividends on the Class B Preferred Shares Series 55 (NVCC). Accordingly, until such waiver is revoked by the trustee of the limited recourse trust, no dividends are expected to be declared or paid on the Class B Preferred Shares Series 55 (NVCC). To the extent the waiver is no longer in effect and the limited recourse trust is the sole holder of the Class B Preferred Shares Series 55 (NVCC), if the Bank does not declare and pay dividends on the Class B Preferred Shares Series 55 (NVCC), it will not declare and pay dividends on any of the other outstanding series of Class B Preferred Shares of the Bank.
Maturity and Redemption
The LRCN 2 are scheduled to mature on May 26, 2082. The LRCN 2 are redeemable, at the option of the Bank, at their principal amount every five years after issuance, or following certain regulatory or tax events, in accordance with their terms. Upon any redemption of the Class B Preferred Shares Series 49 (NVCC) held by the limited recourse trust, the Bank shall redeem LRCN 2 with an aggregate principal amount equal to the aggregate face amount of the Class B Preferred Shares Series 49 (NVCC) redeemed by the Bank. All redemptions are subject to regulatory consent.
The LRCN 3 are scheduled to mature on November 26, 2082. The LRCN 3 are redeemable, at the option of the Bank, at their principal amount every five years after issuance, or following certain regulatory or tax events, in accordance with their terms. Upon any redemption of the Class B Preferred Shares Series 51 (NVCC) held by the limited recourse trust, the Bank shall redeem LRCN 3 with an aggregate principal amount equal to the aggregate face amount of the Class B Preferred Shares Series 51 (NVCC) redeemed by the Bank. All redemptions are subject to regulatory consent.
The LRCN 4 are scheduled to mature on May 26, 2084. The LRCN 4 are redeemable, at the option of the Bank, at their principal amount every five years after issuance, or following certain regulatory or tax events, in accordance with their terms. Upon any redemption of the Class B Preferred Shares Series 53 (NVCC) held by the limited recourse trust, the Bank shall redeem LRCN 4 with an aggregate principal amount equal to the aggregate face amount of the Class B Preferred Shares Series 53 (NVCC) redeemed by the Bank. All redemptions are subject to regulatory consent.
The LRCN 5 are scheduled to mature on November 26, 2084. The LRCN 5 are redeemable, at the option of the Bank, at their principal amount every five years after issuance, or following certain regulatory or tax events, in accordance with their terms. Upon any redemption of the Class B Preferred Shares Series 54 (NVCC) held by the limited recourse trust, the Bank shall redeem LRCN 5 with an aggregate principal amount equal to the aggregate face amount of the Class B Preferred Shares Series 54 (NVCC) redeemed by the Bank. All redemptions are subject to regulatory consent.
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The LRCN 6 are scheduled to mature on November 26, 2085. The LRCN 6 are redeemable, at the option of the Bank, at their principal amount every five years after issuance, or following certain regulatory or tax events, in accordance with their terms. Upon any redemption of the Class B Preferred Shares Series 55 (NVCC) held by the limited recourse trust, the Bank shall redeem LRCN 6 with an aggregate principal amount equal to the aggregate face amount of the Class B Preferred Shares Series 55 (NVCC) redeemed by the Bank. All redemptions are subject to regulatory consent.
On November 12, 2025, the Bank redeemed all of its $1,250 million 4.300% Limited Recourse Capital Notes, Series 1 (Non-Viability Contingent Capital (NVCC)) and all of its corresponding $1,250 million Class B Preferred Shares, Series 48 (NVCC).
Purchase for Cancellation
Subject to regulatory consent, the Bank may at any time, purchase for cancellation any LRCN 2, LRCN 3, LRCN 4, LRCN 5 and LRCN 6 at any price in the open market. Prior to any such cancellation, the Bank shall, subject to regulatory consent, redeem, as applicable, a corresponding number of Class B Preferred Shares Series 49 (NVCC), Class B Preferred Shares Series 51 (NVCC), Class B Preferred Shares Series 53 (NVCC), Class B Preferred Shares Series 54 (NVCC) or Class B Preferred Shares Series 55 (NVCC) (the aggregate face amount of which shall equal the aggregate principal amount of the Notes to be cancelled) then held by the limited recourse trust for cancellation.
Events of Default
An event of default in respect of the Limited Recourse Capital Notes (“Event of Default”), will occur only if the Bank becomes bankrupt or insolvent or becomes subject to the provisions of the Winding-up and Restructuring Act (Canada), or if the Bank goes into liquidation, either voluntarily or under an order of a court of competent jurisdiction, passes a resolution for the winding-up, liquidation or dissolution of the Bank or otherwise acknowledges its insolvency. Upon an Event of Default, the sole remedy of each holder of LRCN 2 is the delivery of such holder’s proportionate share of the Class B Preferred Shares Series 49 (NVCC), the sole remedy of each holder of LRCN 3 is the delivery of such holder’s proportionate share of the Class B Preferred Shares Series 51 (NVCC), the sole remedy of each holder of LRCN 4 is the delivery of such holder’s proportionate share of the Class B Preferred Shares Series 53 (NVCC), the sole remedy of each holder of LRCN 5 is the delivery of such holder’s proportionate share of the Class B Preferred Shares Series 54 (NVCC) and the sole remedy of each holder of LRCN 6 is the delivery of such holder’s proportionate share of the Class B Preferred Shares Series 55 (NVCC).
Issuance of other Senior or Pari Passu Securities
The terms governing the Limited Recourse Capital Notes do not limit the Bank’s ability to incur additional indebtedness or issue or repurchase securities. The Bank may incur additional indebtedness without the authorization of the holders of the Limited Recourse Capital Notes.
Voting Rights
The holders of the Limited Recourse Capital Notes are not entitled to any rights of holders of common shares, including any rights of shareholders to receive notice, to attend or to vote at any meeting of the shareholders of the Bank. If the Class B Preferred Shares Series 49 (NVCC), Class B Preferred Shares Series 51 (NVCC), Class B Preferred Shares Series 53 (NVCC), Class B Preferred Shares Series 54 (NVCC) or Class B Preferred Shares Series 55 (NVCC) are converted into common shares of the Bank, holders of the LRCN 2, LRCN 3, LRCN 4, LRCN 5 and LRCN 6, as applicable, will become holders of the Bank’s common shares and will only have rights as holders of common shares.
This Certain Provisions of the Limited Recourse Capital Notes section contains forward-looking statements. Please see the Caution Regarding Forward-Looking Statements on page 2.
Restraints on Bank Shares under the Bank Act
The Bank Act restricts the beneficial ownership of shares of a bank. No person may be a major shareholder of a bank if the bank has equity of $12 billion or more, which applies to the Bank. A major shareholder is defined as a person, or group of persons under common control or acting jointly or in concert, that beneficially owns more than 20% of any class of voting shares or more than 30% of any class of non-voting shares of the bank.
In addition, no person may have a significant interest in any class of shares of a bank, including the Bank, unless the person first receives the approval of the Minister of Finance. A person has a significant interest in a class of shares of a bank when the person, or group of persons under common control or acting jointly or in concert, beneficially owns more than 10% of any class of shares of the bank.
Governments and their agents are also restricted from acquiring shares of a bank, except for certain cases that require the Minister of Finance’s consent.
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Ratings
The credit ratings that external rating agencies assign to some of the Bank’s securities are important in the raising of both capital and funding to support the Bank’s business operations. The credit ratings and outlook that the rating agencies assign are based on their own views and methodologies. Maintaining strong credit ratings allows the Bank to access capital markets at competitive pricing levels. Should the Bank’s credit ratings experience a downgrade, its cost of funds would likely increase and its access to funding and capital through capital markets could be reduced. A material downgrade of the Bank’s ratings could also have other consequences, including those set out in Note 7 of the 2025 Financial Statements, which Note the Bank incorporates herein by reference. The following table sets out ratings the Bank has received for its outstanding securities from the rating agencies, which are current as at December 3, 2025.
The following table sets out ratings the Bank has received for its outstanding securities from the rating agencies, which are current as at December 3, 2025.
| S&P
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Moody’s
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DBRS
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Fitch
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Rating
|
Rank1
|
Rating
|
Rank1
|
Rating
|
Rank1
|
Rating
|
Rank1
|
|||||||||
|
Short-term instruments |
A-1 | 1 of 6 | P-1 | 1 of 4 | R-1 (high) | 1 of 6 | F1+ | 1 of 7 | ||||||||
|
Senior debt3 |
A- | 3 of 10 | A2 | 3 of 9 | AA (low) | 2 of 10 | AA- | 2 of 10 | ||||||||
|
Long Term Deposits / Legacy Senior Debt4 |
A+ | 3 of 10 | Aa2 | 2 of 9 | AA | 2 of 10 | AA | 2 of 10 | ||||||||
|
Subordinated debt |
A- | 3 of 10 | Baal | 4 of 9 | A (high) | 3 of 10 | A | 3 of 10 | ||||||||
|
Subordinated debt – NVCC2 |
BBB+ | 4 of 10 | Baa1(hyb) | 4 of 9 | A (low) | 3 of 10 | A | 3 of 10 | ||||||||
|
Additional Tier 1 Capital Notes – NVCC2 |
BBB- | 4 of 10 | Baa3(hyb) | 4 of 9 | N/A | N/A | N/A | N/A | ||||||||
|
Limited Recourse Capital Notes – NVCC2 |
BBB- | 4 of 10 | Baa3(hyb) | 4 of 9 | BBB (high) | 4 of 10 | N/A | N/A | ||||||||
|
Preferred shares – NVCC2 |
BBB- | 3 of 9 | Baa3(hyb) | 4 of 9 | Pfd-2 | 2 of 6 | N/A | N/A | ||||||||
|
Trend/Outlook |
Stable | -- | Stable | -- | Stable | -- | Stable | -- | ||||||||
Notes: 1 Rank, according to each rating agency’s public website, refers to the assigned ratings ranking of all major assignable ratings for each debt or share class, 1 being the highest. Each assignable major rating may be modified further (+/-, high/low) to show relative standing within the major rating categories.
2 Non-viability contingent capital (NVCC).
3 Subject to conversion under the Bail-In Regime.
4 Long Term Deposits / Legacy Senior Debt Includes: (a) Senior debt issued prior to September 23, 2018; and (b) Senior debt issued on or after September 23, 2018 which is excluded from the Bail-In Regime.
A definition of the categories of each rating as at December 3, 2025 from each rating agency’s website is outlined in Appendix II to this Annual Information Form. Further information may be obtained from the applicable rating agency. S&P, Moody’s, DBRS and Fitch each have a stable outlook on BMO’s long-term credit ratings.
During fiscal 2025 there were no changes to ratings assigned by S&P, Moody’s, DBRS or Fitch.
Credit ratings are not recommendations to purchase, hold, or sell securities and do not address the market price or suitability of a specific security for a particular investor. Credit ratings may not reflect the potential impact of all risks on the value of securities. In addition, real or anticipated changes in the rating assigned to a security will generally affect the market value of that security. The Bank cannot know for certain that a rating will remain in effect for any given period of time or that a rating agency will not revise or withdraw it entirely in the future.
The Bank paid fees to credit rating agencies to obtain its credit ratings. The Bank may also pay fees for other services from credit rating agencies in the ordinary course of business.
For additional information on the credit ratings assigned to the Bank’s short-term and senior-long term debt securities by external rating agencies, see page 93 of the 2025 MD&A, which page the Bank incorporates herein by reference.
This Ratings section contains forward-looking statements. Please see the Caution Regarding Forward-Looking Statements on page 2.
11
MARKET FOR SECURITIES
Trading Price and Volume
The outstanding common shares of the Bank are listed for trading on the Toronto Stock Exchange (TSX) and on the New York Stock Exchange (NYSE) under the trading symbol BMO. The Bank’s Class B Preferred Shares Series 44 (Non-Viability Contingent Capital (NVCC)) are listed on the TSX under the trading symbol BMO.PR.E.
The following table sets out the reported high and low trading prices in Canadian dollars and the trading volumes of the common and preferred shares of Bank of Montreal on the TSX for the given periods. Prices are based on the reported data from the TSX Historical Data Access.
| BMO Common |
PR.W1 Series 31 |
PR.Y2 Series 33 |
PR.E Series 44 |
|||||||||||||
| November 2024 |
||||||||||||||||
| - High Price ($) |
134.16 | 25.00 | 24.59 | 26.33 | ||||||||||||
| - Low Price ($) |
124.60 | 24.93 | 24.31 | 26.02 | ||||||||||||
|
- Volume |
61,309,492 | 631,491 | 52,538 | 221,073 | ||||||||||||
| December 2024 |
||||||||||||||||
| - High Price ($) |
147.54 | n.a. | 24.97 | 26.40 | ||||||||||||
| - Low Price ($) |
126.84 | n.a. | 24.41 | 26.10 | ||||||||||||
|
- Volume |
51,473,614 | n.a. | 92,787 | 96,245 | ||||||||||||
| January 2025 |
||||||||||||||||
| - High Price ($) |
146.07 | n.a. | 24.89 | 26.80 | ||||||||||||
| - Low Price ($) |
137.84 | n.a. | 24.60 | 25.75 | ||||||||||||
|
- Volume |
68,417,600 | n.a. | 303,532 | 146,767 | ||||||||||||
| February 2025 |
||||||||||||||||
| - High Price ($) |
151.08 | n.a. | 24.70 | 26.30 | ||||||||||||
| - Low Price ($) |
135.00 | n.a. | 24.42 | 25.77 | ||||||||||||
|
- Volume |
62,391,404 | n.a. | 50,056 | 135,835 | ||||||||||||
| March 2025 |
||||||||||||||||
| - High Price ($) |
149.78 | n.a. | 24.75 | 26.30 | ||||||||||||
| - Low Price ($) |
134.13 | n.a. | 24.51 | 25.65 | ||||||||||||
|
- Volume |
53,207,147 | n.a. | 414,666 | 171,078 | ||||||||||||
| April 2025 |
||||||||||||||||
| - High Price ($) |
140.04 | n.a. | 24.83 | 26.41 | ||||||||||||
| - Low Price ($) |
121.31 | n.a. | 23.99 | 25.11 | ||||||||||||
|
- Volume |
97,828,872 | n.a. | 222,563 | 105,737 | ||||||||||||
| May 2025 |
||||||||||||||||
| - High Price ($) |
149.95 | n.a. | 24.92 | 26.30 | ||||||||||||
| - Low Price ($) |
131.20 | n.a. | 24.64 | 25.95 | ||||||||||||
|
- Volume |
62,622,852 | n.a. | 74,632 | 210,044 | ||||||||||||
| June 2025 |
||||||||||||||||
| - High Price ($) |
150.93 | n.a. | 25.10 | 26.48 | ||||||||||||
| - Low Price ($) |
143.35 | n.a. | 24.86 | 26.05 | ||||||||||||
|
- Volume |
34,626,086 | n.a. | 89,409 | 143,237 | ||||||||||||
| July 2025 |
||||||||||||||||
| - High Price ($) |
157.80 | n.a. | 25.19 | 26.92 | ||||||||||||
| - Low Price ($) |
151.05 | n.a. | 24.95 | 26.30 | ||||||||||||
|
- Volume |
62,134,465 | n.a. | 995,302 | 135,267 | ||||||||||||
| August 2025 |
||||||||||||||||
| - High Price ($) |
166.59 | n.a. | 25.00 | 26.49 | ||||||||||||
| - Low Price ($) |
151.06 | n.a. | 24.95 | 26.20 | ||||||||||||
|
- Volume |
50,009,034 | n.a. | 720,020 | 186,301 | ||||||||||||
| September 2025 |
||||||||||||||||
| - High Price ($) |
182.90 | n.a. | n.a. | 26.79 | ||||||||||||
| - Low Price ($) |
164.91 | n.a. | n.a. | 26.30 | ||||||||||||
|
- Volume |
40,335,514 | n.a. | n.a. | 75,183 | ||||||||||||
| October 2025 |
||||||||||||||||
| - High Price ($) |
182.63 | n.a. | n.a. | 27.44 | ||||||||||||
| - Low Price ($) |
172.39 | n.a. | n.a. | 26.51 | ||||||||||||
|
- Volume |
57,689,184 | n.a. | n.a. | 212,462 | ||||||||||||
1 The Bank redeemed all of its outstanding Class B Preferred Shares Series 31 (Non-Viability Contingent Capital (NVCC)) on November 25, 2024.
2 The Bank redeemed all of its outstanding Class B Preferred Shares Series 33 (Non-Viability Contingent Capital (NVCC)) on August 25, 2025.
Prior Sales
From time to time, the Bank issues principal at risk notes, securities for which the amount payable at maturity is determined by reference to the price, value or level of an underlying interest such as a stock index, an exchange traded fund or a notional portfolio of equities or other securities. In addition, the Bank periodically issues subordinated debt, preferred shares and other equity instruments which are not listed or quoted on a marketplace.
For information about the Bank’s issuances of common shares, preferred shares, subordinated indebtedness and other equity instruments since October 31, 2025, see the “Subordinated Debt” and “Equity” sections on page 57 of the 2025 MD&A and Notes 15 and 16 of the 2025 Financial Statements, which page and Notes are incorporated herein by reference.
12
Also refer to the Description of Common Shares, Description of Preferred Shares, Description of Other Equity Instruments – Additional Tier 1 Capital Notes and Description of Other Equity Instruments – Limited Recourse Capital Notes sections above.
ESCROWED SECURITIES AND SECURITIES SUBJECT TO CONTRACTUAL RESTRICTION ON TRANSFER
| Designation of class
|
Number of securities held in escrow or that are subject to a contractual restriction on transfer |
Percentage of class
|
||
|
Class B Preferred Shares Series 49 (NVCC) 1 |
750,000 | 100% of the Class B Preferred Shares Series 49 (NVCC) | ||
|
Class B Preferred Shares Series 51 (NVCC) 2 |
1,000,000 | 100% of the Class B Preferred Shares Series 51 (NVCC) | ||
|
Class B Preferred Shares Series 53 (NVCC) 3 |
1,000,000 | 100% of the Class B Preferred Shares Series 53 (NVCC) | ||
|
Class B Preferred Shares Series 54 (NVCC) 4 |
750,000 | 100% of the Class B Preferred Shares Series 54 (NVCC) | ||
|
Class B Preferred Shares Series 55 (NVCC) 5 |
1,000,000 | 100% of the Class B Preferred Shares Series 55 (NVCC) | ||
1 The Class B Preferred Shares Series 49 (NVCC) are held in a limited recourse trust and are restricted from being transferred except to satisfy the recourse of the holders of the LRCN 2 in respect of non-payment by the Bank of the principal amount of, or interest on, the LRCN 2 when due.
2 The Class B Preferred Shares Series 51 (NVCC) are held in a limited recourse trust and are restricted from being transferred except to satisfy the recourse of the holders of the LRCN 3 in respect of non-payment by the Bank of the principal amount of, or interest on, the LRCN 3 when due.
3 The Class B Preferred Shares Series 53 (NVCC) are held in a limited recourse trust and are restricted from being transferred except to satisfy the recourse of the holders of the LRCN 4 in respect of non-payment by the Bank of the principal amount of, or interest on, the LRCN 4 when due.
4 The Class B Preferred Shares Series 54 (NVCC) are held in a limited recourse trust and are restricted from being transferred except to satisfy the recourse of the holders of the LRCN 5 in respect of non-payment by the Bank of the principal amount of, or interest on, the LRCN 5 when due.
5 The Class B Preferred Shares Series 55 (NVCC) are held in a limited recourse trust and are restricted from being transferred except to satisfy the recourse of the holders of the LRCN 6 in respect of non-payment by the Bank of the principal amount of, or interest on, the LRCN 6 when due.
Also refer to the Certain Provisions of the Limited Recourse Capital Notes section above.
DIRECTORS AND EXECUTIVE OFFICERS
Board of Directors
As at December 3, 2025, the following were directors of the Bank.
|
DIRECTOR NAME AND PRINCIPAL OCCUPATION
|
MUNICIPALITY OF RESIDENCE
|
DIRECTOR SINCE
|
||
| Janice M. Babiak Corporate Director |
Nashville, Tennessee, U.S.A. | October 23, 2012 | ||
| Craig W. Broderick Corporate Director |
Greenwich, Connecticut, U.S.A. | August 27, 2018 | ||
| Tammy L. Brown Corporate Director |
Palgrave, Ontario, Canada | December 4, 2025 | ||
| Hazel Claxton Corporate Director |
Toronto, Ontario, Canada | August 30, 2023 | ||
| Diane L. Cooper Corporate Director |
Groveland, Florida, U.S.A. | October 28, 2024 | ||
| George A. Cope, C.M. Chair of the Board, Bank of Montreal |
Toronto, Ontario, Canada | July 25, 2006 | ||
| Stephen Dent Managing Director and co-founder Birch Hill Equity Partners, a private equity firm |
Toronto, Ontario, Canada | April 7, 2021 | ||
| Martin S. Eichenbaum Charles Moskos Professor of Economics Northwestern University |
Glencoe, Illinois, U.S.A. | March 31, 2015 | ||
| David Harquail Chair of the Board Franco-Nevada Corporation, a royalty and streaming company |
Toronto, Ontario, Canada | April 5, 2018 | ||
| Eric R. La Flèche President and Chief Executive Officer Metro Inc., a food retailer and distributor |
Montreal, Québec, Canada | March 20, 2012 | ||
| Brian McManus Executive Chair Polycor Inc., a natural stone company |
Hudson, Québec, Canada | October 28, 2024 | ||
| Lorraine Mitchelmore Corporate Director |
Calgary, Alberta, Canada | March 31, 2015 | ||
| Madhu Ranganathan Corporate Director |
Saratoga, California, U.S.A | April 7, 2021 | ||
| Darryl White Chief Executive Officer BMO Financial Group |
Toronto, Ontario, Canada | May 24, 2017 | ||
13
A director of the Bank holds office until the next annual meeting of shareholders or until a successor is elected or appointed, unless their seat is vacated before they can do so.
Since November 1, 2020, the directors have held the principal occupations above, or other positions with the same, predecessor, or associated firms except for Ms. Brown who was Partner at KPMG LLP until September 30, 2025, Mr. McManus who from May 2021 to August 2023 was Executive Chair and CEO of Uni-Select Inc. and from January 2020 to December 2020 was a Partner and Strategic Advisor at Cafa Financial Corporation, and Ms. Ranganathan who prior to March 2025 was the President, Chief Financial Officer & Corporate Development at OpenText Corporation.
Board Committee Members
There are four committees of the Board of Directors made up of the following members:
Audit and Conduct Review Committee: Janice M. Babiak (Chair), Craig W. Broderick, Hazel Claxton, Diane L. Cooper, Martin S. Eichenbaum and Madhu Ranganathan.
Governance and Nominating Committee: Lorraine Mitchelmore (Chair), Janice M. Babiak, Craig W. Broderick, George Cope and Stephen Dent.
Human Resources Committee: Stephen Dent (Chair), George Cope, David Harquail, Eric La Flèche and Lorraine Mitchelmore.
Risk Review Committee: Craig W. Broderick (Chair), Tammy L. Brown1, Diane L. Cooper, Stephen Dent, Martin S. Eichenbaum, David Harquail, Brian McManus and Lorraine Mitchelmore.
1 Membership effective December 4, 2025.
Executive Officers
As at December 3, 2025, the following were executive officers of the Bank:
|
EXECUTIVE OFFICER NAME
|
PRINCIPAL OCCUPATION
|
MUNICIPALITY OF RESIDENCE
|
||
|
Darryl White |
Chief Executive Officer, BMO Financial Group | Toronto, Ontario, Canada | ||
|
Piyush Agrawal |
Chief Risk Officer, BMO Financial Group | Short Hills, New Jersey, U.S.A. | ||
|
Darrel Hackett |
U.S. Chief Executive Officer | Chicago, Illinois, U.S.A. | ||
|
Sharon Haward-Laird |
Group Head, Canadian Commercial Banking & North American Integrated Solutions, and Co-Head, Canadian Personal & Commercial Banking | Toronto, Ontario, Canada | ||
|
Deland Kamanga |
Group Head, BMO Wealth Management | Toronto, Ontario, Canada | ||
| Aron Levine |
Group Head and President, BMO U.S. Banking | Chicago, Illinois, U.S.A. | ||
| Mona Malone |
Chief Administrative Officer, Chief Human Resources Officer and Head of People, Culture & Brand | Toronto, Ontario, Canada | ||
|
Mathew Mehrotra |
Group Head, Canadian Personal & Business Banking, and Co-Head, Canadian Personal & Commercial Banking | Toronto, Ontario, Canada | ||
| Paul Noble |
General Counsel, BMO Financial Group | Toronto, Ontario, Canada | ||
| Alan Tannenbaum |
Chief Executive Officer & Group Head, BMO Capital Markets | Bearsville, New York, U.S.A. | ||
| Steve Tennyson |
Chief Technology and Operations Officer, BMO Financial Group | Toronto, Ontario, Canada | ||
|
Tayfun Tuzun |
Chief Financial Officer, BMO Financial Group | Cincinnati, Ohio, U.S.A. |
All the executive officers named above have held their present positions or other senior positions with Bank of Montreal or its subsidiaries for the past five years, other than Mr. Agrawal and Mr. Levine. Prior to joining BMO, Mr. Agrawal was Chief Risk Officer and Global Head of Climate Risk, Citibank, N.A., where he held positions including Chief Operating Officer of Citibank N.A., Chief Risk Officer of Asia Pacific, and Head of Corporate Strategy. Prior to joining BMO, Mr. Levine was President of Preferred and Consumer Banking & Investments at Bank of America.
Shareholdings of Directors and Executive Officers
To the knowledge of the Bank, as at October 31, 2025, the directors and executive officers of Bank of Montreal, as a group, beneficially owned, directly or indirectly, or exercised control or direction over an aggregate of 259,051 common shares of Bank of Montreal, representing less than 0.1% of Bank of Montreal’s issued and outstanding common shares.
Additional Disclosure for Directors and Executive Officers
To the Bank’s knowledge, no director or executive officer of the Bank:
| (a) | is, as at December 3, 2025, or was, within the 10 years before, a director, chief executive officer or chief financial officer of any company (including the Bank): |
| (i) | subject to an order (including a cease trade order or an order similar to a cease trade order or an order that denied the relevant company access to any exemption under securities legislation for a period of more than 30 consecutive days), that was issued while the director or executive officer was acting in the capacity as director, chief executive officer or chief financial officer; or |
14
| (ii) | subject to an order (including a cease trade order or an order similar to a cease trade order or an order that denied the relevant company access to any exemption under securities legislation for a period of more than 30 consecutive days) that was issued after the director or executive officer ceased to be a director, chief executive officer or chief financial officer and which resulted from an event that occurred while that person was acting in the capacity as director, chief executive officer or chief financial officer; |
| (b) | is, as at December 3, 2025, or has been, within the 10 years before, a director or executive officer of any company (including the Bank), that while that person was acting in that capacity or within a year of the person ceasing to act in that capacity, became bankrupt, made a proposal under any legislation relating to bankruptcy or insolvency or was subject to or instituted any proceedings, arrangement or compromise with creditors or had a receiver, receiver manager or trustee appointed to hold its assets; or |
| (c) | has, within the 10 years before December 3, 2025, become bankrupt, made a proposal under any legislation relating to bankruptcy or insolvency, or become subject to or instituted any proceedings, arrangement or compromise with creditors, or had a receiver, receiver manager or trustee appointed to hold the assets of the director or executive officer, |
except as follows:
| Stephen Dent, a director of the Bank, was a director of Mastermind GP Inc. when it announced on November 23, 2023 that it sought and obtained an initial order for creditor protection under the Companies’ Creditors Arrangement Act. He ceased to be a director of Mastermind on January 16, 2024. |
To the Bank’s knowledge, none of its directors or executive officers have been subject to: (a) any penalties or sanctions imposed by a court relating to securities legislation or by a securities regulatory authority or has entered into a settlement agreement with a securities regulatory authority; or (b) any other penalties or sanctions imposed by a court or regulatory body, that would likely be considered important to a reasonable investor in making an investment decision.
LEGAL PROCEEDINGS AND REGULATORY ACTIONS
A description of certain legal proceedings to which the Bank is a party appears under the heading “Legal Proceedings” in Note 24 of the 2025 Financial Statements, which Note the Bank incorporates herein by reference.
In the ordinary course of business, the Bank and its subsidiaries may be assessed fees or fines by a Canadian securities regulatory authority in relation to administrative matters, including late filings or reporting, which may be considered penalties or sanctions pursuant to Canadian securities regulations but which are not, individually or in the aggregate, material to the Bank. In addition, the Bank and its subsidiaries are subject to numerous regulatory authorities around the world, and accordingly fees, administrative penalties, settlement agreements and sanctions may be categorized differently by certain regulators. Any such penalties imposed under these categories against the Bank and its subsidiaries in the 2025 fiscal year, however, are not material, nor would they likely be considered important to a reasonable investor in making an investment decision. Since November 1, 2024, the Bank and its subsidiaries have not entered into any material settlement agreements with a court relating to securities legislation or with a securities regulatory authority.
TRANSFER AGENT AND REGISTRAR
The registrar and transfer agent for the Bank’s common and preferred shares is Computershare Trust Company of Canada. This agent has transfer facilities in Montreal, Toronto, Calgary and Vancouver. In addition, Computershare Investor Services PLC and Computershare Trust Company, N.A. serve as co-transfer agent and registrar for the common shares in Bristol, United Kingdom and for the common and preferred shares in Canton, Maine, U.S.A., respectively.
INTERESTS OF EXPERTS
The Bank’s Shareholders’ Auditors are KPMG LLP. KPMG LLP audited the Bank’s 2025 Financial Statements, which comprise the consolidated balance sheets as at October 31, 2025 and October 31, 2024, the consolidated statements of income, comprehensive income, changes in equity and cash flows for the years then ended, and notes to the consolidated financial statements, including a summary of material accounting policy information. KPMG LLP have confirmed that they are independent with respect to the Bank within the meaning of the relevant rules and related interpretations prescribed by the relevant professional bodies in Canada and any applicable legislation or regulation, and are independent with respect to the Bank in accordance with the U.S. federal securities laws and the applicable rules and regulations of the U.S. Securities and Exchange Commission and the Public Company Accounting Oversight Board.
AUDIT AND CONDUCT REVIEW COMMITTEE INFORMATION
Composition of the Audit and Conduct Review Committee
The following six members make up the Bank’s Audit and Conduct Review Committee: Janice M. Babiak (Chair), Craig W. Broderick, Hazel Claxton, Diane L. Cooper, Martin S. Eichenbaum and Madhu Ranganathan. The Committee’s responsibilities and duties are set out in the Committee’s charter, which is included in Appendix I to this Annual Information Form.
The Board of Directors has determined that the members of the Audit and Conduct Review Committee reflect a high level of financial literacy and expertise. Each member of the Audit and Conduct Review Committee is “independent” and “financially literate” according to the definitions under Canadian and United States securities laws and the NYSE corporate governance listing standards, and each of Ms. Babiak, Mr. Broderick and Ms. Ranganathan is an “Audit Committee Financial Expert” as defined under United States securities laws. The Board bases these decisions on each Committee member’s education and experience. The following paragraphs describe the relevant education and experience of each Committee member:
Ms. Babiak holds a B.B.A. in accounting from the University of Oklahoma and an M.B.A. from Baldwin Wallace University. She is a Chartered Accountant in the United Kingdom and a Certified Public Accountant in the United States. Ms. Babiak serves on the boards of other public and private companies and was formerly a Managing Partner at Ernst & Young LLP. Prior to August 2025, Ms. Babiak served as a Board Member and Chair of the Audit Committee for Walgreens Boots Alliance, Inc.
15
Mr. Broderick holds a B.A. from the College of William and Mary. He was formerly a Senior Director, the Chief Risk Officer, a member of the Management Committee, and chair or co-chair of key risk committees of Goldman, Sachs & Co. He spent 32 years with Goldman Sachs, primarily in the risk field.
Ms. Claxton holds a B.Comm (Honours) from Queen’s University and the ICD.D designation from the Institute of Corporate Directors. She is also a Chartered Professional Accountant and Chartered Accountant in Ontario. Ms. Claxton serves on the boards of other public and private companies and was formerly Executive Vice President and Chief HR Officer of Morneau Shepell Inc. (now part of TELUS Health). She currently serves as a Board Member and Audit Committee Member for TELUS Corporation. Prior to that, Ms. Claxton spent 29 years at PwC Canada, where she progressed to hold several leadership roles.
Ms. Cooper holds a B.A. (Business) and M.B.A. from Baker University. She was formerly President and CEO of GE Capital’s Commercial Distribution business and an officer of GE Company. She also led the GE Capital Equipment Finance and Franchise Finance businesses and previously held senior roles in Franchise Finance, Real Estate and Consumer Finance at GE. She serves on the board of BMO’s U.S. subsidiary BMO Financial Corp, BMO Bank N.A. and StoneX Group.
Mr. Eichenbaum received a B.Comm from McGill University and a Doctorate in Economics from the University of Minnesota. He served on the advisory council of the Global Markets Institute at Goldman Sachs. He completed a four-year term as co-editor of the American Economic Review in 2015. He has served as a consultant to the Federal Reserve Banks in Atlanta and Chicago and the International Monetary Fund.
Ms. Ranganathan holds an M.B.A. from the University of Massachusetts and a B.S. Accounting from the University of Madras. She is a member of the Institute of Chartered Accountants in India and member of the American Institute of Certified Public Accountants in the United States. Prior to March 2025, Ms. Ranganathan was the President, Chief Financial Officer & Corporate Development of OpenText Corporation. From June 2008 to March 2018, she was the Chief Finance Officer of [24]7.ai, Inc. Ms. Ranganathan currently serves as a Board Member & Audit Committee Chair for Akamai Technologies, Inc.
Shareholders’ Auditors’ Pre-Approval Policies and Procedures and Fees
For information about the fees paid to KPMG LLP, in the years ended October 31, 2025 and 2024, and the related pre-approval policies and procedures, see page 112 of the 2025 MD&A, which page the Bank incorporates herein by reference.
ADDITIONAL INFORMATION
You can find additional information about Bank of Montreal on the Bank’s web site at https://www.bmo.com/main/about-bmo/banking/investor-relations/home, on SEDAR+ (System for Electronic Document Analysis and Retrieval) at www.sedarplus.ca, and on the SEC’s web site at www.sec.gov/edgar. Information contained in or otherwise accessible through the websites mentioned herein does not form part of this document.
The Bank’s proxy circulars contain more information, including directors’ and executive officers’ compensation, debt, principal holders of the Bank’s securities, and shareholdings under equity compensation plans, in each case where applicable. The most recent circular is dated February 10, 2025, in connection with the Bank’s Annual Meeting of Shareholders on April 11, 2025 (the 2025 Proxy Circular). The Bank expects the next proxy circular to be approved January 29, 2026 and dated as of February 17, 2026, in connection with the Bank’s Annual Meeting of Shareholders on April 15, 2026.
The 2025 Financial Statements and the 2025 MD&A for the fiscal year ended October 31, 2025 provide additional financial information.
You can get copies of this Annual Information Form, as well as copies of the 2025 Financial Statements, the 2025 MD&A, the Bank’s 2025 Annual Report, and the 2025 Proxy Circular (after the Bank has mailed these documents to shareholders) by contacting the Bank at:
Bank of Montreal
Corporate Secretary’s Department
100 King Street West
Toronto, Ontario
Canada M5X 1A1
Telephone: 416 867 6785
Email: corp.secretary@bmo.com
16
APPENDIX I
BANK OF MONTREAL
AUDIT AND CONDUCT REVIEW COMMITTEE CHARTER
1 First Canadian Place, 9th Floor The Committee is responsible for assisting the Board in fulfilling its oversight responsibilities for the integrity of the Bank’s financial and sustainability reporting, including climate disclosures; the effectiveness of the Bank’s internal controls; the independent auditor’s qualifications, independence and performance; the Bank’s compliance with legal and regulatory requirements; transactions involving related parties; conflicts of interest and confidential information; standards of business conduct and ethics; and consumer protection measures and complaints.
| In addition, the Committee will also act as the audit and conduct review committee of Designated Subsidiaries. | ||||
|
|
||||
|
PART I MANDATE |
||||
|
|
||||
The Committee will, either directly or through one or more sub-committees, perform the duties set out in this Charter and such other duties as may be necessary or appropriate including:
| 1.1 | Financial Reporting |
| 1.1.1 | reviewing, together with management and the Shareholders’ Auditors: |
| (i) | the appropriateness of, and any changes to, the Bank’s accounting and financial reporting; |
| (ii) | the accounting treatment, presentation and impact of significant risks and uncertainties; |
| (iii) | any material relevant proposed changes in accounting standards and securities policies or regulations; |
| (iv) | key estimates and judgments of management; |
| (v) | significant auditing and financial reporting issues and the method of resolution; |
| (vi) | tax matters that are material to the financial statements; and |
| (vii) | enterprise sustainability disclosures required to be included in financial reporting. |
| 1.1.2 | reviewing, together with management and the Shareholders’ Auditors, and approving or, if appropriate, recommending to the Board: |
| (i) | prior to Board review or public disclosure, the audited annual and unaudited interim financial statements and related management’s discussion and analysis, the annual information form, and any other financial or non-financial (as considered appropriate) information in material public disclosure documents (other than earnings coverage ratios, capitalization tables and summary financial information derived from any of the foregoing); and |
| (ii) | such returns to OSFI requiring review under the Bank Act (Canada); |
| 1.1.3 | seeking confirmation from management that the Bank’s annual and interim financial filings, fairly present in all material respects the financial condition, results of operations and cash flows of the Bank as of the relevant date and for the relevant periods, prior to recommending to the Board for approval; |
| 1.1.4 | reviewing the types of information to be provided and types of presentations to be made to rating agencies and analysts (if any) relating to earnings guidance; and |
| 1.1.5 | satisfying itself that adequate procedures are in place for the review of financial information extracted or derived from the Bank’s financial statements that is to be publicly disclosed and has not otherwise been reviewed by the Committee. |
| 1.2 | Internal Controls |
| 1.2.1 | overseeing the design, implementation, maintenance and effectiveness of the Bank’s internal controls, including those related to the prevention, identification and detection of fraud; and reviewing and monitoring other Bank Corporate Policies as the Committee considers appropriate; |
| 1.2.2 | requiring management to design, implement, and maintain appropriate internal control procedures; |
| 1.2.3 | reviewing management’s certifications and assessment of the Bank’s internal control over financial reporting and the associated Shareholders’ Auditors’ report; |
| 1.2.4 | reviewing reports on the effectiveness of disclosure controls and procedures; |
| 1.2.5 | reviewing and discussing reports from management and the Chief Auditor as to the identification of any significant deficiencies or material weaknesses in the design or operation of the Bank’s internal control, risk management, and governance systems and processes, including controls over financial reporting; reviewing any recommendations, as well as remediation plans, including the status of remediation plans implemented by management to rectify any such deficiencies identified; and discussing whether similar or related deficiencies may exist elsewhere in the Bank; and |
| 1.2.6 | reviewing as required, correspondence relating to inquiries or investigations by regulators concerning internal controls. |
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| 1.3 | Internal Audit Function |
| 1.3.1 | overseeing and reviewing at least annually the overall internal audit function, its resources and independence, and reviewing and approving the annual audit plan, including assurance that the audit plan is risk-based and encompasses appropriate audit coverage, audit cycle requirements, and provides a basis for reliance by the Committee; |
| 1.3.2 | reviewing and approving the Bank’s Corporate Audit Mandate setting out the terms of reference of the internal audit function and the Chief Auditor; |
| 1.3.3 | reviewing, and jointly with the Human Resources Committee, recommending to the Board, the appointment, re-assignment or dismissal of the Chief Auditor, as required; and annually assessing the effectiveness of the Chief Auditor, in conjunction with the Human Resources Committee, and reviewing and approving his or her mandate; |
| 1.3.4 | annually reviewing and approving the organizational structure, budget, resource plan and strategic priorities of the Corporate Audit function and assessing its effectiveness having regard to its role as an independent control function; |
| 1.3.5 | reviewing the results of periodic independent reviews of the Corporate Audit function; |
| 1.3.6 | reviewing the quarterly report of the Chief Auditor, together with management’s response; |
| 1.3.7 | reviewing any other reports submitted to the Committee by the Chief Auditor; |
| 1.3.8 | communicating directly with the Chief Auditor and participating in his or her initial and ongoing engagement and evaluation; and |
| 1.3.9 | overseeing the resolution of any disagreements between the Chief Auditor and management. |
| 1.4 | Shareholders’ Auditors |
| 1.4.1 | reviewing and evaluating the quality, independence, objectivity and professional skepticism of the Shareholders’ Auditors and the lead audit partner; |
| 1.4.2 | annually reviewing the performance of the Shareholders’ Auditors including assessing their effectiveness and quality of service to facilitate an informed recommendation on re-appointment of the Shareholders’ Auditors and, on a periodic basis, performing a comprehensive review of the performance of the Shareholders’ Auditors over multiple years to assess the audit firm, its independence and application of professional skepticism; |
| 1.4.3 | reviewing Shareholders’ Auditors’ audit findings reports with the Shareholders’ Auditors, the Chief Auditor, and management including: |
| (i) | the quality of the financial statements; |
| (ii) | the Shareholders’ Auditors’ evaluation of the Bank’s internal control over financial reporting; |
| (iii) | the degree of cooperation the Shareholders’ Auditors received from management; any problems or difficulties experienced by the Shareholders’ Auditors in conducting the audit, including management’s responses in respect thereof, any restrictions imposed by management or significant accounting issues on which there was a disagreement with management; |
| (iv) | any concerns expressed by the Shareholders’ Auditors related to accounting and auditing matters, including the risk of material misstatements; |
| (v) | the appropriateness and quality of all critical accounting policies and practices used by the Bank and of the selection of new policies and practices; and |
| (vi) | any material judgments that have been discussed with management, the ramifications of their use and the Shareholders’ Auditors’ preferred treatment, as well as any other material communications with management, and advising the Board of these matters as considered appropriate; |
| 1.4.4 | overseeing the resolution of any disagreements between the Shareholders’ Auditors and management; |
| 1.4.5 | reviewing all material correspondence between the Shareholders’ Auditors and management related to audit findings; |
| 1.4.6 | reviewing the Shareholders’ Auditors’ report under Section 328 of the Bank Act (Canada); |
| 1.4.7 | obtaining and reviewing a report from the Shareholders’ Auditors at least annually addressing: (i) the Shareholders’ Auditors’ internal quality control procedures; (ii) any material issues raised by the most recent internal quality-control review or peer review of the Shareholders’ Auditors, or by any inquiry or investigation by governmental or professional authorities including the Canadian Public Accountability Board and the Public Company Accounting Oversight Board, within the preceding five years, respecting one or more audits carried out by the Shareholders’ Auditors; (iii) any steps taken to deal with any such issues; (iv) the Shareholders’ Auditors’ internal procedures to ensure independence; and (v) the delineation of all relationships between the Shareholders’ Auditors and the Bank; |
| 1.4.8 | reviewing any notices required to be communicated/delivered by the Shareholders’ Auditors to the Committee, including those required by the Canadian Public Accountability Board, OSFI, and the Public Company Accounting Oversight Board (United States), and taking such action and making recommendations to the Board as appropriate in connection therewith; |
| 1.4.9 | reviewing and approving the terms of the Shareholders’ Auditors’ engagement, the annual audit plan, including assurance that the audit plan is risk-based and appropriately addresses the risks of material misstatement, as well as any change in the materiality level used by the Shareholders’ Auditors, and audit partner rotation and reviewing and recommending to the Board for approval the fees payable to the Shareholders’ Auditors; |
| 1.4.10 | reviewing an annual written confirmation of the Shareholders’ Auditors that they are independent in accordance with applicable independence rules and report directly to the Committee, as representatives of the Bank’s shareholders; |
| 1.4.11 | reviewing and approving the Bank’s Auditor Independence Standard; |
| 1.4.12 | pre-approving audit services and permitted non-audit services by the Shareholders’ Auditors in accordance with the Bank’s Auditor Independence Standard; and |
| 1.4.13 | reviewing and approving the Bank’s policies for hiring current or former partners or employees of the current or former Shareholders’ Auditors. |
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| 1.5 | Finance, Legal & Regulatory Compliance Functions |
| 1.5.1 | reviewing and, jointly with the Human Resources Committee, recommending to the Board the respective appointment, re-assignment or dismissal of the Chief Financial Officer, the General Counsel and the Chief Compliance Officer, as required; and annually assessing, in conjunction with the Human Resources Committee, the effectiveness of the Chief Financial Officer, the General Counsel and the Chief Compliance Officer, and reviewing and approving their respective mandates; |
| 1.5.2 | annually reviewing and approving the organizational structure, budget, resource plan and strategic priorities of the finance and legal & compliance functions and assessing their effectiveness having regard to their respective roles as independent control functions; |
| 1.5.3 | reviewing the results of periodic independent reviews of the finance and compliance functions; and |
| 1.5.4 | reviewing and overseeing the status of remediation plans implemented by management to rectify any deficiencies identified. |
| 1.6 | Financial Risk Management |
| 1.6.1 | monitoring the Bank’s major financial risk exposures and the steps management has taken to monitor and control such exposures; and |
| 1.6.2 | reviewing investments or transactions that could adversely affect the wellbeing of the Bank which the Shareholders’ Auditors or any officer of the Bank may bring to the Committee’s attention. |
| 1.7 | Legal & Regulatory Compliance |
| 1.7.1 | reviewing and approving the Legal, Regulatory and Reputation Risk Corporate Policy; |
| 1.7.2 | reviewing, with the Bank’s General Counsel and the Chief Compliance Officer, the adequacy and effectiveness of the Bank’s enterprise compliance program and the results of related monitoring and oversight activities; |
| 1.7.3 | reviewing with the Bank’s General Counsel an annual report on significant matters arising from litigation, asserted claims or regulatory non-compliance and reviewing quarterly any material developments; |
| 1.7.4 | reviewing and approving the appointment, re-assignment or dismissal of the Chief Anti-Money Laundering Officer, as required; |
| 1.7.5 | reviewing and approving the Bank’s Anti-Money Laundering, Anti-Terrorist Financing and Sanctions Measures Program framework, including key policies and any significant amendments and the budget, resources and strategic priorities for the Anti-Money Laundering, Anti-Terrorist Financing and Sanctions Measures Program function; |
| 1.7.6 | meeting, at least quarterly, with the Chief Anti-Money Laundering Officer and the Chief Auditor to review their respective reports on the Anti-Money Laundering, Anti-Terrorist Financing and Sanctions Measures Program; |
| 1.7.7 | meeting annually with representatives of OSFI as a Committee or as part of the Board, to receive OSFI’s report on the results of its annual examination of the Bank; and |
| 1.7.8 | reviewing any other relevant reports of regulators to the Bank and any required action by management. |
| 1.8 | Business Conduct and Sustainability |
| 1.8.1 | reviewing and recommending for Board approval BMO’s Code of Conduct; |
| 1.8.2 | approving any exceptions from BMO’s Code of Conduct, as appropriate; |
| 1.8.3 | assessing the effectiveness of the Bank’s governance frameworks aimed at (i) fostering an ethical culture, (ii) encouraging compliance with both the letter and spirit of applicable laws, regulations and consumer protections, and (iii) reducing misconduct; |
| 1.8.4 | reviewing BMO’s Whistleblower Process for the confidential anonymous submission and handling of misconduct concerns, including concerns about financial fraud, accounting irregularities, internal controls over financial reporting or auditing matters, by anyone inside or outside of the Bank; |
| 1.8.5 | reviewing reports from the Chief Ethics Officer and Head, Customer Complaint Appeals relating to whistleblower and/or customer concerns; |
| 1.8.6 | approving prior to disclosure BMO’s annual Sustainability and Climate reporting, and related disclosures, overseeing internal controls on sustainability reporting, and overseeing any external assurances or attestations regarding reported sustainability metrics; |
| 1.8.7 | assessing the effectiveness of the Bank’s governance of sustainability issues; and |
| 1.8.8 | reviewing and approving the Bank’s Statement Against Modern Slavery and Human Trafficking. |
| 1.9 | Self Dealing |
| 1.9.1 | overseeing the effectiveness of self-dealing identification and procedures established by management for related and affected parties and monitoring compliance with applicable laws; |
| 1.9.2 | reviewing and approving as considered appropriate: (i) practices to identify related party transactions that could have a material effect on the stability or solvency of the Bank and; (ii) the measurement criteria and benchmarks for permitted related party transactions; |
| 1.9.3 | reviewing and, if advisable, approving the terms and conditions of related party loans that exceed established benchmarks; and |
| 1.9.4 | reviewing reports to the Committee on related and affected party transactions. |
| 1.10 | Conflicts of Interest and Confidential Information |
| 1.10.1 | overseeing the Bank’s procedures to identify, resolve and, where possible, reduce incidences of, conflicts of interest; |
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| 1.10.2 | overseeing the Bank’s procedures to restrict the use and disclosure of confidential information; |
| 1.10.3 | reviewing and approving the Bank’s Disclosure Standard; |
| 1.10.4 | reviewing reports to the Committee relating to the use and disclosure of customer and employee information; and |
| 1.10.5 | overseeing the Bank’s compliance with privacy legislation. |
| 1.11 | Consumer Protection Measures and Complaints |
| 1.11.1 | overseeing and reviewing the Bank’s consumer protection procedures to comply with the Consumer Provisions, as such term is defined in the Financial Consumer Agency of Canada Act; |
| 1.11.2 | reviewing an annual report on the implementation of the consumer protection procedures, and on any other activities that the Bank carries out in relation to the protection of its customers; |
| 1.11.3 | reviewing the annual report of the Customer Complaint Appeal Office on complaint resolution; and |
| 1.11.4 | overseeing the Bank’s compliance with any orders or compliance agreements imposed by the FCAC. |
| 1.12 | Aircraft and Chief Executive Officer Expense Accounts |
| 1.12.1 | reviewing and approving, on an annual basis, the report on Bank aircraft and Chief Executive Officer expense accounts; and |
| 1.12.2 | the chair of the Committee will review, on a quarterly basis, the report on Chief Executive Officer expense accounts. |
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PART II
COMPOSITION
|
|
| 2.1 | Members |
| 2.1.1 | The Committee will consist of three or more directors as determined by the Board. At least a majority of the members of the Committee will not be “affiliated” with the Bank for the purposes of the Bank Act (Canada). Each member of the Committee will be: (i) a director who is not an officer or employee of the Bank or an affiliate of the Bank; and (ii) “independent” for the purposes of applicable Canadian and United States securities laws and the New York Stock Exchange Rules. |
| 2.1.2 | Committee members will be Financially Literate or become so within a reasonable period after appointment to the Committee. At least one Committee member will qualify as an Audit Committee Financial Expert. Committee members will not serve on more than three public company audit committees without the approval of the Board. |
| 2.1.3 | The Board will, having considered the recommendation of the Governance and Nominating Committee, appoint the members of the Committee and the chair of the Committee annually following the meeting of the shareholders at which directors are elected each year. The Board may appoint a member to fill a vacancy which occurs in the Committee between annual elections of directors and increase the number of Committee members as it determines appropriate. If a member of the Committee becomes “affiliated” with the Bank for the purposes of the Bank Act (Canada), the member may continue as a member of the Committee with the approval of the Governance and Nominating Committee, in consultation with the Bank’s General Counsel. Any member of the Committee may be removed or replaced at any time by the Board. |
| 2.1.4 | In addition to any orientation provided by the Governance and Nominating Committee, the chair of the Committee will provide orientation to new members of the Committee with respect to their duties and responsibilities as members of the Committee. |
| 2.1.5 | The Committee may invite other directors to attend Committee meetings or otherwise provide input as needed to acquire additional specific skills as required to carry out its mandate. |
PART III
COMMITTEE PROCEDURE
|
|
| 3.1 | Meetings |
| 3.1.1 | The Committee will meet as frequently as it determines necessary but not less than once each quarter. Meetings may be called by the Chair of the Board, the chair of the Committee or any two members of the Committee. The chair of the Committee must call a meeting when requested to do so by any member of the Committee, the Shareholders’ Auditors, the Chief Auditor, the Chair of the Board, the Chief Executive Officer, the Chief Financial Officer, the General Counsel or the Chief Risk Officer. |
| 3.1.2 | Notice of the time and place of each meeting of the Committee, other than ad hoc meetings, will be given to each member of the Committee and the Shareholders’ Auditors, not less than 48 hours before the time when the meeting is to be held. A quorum of the Committee will be a majority of its members. The powers of the Committee may be exercised at a meeting at which a quorum of the Committee is present in person or by telephone or other electronic means or by a resolution signed by all members entitled to vote on that resolution at a meeting of the Committee. Each member is entitled to one vote in Committee proceedings. |
| 3.1.3 | Notice of the time and place of ad hoc meetings will be given to each member not less than two hours before the time when the meeting is to be held. |
| 3.1.4 | The chair of the Committee will preside at all meetings of the Committee at which he or she is present and will, in consultation with the Chief Financial Officer, the Chief Auditor, the General Counsel and the Shareholders’ Auditors, develop the agenda for each Committee meeting. The agenda for each meeting of the Committee, other than ad hoc meetings, will be delivered together with such other materials as the chair determines necessary, to each member of the Committee at least 48 hours prior to the meeting. The chair will designate from time to time a person who may be, but need not be, a member of the Committee, to be secretary of the Committee. Minutes will be kept of all meetings of the Committee and will be maintained by the Bank’s Corporate Secretary. |
| 3.1.5 | The procedure at meetings is to be determined by the Committee unless otherwise determined by the By-Laws of the Bank, by a resolution of the Board or by this Charter. |
| 3.1.6 | The Committee will meet at least quarterly in separate private sessions with each of the Shareholders’ Auditors and the Chief Auditor, and as appropriate with management including the Chief Financial Officer, the General Counsel, the Chief Compliance Officer and the Chief Anti-Money Laundering Officer. |
| 3.1.7 | The Committee will meet at the end of each meeting with only members of the Committee present. |
| 3.1.8 | The Committee may invite any director, officer or employee of the Bank or the Bank’s counsel or the Shareholders’ Auditors or any other person, as appropriate, to attend meetings of the Committee to assist in the discussion and examination of the matters under consideration by the Committee. The Shareholders’ Auditors will, at the expense of the Bank, be entitled to attend and be heard at any meeting of the Committee. |
| 3.2 | Reports |
| 3.2.1 | The Committee will report the proceedings of each meeting and all recommendations made by the Committee at such meeting to the Board at the Board’s next meeting. The Committee will make such recommendations to the Board as it may deem appropriate and will have such decision-making authority as the Board may determine from time to time. The Committee will approve the report of the Committee to be included in the Bank’s Management Proxy Circular |
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| and such other reports relating to the activities of the Committee as may be required by the Bank or the Board from time to time. In addition, the Committee will prepare and submit to the Board for its review and approval the reports required to be submitted by the Board within 90 days after the financial year-end of the Bank concerning the activities of the Committee during the year to (i) OSFI in carrying out its conduct review responsibilities and (ii) the FCAC in carrying out its consumer protection review responsibilities. Finally, the Committee may report to the Risk Review Committee on any issues of relevance to it. |
| 3.3 | Access to Management and Outside Advisors and Continuing Education |
| 3.3.1 | The Committee will have full, free and unrestricted access to management and employees, the Chief Auditor and the Shareholders’ Auditors. The Committee has the authority to engage independent legal counsel, consultants or other advisors, with respect to any issue or to assist it in fulfilling its responsibilities without consulting or obtaining the approval of any officer of the Bank and the Bank will provide appropriate funding, as determined by the Committee, for the payment of: compensation to the Shareholders’ Auditors engaged for the purpose of preparing or issuing auditor’s reports or performing the audit, review or attest services for the Bank; compensation to any advisors employed by the Committee; and ordinary administrative expenses of the Committee that are necessary or appropriate in carrying out its duties. |
| 3.3.2 | The Committee will have access to continuing education programs to assist the Committee in fulfilling its responsibilities and the Bank will provide appropriate funding for such programs. |
| 3.4 | Annual Review and Assessment |
| 3.4.1 | The Committee will ensure that an annual review and assessment of the Committee’s performance and effectiveness, including a review of its compliance with this Charter, will be conducted in accordance with the process developed by the Board’s Governance and Nominating Committee and approved by the Board. The results thereof will be reported in accordance with the process established by the Board’s Governance and Nominating Committee and approved by the Board. |
| 3.4.2 | The Committee will review and assess the adequacy of this Charter on an annual basis taking into account all legislative and regulatory requirements applicable to the Committee as well as any best practice guidelines recommended by regulators or stock exchanges with whom the Bank has a reporting relationship and, if appropriate, will recommend changes to the Board’s Governance and Nominating Committee. |
| 3.5 | Definitions |
“Audit Committee Financial Expert” means a person who has the following attributes:
| (i) | an understanding of generally accepted accounting principles and financial statements; |
| (ii) | the ability to assess the general application of such principles in connection with the accounting for estimates, accruals and reserves; |
| (iii) | experience preparing, auditing, analyzing or evaluating financial statements that present a breadth and level of complexity of accounting issues that are generally comparable to the breadth and complexity of issues that can reasonably be expected to be raised by the Bank’s financial statements, or experience actively supervising one or more persons engaged in such activities; |
| (iv) | an understanding of internal control over financial reporting; and |
| (v) | an understanding of audit committee functions, acquired through any one or more of the following: |
| a) | education and experience as a principal financial officer, principal accounting officer, controller, public accountant or auditor or experience in one or more positions that involve the performance of similar functions; |
| b) | experience actively supervising a principal financial officer, principal accounting officer, controller, public accountant, auditor or person performing similar functions; |
| c) | experience overseeing or assessing the performance of companies or public accountants with respect to the preparation, auditing or evaluation of financial statements; or |
| d) | other relevant experience. |
“Auditor Independence Standard” means the Bank’s Auditor Independence Standard that provides guidance for engaging the Shareholders’ Auditors to perform audit and permitted non-audit services for the Bank, its subsidiaries and material entities over which the Bank has significant influence.
“Bank” means Bank of Montreal and as the context requires, subsidiaries of the Bank.
“Board” means the Board of Directors of Bank of Montreal.
“Committee” means the Audit and Conduct Review Committee of the Board of Directors of Bank of Montreal.
“Designated Subsidiary” means as requested by the Board, those subsidiaries of the Bank for which the Committee will act as audit and conduct review committee.
“FCAC” means the Financial Consumer Agency of Canada.
“Financially Literate” means the ability to read and understand a set of financial statements that present a breadth and level of complexity of accounting issues that are generally comparable to the breadth and complexity of the issues that can reasonably be expected to be raised by the Bank’s financial statements.
“OSFI” means the Office of the Superintendent of Financial Institutions.
“Shareholders’ Auditors” mean the independent financial statement auditors of the Bank.
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APPENDIX II
CREDIT RATING CATEGORIES
| (a) | (Standard & Poor’s (“S&P”) |
S&P has different rating scales for short-term debt, long-term debt and preferred shares. S&P short-term issue credit ratings are generally assigned to those obligations considered short-term in the relevant market, typically with an original maturity of no more than 365 days. Short-term ratings are also used to indicate the creditworthiness of an obligor with respect to put features on long-term obligations. A short-term obligation rated A-1 is in the highest category and indicates S&P’s view that an obligor’s capacity to meet its financial commitments on these obligations is strong.
S&P long-term issue credit ratings are based, in varying degrees, on the analysis of the following considerations: likelihood of payment—capacity and willingness of the obligor to meet its financial commitments on an obligation in accordance with the terms of the obligation; nature of and provisions of the financial obligation; and protection afforded to, and the promise they impute, and relative position of, the financial obligation in the event of bankruptcy, reorganization, or other arrangement under the laws of bankruptcy and other laws affecting creditors’ rights. An obligation rated A means the obligation is somewhat more susceptible to the adverse effects of changes in circumstances and economic conditions than obligations in higher-rated categories, however, the obligor’s capacity to meet its financial commitment on the obligation is still strong. An obligation rated BBB indicates that the obligation exhibits adequate protection parameters, however, adverse economic conditions or changing circumstances are more likely to weaken the obligor’s capacity to meet its financial commitments on the obligation. Ratings from AA to CCC may be modified by the addition of a plus (+) or minus (–) sign to show relative standing within the rating categories.
The S&P preferred share rating on the Canadian scale is a forward-looking opinion about the creditworthiness of an obligor with respect to a specific preferred share obligation issued in the Canadian market, relative to preferred shares issued by other issuers in the Canadian market. There is a direct correspondence between the specific ratings assigned on the Canadian preferred share scale and the various rating levels on the global debt rating scale of S&P Global Ratings. The Canadian scale rating is fully determined by the applicable global scale rating, and there are no additional analytical criteria associated with the determination of ratings on the Canadian scale. S&P’s practice is to present ratings on an issuer’s preferred shares on both the global rating scale and on the Canadian national scale when listing the ratings for a particular issuer. The BBB and BBB- preferred share ratings on the Global Scale correspond to a P-2 and P-2(Low) rating, respectively, on the Canadian National Preferred Share Scale.
A rating outlook assesses the potential direction of a long-term credit rating over the intermediate term, which is generally up to two years for investment grade and generally up to one year for speculative grade. In determining a rating outlook, consideration is given to any changes in the economic and/or fundamental business conditions.
The “Stable” rating outlook means that a rating is not likely to change.
| (b) | Moody’s Investors Service (“Moody’s”) |
Moody’s issues ratings at the instrument level on both the short-term scale and long-term scale.
Ratings assigned by Moody’s are forward-looking opinions of the relative credit risks of financial obligations issued by non-financial corporates, financial institutions, structured finance vehicles, project finance vehicles, and public sector entities.
Moody’s short-term ratings are assigned to obligations with an original maturity of 13 months or less and reflect both on the likelihood of a default or impairment on contractual financial obligations and the expected financial loss suffered in the event of default or impairment. The P-1 rating is the highest of four rating categories and indicates issuers (or supporting institutions) that have a superior ability to repay short-term debt obligations.
Moody’s long-term ratings are assigned to issuers or obligations with an original maturity of 11 months or more and reflect both on the likelihood of a default or impairment on contractual financial obligations and the expected financial loss suffered in the event of default or impairment. Obligations rated Aa are judged to be of high quality and are subject to very low credit risk. Obligations rated A are judged to be upper-medium grade and subject to low credit risk. Obligations rated Baa are judged to be medium-grade and subject to moderate credit risk and as such may possess certain speculative characteristics. Moody’s appends numerical modifiers 1, 2, and 3 to each generic rating classification from Aa through Caa. The modifier 1 indicates that the obligation ranks in the higher end of its generic rating category; the modifier 2 indicates a mid-range ranking; and the modifier 3 indicates a ranking in the lower end of that generic rating category. Additionally, a “(hyb)” indicator is appended to all ratings of hybrid securities issued by banks, insurers, finance companies, and securities firms.
The Moody’s rating outlook is an opinion regarding the likely rating direction over the medium term.
The “Stable” outlook indicates a low likelihood of a rating change over the medium term.
| (c) | DBRS Limited (“DBRS”) |
DBRS has different rating scales for short-term debt, long-term debt and preferred shares. DBRS rating approach is based on a combination of quantitative and qualitative considerations relevant to the issuer, and the relative ranking of claims.
The DBRS short-term debt rating scale provides an opinion on the risk that an issuer will not meet its short-term financial obligations in a timely manner. The R-1 and R-2 rating categories are further denoted by the subcategories “high”, “middle” and “low”. An obligation rated R-1(high) is of the highest credit quality and indicates the capacity for the payment of short-term financial obligations as they fall due is exceptionally high; unlikely to be adversely affected by future events.
The DBRS long-term rating scale provides an opinion on the risk of default. That is, the risk that an issuer will fail to satisfy its financial obligations in accordance with the terms under which the obligations have been issued. All rating categories other than AAA and CCC also contain subcategories “(high)” and “(low)”. The absence of either a “(high)” or “(low)” designation indicates the rating is in the middle of the category. Long-term financial obligations rated AA are of superior credit quality and the capacity for payment is considered high; credit quality differs from AAA only to a small degree; unlikely to be significantly vulnerable to future events. Long-term financial obligations rated A are of good credit quality and the capacity for payment is considered substantial, but of lesser credit quality than AA; may be vulnerable to future events but qualifying negative factors are considered manageable.
The DBRS preferred share rating scale is used in the Canadian securities market and reflects an opinion on the risk that an issuer will not fulfill its obligations with respect to both dividend and principal commitments in accordance with the terms under which the relevant preferred shares were issued. Every DBRS rating using the preferred share rating scale is based on quantitative and qualitative considerations relevant to the issuing entity. Each rating category may be denoted by the subcategories “high” and “low”. The absence of either a “high” or “low” designation indicates the rating is in the middle of the category. The Pfd-2 rating generally indicates good credit quality.
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Protection of dividends and principal is still substantial, but earnings, the balance sheet and coverage ratios are not as strong as Pfd-1 rated companies. Generally, Pfd-2 ratings correspond with issuers with an A category or higher reference point.
The Rating Trend indicates the direction in which DBRS considers the rating may move if present circumstances continue.
The “Stable” rating trend indicates a lower likelihood that the rating could change in the future than would be the case if the rating trend was “Positive” or “Negative”.
| (d) | Fitch |
Fitch publishes opinions on a variety of scales.
A short-term issuer or obligation rating is based on the short-term vulnerability to default of the rated entity and relates to the capacity to meet financial obligations in accordance with the documentation governing the relevant obligation. Short-term deposit ratings may be adjusted for loss severity. Short-Term Ratings are assigned to obligations whose initial maturity is viewed as “short term” based on market convention (a long-term rating can also be used to rate an issue with short maturity). Typically, this means a timeframe of up to 13 months for corporate, sovereign, and structured obligations and up to 36 months for obligations in U.S. public finance markets.A rating of F1+ indicates the highest short-term credit quality and strongest intrinsic capacity for the timely payment of financial commitments. The added “+” denotes an exceptionally strong credit feature.
Rated entities in a number of sectors, including financial and non-financial corporations, are generally assigned Issuer Default Ratings (“IDRs”). IDRs opine on an entity’s relative vulnerability to default on financial obligations. A rating of AA indicates a very high credit quality and denotes expectation of very low credit risk. This indicates a very strong capacity for payment of financial commitments, and is not significantly vulnerable to foreseeable events. A rating of A indicates a high credit quality and denotes expectation of low credit risk. The capacity for payment of financial commitments is considered strong. This capacity may, nevertheless, be more vulnerable to adverse business or economic conditions than is the case for higher ratings. A rating of BBB indicates good credit quality and denotes expectations of default risk are currently low. The capacity for payment of financial commitments is considered adequate, but adverse business or economic conditions are more likely to impair this capacity. The modifiers “+” or “-” may be appended to a rating to denote relative status within major rating categories.
Rating Outlooks indicate the direction a rating is likely to move over a one to two-year period. They reflect financial or other trends that have not yet reached or been sustained at the level that would cause a rating action, but which may do so if such trends continue.
The “Stable” rating outlook means that the rating is not likely to change over a one to two-year period.
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Topic |
EDTF Disclosure |
Page number |
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Annual Report |
SFI |
SRCI |
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General |
1. Risk-related information in each report, including an index for easy navigation |
67-107 | Index | Index | ||||||||||
2. Risk terminology, measures and key parameters |
|
70-107, 122-124
|
|
|||||||||||
3. Top and emerging risks |
67-69 | |||||||||||||
4. Plans to meet new key regulatory ratios once applicable rules are finalized |
61 | |||||||||||||
|
Risk Governance, Risk Management and Business Model |
5. Risk management and governance framework, processes and key functions |
70-74 | ||||||||||||
6. Risk culture, risk appetite and procedures to support the culture |
72-75 | |||||||||||||
7. Risks that arise from business models and activities |
63,72-74 | |||||||||||||
8. Stress testing within the risk governance and capital frameworks |
75 | |||||||||||||
|
Capital Adequacy and Risk-Weighted Assets (RWA) |
9. Pillar 1 capital requirements |
59-61,185 | 5-6,15 | |||||||||||
10. Composition of capital components and reconciliation of the accounting balance sheet to the regulatory balance sheet. A main features template can be found at: Regulatory Disclosure |
62 | 5-7 | ||||||||||||
11. Flow statement of movements in regulatory capital, including changes in Common Equity Tier 1 Capital, Additional Tier 1 Capital and Tier 2 Capital |
8 | |||||||||||||
12. Capital management and strategic planning |
58-63 | |||||||||||||
13. Risk-weighted assets (RWA) by operating segment |
63 | 16 | ||||||||||||
14. Analysis of capital requirements for each method used in calculating RWA |
59-63,76-80 | |
16,22-49, 55-67,70-71, 78-82,85, 86-91 |
|
||||||||||
15. Tabulate credit risk in the banking book for Basel asset classes and major portfolios |
|
22-49, 51-67,
89-91
|
|
|||||||||||
16. Flow statement that reconciles movements in RWA by credit risk and market risk |
50,71,83 | |||||||||||||
17. Basel validation and back-testing process, including estimated and actual loss parameter information |
101-102 | 92-94 | ||||||||||||
Liquidity |
18. Management of liquidity needs and liquidity reserve held to meet those needs |
89-95 | ||||||||||||
Funding |
19. Encumbered and unencumbered assets disclosed by balance sheet category |
91 | 48 | |||||||||||
20. Consolidated total assets, liabilities and off-balance sheet commitments by remaining contractual maturity |
96-97 | |||||||||||||
21. Analysis of funding sources and funding strategy |
92-93 | |||||||||||||
Market Risk |
22. Linkage of trading and non-trading market risk to the consolidated balance sheet |
88 | ||||||||||||
23. Significant trading and non-trading market risk factors |
84-88 | |||||||||||||
24. Market risk model assumptions, validation procedures and back-testing |
84-88,101-102 | |||||||||||||
25. Primary techniques for risk measurement and risk assessment, including risk of loss |
84-88 | |||||||||||||
Credit Risk |
26. Analysis of credit risk profile, exposures and concentration |
|
62-63,76-83, 145-152,163-164 |
|
24-45 | 16-81 | ||||||||
27. Policies to identify impaired loans and renegotiated loans |
146,151 | |||||||||||||
28. Reconciliation of opening and closing balances of impaired loans and allowance for credit losses |
82,148 | |||||||||||||
29. Counterparty credit risk arising from derivative transactions |
76-78,83,163-164 | 55-73 | ||||||||||||
30. Credit risk mitigation |
|
76-78,147,154, 196-197 |
|
21,51-52,68 | ||||||||||
Other Risks |
31. Discussion of other risks |
70-73,98-107 | ||||||||||||
32. Publicly known risk events involving material or potentially material loss events |
98-107,197-198 | |||||||||||||
| BMO Financial Group 208th Annual Report 2025 | 15 |
|
Index |
||||
17 |
||||||
18 |
||||||
19 |
||||||
19 |
||||||
22 |
||||||
23 |
||||||
27 |
||||||
28 |
||||||
34 |
||||||
34 |
||||||
35 |
||||||
39 |
||||||
43 |
||||||
47 |
||||||
50 |
||||||
52 |
||||||
53 |
||||||
54 |
||||||
55 |
||||||
55 |
||||||
58 |
||||||
65 |
||||||
67 |
||||||
108 |
||||||
108 |
||||||
111 |
||||||
111 |
||||||
111 |
||||||
112 |
||||||
113 |
||||||
114 |
||||||
122 |
||||||
16 |
BMO Financial Group 208th Annual Report 2025 |
| BMO Financial Group 208th Annual Report 2025 | 17 |
• |
Thriving economy |
• |
Sustainable future |
• |
Stronger communities |
• |
World-class client experience |
• |
High-performing, winning culture |
• |
Digital-first, AI-powered
|
• |
Superior risk management |
• |
Integrity |
• |
Inclusion |
• |
Responsibility |
• |
Empathy |
18 |
BMO Financial Group 208th Annual Report 2025 |
| BMO Financial Group 208th Annual Report 2025 | 19 |
| Financial objectives (adjusted) | Reported basis | Adjusted basis (1) | ||||||||||||||||||||||||||||||||
| As at and for the periods ended October 31, 2025 | 1-year | 3-year (2) (3) |
5-year (2) (3) |
1-year |
3-year (2) (3) |
5-year (2) (3) |
||||||||||||||||||||||||||||
Earnings per share growth (%)
|
7-10% |
20.2 | (17.0 | ) | 8.7 | 25.6 | (2.8 | ) | 9.5 | |||||||||||||||||||||||||
Return on equity (%)
|
15% or more | 10.6 | 8.8 | 12.8 | 11.3 | 11.2 | 13.1 | |||||||||||||||||||||||||||
Return on tangible common equity (%)
|
18% or more | 14.3 | 12.1 | 15.7 | 14.7 | 14.7 | 15.9 | |||||||||||||||||||||||||||
Operating leverage (%) (2)
|
2% or more | 2.4 | (7.4 | ) | 0.8 | 4.3 | (0.3 | ) | 1.3 | |||||||||||||||||||||||||
Common Equity Tier 1 Ratio (%)
|
Exceed regulatory requirement | 13.3 | na | na | na | na | na | |||||||||||||||||||||||||||
Total shareholder return (%)
|
Top-tier |
43.3 | 16.9 | 22.2 | na | na | na | |||||||||||||||||||||||||||
| (1) | Adjusted results and measures are non-GAAP amounts and measures and are discussed in the Non-GAAP and Other Financial Measures section. |
| (2) | Prior to November 1, 2022, we presented adjusted revenue on a basis net of insurance claims, commissions and changes in policy benefit liabilities (CCPB) and operating leverage was calculated based on revenue, net of CCPB. Beginning fiscal 2023, we no longer report CCPB, given the adoption and retrospective application of IFRS 17, Insurance Contracts non-GAAP amounts. |
| (3) | The 3-year and 5-year EPS growth rate and operating leverage, net of CCPB, reflect compound annual growth rates (CAGR). |
|
Earnings per Share Growth All references to earnings per share (EPS) are to diluted EPS, unless otherwise indicated. Reported EPS was $11.44 in fiscal 2025, an increase of $1.93 or 20% from $9.51 in fiscal 2024. Adjusted EPS was $12.16, an increase of $2.48 or 26% from $9.68 in fiscal 2024. Higher reported and adjusted EPS reflected earnings growth, as well as a lower number of common shares outstanding. Net income available to common shareholders increased 19% year-over-year on a reported basis and 25% on an adjusted basis, with higher revenue and lower provisions for credit losses partially offset by higher expenses. The average number of diluted common shares outstanding decreased 1% from fiscal 2024, due to shares repurchased in the current year. |
 |
|
|
Earnings per Share (EPS) |
||
|
Return on Equity and Return on Tangible Common Equity Reported return on equity (ROE) was 10.6% in fiscal 2025 and adjusted ROE was 11.3%, compared with 9.7% and 9.8%, respectively, in fiscal 2024. Reported and adjusted ROE increased due to earnings growth, partially offset by an increase in average common shareholders’ equity. Average common shareholders’ equity increased $6.3 billion or 9% from fiscal 2024, primarily due to growth in retained earnings and an increase in accumulated other comprehensive income, partially offset by the impact of the purchase of common shares for cancellation in the current year. Reported return on tangible common equity (ROTCE) was 14.3%, compared with 13.5% in fiscal 2024, and adjusted ROTCE was 14.7%, compared with 13.1% in fiscal 2024. Book value per share increased 7% from the prior year to $111.57, reflecting the increase in shareholders’ equity. |
||
 |
|
|
|
Return on Common Shareholders’ Equity (ROE) Return on Tangible Common Equity (ROTCE) |
||
20 |
BMO Financial Group 208th Annual Report 2025 |
|
Efficiency Ratio and Operating Leverage BMO’s reported efficiency ratio in fiscal 2025 was 58.2%, an improvement from 59.5% in fiscal 2024, and adjusted efficiency ratio was 56.3%, an improvement from 58.6% in fiscal 2024. Reported operating leverage in fiscal 2025 was 2.4%, compared with 19.8% in fiscal 2024, and adjusted operating leverage was 4.3% in fiscal 2025, compared with 1.6% in fiscal 2024. |
||
 |
|
|
|
Efficiency Ratio (or expense-to-revenue non-interest expense divided by total revenue (on a taxable equivalent basis in the operating segments).Operating Leverage non-interest expense. Adjusted operating leverage is calculated using adjusted revenue and adjusted non-interest expense. |
||
|
Common Equity Tier 1 Ratio Our Common Equity Tier 1 (CET1) Ratio was 13.3% as at October 31, 2025, compared with 13.6% as at October 31, 2024. Our CET1 Ratio decreased from the prior year, as internal capital generation was more than offset by the impact of the purchase of 22.2 million common shares for cancellation and higher source-currency risk-weighted assets (RWA). |
|
Common Equity Tier 1 (CET1) Ratio |
| For the year ended October 31 | 2025 |
2024 | 2023 | 2022 | 2021 |
3-year
CAGR |
5-year
CAGR |
|||||||||||||||||||||
Closing market price per common share ($)
|
174.23 |
126.88 | 104.79 | 125.49 | 134.37 | 11.6 |
17.0 |
|||||||||||||||||||||
Dividends paid ($ per share)
|
6.36 |
6.04 | 5.72 | 5.11 | 4.24 | 7.6 |
8.6 |
|||||||||||||||||||||
Dividend yield (%)
|
3.7 |
4.8 | 5.5 | 4.3 | 3.2 | nm |
nm |
|||||||||||||||||||||
Increase (decrease) in share price (%)
|
37.3 |
21.1 | (16.5 | ) | (6.6 | ) | 69.4 | nm |
nm |
|||||||||||||||||||
Total annual shareholder return (%) (2)
|
43.3 |
27.4 | (12.5 | ) | (3.1 | ) | 75.9 | 16.9 |
22.2 |
|||||||||||||||||||
Canadian peer group average (excluding BMO) (3)
|
35.8 |
49.4 | (8.8 | ) | (6.2 | ) | 56.1 | 21.9 |
21.4 |
|||||||||||||||||||
| (1) | Compound annual growth rate (CAGR) expressed as a percentage. |
| (2) | Total annual shareholder return assumes reinvestment of quarterly dividends and therefore does not equal the sum of dividend and share price returns in the table. |
| (3) | As at October 31, 2025. Canadian peer group: The Bank of Nova Scotia, Canadian Imperial Bank of Commerce, National Bank of Canada, Royal Bank of Canada and The Toronto-Dominion Bank. |
| BMO Financial Group 208th Annual Report 2025 | 21 |
| (Canadian $ in millions, except as noted) | 2025 |
2024 | ||||||
Summary Income Statement (1)
|
||||||||
Net interest income |
21,487 |
19,468 | ||||||
Non-interest revenue |
14,787 |
13,327 | ||||||
Revenue |
36,274 |
32,795 | ||||||
Provision for credit losses on impaired loans |
3,147 |
3,066 | ||||||
Provision for credit losses on performing loans |
470 |
695 | ||||||
Total provision for credit losses (PCL) |
3,617 |
3,761 | ||||||
Non-interest expense |
21,107 |
19,499 | ||||||
Provision for income taxes |
2,825 |
2,208 | ||||||
Net income |
8,725 |
7,327 | ||||||
Net income attributable to non-controlling interest in subsidiaries |
16 |
9 | ||||||
Dividends on preferred shares and distributions on other equity instruments |
436 |
386 | ||||||
Net income available to common shareholders |
8,273 |
6,932 | ||||||
Adjusted net income |
9,248 |
7,449 | ||||||
Adjusted net income available to common shareholders |
8,796 |
7,054 | ||||||
Common Share Data ($, except as noted) (1)
|
||||||||
Basic earnings per share |
11.46 |
9.52 | ||||||
Diluted earnings per share |
11.44 |
9.51 | ||||||
Adjusted diluted earnings per share |
12.16 |
9.68 | ||||||
Book value per share |
111.57 |
104.40 | ||||||
Closing share price |
174.23 |
126.88 | ||||||
Number of common shares outstanding (in millions)
|
||||||||
End of period |
708.9 |
729.5 | ||||||
Average basic |
721.9 |
727.7 | ||||||
Average diluted |
723.3 |
728.5 | ||||||
Market capitalization ($ millions)
|
123,513 |
92,563 | ||||||
Dividends declared per common share |
6.44 |
6.12 | ||||||
Dividend yield (%)
|
3.7 |
4.8 | ||||||
Dividend payout ratio (%)
|
56.2 |
64.3 | ||||||
Adjusted dividend payout ratio (%)
|
52.8 |
63.1 | ||||||
Financial Measures and Ratios (%) (1)
|
||||||||
Return on equity |
10.6 |
9.7 | ||||||
Adjusted return on equity |
11.3 |
9.8 | ||||||
Return on tangible common equity |
14.3 |
13.5 | ||||||
Adjusted return on tangible common equity |
14.7 |
13.1 | ||||||
Efficiency ratio |
58.2 |
59.5 | ||||||
Adjusted efficiency ratio |
56.3 |
58.6 | ||||||
Operating leverage |
2.4 |
19.8 | ||||||
Adjusted operating leverage |
4.3 |
1.6 | ||||||
Net interest margin on average earning assets |
1.65 |
1.58 | ||||||
Adjusted net interest margin, excluding trading net interest income, and trading and insurance assets |
1.99 |
1.85 | ||||||
Effective tax rate |
24.5 |
23.2 | ||||||
Adjusted effective tax rate |
24.3 |
22.9 | ||||||
Total PCL-to-average |
0.53 |
0.57 | ||||||
PCL on impaired loans-to-average |
0.46 |
0.47 | ||||||
Balance Sheet and Other Information (as at October 31, $ millions, except as noted)
|
||||||||
Assets |
1,476,802 |
1,409,647 | ||||||
Average earning assets |
1,305,072 |
1,235,830 | ||||||
Gross loans and acceptances |
682,922 |
682,731 | ||||||
Net loans and acceptances |
677,872 |
678,375 | ||||||
Deposits |
976,202 |
982,440 | ||||||
Common shareholders’ equity |
79,095 |
76,163 | ||||||
Total risk-weighted assets (2)
|
437,945 |
420,838 | ||||||
Assets under administration |
864,891 |
770,584 | ||||||
Assets under management |
506,661 |
422,701 | ||||||
Capital and Liquidity Measures (%) (2)
|
||||||||
Common Equity Tier 1 Ratio |
13.3 |
13.6 | ||||||
Tier 1 Capital Ratio |
15.0 |
15.4 | ||||||
Total Capital Ratio |
17.3 |
17.6 | ||||||
Leverage Ratio |
4.3 |
4.4 | ||||||
TLAC Ratio |
29.7 |
29.3 | ||||||
Liquidity Coverage Ratio |
132 |
132 | ||||||
Net Stable Funding Ratio |
117 |
117 | ||||||
Foreign Exchange Rates ($)
|
||||||||
As at October 31, Canadian/U.S. dollar |
1.4016 |
1.3909 | ||||||
Average Canadian/U.S. dollar |
1.4029 |
1.3591 | ||||||
| (1) | Adjusted results exclude certain items from reported results and are used to calculate our adjusted measures as presented in the table above. Management assesses performance on a reported basis and an adjusted basis, and considers both to be useful. For further information, refer to the Non-GAAP and Other Financial Measures section. For details on the composition of non-GAAP amounts, measures and ratios, as well as supplementary financial measures, refer to the Glossary of Financial Terms. |
| (2) | Capital and liquidity measures are disclosed in accordance with the Capital Adequacy Requirements (CAR) Guideline and the Liquidity Adequacy Requirements (LAR) Guideline, as set out by OSFI, as applicable. |
22 |
BMO Financial Group 208th Annual Report 2025 |
• |
Acquisition and integration costs of $13 million ($17 million pre-tax) in the current year and $129 million ($172 million pre-tax) in the prior year. Amounts are recorded in non-interest expense in the related operating segment: Burgundy in Wealth Management; Bank of the West in Corporate Services; AIR MILES in Canadian P&C; and Clearpool and Radicle in Capital Markets. |
• |
Amortization of acquisition-related intangible assets of $352 million ($476 million pre-tax) in the current year, including a $64 million impairment related to AIR MILES, and $334 million ($450 million pre-tax) in the prior year. Amounts are recorded in non-interest expense in the related operating segment. |
• |
Impact of divestitures related to the announced sale of 138 branches in select U.S. markets resulting in a write-down of goodwill of $102 million (pre-tax and after-tax) in the current year, recorded in non-interest expense in Corporate Services. |
• |
Impact of a U.S. Federal Deposit Insurance Corporation (FDIC) special assessment, recorded in non-interest expense in Corporate Services, which included a partial reversal of $14 million ($19 million pre-tax) in the current year and a charge of $357 million ($476 million pre-tax) in the prior year. |
• |
Impact of aligning accounting policies for employee vacation across legal entities of $70 million ($96 million pre-tax) in the current year, recorded in non-interest expense in Corporate Services. |
• |
Reversal of the fiscal 2022 legal provision, including accrued interest, associated with a predecessor bank, M&I Marshall and Ilsley Bank, of $834 million ($1,135 million pre-tax) in the prior year, comprising a reversal of interest expense of $547 million and a reversal of non-interest expense of $588 million. For further information, refer to the Provisions and Contingent Liabilities section in Note 24 of the audited annual consolidated financial statements. |
• |
Net accounting loss of $136 million ($164 million pre-tax) on the sale of a portfolio of recreational vehicle loans related to balance sheet optimization in the prior year, recorded in non-interest revenue in Corporate Services. |
| BMO Financial Group 208th Annual Report 2025 | 23 |
| (Canadian $ in millions, except as noted) | 2025 |
2024 | ||||||
Reported Results |
||||||||
Net interest income |
21,487 |
19,468 | ||||||
Non-interest revenue |
14,787 |
13,327 | ||||||
Revenue |
36,274 |
32,795 | ||||||
Provision for credit losses |
3,617 |
3,761 | ||||||
Non-interest expense |
21,107 |
19,499 | ||||||
Income before income taxes |
11,550 |
9,535 | ||||||
Provision for income taxes |
2,825 |
2,208 | ||||||
Net income |
8,725 |
7,327 | ||||||
Dividends on preferred shares and distributions on other equity instruments |
436 |
386 | ||||||
Net income attributable to non-controlling interest in subsidiaries |
16 |
9 | ||||||
Net income available to common shareholders |
8,273 |
6,932 | ||||||
Diluted EPS ($)
|
11.44 |
9.51 | ||||||
Adjusting Items Impacting Revenue (Pre-tax)
|
||||||||
Legal provision/reversal (including related interest expense and legal fees) |
– |
547 | ||||||
Impact of loan portfolio sale |
– |
(164 | ) | |||||
Impact of adjusting items on revenue (pre-tax)
|
– |
383 | ||||||
Adjusting Items Impacting Non-Interest Expense (Pre-tax)
|
||||||||
Acquisition and integration costs |
(17 |
) |
(172 | ) | ||||
Amortization of acquisition-related intangible assets (2) |
(476 |
) |
(450 | ) | ||||
Impact of divestitures |
(102 |
) |
– | |||||
Legal provision/reversal (including related interest expense and legal fees) |
– |
588 | ||||||
FDIC special assessment |
19 |
(476 | ) | |||||
Impact of alignment of accounting policies |
(96 |
) |
– | |||||
Impact of adjusting items on non-interest expense (pre-tax)
|
(672 |
) |
(510 | ) | ||||
Impact of adjusting items on reported net income (pre-tax)
|
(672 |
) |
(127 | ) | ||||
Adjusting Items Impacting Revenue (After-tax)
|
||||||||
Legal provision/reversal (including related interest expense and legal fees) |
– |
401 | ||||||
Impact of loan portfolio sale |
– |
(136 | ) | |||||
Impact of adjusting items on revenue (after-tax)
|
– |
265 | ||||||
Adjusting Items Impacting Non-Interest Expense (After-tax)
|
||||||||
Acquisition and integration costs |
(13 |
) |
(129 | ) | ||||
Amortization of acquisition-related intangible assets (2)
|
(352 |
) |
(334 | ) | ||||
Impact of divestitures |
(102 |
) |
– | |||||
Legal provision/reversal (including related interest expense and legal fees) |
– |
433 | ||||||
FDIC special assessment |
14 |
(357 | ) | |||||
Impact of alignment of accounting policies |
(70 |
) |
– | |||||
Impact of adjusting items on non-interest expense (after-tax)
|
(523 |
) |
(387 | ) | ||||
Impact of adjusting items on reported net income (after-tax)
|
(523 |
) |
(122 | ) | ||||
Impact on diluted EPS ($)
|
(0.72 |
) |
(0.17 | ) | ||||
Adjusted Results |
||||||||
Net interest income |
21,487 |
18,921 | ||||||
Non-interest revenue |
14,787 |
13,491 | ||||||
Revenue |
36,274 |
32,412 | ||||||
Provision for credit losses |
3,617 |
3,761 | ||||||
Non-interest expense |
20,435 |
18,989 | ||||||
Income before income taxes |
12,222 |
9,662 | ||||||
Provision for income taxes |
2,974 |
2,213 | ||||||
Net income |
9,248 |
7,449 | ||||||
Net income available to common shareholders |
8,796 |
7,054 | ||||||
Diluted EPS ($)
|
12.16 |
9.68 | ||||||
| (1) | Adjusted results exclude certain items from reported results and are used to calculate our adjusted measures, as presented in the table above. Refer to the commentary in this Non-GAAP and Other Financial Measures section for further information on adjusting items. |
| (2) | Represents amortization of acquisition-related intangible assets and any impairment. |
24 |
BMO Financial Group 208th Annual Report 2025 |
| (Canadian $ in millions, except as noted) | Canadian P&C |
U.S. Banking |
Wealth Management |
Capital Markets |
Corporate Services |
Total Bank |
U.S. Operations
(US$ in millions)
|
|||||||||||||||||||||
2025 |
||||||||||||||||||||||||||||
Reported net income (loss) |
3,295 |
2,810 |
1,381 |
1,977 |
(738 |
) |
8,725 |
2,431 |
||||||||||||||||||||
Dividends on preferred shares and distributions on other equity instruments |
46 |
61 |
6 |
41 |
282 |
436 |
12 |
|||||||||||||||||||||
Net income attributable to non-controlling interest in subsidiaries |
– |
14 |
– |
– |
2 |
16 |
12 |
|||||||||||||||||||||
Net income (loss) available to common shareholders |
3,249 |
2,735 |
1,375 |
1,936 |
(1,022 |
) |
8,273 |
2,407 |
||||||||||||||||||||
Adjusting Items |
||||||||||||||||||||||||||||
Acquisition and integration costs |
– |
– |
4 |
– |
9 |
13 |
6 |
|||||||||||||||||||||
Amortization of acquisition-related intangible assets |
58 |
272 |
– |
22 |
– |
352 |
200 |
|||||||||||||||||||||
Impact of divestitures |
– |
– |
– |
– |
102 |
102 |
73 |
|||||||||||||||||||||
Impact of FDIC special assessment |
– |
– |
– |
– |
(14 |
) |
(14 |
) |
(10 |
) |
||||||||||||||||||
Impact of alignment of accounting policies |
– |
– |
– |
– |
70 |
70 |
25 |
|||||||||||||||||||||
Adjusted net income (loss) (2)
|
3,353 |
3,082 |
1,385 |
1,999 |
(571 |
) |
9,248 |
2,725 |
||||||||||||||||||||
Adjusted net income (loss) available to common shareholders (2)
|
3,307 |
3,007 |
1,379 |
1,958 |
(855 |
) |
8,796 |
2,701 |
||||||||||||||||||||
2024 |
||||||||||||||||||||||||||||
Reported net income (loss) |
3,457 | 2,010 | 1,067 | 1,492 | (699 | ) | 7,327 | 2,112 | ||||||||||||||||||||
Dividends on preferred shares and distributions on other equity instruments |
42 | 57 | 6 | 37 | 244 | 386 | 20 | |||||||||||||||||||||
Net income attributable to non-controlling interest in subsidiaries |
– | 2 | – | – | 7 | 9 | 7 | |||||||||||||||||||||
Net income (loss) available to common shareholders |
3,415 | 1,951 | 1,061 | 1,455 | (950 | ) | 6,932 | 2,085 | ||||||||||||||||||||
Adjusting Items |
||||||||||||||||||||||||||||
Acquisition and integration costs |
17 | – | – | 15 | 97 | 129 | 76 | |||||||||||||||||||||
Amortization of acquisition-related intangible assets |
13 | 290 | – | 31 | – | 334 | 222 | |||||||||||||||||||||
Legal provision/reversal (including related interest expense and legal fees) |
– | – | – | – | (834 | ) | (834 | ) | (616 | ) | ||||||||||||||||||
Impact of loan portfolio sale |
– | – | – | – | 136 | 136 | 102 | |||||||||||||||||||||
Impact of FDIC special assessment |
– | – | – | – | 357 | 357 | 263 | |||||||||||||||||||||
| Adjusted net income (loss) (2)
|
3,487 | 2,300 | 1,067 | 1,538 | (943 | ) | 7,449 | 2,159 | ||||||||||||||||||||
Adjusted net income (loss) available to common shareholders (2)
|
3,445 | 2,241 | 1,061 | 1,501 | (1,194 | ) | 7,054 | 2,132 | ||||||||||||||||||||
| (1) | U.S. Operations reported and adjusted results comprise net income recorded in U.S. Banking, and the U.S. operations in Capital Markets and Corporate Services. |
| (2) | Refer to the commentary in this Non-GAAP and Other Financial Measures section for details on adjusting items. |
|
(Canadian $ in millions, except as noted) For the year ended October 31 |
2025 |
2024 | ||||||
Reported net income |
8,725 |
7,327 | ||||||
Net income attributable to non-controlling interest in subsidiaries |
16 |
9 | ||||||
Net income attributable to bank shareholders |
8,709 |
7,318 | ||||||
Dividends on preferred shares and distributions on other equity instruments |
436 |
386 | ||||||
Net income available to common shareholders (A)
|
8,273 |
6,932 | ||||||
After-tax amortization of acquisition-related intangible assets |
352 |
334 | ||||||
Net income available to common shareholders after adjusting for amortization of acquisition-related intangible assets (B)
|
8,625 |
7,266 | ||||||
After-tax impact of other adjusting items (1)
|
171 |
(212 | ) | |||||
Adjusted net income available to common shareholders (C)
|
8,796 |
7,054 | ||||||
Average common shareholders’ equity (D)
|
78,126 |
71,817 | ||||||
Goodwill |
(16,886 |
) |
(16,385 | ) | ||||
Acquisition-related intangible assets |
(2,329 |
) |
(2,642 | ) | ||||
Net of related deferred tax liabilities |
953 |
960 | ||||||
Average tangible common equity (E)
|
59,864 |
53,750 | ||||||
Return on equity (%) (= A/D)
|
10.6 |
9.7 | ||||||
Adjusted return on equity (%) (= C/D)
|
11.3 |
9.8 | ||||||
Return on tangible common equity (%) (= B/E)
|
14.3 |
13.5 | ||||||
Adjusted return on tangible common equity (%) (= C/E)
|
14.7 |
13.1 | ||||||
| (1) | Refer to the commentary in this Non-GAAP and Other Financial Measures section for details on adjusting items. |
| BMO Financial Group 208th Annual Report 2025 | 25 |
2025 |
||||||||||||||||||||||||||||
| (Canadian $ in millions, except as noted) | Canadian P&C |
U.S. Banking |
Wealth Management |
Capital Markets |
Corporate Services |
Total Bank |
U.S. Operations (US$ in millions) |
|||||||||||||||||||||
Reported |
||||||||||||||||||||||||||||
Net income (loss) available to common shareholders |
3,249 |
2,735 |
1,375 |
1,936 |
(1,022 |
) |
8,273 |
2,407 |
||||||||||||||||||||
Total average common equity |
16,744 |
37,075 |
3,028 |
13,786 |
7,493 |
78,126 |
32,512 |
|||||||||||||||||||||
Return on equity (%)
|
19.4 |
7.4 |
45.4 |
14.0 |
na |
10.6 |
7.4 |
|||||||||||||||||||||
Adjusted (3)
|
||||||||||||||||||||||||||||
Net income (loss) available to common shareholders |
3,307 |
3,007 |
1,379 |
1,958 |
(855 |
) |
8,796 |
2,701 |
||||||||||||||||||||
Total average common equity |
16,744 |
37,075 |
3,028 |
13,786 |
7,493 |
78,126 |
32,512 |
|||||||||||||||||||||
Return on equity (%)
|
19.8 |
8.1 |
45.6 |
14.2 |
na |
11.3 |
8.3 |
|||||||||||||||||||||
| 2024 | ||||||||||||||||||||||||||||
| (Canadian $ in millions, except as noted) | Canadian P&C | U.S. Banking | Wealth Management |
Capital Markets |
Corporate Services |
Total Bank | U.S. Operations (2) (US$ in millions) |
|||||||||||||||||||||
Reported |
||||||||||||||||||||||||||||
Net income (loss) available to common shareholders |
3,415 | 1,951 | 1,061 | 1,455 | (950 | ) | 6,932 | 2,085 | ||||||||||||||||||||
Total average common equity |
15,986 | 35,100 | 2,905 | 13,172 | 4,654 | 71,817 | 31,782 | |||||||||||||||||||||
Return on equity (%)
|
21.4 | 5.6 | 36.5 | 11.0 | na | 9.7 | 6.6 | |||||||||||||||||||||
Adjusted (3)
|
||||||||||||||||||||||||||||
Net income (loss) available to common shareholders |
3,445 | 2,241 | 1,061 | 1,501 | (1,194 | ) | 7,054 | 2,132 | ||||||||||||||||||||
Total average common equity |
15,986 | 35,100 | 2,905 | 13,172 | 4,654 | 71,817 | 31,782 | |||||||||||||||||||||
Return on equity (%)
|
21.5 | 6.4 | 36.5 | 11.4 | na | 9.8 | 6.7 | |||||||||||||||||||||
| (1) | Return on equity is based on allocated capital. Effective fiscal 2025, the capital allocation rate increased to 12.0% of risk-weighted assets, compared with 11.5% in fiscal 2024. Capital is allocated to the operating segments based on the amount of regulatory capital required to support business activities, with unallocated capital reported in Corporate Services. Capital allocation methodologies are reviewed annually. For further information, refer to the How BMO Reports Operating Segments Results section. |
| (2) | U.S. Operations comprises reported and adjusted results and allocated capital recorded in U.S. Banking, and the U.S. operations in Capital Markets and Corporate Services. |
| (3) | Refer to the commentary in this Non-GAAP and Other Financial Measures section for details on adjusting items. |
26 |
BMO Financial Group 208th Annual Report 2025 |
| (1) | All periods in this section refer to the calendar quarter and calendar year, rather than the fiscal quarter or fiscal year. |
| BMO Financial Group 208th Annual Report 2025 | 27 |
| (Canadian $ in millions, except as noted) | 2025 vs. 2024 |
|||
Canadian/U.S. dollar exchange rate (average) |
||||
2025 |
1.4029 |
|||
2024 |
1.3591 |
|||
Increased/(Decreased |
) |
|||
Effects on U.S. Operations Reported Results |
||||
Net interest income |
300 |
|||
Non-interest revenue |
167 |
|||
Total revenue |
467 |
|||
Provision for credit losses |
(64 |
) |
||
Non-interest expense |
(288 |
) |
||
Provision for income taxes |
(22 |
) |
||
Net income |
93 |
|||
Impact on basic earnings per share ($)
|
0.13 |
|||
Impact on diluted earnings per share ($)
|
0.13 |
|||
Effects on U.S. Operations Adjusted Results (1)
|
||||
Net interest income |
282 |
|||
Non-interest revenue |
172 |
|||
Total revenue |
454 |
|||
Provision for credit losses |
(64 |
) |
||
Non-interest expense |
(274 |
) |
||
Provision for income taxes |
(21 |
) |
||
Net income |
95 |
|||
Impact on basic earnings per share ($)
|
0.13 |
|||
Impact on diluted earnings per share ($)
|
0.13 |
|||
| (1) | Adjusted results are on a non-GAAP basis and are discussed in the Non-GAAP and Other Financial Measures section. |
28 |
BMO Financial Group 208th Annual Report 2025 |
|
(Canadian $ in millions, on a
pre-tax basis)For the year ended October 31 |
2025 |
2024 | ||||||
Net interest income |
21,487 |
19,468 | ||||||
Non-interest revenue |
14,787 |
13,327 | ||||||
Total revenue |
36,274 |
32,795 | ||||||
Legal provision/reversal (including related interest expense and legal fees) |
– |
(547 | ) | |||||
Impact of loan portfolio sale |
– |
164 | ||||||
Impact of adjusting items on revenue |
– |
(383 | ) | |||||
Adjusted revenue |
36,274 |
32,412 | ||||||
| (1) | Adjusted results exclude certain items from reported results and are used to calculate our adjusted measures as presented in the table above. Management assesses performance on a reported basis and an adjusted basis, and considers both to be useful. Refer to the Non-GAAP and Other Financial Measures section for details on adjusting items. |
| BMO Financial Group 208th Annual Report 2025 | 29 |
Net interest margin |
||||||||||||||||||||||||||||||||
|
(Canadian $ in millions, except as noted) For the year ended October 31 |
Net interest income |
Average earning assets |
(in basis points) | |||||||||||||||||||||||||||||
2025 |
2024 | 2025 |
2024 | 2025 |
2024 | |||||||||||||||||||||||||||
Canadian P&C |
9,667 |
8,852 | 342,361 |
319,518 | 282 |
277 | ||||||||||||||||||||||||||
U.S. Banking |
9,017 |
8,602 | 235,855 |
230,500 | 382 |
373 | ||||||||||||||||||||||||||
All other operating segments and Corporate Services (4)
|
2,803 |
2,014 | 726,856 |
685,812 | na |
na | ||||||||||||||||||||||||||
Total reported |
21,487 |
19,468 | 1,305,072 |
1,235,830 | 165 |
158 | ||||||||||||||||||||||||||
Total adjusted |
21,487 |
18,921 | 1,305,072 |
1,235,830 | 165 |
153 | ||||||||||||||||||||||||||
Trading net interest income and trading and insurance assets |
783 |
169 | 264,786 |
222,149 | na |
na | ||||||||||||||||||||||||||
Total reported, excluding trading and insurance |
20,704 |
19,299 | 1,040,286 |
1,013,681 | 199 |
190 | ||||||||||||||||||||||||||
Total adjusted, excluding trading and insurance |
20,704 |
18,752 | 1,040,286 |
1,013,681 | 199 |
185 | ||||||||||||||||||||||||||
U.S. Banking (US$ in millions)
|
6,427 |
6,330 | 168,096 |
169,596 | 382 |
373 | ||||||||||||||||||||||||||
| (1) | Adjusted results and ratios in this table are on a non-GAAP basis and are discussed in the Non-GAAP and Other Financial Measures section. |
| (2) | Operating segment revenue is presented on a taxable equivalent basis (teb) in net interest income. For further information, refer to the How BMO Reports Operating Segments Results section. |
| (3) | Average earning assets represent the daily average balance of interest-bearing deposits at central banks, deposits with other banks, securities borrowed or purchased under resale agreements, securities and loans over a period. Average earning assets, excluding trading and insurance assets, exclude trading and insurance earning assets. |
| (4) | For further information on net interest income for these other operating segments and Corporate Services, refer to the 2025 Operating Segments Performance Review section. |
|
(Canadian $ in millions) For the year ended October 31 |
2025 |
2024 | ||||||
Securities commissions and fees |
1,169 |
1,106 | ||||||
Deposit and payment service charges |
1,791 |
1,626 | ||||||
Trading revenue |
2,584 |
2,377 | ||||||
Lending fees |
1,342 |
1,464 | ||||||
Card fees |
831 |
847 | ||||||
Investment management and custodial fees |
2,339 |
2,056 | ||||||
Mutual fund revenue |
1,495 |
1,324 | ||||||
Underwriting and advisory fees |
1,703 |
1,399 | ||||||
Securities gains, other than trading |
287 |
200 | ||||||
Foreign exchange, other than trading |
271 |
263 | ||||||
Insurance service results |
421 |
340 | ||||||
Insurance investment results |
124 |
105 | ||||||
Share of profit in associates and joint ventures |
175 |
207 | ||||||
Other |
255 |
13 | ||||||
Total reported |
14,787 |
13,327 | ||||||
Impact of loan portfolio sale |
– |
164 | ||||||
Adjusted non-interest revenue |
14,787 |
13,491 | ||||||
| (1) | Adjusted results exclude certain items from reported results and are used to calculate our adjusted measures as presented in the table above. Management assesses performance on a reported basis and an adjusted basis, and considers both to be useful. Refer to the commentary in the Non-GAAP and Other Financial Measures section for details ion adjusting items. |
30 |
BMO Financial Group 208th Annual Report 2025 |
|
(Canadian $ in millions) (taxable equivalent basis) For the year ended October 31 |
2025 |
2024 | ||||||
Interest rates |
1,026 |
1,003 | ||||||
Foreign exchange |
633 |
579 | ||||||
Equities |
1,133 |
781 | ||||||
Commodities |
365 |
150 | ||||||
Other |
212 |
55 | ||||||
Total (teb) (1)
|
3,369 |
2,568 | ||||||
Teb offset |
2 |
22 | ||||||
Reported total |
3,367 |
2,546 | ||||||
Reported as: |
||||||||
Net interest income |
785 |
191 | ||||||
Non-interest revenue – trading revenue |
2,584 |
2,377 | ||||||
Total (teb) |
3,369 |
2,568 | ||||||
Teb offset |
2 |
22 | ||||||
Reported total, net of teb offset |
3,367 |
2,546 | ||||||
| (1) | Trading-related revenue presented on a taxable equivalent basis (teb) is a non-GAAP measure. Similar to other banks, BMO analyzes trading-related revenue on a teb basis, which reflects an increase in net interest income on tax-exempt securities to equivalent pre-tax amounts and is useful in facilitating comparisons of income from taxable and tax-exempt sources. |
| (Canadian $ in millions) | Canadian P&C |
U.S. Banking |
Wealth Management |
Capital Markets |
Corporate Services |
Total Bank |
||||||||||||||||||
2025 |
||||||||||||||||||||||||
Provision for credit losses on impaired loans |
1,952 |
1,010 |
8 |
133 |
44 |
3,147 |
||||||||||||||||||
Provision (recovery of provision) for credit losses on performing loans |
412 |
33 |
2 |
68 |
(45 |
) |
470 |
|||||||||||||||||
Total provision (recovery of provision) for credit losses |
2,364 |
1,043 |
10 |
201 |
(1 |
) |
3,617 |
|||||||||||||||||
Total PCL-to-average (%)
|
0.70 |
0.47 |
0.03 |
0.24 |
nm |
0.53 |
||||||||||||||||||
PCL on impaired loans-to-average (%)
|
0.58 |
0.45 |
0.03 |
0.16 |
nm |
0.46 |
||||||||||||||||||
2024 |
||||||||||||||||||||||||
Provision for credit losses on impaired loans |
1,326 | 1,285 | 15 | 367 | 73 | 3,066 | ||||||||||||||||||
Provision (recovery of provision) for credit losses on performing loans |
333 | 392 | 2 | 2 | (34 | ) | 695 | |||||||||||||||||
Total provision for credit losses |
1,659 | 1,677 | 17 | 369 | 39 | 3,761 | ||||||||||||||||||
Total PCL-to-average (%)
|
0.51 | 0.77 | 0.06 | 0.45 | nm | 0.57 | ||||||||||||||||||
PCL on impaired loans-to-average (%)
|
0.41 | 0.59 | 0.05 | 0.44 | nm | 0.47 | ||||||||||||||||||
| BMO Financial Group 208th Annual Report 2025 | 31 |
|
(Canadian $ in millions, on a
pre-tax basis)For the year ended October 31 |
2025 |
2024 | ||||||
Employee compensation |
||||||||
Salaries |
6,238 |
5,747 | ||||||
Performance-based compensation |
4,216 |
3,742 | ||||||
Employee benefits |
1,564 |
1,383 | ||||||
Total employee compensation |
12,018 |
10,872 | ||||||
Total premises and equipment |
4,468 |
4,117 | ||||||
Amortization of intangible assets |
1,152 |
1,112 | ||||||
Other expenses |
||||||||
Advertising and business development |
806 |
837 | ||||||
Communications |
342 |
388 | ||||||
Professional fees |
678 |
583 | ||||||
Association, clearing and annual regulator fees |
302 |
321 | ||||||
Other |
1,341 |
1,269 | ||||||
Total other expenses |
3,469 |
3,398 | ||||||
Total non-interest expense |
21,107 |
19,499 | ||||||
Acquisition and integration costs |
(17 |
) |
(172 | ) | ||||
Amortization of acquisition-related intangible assets |
(476 |
) |
(450 | ) | ||||
Impact of divestitures |
(102 |
) |
– | |||||
Legal provision/reversal (including related interest expense and legal fees) |
– |
588 | ||||||
FDIC special assessment |
19 |
(476 | ) | |||||
Impact of alignment of accounting policies |
(96 |
) |
– | |||||
Impact of adjusting items on non-interest expense |
(672 |
) |
(510 | ) | ||||
Total adjusted non-interest expense |
20,435 |
18,989 | ||||||
Efficiency ratio (%)
|
58.2 |
59.5 | ||||||
Adjusted efficiency ratio (%)
|
56.3 |
58.6 | ||||||
| (1) | Adjusted results exclude certain items from reported results and are used to calculate our adjusted measures as presented in the table above. Management assesses performance on a reported basis and an adjusted basis, and considers both to be useful. Refer to the commentary in the Non-GAAP and Other Financial Measures section for details on adjusting items. |
32 |
BMO Financial Group 208th Annual Report 2025 |
|
(Canadian $ in millions, except as noted) For the year ended October 31 |
2025 |
2024 | ||||||
Income before income taxes |
11,550 |
9,535 | ||||||
Provision for income taxes |
2,825 |
2,208 | ||||||
Government levies other than income taxes (other taxes) (1)
|
||||||||
Payroll levies |
562 |
534 | ||||||
Property taxes |
70 |
70 | ||||||
Provincial capital taxes |
58 |
52 | ||||||
Business taxes |
34 |
26 | ||||||
Harmonized sales tax, GST, VAT and other sales taxes |
460 |
483 | ||||||
Sundry taxes |
1 |
1 | ||||||
Total government levies other than income taxes (other taxes) |
1,185 |
1,166 | ||||||
Provision for income taxes and other taxes (2) (3)
|
4,010 |
3,374 | ||||||
Reported Tax Rates |
||||||||
Effective income tax rate (%)
|
24.5 |
23.2 | ||||||
Effective total tax rate |
31.5 |
31.5 | ||||||
Adjusted Results and Tax Rates (4)
|
||||||||
Adjusted income before income taxes |
12,222 |
9,662 | ||||||
Adjusted provision for income taxes |
2,974 |
2,213 | ||||||
Adjusted effective income tax rate (%)
|
24.3 |
22.9 | ||||||
| (1) | Government levies other than income taxes (other taxes) are included in various non-interest expense categories. |
| (2) | Provision for income taxes and other taxes are on a non-GAAP basis and are discussed in the Non-GAAP and Other Financial Measures section. |
| (3) | Fiscal 2025 comprised $1,797 million ($1,266 million in fiscal 2024) incurred in Canada, with $1,015 million ($485 million in fiscal 2024) included in the provision for income taxes and the remaining $782 million ($781 million in fiscal 2024) recorded in total government levies other than income taxes (other taxes). |
| (4) | Adjusted results exclude certain items from reported results and are used to calculate our adjusted ratios. Refer to the Non-GAAP and Other Financial Measures table for further information on adjusting items. |
| BMO Financial Group 208th Annual Report 2025 | 33 |
34 |
BMO Financial Group 208th Annual Report 2025 |
• |
Maintained strong client loyalty in Personal and Business Banking and Commercial Banking, as measured by Net Promoter Score (NPS) (1) |
• |
Continued to advance an integrated and client-centric treasury and payment solutions approach in Business Banking, Commercial Banking and Corporate Banking businesses across North America, delivering differentiated capabilities and an elevated client experience |
• |
Named Best Commercial Bank in Canada for the 11 th consecutive year by World Finance |
• |
Continued to drive top-tier, high-quality client growth with deep relationships, resulting in strong chequing account growth and increased share of wallet, and gained market share (2) in key categories, including retail deposits, business banking deposits and mortgages |
• |
Enhanced our digital capabilities and continued to provide innovative and award-winning customer experiences |
• |
Received the 2025 Celent Model Bank Award for Payments Innovation for three digital payment client experience initiatives |
• |
Ranked first in EMARKETER’s 2025 Canada Mobile Banking Features Benchmark for the second |
• |
Received 2025 Digital CX awards from The Digital Banker |
• |
Continued to deliver differentiated products and services to help clients make real financial progress |
• |
Launched BMO’s Preferred Program for Investors, designed to help families build and preserve their wealth with reduced fees and personalized financial guidance, driving approximately $2 billion in added balances |
• |
Launched My Financial Progress, a digital goal-planning tool providing comprehensive insights into clients’ finances and access to personalized strategies to help them reach their goals |
• |
Partnered with Porter Airlines to launch two new BMO VIPorter ®
® , expanding our line of premium cards and offering immediate access to Porter’s loyalty program and accelerated travel rewards, resulting in strong acquisition |
| (1) | Net Promoter Score (NPS): The percentage of customers surveyed who would recommend BMO to a friend or colleague. |
| (2) | Source: OSFI as at June 2025. |
| BMO Financial Group 208th Annual Report 2025 | 35 |
• |
Maintained our second-place national lending market share (1) and achieved best-in-class (2) |
• |
Recognized for Best Innovation in Customer Experience in Commercial Banking and Payments by Datos Insights for the third consecutive year, reflecting a simpler, faster and more intuitive user experience for small and mid-sized businesses (3) |
• |
Strengthened our franchise by investing in front-line talent, expanding client-facing teams to support growth in core sectors and geographies and enhance relationship coverage |
• |
Named Best Bank for Collections in North America by Global Finance |
• |
Created differentiated and award-winning digital experiences to meet clients where they are in their financial journey, including BMO SmartProgress, an online financial education platform accessible to all Canadians, with more than 40 interactive, customized modules on financial planning topics |
• |
Launched Lumi Assistant, an award-winning AI-powered tool that simplifies and accelerates employees’ access to critical information needed to provide advice and guidance to clients |
• |
Received two Best Supply Chain Finance awards from The Digital Banker |
• |
Recognized by The Banker |
• |
Received several 2025 Global AI Innovation Awards by The Digital Banker |
• |
Achieved strong employee engagement, with index scores that position us among leading global companies (4) |
• |
Strengthened our leadership in Indigenous Banking through the establishment of the Office of Reconciliation and appointment of a dedicated Head of the Indigenous Banking Unit |
• |
Advanced inclusive recruitment through strategic partnerships with organizations that promote equitable access to employment opportunities |
| (1) | Source: Canadian Bankers Association as at March 2025 in the $1MM-$100MM Loan Band. |
| (2) | Source: OSFI as at June 2025. |
| (3) | Received a Silver Award from Datos. |
| (4) | Source: Qualtrics 2025. |
• |
Drive profitable growth in our Personal and Commercial Banking franchise, delivering differentiated products and enhanced One Client experiences |
• |
In Personal and Business Banking, drive leading client growth and help clients make real financial progress through a digital-first focus and personalized engagement with simplification, digitization and AI as key enablers |
• |
In Commercial Banking, accelerate growth through targeted client acquisition, simplify to scale with AI and enhance products and solutions to grow share of wallet |
• |
Foster a winning, high-performance culture through collaboration, innovation and inclusion, with a focus on attracting, developing and retaining talent |
36 |
BMO Financial Group 208th Annual Report 2025 |
|
(Canadian $ in millions, except as noted) As at or for the year ended October 31 |
2025 |
2024 | ||||||
Net interest income |
9,667 |
8,852 | ||||||
Non-interest revenue |
2,595 |
2,587 | ||||||
Total revenue |
12,262 |
11,439 | ||||||
Provision for credit losses on impaired loans |
1,952 |
1,326 | ||||||
Provision for credit losses on performing loans |
412 |
333 | ||||||
Total provision for credit losses |
2,364 |
1,659 | ||||||
Non-interest expense |
5,360 |
5,005 | ||||||
Income before income taxes |
4,538 |
4,775 | ||||||
Provision for income taxes |
1,243 |
1,318 | ||||||
Reported net income |
3,295 |
3,457 | ||||||
Dividends on preferred shares and distributions on other equity instruments |
46 |
42 | ||||||
Net income available to common shareholders |
3,249 |
3,415 | ||||||
Acquisition and integration costs (2)
|
– |
17 | ||||||
Amortization of acquisition-related intangible assets (3)
|
58 |
13 | ||||||
Adjusted net income |
3,353 |
3,487 | ||||||
Adjusted net income available to common shareholders |
3,307 |
3,445 | ||||||
Adjusted non-interest expense |
5,279 |
4,964 | ||||||
Key Performance Metrics |
||||||||
Personal and Business Banking revenue |
8,805 |
8,231 | ||||||
Commercial Banking revenue |
3,457 |
3,208 | ||||||
Return on equity (%) (4)
|
19.4 |
21.4 | ||||||
Adjusted return on equity (%) (4)
|
19.8 |
21.5 | ||||||
Operating leverage (%)
|
0.1 |
2.3 | ||||||
Adjusted operating leverage (%)
|
0.9 |
2.7 | ||||||
Efficiency ratio (%)
|
43.7 |
43.8 | ||||||
Adjusted efficiency ratio (%)
|
43.1 |
43.4 | ||||||
PCL on impaired loans-to-average net loans and acceptances (%)
|
0.58 |
0.41 | ||||||
Net interest margin on average earning assets (%)
|
2.82 |
2.77 | ||||||
Average earning assets |
342,361 |
319,518 | ||||||
Average gross loans and acceptances |
340,635 |
324,082 | ||||||
Average net loans and acceptances |
338,525 |
322,314 | ||||||
Average deposits |
311,886 |
301,278 | ||||||
Full-time equivalent employees |
15,500 |
16,140 | ||||||
| (1) | Adjusted results and ratios are on a non-GAAP basis and are discussed in the Non-GAAP and Other Financial Measures section. |
| (2) | Acquisition and integration costs related to AIR MILES, recorded in non-interest expense. |
| (3) | Amortization of acquisition-related intangible assets and any impairments, recorded in non-interest expense. |
| (4) | Return on equity is based on allocated capital. Effective fiscal 2025, the capital allocation rate increased to 12.0% of risk-weighted assets, compared with 11.5% in fiscal 2024. For further information, refer to the Non-GAAP and Other Financial Measures section. |
| BMO Financial Group 208th Annual Report 2025 | 37 |
38 |
BMO Financial Group 208th Annual Report 2025 |
• |
Improved strong client loyalty in Personal and Business Banking, Commercial Banking and Private Wealth, as measured by Net Promoter Score (1) |
• |
Deepened One Client collaboration between Commercial Banking and Private Wealth, delivering integrated solutions that reflect our unified approach to client needs, and driving increased referral flows |
• |
Named Best Commercial Bank in the United States for the third consecutive year by World Finance |
• |
Received the 2025 Celent Model Bank Award for Payments Innovation for three digital payment and client experience initiatives: |
• |
Direct Deposit Setup, a feature that connects payroll systems directly to BMO accounts |
• |
Soft Credit Pull, which enables access to credit eligibility and empowers clients to explore credit options with confidence |
• |
FundsNow, a chequing deposit solution that grants users immediate and guaranteed access to their eligible mobile-deposited cheques |
• |
Expanded our Law Practice advisory services in Private Wealth and deepened relationships with law firms and lawyers, as we strengthened our capabilities to provide curated solutions to clients and the commercial businesses they serve |
• |
Maintained our Top 10 market share (2) in commercial banking, based on total wholesale loans |
• |
Expanded emerging middle market capabilities, with a focus on delivering tailored product solutions, building a high-performing team and refining our service model for greater impact |
• |
Broadened climate specialization across the agriculture and food, and industrial sectors, with new offerings such as sustainable agriculture and clean energy solutions, including commercial and industrial solar finance, and project finance |
• |
Delivered differentiated and award-winning products and services to better serve our clients, including our Premium Checking Account, offering enhanced benefits such as low monthly fees and no foreign transaction fees for international debit purchases |
• |
Launched co-branded BMO LAFC TM Debit Mastercard® and BMO Angel City FCTM Debit Mastercard® , offering exclusive game day offers and experiences |
• |
BMO Flex Rewards and Visa products for commercial clients, expanding client payment solutions and enhancing flexibility and value |
• |
Achieved strong growth in net new assets in Private Wealth through expanded presence in 11 of the top 15 high net worth and ultra-high net worth markets, with a focus on building local teams to provide clients with best-in-class |
| (1) | Net Promoter Score (NPS): The percentage of customers surveyed who would recommend BMO to a friend or colleague. |
| (2) | National Information Center: FR Y-9c Report. |
| BMO Financial Group 208th Annual Report 2025 | 39 |
• |
Continued to enhance our Treasury and Payment Services platform, streamlining digital account opening and expanding BusinessWorks bundles |
• |
Recognized by The Digital Banker |
• |
Enhanced our end-to-end |
• |
Ranked fourth by J.D. Power (1) in its 2025 Regional Mobile Banking App Satisfaction Study for making the mobile banking experience as convenient as possible for our clients |
• |
Enhanced our CreditView ® Dashboard tool within our digital banking platform to provide alerts and actionable insights that help clients improve their credit score |
• |
Achieved strong employee engagement and a high-performing culture, with index scores in key areas such as engagement and ethics that position us among leading global companies |
• |
Integrated our U.S. banking operations, combining Personal and Business Banking, Commercial Banking and Private Wealth, and invested in top talent to strengthen collaboration and deliver exceptional client advice and service |
• |
Supported internal talent development through rotational programs, leadership coaching and digital upskilling initiatives, fostering a high-performing and future-ready workforce |
| (1) | For more information, refer to www.jdpower.com/business. |
• |
Build on our U.S. Banking franchise to drive profitable growth and client loyalty by delivering integrated and personalized service and advice in targeted client segments and markets |
• |
Unlock opportunities to deepen relationships through an enhanced One Client focus to bring breadth of solutions to our commercial clients, serve our mass affluent clients’ needs and strengthen our high-touch private bank platform |
• |
Densify our presence in core markets by deepening our footprint and expanding in targeted markets to accelerate client growth |
• |
Invest to advance digital capabilities to deliver innovative solutions and offerings to our clients, enhance client experience and improve operating efficiency |
• |
Foster a winning, high-performance culture through collaboration, innovation and inclusion, with a focus on attracting, developing and retaining talent |
40 |
BMO Financial Group 208th Annual Report 2025 |
|
(Canadian $ in millions, except as noted)
As at or for the year ended October 31
|
2025 |
2024 | ||||||
Net interest income (teb) (2)
|
9,017 |
8,602 | ||||||
Non-interest revenue |
2,466 |
2,209 | ||||||
Total revenue (teb) (2)
|
11,483 |
10,811 | ||||||
Provision for credit losses on impaired loans |
1,010 |
1,285 | ||||||
Provision for credit losses on performing loans |
33 |
392 | ||||||
Total provision for credit losses |
1,043 |
1,677 | ||||||
Non-interest expense |
6,855 |
6,690 | ||||||
Income before income taxes |
3,585 |
2,444 | ||||||
Provision for income taxes (teb) (2)
|
775 |
434 | ||||||
Reported net income |
2,810 |
2,010 | ||||||
Dividends on preferred shares and distributions on other equity instruments |
61 |
57 | ||||||
Net income attributable to non-controlling interest in subsidiaries |
14 |
2 | ||||||
Net income available to common shareholders |
2,735 |
1,951 | ||||||
Amortization of acquisition-related intangible assets (3)
|
272 |
290 | ||||||
Adjusted net income |
3,082 |
2,300 | ||||||
Adjusted net income available to common shareholders |
3,007 |
2,241 | ||||||
Adjusted non-interest expense |
6,490 |
6,300 | ||||||
Average earning assets |
235,855 |
230,500 | ||||||
Average gross loans and acceptances |
225,104 |
219,167 | ||||||
Average deposits |
244,795 |
237,855 | ||||||
(US$ equivalent in millions) |
||||||||
Net interest income (teb) (2)
|
6,427 |
6,330 | ||||||
Non-interest revenue |
1,759 |
1,626 | ||||||
Total revenue (teb) (2)
|
8,186 |
7,956 | ||||||
Provision for credit losses on impaired loans |
719 |
943 | ||||||
Provision for credit losses on performing loans |
21 |
285 | ||||||
Total provision for credit losses |
740 |
1,228 | ||||||
Non-interest expense |
4,886 |
4,922 | ||||||
Income before income taxes |
2,560 |
1,806 | ||||||
Provision for income taxes (teb) (2)
|
553 |
321 | ||||||
Reported net income |
2,007 |
1,485 | ||||||
Dividends on preferred shares and distributions on other equity instruments |
44 |
42 | ||||||
Net income attributable to non-controlling interest in subsidiaries |
10 |
2 | ||||||
Net income available to common shareholders |
1,953 |
1,441 | ||||||
Amortization of acquisition-related intangible assets (3)
|
192 |
214 | ||||||
Adjusted net income |
2,199 |
1,699 | ||||||
Adjusted net income available to common shareholders |
2,145 |
1,655 | ||||||
Adjusted non-interest expense |
4,627 |
4,635 | ||||||
Key Performance Metrics
(US$ basis)
|
||||||||
Personal and Business Banking revenue |
2,897 |
2,801 | ||||||
Commercial Banking revenue |
4,458 |
4,384 | ||||||
Private Wealth revenue |
831 |
771 | ||||||
Return on equity (%) (4)
|
7.4 |
5.6 | ||||||
Adjusted return on equity (%) (4)
|
8.1 |
6.4 | ||||||
Operating leverage (teb) (%)
|
3.6 |
(1.0 | ) | |||||
Adjusted operating leverage (teb) (%)
|
3.1 |
(0.3 | ) | |||||
Efficiency ratio (teb) (%)
|
59.7 |
61.9 | ||||||
Adjusted efficiency ratio (teb) (%)
|
56.5 |
58.3 | ||||||
Net interest margin on average earning assets (teb) (%)
|
3.82 |
3.73 | ||||||
PCL on impaired loans-to-average net loans and acceptances (%)
|
0.45 |
0.59 | ||||||
Average earning assets |
168,096 |
169,596 | ||||||
Average gross loans and acceptances |
160,437 |
161,261 | ||||||
Average net loans and acceptances |
158,809 |
159,948 | ||||||
Average deposits |
174,440 |
175,004 | ||||||
Assets under administration (5)
|
104,368 |
83,450 | ||||||
Assets under management (5)
|
83,036 |
69,504 | ||||||
Full-time equivalent employees |
12,317 |
12,786 | ||||||
| (1) | Adjusted results and ratios are on a non-GAAP basis and are discussed in the Non-GAAP and Other Financial Measures section. |
| (2) | Net interest income, total revenue and provision for income taxes are presented on a taxable equivalent basis (teb) and reflected in the ratios. Teb amounts of $33 million in fiscal 2025 and $36 million in fiscal 2024 are offset in Corporate Services. On a source currency basis: US$24 million for fiscal 2025 and US$25 million for fiscal 2024. |
| (3) | Amortization of acquisition-related intangible assets and any impairments, recorded in non-interest expense. On a source currency basis: US$259 million in fiscal 2025 and US$287 million in fiscal 2024. |
| (4) | Return on equity is based on allocated capital. Effective fiscal 2025, the capital allocation rate increased to 12.0% of risk-weighted assets, compared with 11.5% in fiscal 2024. For further information, refer to the Non-GAAP and Other Financial Measures section. |
| (5) | Relates to Private Wealth. Assets under administration excludes assets under custody. |
| BMO Financial Group 208th Annual Report 2025 | 41 |
| (1) | Effective the fourth quarter of 2025, BMO combined its U.S. wealth management business, previously reported within Wealth Management, with U.S. Personal and Commercial Banking to form a unified U.S. Banking operating segment. Financial results for prior periods have been reclassified to conform with the current presentation. For further information, refer to the How BMO Reports Operating Segments Results section. |
42 |
BMO Financial Group 208th Annual Report 2025 |
• |
Achieved record-high loyalty scores across most of our businesses, as measured by Net Promoter Score (1) , reflecting our continued investment in improving client experience |
• |
Named Best Private Bank in Canada for the 15 th consecutive year by World Finance |
• |
Recognized as Canada’s Best Private Bank for both Ultra-High-Net-Worth Clients and Philanthropic Advisory Services at the Euromoney Global Private Banking Awards 2025 for our commitment to providing personalized private banking services, customized lending solutions and support for families in developing philanthropic plans that are aligned with their goals |
• |
Acquired Burgundy Asset Management Ltd., a leading independent wealth manager in Canada, expanding our wealth management and financial planning capabilities focused on high net worth individuals, families and institutions |
• |
Provided curated insights on market trends from our global team of experts, including on the impact of U.S. policy changes, to educate clients and offer practical advice and guidance |
• |
Introduced a broad suite of Canadian Depositary Receipts (CDRs), providing Canadian investors with enhanced access to foreign market-traded companies, while effectively mitigating currency risk |
• |
Sustained leadership in exchange-traded funds (ETFs) net flows (2) by launching a suite of innovative strategies, including the Human Capital Factor U.S. Equity ETF, the AAA CLO ETF and the SPDR Select Sector Index ETFs. These were complemented by a series of actively managed ETFs designed to deliver differentiated performance through tactical positioning and disciplined investment processes |
• |
Launched innovative alternative investment strategies, including the Alpha Managers Hedge Fund, which leverages the combined strength of BMO and Goldman Sachs Asset Management to deliver a differentiated absolute return strategy to Canadian investors |
• |
Received 25 FundGrade A+ ® Awards from analytics firm Fundata Canada Inc. for consistent risk-adjusted performance, with three mutual funds awards and 22 ETF awards – the most of any other financial institutions rated in 2024 (3) |
• |
Received 12 2025 Canada LSEG Lipper Fund Awards, recognizing our commitment to deliver strong risk-adjusted performance for our clients across a diverse range of investment solutions – seven BMO Mutual Funds and five BMO ETFs received top honours |
| (1) | Net Promoter Score (NPS): The percentage of customers surveyed who would recommend BMO to a friend or colleague. |
| (2) | National Bank ETF Report as at July 31, 2025. |
| (3) | Announced in fiscal 2025. |
| BMO Financial Group 208th Annual Report 2025 | 43 |
• |
Continued to enhance Rovr AI, the first external advisor-facing, generative AI-powered digital assistant in the Canadian individual insurance market, laying the foundation for an agentic (autonomous) framework that improves efficiency, supports decision-making and enhances the customer experience |
• |
Launched expanded digital capabilities and new online features in BMO InvestorLine, including multi-leg option trading, digital enrolment for Shareholder Dividend Reinvestment and Share Purchase Plans and enhanced views of position types, to improve user experience |
• |
Empowered online clients through new digital planning capabilities, enabling them to create financial plans that position them for real financial progress |
• |
Achieved top-tier user rating for our BMO Invest mobile app for both iOS and Android platforms, reflecting our ongoing investment in the digital client experience (1) |
• |
Achieved strong employee engagement with notable year-over-year growth in index scores in specific areas, including alignment, empowerment and recognition, which positions us among leading global companies |
• |
Launched Innovation Program, designed to ignite internal idea sharing, visionary thinking and solutioning, including recognition of achievements across the enterprise |
• |
Held focused events and programs to attract and retain high-performing talent, reinforcing our commitment to ensuring an inclusive workforce |
| (1) | App Store Rating as at October 31, 2025. |
• |
Be a Canadian leader in financial advisory services and accelerate our One Client approach to deliver a world-class client experience |
• |
Strengthen our position as a solutions provider through innovative and competitive asset management and insurance offerings that help grow and protect the financial interests of our clients |
• |
Accelerate digital and AI-powered solutions that drive client value, while continuing to modernize technology and enhance productivity |
• |
Foster a winning, high-performance culture through collaboration, innovation and inclusion, with a focus in attracting, developing and retaining talent |
44 |
BMO Financial Group 208th Annual Report 2025 |
|
(Canadian $ in millions, except as noted)
As at or for the year ended October 31
|
2025 |
2024 | ||||||
Net interest income |
1,020 |
873 | ||||||
Non-interest revenue |
4,282 |
3,726 | ||||||
Total revenue |
5,302 |
4,599 | ||||||
Provision for credit losses on impaired loans |
8 |
15 | ||||||
Provision for credit losses on performing loans |
2 |
2 | ||||||
Total provision for credit losses |
10 |
17 | ||||||
Non-interest expense |
3,460 |
3,176 | ||||||
Income before income taxes |
1,832 |
1,406 | ||||||
Provision for income taxes |
451 |
339 | ||||||
Reported net income |
1,381 |
1,067 | ||||||
Dividends on preferred shares and distributions on other equity instruments |
6 |
6 | ||||||
Net income available to common shareholders |
1,375 |
1,061 | ||||||
Acquisition and integration costs (2)
|
4 |
– | ||||||
Adjusted net income |
1,385 |
1,067 | ||||||
Adjusted net income available to common shareholders |
1,379 |
1,061 | ||||||
Adjusted non-interest expense |
3,454 |
3,176 | ||||||
Key Performance Metrics |
||||||||
Wealth and Asset Management reported net income |
1,065 |
831 | ||||||
Wealth and Asset Management adjusted net income |
1,069 |
831 | ||||||
Insurance reported net income |
316 |
236 | ||||||
Return on equity (%) (3)
|
45.4 |
36.5 | ||||||
Adjusted return on equity (%) (3)
|
45.6 |
36.5 | ||||||
Operating leverage (%) |
6.3 |
1.6 | ||||||
Adjusted operating leverage (%)
|
6.5 |
1.6 | ||||||
Efficiency ratio (%)
|
65.3 |
69.1 | ||||||
Adjusted efficiency ratio (%)
|
65.1 |
69.1 | ||||||
PCL on impaired loans-to-average net loans and acceptances (%)
|
0.03 |
0.05 | ||||||
Average assets |
53,224 |
49,134 | ||||||
Average gross loans and acceptances |
30,003 |
28,532 | ||||||
Average net loans and acceptances |
29,979 |
28,511 | ||||||
Average deposits |
52,359 |
45,874 | ||||||
Assets under administration (AUA) (4)
|
282,258 |
245,183 | ||||||
Assets under management (AUM) |
390,282 |
326,032 | ||||||
Full-time equivalent employees |
5,289 |
4,998 | ||||||
| (1) | Adjusted results and ratios are on a non-GAAP basis and are discussed in the Non-GAAP and Other Financial Measures section. |
| (2) | Burgundy pre-tax acquisition and integration costs, recorded in non-interest expense. |
| (3) | Return on equity is based on allocated capital. Effective fiscal 2025, the capital allocation rate increased to 12.0% of risk-weighted assets, compared with 11.5% in fiscal 2024. For further information, refer to the Non-GAAP and Other Financial Measures section. |
| (4) | Certain assets under management that are also administered by BMO are included in assets under administration. |
| BMO Financial Group 208th Annual Report 2025 | 45 |
| (1) | Effective the fourth quarter of 2025, BMO combined its U.S. wealth management business, previously reported within Wealth Management, with U.S. Personal and Commercial Banking to form a unified U.S. Banking operating segment. Financial results for prior periods have been reclassified to conform with the current presentation. For further information, refer to the How BMO Reports Operating Segments Results section. |
46 |
BMO Financial Group 208th Annual Report 2025 |
• |
Leveraged our diverse business mix to help lead several market firsts for our clients, including: |
• |
Joint lead bookrunner for Groupe Dynamite Inc.’s $314 million initial public offering (IPO), the largest IPO in Canada since 2022 |
• |
Co-advisor to BCE Inc. in its USD$7 billion acquisition of Ziply Fiber, becoming the third-largest fibre internet provider in North America |
• |
Joint lead arranger, joint bookrunner and administrative agent on senior secured credit facilities for e.l.f. Beauty to finance their acquisition of rhode |
• |
Advanced our position as a market leader across priority markets and products, including: |
• |
U.S. agency collateral mortgage obligation new issuance |
• |
Bank of Canada rates trading and Canadian government bond issuance |
• |
Canadian investment banking M&A and equity capital markets |
• |
Achieved industry-leading scores in Corporate Banking and Treasury and Payment Solutions, as measured by Net Promoter Score (1) |
• |
Strengthened our position as a global leader in metals and mining: |
• |
Named the Best Metals & Mining Investment Bank of the Year by Global Finance th consecutive year |
• |
Held leading market share in metals and mining mergers and acquisitions, including the second largest transaction in the sector with the announced merger of Teck Resources Ltd. and Anglo American plc |
• |
Expanded our offerings by joining the London Metal Exchange (LME) as an approved Category 2 bank |
• |
Helped clients navigate a highly uncertain environment, including the evolution of trade and tariffs, by providing a broad array of comprehensive resources and events featuring industry experts |
• |
Deepened client relationships with expertise and insights through leading annual investor conferences, such as our 34 th Global Metals, Mining and Critical Minerals Conference, 20th
Farm-to-Market nd Infrastructure and Utilities Conference, 12th Government, Reserve and Asset Managers Conference and 11th High-Yield Conference |
• |
Launched a new strategic direct lending partnership with Canal Road Group, building and expanding on our private credit financing capabilities |
| (1) | Net Promoter Score (NPS): The percentage of customers surveyed who would recommend BMO to a friend or colleague. |
| BMO Financial Group 208th Annual Report 2025 | 47 |
• |
Supported our clients’ climate transition, including through a first-of-its-kind |
• |
Became the first North American bank to issue a labelled Indigenous bond in support of Indigenous-owned business and communities |
• |
Ranked the top sustainable bond underwriter of the year in Canada with notable deals for the Government of Canada, Hydro One Inc., City of Toronto, Desjardins and Hydro Ottawa (1) |
• |
Advised and assisted Canada Development Investment Corp. in structuring Canada’s Indigenous Loan Guarantee Program (ILGP) as part of our ongoing support for Indigenous equity participation in major Canadian infrastructure |
• |
Launched our first in-house agentic AI application, offering bankers an analysis of historical underwritten loan transactions |
• |
Streamlined our technology ecosystem through the rationalization of applications and process reengineering to enhance scalability and accelerate service delivery |
• |
Enhanced analytics capabilities to optimize resource allocation, improve workflow efficiency and strengthen risk management and monitoring |
• |
Achieved strong employee engagement index scores, with notable year-over-year improvement in alignment, empowerment and recognition |
• |
Invested in the growth and development of our talent through learning programs, such as our One Client and Leader Learning series |
• |
Continued to attract top-tier talent with a focus on building high-performing teams that drive measurable impacts across the bank |
• |
Supported the communities we serve through hallmark programs, including BMO’s Employee Giving Campaign and Equity Through Education |
| (1) | Source: Bloomberg, Capital Markets. |
• |
Grow and deepen client relationships, delivering integrated solutions and leveraging our One Client approach |
• |
Expand our product capabilities to drive client value with a focus on areas where we have a competitive advantage |
• |
Continue to invest in technology and deploy AI-powered capabilities to deliver operational efficiencies and innovation |
• |
Foster a winning, high-performance culture through collaboration, innovation and inclusion, with a focus on attracting, developing and retaining talent |
48 |
BMO Financial Group 208th Annual Report 2025 |
|
(Canadian $ in millions, except as noted) As at or for the year ended October 31 |
2025 |
2024 | ||||||
Net interest income (teb) (2)
|
2,482 |
1,731 | ||||||
Non-interest revenue |
4,965 |
4,785 | ||||||
Total revenue (teb) (2)
|
7,447 |
6,516 | ||||||
Provision for credit losses on impaired loans |
133 |
367 | ||||||
Provision for credit losses on performing loans |
68 |
2 | ||||||
Total provision for credit losses |
201 |
369 | ||||||
Non-interest expense |
4,616 |
4,278 | ||||||
Income before income taxes |
2,630 |
1,869 | ||||||
Provision for income taxes (teb) (2)
|
653 |
377 | ||||||
Reported net income |
1,977 |
1,492 | ||||||
Dividends on preferred shares and distributions on other equity instruments |
41 |
37 | ||||||
Net income available to common shareholders |
1,936 |
1,455 | ||||||
Acquisition and integration costs (3)
|
– |
15 | ||||||
Amortization of acquisition-related intangible assets (4)
|
22 |
31 | ||||||
Adjusted net income |
1,999 |
1,538 | ||||||
Adjusted net income available to common shareholders |
1,958 |
1,501 | ||||||
Adjusted non-interest expense |
4,586 |
4,216 | ||||||
Key Performance Metrics |
||||||||
Global Markets revenue |
4,599 |
3,898 | ||||||
Investment and Corporate Banking revenue |
2,848 |
2,618 | ||||||
Return on equity (%) (5)
|
14.0 |
11.0 | ||||||
Adjusted return on equity (%) (5)
|
14.2 |
11.4 | ||||||
Operating leverage (teb) (%)
|
6.4 |
1.9 | ||||||
Adjusted operating leverage (teb) (%)
|
5.5 |
2.6 | ||||||
Efficiency ratio (teb) (%)
|
62.0 |
65.7 | ||||||
Adjusted efficiency ratio (teb) (%)
|
61.6 |
64.7 | ||||||
PCL on impaired loans-to-average net loans and acceptances (%)
|
0.16 |
0.44 | ||||||
Average assets |
551,491 |
468,963 | ||||||
Average gross loans and acceptances |
84,273 |
83,024 | ||||||
Average net loans and acceptances |
83,951 |
82,669 | ||||||
Full-time equivalent employees |
2,740 |
2,710 | ||||||
U.S. Business Select Financial Data (US$ in millions)
|
||||||||
Total revenue (teb) (2)
|
2,654 |
2,286 | ||||||
Non-interest expense |
1,662 |
1,599 | ||||||
Reported net income |
678 |
350 | ||||||
Adjusted non-interest expense |
1,651 |
1,580 | ||||||
Adjusted net income |
686 |
364 | ||||||
Average assets |
192,595 |
157,876 | ||||||
Average gross loans and acceptances |
32,088 |
31,795 | ||||||
| (1) | Adjusted results and ratios are on a non-GAAP basis and are discussed in the Non-GAAP and Other Financial Measures section. |
| (2) | Net interest income, total revenue and provision for income taxes are presented on a taxable equivalent basis (teb) and reflected in the ratios. Teb amounts of $6 million in fiscal 2025 and $22 million in fiscal 2024 are offset in Corporate Services. Beginning January 1, 2024, we treated certain Canadian dividends as non-deductible for tax purposes, due to legislation that was enacted in the third quarter of fiscal 2024. As a result, we no longer report this revenue on a teb basis. |
| (3) | Acquisition and integration costs related to Clearpool and Radicle, recorded in non-interest expense. |
| (4) | Amortization of acquisition-related intangible assets and any impairments, recorded in non-interest expense. Fiscal 2025 and fiscal 2024 included an impairment related to Radicle of $10 million and $18 million, respectively. |
| (5) | Return on equity is based on allocated capital. Effective fiscal 2025, the capital allocation rate increased to 12.0% of risk-weighted assets, compared with 11.5% in fiscal 2024. For further information, refer to the Non-GAAP and Other Financial Measures section. |
| BMO Financial Group 208th Annual Report 2025 | 49 |
50 |
BMO Financial Group 208th Annual Report 2025 |
|
(Canadian $ in millions, except as noted) As at or for the year ended October 31 |
2025 |
2024 | ||||||
Net interest income before segment teb offset |
(660 |
) |
(532 | ) | ||||
Segment teb offset |
(39 |
) |
(58 | ) | ||||
Net interest income (teb) |
(699 |
) |
(590 | ) | ||||
Non-interest revenue |
479 |
20 | ||||||
Total revenue (teb) |
(220 |
) |
(570 | ) | ||||
Provision for credit losses on impaired loans |
44 |
73 | ||||||
Provision (recovery of provision) for credit losses on performing loans |
(45 |
) |
(34 | ) | ||||
Total provision (recovery of provision) for credit losses |
(1 |
) |
39 | |||||
Non-interest expense |
816 |
350 | ||||||
Loss before income taxes |
(1,035 |
) |
(959 | ) | ||||
Recovery of income taxes (teb) |
(297 |
) |
(260 | ) | ||||
Reported net loss |
(738 |
) |
(699 | ) | ||||
Dividends on preferred shares and distributions on other equity instruments |
282 |
244 | ||||||
Net income attributable to non-controlling interest in subsidiaries |
2 |
7 | ||||||
Net loss available to common shareholders |
(1,022 |
) |
(950 | ) | ||||
Acquisition and integration costs (2)
|
9 |
97 | ||||||
Impact of divestitures |
102 |
– | ||||||
Legal provision/reversal (including related interest expense and legal fees) |
– |
(834 | ) | |||||
Impact of loan portfolio sale |
– |
136 | ||||||
FDIC special assessment |
(14 |
) |
357 | |||||
Impact of alignment of accounting policies |
70 |
– | ||||||
Adjusted net loss |
(571 |
) |
(943 | ) | ||||
Adjusted net loss available to common shareholders |
(855 |
) |
(1,194 | ) | ||||
Adjusted total revenue (teb) |
(220 |
) |
(953 | ) | ||||
Adjusted non-interest expense |
626 |
333 | ||||||
Full-time equivalent employees |
17,388 |
16,963 | ||||||
U.S. Business Select Financial Data (US$ in millions)
|
||||||||
Total revenue (teb) (3)
|
(15 |
) |
401 | |||||
Total provision (recovery of provision) for credit losses |
(2 |
) |
3 | |||||
Non-interest expense |
348 |
47 | ||||||
Provision for (recovery of) income taxes (teb) (3)
|
(107 |
) |
74 | |||||
Reported net income (loss) |
(254 |
) |
277 | |||||
Adjusted total revenue |
(15 |
) |
118 | |||||
Adjusted non-interest expense |
246 |
36 | ||||||
Adjusted net income |
(160 |
) |
96 | |||||
| (1) | Adjusted results are on a non-GAAP basis and are discussed in the Non-GAAP and Other Financial Measures section. |
| (2) | Acquisition and integration costs related to the acquisition of Bank of the West, recorded in non-interest expense. |
| (3) | Segment taxable equivalent basis (teb) offset amounts recorded in net interest income, total revenue and provision for (recovery of) income taxes: $39 million in fiscal 2025 and $58 million in fiscal 2024. |
| BMO Financial Group 208th Annual Report 2025 | 51 |
| (Canadian $ in millions, except as noted) | Q4-2025 |
Q3-2025 |
Q2-2025 |
Q1-2025 |
Q4-2024 |
Q3-2024 |
Q2-2024 |
Q1-2024 |
||||||||||||||||||||||||
Net interest income |
5,496 |
5,496 |
5,097 |
5,398 |
5,438 | 4,794 | 4,515 | 4,721 | ||||||||||||||||||||||||
Non-interest revenue |
3,845 |
3,492 |
3,582 |
3,868 |
3,519 | 3,398 | 3,459 | 2,951 | ||||||||||||||||||||||||
Revenue |
9,341 |
8,988 |
8,679 |
9,266 |
8,957 | 8,192 | 7,974 | 7,672 | ||||||||||||||||||||||||
Provision for credit losses on impaired loans |
750 |
773 |
765 |
859 |
1,107 | 828 | 658 | 473 | ||||||||||||||||||||||||
Provision for credit losses on performing loans |
5 |
24 |
289 |
152 |
416 | 78 | 47 | 154 | ||||||||||||||||||||||||
Total provision for credit losses |
755 |
797 |
1,054 |
1,011 |
1,523 | 906 | 705 | 627 | ||||||||||||||||||||||||
Non-interest expense |
5,556 |
5,105 |
5,019 |
5,427 |
4,427 | 4,839 | 4,844 | 5,389 | ||||||||||||||||||||||||
Income before income taxes |
3,030 |
3,086 |
2,606 |
2,828 |
3,007 | 2,447 | 2,425 | 1,656 | ||||||||||||||||||||||||
Provision for income taxes |
735 |
756 |
644 |
690 |
703 | 582 | 559 | 364 | ||||||||||||||||||||||||
Reported net income (see below) |
2,295 |
2,330 |
1,962 |
2,138 |
2,304 | 1,865 | 1,866 | 1,292 | ||||||||||||||||||||||||
Acquisition and integration costs/reversal |
3 |
4 |
(1 |
) |
7 |
27 | 19 | 26 | 57 | |||||||||||||||||||||||
Amortization of acquisition-related intangible assets |
123 |
69 |
81 |
79 |
92 | 79 | 79 | 84 | ||||||||||||||||||||||||
Impact of divestitures |
102 |
– |
– |
– |
– | – | – | – | ||||||||||||||||||||||||
Legal provision/reversal (including related interest expense and legal fees) |
– |
– |
– |
– |
(870 | ) | 13 | 12 | 11 | |||||||||||||||||||||||
Impact of loan portfolio sale |
– |
– |
– |
– |
– | – | – | 136 | ||||||||||||||||||||||||
FDIC special assessment |
(9 |
) |
(4 |
) |
4 |
(5 |
) |
(11 | ) | 5 | 50 | 313 | ||||||||||||||||||||
Impact of alignment of accounting policies |
– |
– |
– |
70 |
– | – | – | – | ||||||||||||||||||||||||
Adjusted net income |
2,514 |
2,399 |
2,046 |
2,289 |
1,542 | 1,981 | 2,033 | 1,893 | ||||||||||||||||||||||||
Operating Segment Reported Revenue (2)
|
||||||||||||||||||||||||||||||||
Canadian P&C |
3,125 |
3,098 |
2,974 |
3,065 |
2,934 | 2,908 | 2,819 | 2,778 | ||||||||||||||||||||||||
U.S. Banking |
2,875 |
2,830 |
2,814 |
2,964 |
2,735 | 2,722 | 2,639 | 2,715 | ||||||||||||||||||||||||
Wealth Management |
1,419 |
1,343 |
1,242 |
1,298 |
1,219 | 1,170 | 1,143 | 1,067 | ||||||||||||||||||||||||
Capital Markets |
1,819 |
1,776 |
1,779 |
2,073 |
1,600 | 1,666 | 1,661 | 1,589 | ||||||||||||||||||||||||
Corporate Services |
103 |
(59 |
) |
(130 |
) |
(134 |
) |
469 | (274 | ) | (288 | ) | (477 | ) | ||||||||||||||||||
Total revenue |
9,341 |
8,988 |
8,679 |
9,266 |
8,957 | 8,192 | 7,974 | 7,672 | ||||||||||||||||||||||||
Key Performance Metrics |
||||||||||||||||||||||||||||||||
Diluted earnings per share ($) (3)
|
2.97 |
3.14 |
2.50 |
2.83 |
2.94 | 2.48 | 2.36 | 1.73 | ||||||||||||||||||||||||
Adjusted diluted earnings per share ($)
|
3.28 |
3.23 |
2.62 |
3.04 |
1.90 | 2.64 | 2.59 | 2.56 | ||||||||||||||||||||||||
PCL-to-average (%)
|
0.44 |
0.47 |
0.63 |
0.58 |
0.91 | 0.54 | 0.44 | 0.38 | ||||||||||||||||||||||||
Effective tax rate (%)
|
24.2 |
24.5 |
24.7 |
24.4 |
23.4 | 23.8 | 23.1 | 22.0 | ||||||||||||||||||||||||
Adjusted effective tax rate (%)
|
23.6 |
24.5 |
24.7 |
24.5 |
21.7 | 23.9 | 23.3 | 22.4 | ||||||||||||||||||||||||
Canadian/U.S. dollar average exchange rate ($)
|
1.3887 |
1.3730 |
1.4203 |
1.4303 |
1.3641 | 1.3705 | 1.3625 | 1.3392 | ||||||||||||||||||||||||
| (1) | Adjusted results exclude certain items from reported results and are used to calculate our adjusted measures as presented in the table above. Management assesses performance on a reported basis and an adjusted basis, and considers both to be useful. For further information, refer to the Non-GAAP and Other Financial Measures section. For details on the composition of non-GAAP amounts, measures and ratios, as well as supplementary financial measures, refer to the Glossary of Financial Terms. |
| (2) | Operating segment revenue, net interest income, total revenue and provision for income taxes are presented on a taxable equivalent basis (teb). The offset to the segments’ teb adjustments is reflected in Corporate Services. For further information, refer to the How BMO Reports Operating Segments Results section. |
| (3) | Net income and earnings from our business operations are attributable to shareholders by way of EPS and diluted EPS. Adjusted EPS and adjusted diluted EPS are non-GAAP measures. For further information, refer to the Non-GAAP and Other Financial Measures section. |
52 |
BMO Financial Group 208th Annual Report 2025 |
| BMO Financial Group 208th Annual Report 2025 | 53 |
| (Canadian $ in millions) | 2024 |
2023 |
||||||||||||||
Net interest income (1)
|
19,468 | 18,681 | ||||||||||||||
Non-interest revenue |
13,327 | 10,578 | ||||||||||||||
Revenue (1)
|
32,795 | 29,259 | ||||||||||||||
Provision for credit losses |
3,761 | 2,178 | ||||||||||||||
Non-interest expense |
19,499 | 21,134 | ||||||||||||||
Income before income taxes |
9,535 | 5,947 | ||||||||||||||
Provision for income taxes (1)
|
2,208 | 1,510 | ||||||||||||||
Net income |
7,327 | 4,437 | ||||||||||||||
Acquisition and integration costs |
129 | 1,533 | ||||||||||||||
Amortization of acquisition-related intangible assets |
334 | 264 | ||||||||||||||
Legal provision/reversal (including related interest expense and legal fees) |
(834 | ) | 21 | |||||||||||||
Impact of loan portfolio sale |
136 | – | ||||||||||||||
Impact of FDIC special assessment |
357 | – | ||||||||||||||
Management of fair value changes on the purchase of Bank of the West (2)
|
– | 1,461 | ||||||||||||||
Initial provision for credit losses on purchased performing loans (3)
|
– | 517 | ||||||||||||||
Impact of Canadian tax measures (4)
|
– | 502 | ||||||||||||||
Adjusted net income |
7,449 | 8,735 | ||||||||||||||
| (1) | Operating segment revenue, net interest income, total revenue and provision for income taxes are presented on a taxable equivalent basis (teb). The offset to the segments’ teb adjustments is reflected in Corporate Services. For further information, refer to the How BMO Reports Operating Segments Results section. |
| (2) | Management of the impact of interest rate changes between the announcement and closing of the acquisition of Bank of the West on its fair value and goodwill, recorded in Corporate Services. Fiscal 2023 comprised $1,628 million of mark-to-market |
| (3) | Initial provision for credit losses on the purchased Bank of the West performing loan portfolio, recorded in Corporate Services. |
| (4) | Impact of certain tax measures enacted by the Canadian government, recorded in Corporate Services. Fiscal 2023: $371 million one-time tax expense, comprising a $312 million Canada Recovery Dividend and $59 million related to the pro-rated fiscal 2022 impact of the 1.5% tax rate increase, net of a deferred tax asset remeasurement; and a $131 million ($160 million pre-tax) charge related to the amended GST/HST definition for financial services, comprising $138 million recorded in non-interest revenue and $22 million recorded in non-interest expense. |
54 |
BMO Financial Group 208th Annual Report 2025 |
|
(Canadian $ in millions) As at October 31 |
2025 |
2024 | ||||||||||||||
Assets |
||||||||||||||||
Cash and cash equivalents and interest bearing deposits with banks |
70,322 |
68,738 | ||||||||||||||
Securities |
423,476 |
396,880 | ||||||||||||||
Securities borrowed or purchased under resale agreements |
129,421 |
110,907 | ||||||||||||||
Net loans and acceptances |
677,872 |
678,375 | ||||||||||||||
Derivative instruments |
57,151 |
47,253 | ||||||||||||||
Other assets |
118,560 |
107,494 | ||||||||||||||
Total assets |
1,476,802 |
1,409,647 | ||||||||||||||
Liabilities and Equity |
||||||||||||||||
Deposits |
976,202 |
982,440 | ||||||||||||||
Derivative instruments |
58,729 |
58,303 | ||||||||||||||
Securities lent or sold under repurchase agreements |
134,967 |
110,791 | ||||||||||||||
Other liabilities |
210,304 |
165,450 | ||||||||||||||
Subordinated debt |
8,500 |
8,377 | ||||||||||||||
Equity |
88,051 |
84,250 | ||||||||||||||
Non-controlling interest in subsidiaries |
49 |
36 | ||||||||||||||
Total liabilities and equity |
1,476,802 |
1,409,647 | ||||||||||||||
| BMO Financial Group 208th Annual Report 2025 | 55 |
|
(Canadian $ in millions) As at October 31 |
2025 |
2024 | ||||||||||||||
Trading |
192,303 |
168,926 | ||||||||||||||
Fair value through profit or loss (FVTPL) (1)
|
21,354 |
19,064 | ||||||||||||||
Fair value through other comprehensive income – Debt and equity (2)
|
113,209 |
93,702 | ||||||||||||||
Debt securities at amortized cost (3)
|
96,610 |
115,188 | ||||||||||||||
Total securities |
423,476 |
396,880 | ||||||||||||||
| (1) | Included securities mandatorily measured at FVTPL of $7,818 million as at October 31, 2025 ($6,850 million as at October 31, 2024) and securities designated at fair value of $13,536 million as at October 31, 2025 ($12,214 million as at October 31, 2024). |
| (2) | Included allowances for credit losses on debt securities recorded at fair value through other comprehensive income of $6 million as at October 31, 2025 ($4 million as at October 31, 2024). |
| (3) | Net of allowances for credit losses of $4 million as at October 31, 2025 ($3 million as at October 31, 2024). |
|
(Canadian $ in millions) As at October 31 |
2025 |
2024 | ||||||||||||||
Residential mortgages |
196,033 |
191,080 | ||||||||||||||
Consumer instalment and other personal |
92,741 |
92,687 | ||||||||||||||
Credit cards |
12,649 |
13,612 | ||||||||||||||
Businesses and government loans and acceptances |
381,499 |
385,352 | ||||||||||||||
Gross loans |
682,922 |
682,731 | ||||||||||||||
Allowance for credit losses |
(5,050 |
) |
(4,356 | ) | ||||||||||||
Total net loans and acceptances |
677,872 |
678,375 | ||||||||||||||
56 |
BMO Financial Group 208th Annual Report 2025 |
|
(Canadian $ in millions)
As at October 31
|
2025 |
2024 | ||||||||||||||
Banks |
27,621 |
32,546 | ||||||||||||||
Businesses and governments |
585,497 |
575,019 | ||||||||||||||
Individuals |
306,922 |
320,767 | ||||||||||||||
Deposits at FVTPL |
56,162 |
54,108 | ||||||||||||||
Total deposits |
976,202 |
982,440 | ||||||||||||||
|
(Canadian $ in millions)
As at October 31
|
2025 |
2024 | ||||||||||||||
Share capital |
||||||||||||||||
Preferred shares and other equity instruments |
8,956 |
8,087 | ||||||||||||||
Common shares |
23,359 |
23,921 | ||||||||||||||
Contributed surplus |
373 |
354 | ||||||||||||||
Retained earnings |
47,377 |
46,469 | ||||||||||||||
Accumulated other comprehensive income |
7,986 |
5,419 | ||||||||||||||
Total equity |
88,051 |
84,250 | ||||||||||||||
| BMO Financial Group 208th Annual Report 2025 | 57 |
• |
Is appropriate given BMO’s target regulatory capital ratios and internal assessment of economic capital requirements. |
• |
Underpins BMO’s operating segments’ business strategies and considers the market environment. |
• |
Supports depositor, investor and regulator confidence, consistent dividends and long-term shareholder value. |
• |
Is consistent with BMO’s target credit ratings. |
58 |
BMO Financial Group 208th Annual Report 2025 |
| (% of risk-weighted assets or leverage exposures) |
Minimum requirements |
Total Pillar 1 Capital buffers (1) |
Tier 1 Capital buffer (2) |
Minimum requirements before domestic stability buffer |
Domestic stability buffer (3) |
Minimum capital, leverage and TLAC requirements including capital buffers |
BMO capital, leverage and TLAC ratios as at October 31, 2025 |
|||||||||||||||||||||
Common Equity Tier 1 Ratio |
4.5% | 3.5% | na | 8.0% | 3.5% | 11.5% | 13.3% | |||||||||||||||||||||
Tier 1 Capital Ratio |
6.0% | 3.5% | na | 9.5% | 3.5% | 13.0% | 15.0% | |||||||||||||||||||||
Total Capital Ratio |
8.0% | 3.5% | na | 11.5% | 3.5% | 15.0% | 17.3% | |||||||||||||||||||||
TLAC Ratio |
21.5% | na | na | 21.5% | 3.5% | 25.0% | 29.7% | |||||||||||||||||||||
Leverage Ratio |
3.0% | na | 0.5% | 3.5% | na | 3.5% | 4.3% | |||||||||||||||||||||
TLAC Leverage Ratio |
6.75% | na | 0.5% | 7.25% | na | 7.25% | 8.5% | |||||||||||||||||||||
| (1) | Pillar 1 Capital buffers, which will be met with CET1 Capital, include a capital conservation buffer of 2.5%, a Common Equity Tier 1 surcharge for D-SIBs of 1.0% and a countercyclical buffer, as prescribed by OSFI (immaterial for the fourth quarter of fiscal 2025). |
| (2) | D-SIBs are required to meet a 0.5% Tier 1 Capital buffer requirement for Leverage and TLAC Leverage Ratios. |
| (3) | The DSB buffer was confirmed by OSFI at 3.5% in June 2025. |
| BMO Financial Group 208th Annual Report 2025 | 59 |
60 |
BMO Financial Group 208th Annual Report 2025 |
| BMO Financial Group 208th Annual Report 2025 | 61 |
|
(Canadian $ in millions, except as noted) As at October 31 |
2025 |
2024 | ||||||
Common Equity Tier 1 Capital: Instruments and Reserves |
||||||||
Directly issued qualifying common share capital plus related stock surplus |
23,732 |
24,275 | ||||||
Retained earnings |
47,377 |
46,469 | ||||||
Accumulated other comprehensive income (and other reserves) |
7,986 |
5,419 | ||||||
Goodwill and other intangibles (net of related tax liability) |
(20,389 |
) |
(20,349 | ) | ||||
Other common equity Tier 1 capital deductions |
(420 |
) |
1,240 | |||||
Common Equity Tier 1 Capital (CET1) |
58,286 |
57,054 | ||||||
Additional Tier 1 Capital: Instruments |
||||||||
Directly issued qualifying Additional Tier 1 instruments plus related stock surplus |
7,706 |
7,787 | ||||||
Total regulatory adjustments applied to Additional Tier 1 Capital |
(102 |
) |
(106 | ) | ||||
Additional Tier 1 Capital (AT1) |
7,604 |
7,681 | ||||||
Tier 1 Capital (T1 = CET1 + AT1) |
65,890 |
64,735 | ||||||
Tier 2 Capital: Instruments and Provisions |
||||||||
Directly issued qualifying Tier 2 instruments plus related stock surplus |
8,353 |
8,230 | ||||||
General allowance |
1,326 |
954 | ||||||
Total regulatory adjustments to Tier 2 Capital |
(7 |
) |
(8 | ) | ||||
Tier 2 Capital (T2) |
9,672 |
9,176 | ||||||
Total Capital (TC = T1 + T2) |
75,562 |
73,911 | ||||||
Non-Regulatory Capital Elements of TLAC |
||||||||
Directly issued qualifying Other TLAC instruments |
54,510 |
49,465 | ||||||
Total regulatory adjustments applied to Other TLAC |
(115 |
) |
(88 | ) | ||||
Other TLAC |
54,395 |
49,377 | ||||||
TLAC (TLAC = TC + Other TLAC) |
129,957 |
123,288 | ||||||
Risk-Weighted Assets and Leverage Ratio Exposures |
||||||||
Risk-Weighted Assets |
437,945 |
420,838 | ||||||
Leverage Ratio Exposures |
1,521,813 |
1,484,962 | ||||||
Capital Ratios (%)
|
||||||||
CET1 Ratio |
13.3 |
13.6 | ||||||
Tier 1 Capital Ratio |
15.0 |
15.4 | ||||||
Total Capital Ratio |
17.3 |
17.6 | ||||||
TLAC Ratio |
29.7 |
29.3 | ||||||
Leverage Ratio |
4.3 |
4.4 | ||||||
TLAC Leverage Ratio |
8.5 |
8.3 | ||||||
| (1) | Calculated in accordance with OSFI’s CAR Guideline and LR Guideline, as applicable. Non-qualifying Additional Tier 1 and Tier 2 Capital instruments were phased out at a rate of 10% per year from January 1, 2013 to January 1, 2022. |
62 |
BMO Financial Group 208th Annual Report 2025 |
2025 |
2024 | |||||||||||||||||||||||||||
|
RWA |
||||||||||||||||||||||||||||
|
(Canadian $ in millions) As at October 31 |
Total exposure |
Average risk weight |
IRB |
|||||||||||||||||||||||||
Standardized |
FIRB |
AIRB |
Total |
Total RWA | ||||||||||||||||||||||||
Credit Risk |
||||||||||||||||||||||||||||
Wholesale |
||||||||||||||||||||||||||||
Corporate, including specialized lending |
422,061 |
46.0% |
24,647 |
74,886 |
94,796 |
194,329 |
182,920 | |||||||||||||||||||||
Corporate small and medium-sized enterprises |
32,067 |
62.7% |
2,659 |
20 |
17,423 |
20,102 |
19,981 | |||||||||||||||||||||
Sovereign |
285,861 |
1.9% |
313 |
– |
5,140 |
5,453 |
4,870 | |||||||||||||||||||||
Bank |
23,458 |
16.5% |
– |
3,876 |
– |
3,876 |
4,180 | |||||||||||||||||||||
Retail |
||||||||||||||||||||||||||||
Residential mortgages, excluding home equity line of credit |
194,671 |
11.7% |
3,805 |
– |
18,947 |
22,752 |
21,517 | |||||||||||||||||||||
Home equity line of credit |
80,064 |
10.9% |
886 |
– |
7,854 |
8,740 |
8,018 | |||||||||||||||||||||
Qualifying revolving retail |
56,225 |
26.8% |
392 |
– |
14,696 |
15,088 |
13,926 | |||||||||||||||||||||
Other retail, excluding small and medium-sized enterprises |
29,948 |
58.0% |
11,185 |
– |
6,193 |
17,378 |
17,288 | |||||||||||||||||||||
Retail small and medium-sized enterprises |
21,258 |
62.1% |
3,180 |
– |
10,029 |
13,209 |
12,697 | |||||||||||||||||||||
Equity |
13,104 |
139.4% |
18,262 |
– |
– |
18,262 |
16,154 | |||||||||||||||||||||
Trading book |
59,011 |
24.3% |
5,391 |
7,766 |
1,171 |
14,328 |
12,200 | |||||||||||||||||||||
Securitization |
73,756 |
15.3% |
2,459 |
8,847 |
11,306 |
13,425 | ||||||||||||||||||||||
Other credit risk assets – non-counterparty managed assets |
20,220 |
109.7% |
22,186 |
– |
– |
22,186 |
23,085 | |||||||||||||||||||||
Total Credit Risk |
1,311,704 |
– |
95,365 |
86,548 |
185,096 |
367,009 |
350,261 | |||||||||||||||||||||
Market Risk |
– |
– |
18,672 |
– |
– |
18,672 |
17,797 | |||||||||||||||||||||
Operational Risk |
– |
– |
52,264 |
– |
– |
52,264 |
52,780 | |||||||||||||||||||||
Risk-Weighted Assets before floor |
1,311,704 |
– |
166,301 |
86,548 |
185,096 |
437,945 |
420,838 | |||||||||||||||||||||
Floor adjustment (3)
|
– |
– |
– |
– |
– |
– |
– | |||||||||||||||||||||
Total Risk-Weighted Assets |
1,311,704 |
– |
166,301 |
86,548 |
185,096 |
437,945 |
420,838 | |||||||||||||||||||||
| (1) | Exposure and RWA are grouped by the obligor’s asset class. |
| (2) | Exposure represents exposure at default (EAD) after the application of credit risk mitigation and the credit conversion factor for undrawn exposures. |
| (3) | The bank is subject to capital floor requirements as prescribed in OSFI’s CAR Guideline. Total RWA is increased by a floor adjustment amount, which is calculated based on the standardized methodology. The capital floor was not operative at October 31, 2025 and October 31, 2024. |
| BMO Financial Group 208th Annual Report 2025 | 63 |
| As at October 31, 2025 | Issuance or redemption date |
Number of shares (in millions) |
Balance (Canadian $ in millions, except as noted) |
|||||||||
Common shares issued |
1.6 | $ 168 | ||||||||||
Common shares purchased for cancellation |
22.2 | $ 730 | ||||||||||
Tier 1 Capital |
||||||||||||
Redemption of Non-Cumulative 5-year Rate Reset Class B Preferred Shares, Series 31 |
November 25, 2024 | 12.00 | $ 300 | |||||||||
Issuance of 6.875% Limited Recourse Capital Notes, Series 6 |
July 29, 2025 | US$ |
||||||||||
Redemption of Non-Cumulative 5-year Rate Reset Class B Preferred Shares, Series 33 |
August 25, 2025 | 8.0 | $ 200 | |||||||||
Tier 2 Capital |
||||||||||||
Issuance of Medium-Term Notes, Series N, First Tranche |
March 5, 2025 | $ |
||||||||||
Redemption of Medium-Term Notes, Series J, Second Tranche |
June 17, 2025 | $ |
||||||||||
|
Number of shares or dollar amount (in millions) |
Dividends declared per share | |||||||||||||||
| As at October 31 | 2025 |
2024 | 2023 | |||||||||||||
Common shares |
709 | $ |
6.44 |
$ | 6.12 | $ | 5.80 | |||||||||
Class B Preferred shares |
||||||||||||||||
Series 27 (1)
|
– | – |
$ | 0.48 | $ | 0.96 | ||||||||||
Series 29 (2)
|
– | – |
$ | 0.68 | $ | 0.91 | ||||||||||
Series 31 (3)
|
– | – |
$ | 0.96 | $ | 0.96 | ||||||||||
Series 33 (4)
|
– | – |
$ | 0.76 | $ | 0.76 | ||||||||||
Series 44 |
$ | 400 | – |
$ | 1.70 | $ | 1.21 | |||||||||
Series 46 (5)
|
– | – |
$ | 0.64 | $ | 1.28 | ||||||||||
Series 50 |
$ | 500 | – |
$ | 73.73 | $ | 73.73 | |||||||||
Series 52 |
$ | 650 | – |
$ | 70.57 | $ | 57.52 | |||||||||
Additional Tier 1 Capital Notes |
||||||||||||||||
4.800% Additional Tier 1 Capital Notes (6)
|
US$ | 500 | na |
na | na | |||||||||||
4.300% Limited Recourse Capital Notes, Series 1 (7) (8)
|
$ | 1,250 | na |
na | na | |||||||||||
5.625% Limited Recourse Capital Notes, Series 2 (8)
|
$ | 750 | na |
na | na | |||||||||||
7.325% Limited Recourse Capital Notes, Series 3 (8)
|
$ | 1,000 | na |
na | na | |||||||||||
7.700% Limited Recourse Capital Notes, Series 4 (8)
|
US$ | 1,000 | na |
na | na | |||||||||||
7.300% Limited Recourse Capital Notes, Series 5 (8)
|
US$ | 750 | na |
na | na | |||||||||||
6.875% Limited Recourse Capital Notes, Series 6 (8)
|
US$ | 1,000 | na |
na | na | |||||||||||
Medium-Term Notes (9)
|
||||||||||||||||
3.803% Subordinated Notes |
US$ | 1,250 | na |
na | na | |||||||||||
Series K – First Tranche |
$ | 1,000 | na |
na | na | |||||||||||
3.088% Subordinated Notes |
US$ | 1,250 | na |
na | na | |||||||||||
Series L – First Tranche |
$ | 750 | na |
na | na | |||||||||||
Series M – First Tranche |
$ | 1,150 | na |
na | na | |||||||||||
Series M – Second Tranche |
$ | 1,000 | na |
na | na | |||||||||||
Series N – First Tranche |
$ | 1,250 | na |
na | na | |||||||||||
Stock options |
||||||||||||||||
Vested |
2.3 | |||||||||||||||
Non-vested |
3.5 | |||||||||||||||
| (1) | Redeemed on May 25, 2024. |
| (2) | Redeemed on August 25, 2024. |
| (3) | Redeemed on November 25, 2024. |
| (4) | Redeemed on August 25, 2025. |
64 |
BMO Financial Group 208th Annual Report 2025 |
| (5) | Redeemed on May 25, 2024. |
| (6) | The notes had an initial interest rate of 4.800% and reset on August 25, 2024 to 6.709%. |
| (7) | Redeemed on November 12, 2025. |
| (8) | Convertible into common shares by virtue of recourse to the Preferred Shares Series 48, Preferred Shares Series 49, Preferred Shares Series 51, Preferred Shares Series 53, Preferred Shares Series 54 and Preferred Shares Series 55, respectively. Refer to Note 16 of the audited annual consolidated financial statements for conversion details. |
| (9) | Note 15 of the audited annual consolidated financial statements includes details on the NVCC Medium-Term Notes. |
| BMO Financial Group 208th Annual Report 2025 | 65 |
66 |
BMO Financial Group 208th Annual Report 2025 |
| 67 |
||||
| 70 |
||||
| 76 |
||||
| 84 |
||||
| 89 |
BMO Financial Group 208th Annual Report 2025 |
67 |
68 |
BMO Financial Group 208th Annual Report 2025 |
| BMO Financial Group 208th Annual Report 2025 | 69 |
• |
Maintain strong capital and liquidity positions and optimize risk return. |
• |
Protect its reputation and limit potential loss from unpredictable and infrequent risk events. |
• |
Innovate responsibly, balancing digital transformation against current and emerging risks. |
• |
Foster trust by enforcing compliance, responsible lending and ethical decision-making. |
• |
Adapt to emerging risks and evolving market conditions. |
• |
Enable a sound risk culture with appropriate behaviour and mindsets. |
70 |
BMO Financial Group 208th Annual Report 2025 |
| BMO Financial Group 208th Annual Report 2025 | 71 |
• |
Understand and manage |
• |
Protect BMO’s reputation |
• |
Diversify. Limit tail risk low-probability, high-impact events. |
• |
Maintain strong capital and liquidity |
• |
Optimize risk return |
72 |
BMO Financial Group 208th Annual Report 2025 |
• |
Credit and Counterparty Risk |
• |
Market Risk |
• |
Insurance Risk |
• |
Liquidity and Funding Risk |
• |
Operational Non-Financial Risknon-financial risks that may have financial consequences. |
• |
Operating segments and Corporate Services, which includes Technology and Operations, serve as our first line of defence and are accountable for the risks arising from their businesses, operations and exposures. They are expected to pursue business opportunities within their established risk appetite and to identify, assess, measure, manage and report risk, and maintain risk management in, or arising from their businesses, operations and exposures. The first line fulfills its responsibilities by applying risk management and reporting methodologies, establishing appropriate internal controls in accordance with the RMF and monitoring the effectiveness of such controls. These processes and controls serve as the basis for our lines of business to act within their delegated risk-taking authority and risk limits, as set out in corporate policies and the Risk Appetite Statement. Corporate Services, which are part of our first line of defence, may also serve in a governance capacity when specific roles and responsibilities are assigned to individuals or groups under BMO’s policy document requirements. In such instances, governance accountabilities will be carried out separate from the individuals or groups responsible for risk-taking. |
• |
The second line of defence comprises ERPM and Legal and Regulatory Compliance. The second line exercises independent oversight, performs effective challenge and provides independent assessment of risks and risk management practices, including transactions, product and portfolio risk management decisions, regulatory compliance, and processes and controls applied in the first line of defence. The second line establishes enterprise-wide risk management policy documents, processes, methodologies and practices that the first and second lines use across the phases of the risk management life cycle for risks across the enterprise. |
| BMO Financial Group 208th Annual Report 2025 | 73 |
• |
The Corporate Audit Division is the third line of defence. It provides an independent assessment of the effectiveness of internal controls across the enterprise, including controls that support the risk management and governance processes, and reports its findings to the Board of Directors. |
74 |
BMO Financial Group 208th Annual Report 2025 |
• |
Leadership: |
• |
Accountability: three-lines-of-defence |
• |
Decision-Making: |
• |
Communication and Challenge: |
• |
Learning: |
• |
Incentives: |
BMO Financial Group 208th Annual Report 2025 |
75 |
76 |
BMO Financial Group 208th Annual Report 2025 |
BMO Financial Group 208th Annual Report 2025 |
77 |
• |
Probability of Default (PD) one-year time horizon. |
• |
Exposure at Default (EAD) |
• |
Loss Given Default (LGD) |
• |
Expected Loss (EL) |
(Canadian $ in millions) |
Drawn (3) (7) |
Commitments (undrawn) (3) (8) |
Other off-balance
sheet items (3) (9) |
OTC derivatives (4) (10) |
Repo-style transactions (4) (5) (11) |
Total (1) |
||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
2025 |
2024 |
2025 |
2024 |
2025 |
2024 |
2025 |
2024 |
2025 |
2024 |
2025 |
2024 |
|||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Individual |
293,947 |
287,741 |
66,867 |
65,568 |
– |
– |
– |
– |
– |
– |
360,814 |
353,309 |
||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Financial institutions |
79,224 |
105,378 |
22,460 |
20,484 |
5,750 |
7,447 |
26,790 |
27,393 |
18,756 |
17,712 |
152,980 |
178,414 |
||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Governments |
259,618 |
230,353 |
3,137 |
3,024 |
1,663 |
1,760 |
8,631 |
4,481 |
2,426 |
1,070 |
275,475 |
240,688 |
||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Manufacturing |
34,540 |
33,561 |
15,840 |
15,555 |
1,726 |
1,696 |
1,182 |
1,049 |
– |
– |
53,288 |
51,861 |
||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Real estate |
72,516 |
66,650 |
10,750 |
8,632 |
1,265 |
1,234 |
520 |
412 |
– |
– |
85,051 |
76,928 |
||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Retail trade |
29,470 |
30,595 |
4,258 |
4,262 |
855 |
645 |
158 |
152 |
– |
– |
34,741 |
35,654 |
||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Service industries |
59,153 |
54,433 |
14,793 |
13,830 |
2,674 |
3,192 |
1,334 |
990 |
– |
– |
77,954 |
72,445 |
||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Wholesale trade |
22,848 |
21,868 |
7,328 |
7,212 |
706 |
670 |
306 |
268 |
– |
– |
31,188 |
30,018 |
||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Oil and gas |
3,479 |
3,180 |
3,064 |
3,010 |
510 |
623 |
677 |
610 |
– |
– |
7,730 |
7,423 |
||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Utilities |
7,141 |
10,068 |
11,840 |
9,304 |
4,446 |
3,799 |
2,344 |
2,444 |
– |
– |
25,771 |
25,615 |
||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Others
(2)
|
55,231 |
54,173 |
21,482 |
19,247 |
4,753 |
4,343 |
3,106 |
2,306 |
– |
– |
84,572 |
80,069 |
||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Total exposure at default
(6)
|
917,167 |
898,000 |
181,819 |
170,128 |
24,348 |
25,409 |
45,048 |
40,105 |
21,182 |
18,782 |
1,189,564 |
1,152,424 |
||||||||||||||||||||||||||||||||||||||||||||||||||||||||
(1) |
Credit exposure excluding equity, securitization and other assets, such as non-significant investments, goodwill, deferred tax assets and intangibles. |
(2) |
Includes remaining industries that individually comprise less than 2% of total exposures. |
(3) |
Represents gross credit exposures without accounting for collateral. |
(4) |
Credit exposure at default is inclusive of collateral. |
(5) |
Repo-style transactions include repos, reverse repos and securities lending transactions, which represent both asset and liability exposures. The impact of collateral on the credit exposure for repo-style transactions is $ 332,756 million ($270,482 million in fiscal 2024). |
(6) |
Excludes exposures arising from derivative and repo-style transactions that are cleared through a clearing house or a central counterparty totalling $8,137 million ($7,086 million in fiscal 2024). |
(7) |
Drawn exposures include loans, acceptances, deposits with regulated financial institutions and certain securities. |
(8) |
Undrawn commitments cover unutilized authorizations associated with the drawn exposures noted above, including any authorizations that are unconditionally cancellable. EAD for undrawn commitments is model-generated, based on internal empirical data. |
(9) |
Other off-balance sheet exposures include items such as guarantees, standby letters of credit and documentary credits. |
(10) |
Over-the-counter |
(11) |
EAD for repo-style transactions is the calculated exposure, net of collateral. |
78 |
BMO Financial Group 208th Annual Report 2025 |
• |
A PD estimate long-run average of one-year default rates over the full economic cycle. |
• |
An LGD estimate |
• |
An EAD estimate non-revolving products, such as mortgages, EAD is equal to 100% of the current outstanding balance and has no undrawn component. |
Risk profile |
Probability of default band |
|
Exceptionally low |
≤ 0.05% |
|
Very low |
> 0.05% to 0.20% |
|
Low |
> 0.20% to 0.75% |
|
Medium |
> 0.75% to 7.00% |
|
High |
> 7.00% to 99.99% |
|
Default |
100% |
BMO Financial Group 208th Annual Report 2025 |
79 |
BMO rating |
Moody’s Investors Service implied equivalent |
Standard & Poor’s implied equivalent |
||
Acceptable |
||||
I-1 to I-7
|
Aaa to Baa3 |
AAA to BBB- |
||
S-1 to S-4
|
Ba1 to B1 |
BB+ to B+ |
||
Watchlist |
||||
P-1 to P-3
|
B2 to Caa3 |
B to CC |
||
Default/Impaired |
||||
D-1 to D-4
|
C |
C to D |
||
(Canadian $ in millions) |
Residential mortgages |
Amortizing home equity lines of credit |
Total amortizing real estate secured lending |
Non-amortizing real estate secured lending |
Total Canadian real estate secured lending |
|||||||||||||||
As at October 31, 2025 |
162,340 |
38,089 |
200,429 |
13,969 |
214,398 |
|||||||||||||||
As at October 31, 2024 |
158,910 |
36,326 |
195,236 |
13,614 |
208,850 |
|||||||||||||||
80 |
BMO Financial Group 208th Annual Report 2025 |
As at October 31, 2025 |
As at October 31, 2024 |
|||||||||||||||||||||||||||||||||||||||||||
(Canadian $ in millions, except as noted) |
Outstanding balances |
For the 12 months ended |
Outstanding balances |
For the 12 months ended |
||||||||||||||||||||||||||||||||||||||||
Region (2) |
Insured |
Uninsured |
Total |
% of total |
Average LTV uninsured |
Insured (3) |
Uninsured |
Total |
% of total |
Average LTV uninsured (4) |
||||||||||||||||||||||||||||||||||
Atlantic |
3,274 |
4,024 |
7,298 |
3.7% |
69% |
3,261 |
3,802 |
7,063 |
3.7% |
70% |
||||||||||||||||||||||||||||||||||
Quebec |
8,145 |
13,427 |
21,572 |
11.0% |
70% |
8,811 |
13,647 |
22,458 |
11.8% |
71% |
||||||||||||||||||||||||||||||||||
Ontario |
14,495 |
68,506 |
83,001 |
42.3% |
70% |
14,199 |
64,107 |
78,306 |
41.0% |
70% |
||||||||||||||||||||||||||||||||||
Alberta |
9,234 |
8,546 |
17,780 |
9.1% |
73% |
9,551 |
8,175 |
17,726 |
9.3% |
73% |
||||||||||||||||||||||||||||||||||
British Columbia |
4,303 |
24,663 |
28,966 |
14.8% |
68% |
4,504 |
25,011 |
29,515 |
15.4% |
68% |
||||||||||||||||||||||||||||||||||
All other Canada |
2,109 |
1,614 |
3,723 |
1.9% |
72% |
2,180 |
1,662 |
3,842 |
2.0% |
72% |
||||||||||||||||||||||||||||||||||
Total Canada |
41,560 |
120,780 |
162,340 |
82.8% |
70% |
42,506 |
116,404 |
158,910 |
83.2% |
70% |
||||||||||||||||||||||||||||||||||
United States |
60 |
33,633 |
33,693 |
17.2% |
73% |
67 |
32,103 |
32,170 |
16.8% |
76% |
||||||||||||||||||||||||||||||||||
Total |
41,620 |
154,413 |
196,033 |
100% |
71% |
42,573 |
148,507 |
191,080 |
100% |
71% |
||||||||||||||||||||||||||||||||||
(1) |
Reporting methodologies are in accordance with OSFI’s Residential Mortgage Underwriting Practices and Procedures (B-20) Guideline. |
(2) |
Region is based upon address of the property mortgaged. |
(3) |
Insured mortgages are defined as mortgages that are insured individually or in bulk through an eligible insurer (i.e., CMHC, Sagen MI CanadaTM). |
(4) |
LTV is based on original outstanding balances for mortgages and authorized amounts for HELOCs, divided by the value of the collateral at point of origination. |
As at October 31, 2025 |
As at October 31, 2024 |
|||||||||||||||||||||||||||||||||||||||||||
(Canadian $ in millions, except as noted) |
Portfolio |
For the 12 months ended |
Portfolio |
For the 12 months ended |
||||||||||||||||||||||||||||||||||||||||
Region (2) |
Outstanding balances |
% |
Authorizations |
% |
Average LTV |
Outstanding balances |
% |
Authorizations |
% |
Average LTV (4) |
||||||||||||||||||||||||||||||||||
Atlantic |
1,149 |
2.0% |
2,180 |
1.8% |
65% |
1,051 |
1.9% |
2,028 |
1.7% |
62% |
||||||||||||||||||||||||||||||||||
Quebec |
9,364 |
15.9% |
19,123 |
15.8% |
70% |
9,216 |
16.3% |
18,530 |
15.9% |
68% |
||||||||||||||||||||||||||||||||||
Ontario |
26,177 |
44.5% |
48,939 |
40.5% |
64% |
25,313 |
44.8% |
47,222 |
40.6% |
60% |
||||||||||||||||||||||||||||||||||
Alberta |
3,328 |
5.7% |
7,471 |
6.2% |
64% |
3,200 |
5.7% |
7,156 |
6.1% |
61% |
||||||||||||||||||||||||||||||||||
British Columbia |
11,311 |
19.2% |
21,338 |
17.7% |
62% |
10,432 |
18.5% |
19,867 |
17.1% |
59% |
||||||||||||||||||||||||||||||||||
All other Canada |
729 |
1.2% |
1,485 |
1.2% |
69% |
728 |
1.3% |
1,485 |
1.3% |
65% |
||||||||||||||||||||||||||||||||||
Total Canada |
52,058 |
88.5% |
100,536 |
83.2% |
64% |
49,940 |
88.5% |
96,288 |
82.7% |
61% |
||||||||||||||||||||||||||||||||||
United States |
6,762 |
11.5% |
20,288 |
16.8% |
57% |
6,497 |
11.5% |
20,146 |
17.3% |
59% |
||||||||||||||||||||||||||||||||||
Total |
58,820 |
100% |
120,824 |
100% |
63% |
56,437 |
100% |
116,434 |
100% |
61% |
||||||||||||||||||||||||||||||||||
Amortization period |
||||||||||||||||||||||||||||||||
As at October 31, 2025 |
< 5 years |
6-10 years |
11-15 years |
16-20 years |
21-25 years |
26-30 years |
31-35 years |
> 35 years |
||||||||||||||||||||||||
Canada (3)
|
0.7% |
2.8% |
8.1% |
19.5% |
34.6% |
27.1% |
2.5% |
4.7% |
||||||||||||||||||||||||
United States (4)
|
0.3% |
1.6% |
3.3% |
2.9% |
11.1% |
80.6% |
0.1% |
0.1% |
||||||||||||||||||||||||
Total |
0.7% |
2.6% |
7.3% |
16.6% |
30.6% |
36.2% |
2.1% |
3.9% |
||||||||||||||||||||||||
Amortization period |
||||||||||||||||||||||||||||||||
As at October 31, 2024 |
< 5 years |
6-10 years |
11-15 years |
16-20 years |
21-25 years |
26-30 years |
31-35 years |
> 35 years |
||||||||||||||||||||||||
Canada (3)
|
0.7% |
2.6% |
6.6% |
16.1% |
33.8% |
26.5% |
3.6% |
10.1% |
||||||||||||||||||||||||
United States (4)
|
0.4% |
1.7% |
4.0% |
2.4% |
9.0% |
82.3% |
0.1% |
0.1% |
||||||||||||||||||||||||
Total |
0.6% |
2.5% |
6.2% |
13.8% |
29.6% |
35.9% |
3.0% |
8.4% |
||||||||||||||||||||||||
(1) |
In Canada, the remaining amortization is based on the current balance, interest rate, customer payment amount and payment frequency. The contractual payment schedule is used in the United States. |
(2) |
Reporting methodologies are in accordance with OSFI’s B-20 Guideline. |
(3) |
As a result of increases in interest rates, the portfolio included less than $0.1 billion ($9.3 billion as at October 31, 2024) of variable-rate mortgages in negative amortization, with all of the contractual payments in the current period being applied to interest, and the portion of interest due that is not met by each payment added to the principal. |
(4) |
A large proportion of U.S.-based mortgages in the longer-amortization band are primarily associated with modification programs for troubled borrowers and regulator-initiated mortgage refinancing programs. |
BMO Financial Group 208th Annual Report 2025 |
81 |
(Canadian $ in millions, except as noted) For the year ended October 31 |
2025 |
2024 |
||||||||||||||||||||||||||||||||||||||
GIL, beginning of year |
5,843 |
3,960 |
||||||||||||||||||||||||||||||||||||||
Classified as impaired during the year |
7,775 |
7,419 |
||||||||||||||||||||||||||||||||||||||
Transferred to not impaired during the year |
(1,454 |
) |
(1,086 |
) |
||||||||||||||||||||||||||||||||||||
Net repayments |
(2,781 |
) |
(1,938 |
) |
||||||||||||||||||||||||||||||||||||
Amounts written off |
(2,069 |
) |
(2,430 |
) |
||||||||||||||||||||||||||||||||||||
Disposals of loans |
(221 |
) |
(107 |
) |
||||||||||||||||||||||||||||||||||||
Foreign exchange and other movements |
(2 |
) |
25 |
|||||||||||||||||||||||||||||||||||||
GIL, end of year |
7,091 |
5,843 |
||||||||||||||||||||||||||||||||||||||
GIL as a % of gross loans and acceptances |
1.04 |
0.86 |
||||||||||||||||||||||||||||||||||||||
As at October 31, 2025 |
As at October 31, 2024 |
|||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
(Canadian $ in millions) |
Funded lending and commitments |
Securities |
Repo-style transactions and derivatives |
|||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Region |
Bank |
Corporate |
Sovereign |
Total |
Bank |
Corporate |
Sovereign |
Total |
Bank |
Corporate |
Sovereign |
Total |
Total net exposure |
Total net exposure |
||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Europe (excluding United Kingdom) |
758 |
2,902 |
– |
3,660 |
259 |
56 |
8,083 |
8,398 |
1,049 |
679 |
36 |
1,764 |
13,822 |
10,670 |
||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
United Kingdom |
80 |
6,627 |
257 |
6,964 |
130 |
102 |
1,297 |
1,529 |
174 |
742 |
31 |
947 |
9,440 |
10,493 |
||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Latin America |
2,699 |
5,052 |
– |
7,751 |
– |
96 |
– |
96 |
3 |
330 |
22 |
355 |
8,202 |
8,628 |
||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Asia-Pacific |
2,529 |
2,633 |
85 |
5,247 |
357 |
19 |
610 |
986 |
185 |
180 |
128 |
493 |
6,726 |
10,304 |
||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Middle East and Africa |
1,848 |
1,339 |
106 |
3,293 |
– |
– |
23 |
23 |
8 |
18 |
2,158 |
2,184 |
5,500 |
3,939 |
||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Other (1)
|
– |
3 |
24 |
27 |
– |
– |
4,291 |
4,291 |
2 |
– |
188 |
190 |
4,508 |
5,205 |
||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Total |
7,914 |
18,556 |
472 |
26,942 |
746 |
273 |
14,304 |
15,323 |
1,421 |
1,949 |
2,563 |
5,933 |
48,198 |
49,239 |
||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
(1) |
Primarily exposure to supranational entities. |
82 |
BMO Financial Group 208th Annual Report 2025 |
(Canadian $ in millions) |
Non-centrally cleared |
Centrally cleared |
Total |
|||||||||||||||||||||||||||||
As at October 31 |
2025 |
2024 |
2025 |
2024 |
2025 |
2024 |
||||||||||||||||||||||||||
Interest Rate Contracts |
||||||||||||||||||||||||||||||||
Swaps |
475,142 |
469,244 |
14,184,925 |
16,376,733 |
14,660,067 |
16,845,977 |
||||||||||||||||||||||||||
Forward rate agreements |
9,063 |
7,464 |
832,484 |
3,406,985 |
841,547 |
3,414,449 |
||||||||||||||||||||||||||
Purchased options |
369,216 |
253,694 |
– |
– |
369,216 |
253,694 |
||||||||||||||||||||||||||
Written options |
385,166 |
255,721 |
– |
– |
385,166 |
255,721 |
||||||||||||||||||||||||||
Total interest rate contracts |
1,238,587 |
986,123 |
15,017,409 |
19,783,718 |
16,255,996 |
20,769,841 |
||||||||||||||||||||||||||
Foreign Exchange Contracts (1)
|
||||||||||||||||||||||||||||||||
Cross-currency swaps |
125,728 |
102,302 |
– |
– |
125,728 |
102,302 |
||||||||||||||||||||||||||
Cross-currency interest rate swaps |
1,245,779 |
900,021 |
– |
– |
1,245,779 |
900,021 |
||||||||||||||||||||||||||
Forward foreign exchange contracts |
936,278 |
673,839 |
4,362 |
6,088 |
940,640 |
679,927 |
||||||||||||||||||||||||||
Purchased options |
98,355 |
76,576 |
36 |
– |
98,391 |
76,576 |
||||||||||||||||||||||||||
Written options |
107,532 |
88,210 |
38 |
– |
107,570 |
88,210 |
||||||||||||||||||||||||||
Total foreign exchange contracts |
2,513,672 |
1,840,948 |
4,436 |
6,088 |
2,518,108 |
1,847,036 |
||||||||||||||||||||||||||
Commodity Contracts |
||||||||||||||||||||||||||||||||
Swaps |
22,120 |
20,326 |
8 |
2 |
22,128 |
20,328 |
||||||||||||||||||||||||||
Purchased options |
6,706 |
5,495 |
– |
– |
6,706 |
5,495 |
||||||||||||||||||||||||||
Written options |
4,090 |
4,268 |
– |
– |
4,090 |
4,268 |
||||||||||||||||||||||||||
Total commodity contracts |
32,916 |
30,089 |
8 |
2 |
32,924 |
30,091 |
||||||||||||||||||||||||||
Equity Contracts |
187,637 |
138,194 |
194 |
320 |
187,831 |
138,514 |
||||||||||||||||||||||||||
Credit Contracts (2)
|
||||||||||||||||||||||||||||||||
Purchased |
2,830 |
1,902 |
28,930 |
21,448 |
31,760 |
23,350 |
||||||||||||||||||||||||||
Written |
904 |
1,279 |
22,603 |
14,932 |
23,507 |
16,211 |
||||||||||||||||||||||||||
Total credit default swaps |
3,734 |
3,181 |
51,533 |
36,380 |
55,267 |
39,561 |
||||||||||||||||||||||||||
Total |
3,976,546 |
2,998,535 |
15,073,580 |
19,826,508 |
19,050,126 |
22,825,043 |
||||||||||||||||||||||||||
(1) |
Gold contracts are included with foreign exchange contracts. |
(2) |
Credit contracts exclude loan commitment derivatives with notional amounts of $6,219 million as at October 31, 2025 ($2,498 million as at October 31, 2024). |
BMO Financial Group 208th Annual Report 2025 |
83 |
84 |
BMO Financial Group 208th Annual Report 2025 |
|
As at or for the year ended October 31 (Pre-tax Canadian $ equivalent in millions) |
2025 |
2024 |
||||||||||||||||||||||||||||||||||
Year-end |
Average |
High |
Low |
Year-end |
Average |
High |
Low |
|||||||||||||||||||||||||||||
Commodity VaR |
8.2 |
8.0 |
16.1 |
2.0 |
2.1 |
3.8 |
5.4 |
2.0 |
||||||||||||||||||||||||||||
Equity VaR |
12.8 |
20.1 |
35.7 |
11.7 |
24.0 |
16.1 |
24.0 |
8.1 |
||||||||||||||||||||||||||||
Foreign exchange VaR |
0.8 |
1.8 |
5.1 |
0.8 |
1.0 |
1.2 |
2.9 |
0.4 |
||||||||||||||||||||||||||||
Interest rate VaR
(2)
|
30.0 |
28.2 |
41.9 |
21.4 |
23.0 |
30.8 |
44.7 |
22.1 |
||||||||||||||||||||||||||||
Diversification |
(25.9 |
) |
(21.1 |
) |
nm |
nm |
(17.6 |
) |
(19.7 |
) |
nm |
nm |
||||||||||||||||||||||||
Total Trading VaR |
25.9 |
37.0 |
48.1 |
25.9 |
32.5 |
32.2 |
45.5 |
23.1 |
||||||||||||||||||||||||||||
(1) |
One-day measure using a 99% confidence interval. Gains are presented in brackets and losses are presented as positive numbers. |
(2) |
Interest rate VaR includes general credit spread risk. |
BMO Financial Group 208th Annual Report 2025 |
85 |
86 |
BMO Financial Group 208th Annual Report 2025 |
Economic value sensitivity |
Earnings sensitivity |
|||||||||||||||||||||||||||||||||||
(Pre-tax Canadian $ equivalent in millions) |
October 31, 2025 |
October 31, 2024 |
October 31, 2025 |
October 31, 2024 |
||||||||||||||||||||||||||||||||
Canada |
United States |
Total |
Total |
Canada |
United States |
Total |
Total |
|||||||||||||||||||||||||||||
| 100 basis point increase |
(986 |
) |
(750 |
) |
(1,736 |
) |
(1,483 |
) |
104 |
252 |
357 |
367 |
||||||||||||||||||||||||
| 100 basis point decrease |
983 |
80 |
1,063 |
660 |
(26 |
) |
(296 |
) |
(322 |
) |
(210 |
) | ||||||||||||||||||||||||
(1) |
Losses are presented in brackets and gains are presented as positive numbers. |
(2) |
Interest rate sensitivities assume an immediate and sustained parallel shift in assumed interest rates across the entire yield curve as at the end of the period, using a constant balance sheet. |
(3) |
Includes Canadian dollar and other currencies. |
(Canadian $ in millions) |
2025 |
2024 |
||||||
| Fixed rate (1)
|
||||||||
| Contractual amounts that will reprice/repay within 3 months |
216,506 |
213,314 |
||||||
| Contractual amounts that will reprice/repay after 3 months |
236,771 |
254,872 |
||||||
| Floating rate (2)
|
217,120 |
202,031 |
||||||
| Non-rate sensitive (3)
|
7,475 |
8,158 |
||||||
| Total |
677,872 |
678,375 |
||||||
(1) |
Includes index-based loans. |
(2) |
Floating rate only includes loans that reprice immediately upon a change in interest rates. |
(3) |
Includes credit card balances that are paid when due, customers’ liability under acceptances, impaired loans and allowance for credit losses. |
BMO Financial Group 208th Annual Report 2025 |
87 |
As at October 31, 2025 |
As at October 31, 2024 |
|||||||||||||||||||||||||||||||||||||||
Subject to market risk |
Subject to market risk |
Primary risk factors for non-traded
risk balances |
||||||||||||||||||||||||||||||||||||||
(Canadian $ in millions) |
Consolidated Balance Sheet |
Traded risk |
Non-traded risk |
Not subject to market risk |
Consolidated Balance Sheet |
Traded risk (1) |
Non-traded risk (2) |
Not subject to market risk |
||||||||||||||||||||||||||||||||
| Assets Subject to Market Risk |
||||||||||||||||||||||||||||||||||||||||
| Cash and cash equivalents |
67,484 |
– |
67,484 |
– |
65,098 |
– |
65,098 |
– |
Interest rate |
|||||||||||||||||||||||||||||||
| Interest bearing deposits with banks |
2,838 |
456 |
2,382 |
– |
3,640 |
201 |
3,439 |
– |
Interest rate |
|||||||||||||||||||||||||||||||
| Securities |
423,476 |
172,680 |
250,796 |
– |
396,880 |
153,833 |
243,047 |
– |
Interest rate, credit spread, equity |
|||||||||||||||||||||||||||||||
| Securities borrowed or purchased under resale agreements |
129,421 |
– |
129,421 |
– |
110,907 |
– |
110,907 |
– |
Interest rate |
|||||||||||||||||||||||||||||||
| Loans and acceptances (net of allowance for credit losses) |
677,161 |
6,271 |
670,890 |
– |
678,016 |
6,085 |
671,931 |
– |
Interest rate, foreign exchange |
|||||||||||||||||||||||||||||||
| Derivative instruments |
57,151 |
51,829 |
5,322 |
– |
47,253 |
42,879 |
4,374 |
– |
Interest rate, foreign exchange |
|||||||||||||||||||||||||||||||
| Customers’ liability under acceptances |
711 |
– |
711 |
– |
359 |
– |
359 |
– |
Interest rate |
|||||||||||||||||||||||||||||||
| Other assets |
118,560 |
6,411 |
12,460 |
99,689 |
107,494 |
9,783 |
11,001 |
86,710 |
Interest rate |
|||||||||||||||||||||||||||||||
| Total Assets |
1,476,802 |
237,647 |
1,139,466 |
99,689 |
1,409,647 |
212,781 |
1,110,156 |
86,710 |
||||||||||||||||||||||||||||||||
| Liabilities Subject to Market Risk |
||||||||||||||||||||||||||||||||||||||||
| Deposits |
976,202 |
49,093 |
927,109 |
– |
982,440 |
45,223 |
937,217 |
– |
Interest rate, foreign exchange |
|||||||||||||||||||||||||||||||
| Derivative instruments |
58,729 |
54,770 |
3,959 |
– |
58,303 |
54,713 |
3,590 |
– |
Interest rate, foreign exchange |
|||||||||||||||||||||||||||||||
| Acceptances |
711 |
– |
711 |
– |
359 |
– |
359 |
– |
Interest rate |
|||||||||||||||||||||||||||||||
| Securities sold but not yet purchased |
54,876 |
54,876 |
– |
– |
35,030 |
35,030 |
– |
– |
Interest rate |
|||||||||||||||||||||||||||||||
| Securities lent or sold under repurchase agreements |
134,967 |
– |
134,967 |
– |
110,791 |
– |
110,791 |
– |
Interest rate |
|||||||||||||||||||||||||||||||
| Other liabilities |
154,717 |
– |
91,688 |
63,029 |
130,061 |
– |
78,583 |
51,478 |
Interest rate |
|||||||||||||||||||||||||||||||
| Subordinated debt |
8,500 |
– |
8,500 |
– |
8,377 |
– |
8,377 |
– |
Interest rate |
|||||||||||||||||||||||||||||||
| Total Liabilities |
1,388,702 |
158,739 |
1,166,934 |
63,029 |
1,325,361 |
134,966 |
1,138,917 |
51,478 |
||||||||||||||||||||||||||||||||
(1) |
Primarily comprises balance sheet items that are subject to the trading and underwriting RMF and recorded at fair value through profit or loss. |
(2) |
Primarily comprises balance sheet items that are subject to the structural balance sheet insurance RMF and secured financing transactions. |
88 |
BMO Financial Group 208th Annual Report 2025 |
BMO Financial Group 208th Annual Report 2025 |
89 |
As at October 31, 2025 |
As at October 31, 2024 |
|||||||||||||||||||||||||||
(Canadian $ in millions) |
Bank-owned
assets |
Other cash and securities received |
Total gross assets |
Encumbered assets |
Net unencumbered assets |
Net unencumbered assets (2) |
||||||||||||||||||||||
Cash and cash equivalents |
67,484 |
– |
67,484 |
108 |
67,376 |
65,018 |
||||||||||||||||||||||
Deposits with other banks |
2,838 |
– |
2,838 |
– |
2,838 |
3,640 |
||||||||||||||||||||||
Securities and securities borrowed or purchased under resale agreements |
||||||||||||||||||||||||||||
Sovereigns/Central banks/Multilateral development banks |
194,986 |
120,935 |
315,921 |
164,319 |
151,602 |
150,126 |
||||||||||||||||||||||
|
NHA mortgage-backed securities and U.S. agency mortgage-backed securities and collateralized mortgage obligations |
121,253 |
12,851 |
134,104 |
71,248 |
62,856 |
61,729 |
||||||||||||||||||||||
Corporate and other debt |
37,156 |
21,550 |
58,706 |
20,820 |
37,886 |
43,722 |
||||||||||||||||||||||
Corporate equity |
70,081 |
77,504 |
147,585 |
96,196 |
51,389 |
52,329 |
||||||||||||||||||||||
Total securities and securities borrowed or purchased under resale agreements |
423,476 |
232,840 |
656,316 |
352,583 |
303,733 |
307,906 |
||||||||||||||||||||||
NHA mortgage-backed securities (reported as loans at amortized cost) (3)
|
26,278 |
– |
26,278 |
6,690 |
19,588 |
19,774 |
||||||||||||||||||||||
Total liquid assets |
520,076 |
232,840 |
752,916 |
359,381 |
393,535 |
396,338 |
||||||||||||||||||||||
(1) |
Gross assets include bank-owned assets and cash and securities received from third parties. |
(2) |
Net unencumbered liquid assets are defined as total gross assets less encumbered assets. |
(3) |
Under International Financial Reporting Standards (IFRS), |
90 |
BMO Financial Group 208th Annual Report 2025 |
Encumbered |
Net unencumbered |
|||||||||||||||||||||||
|
(Canadian $ in millions) As at October 31, 2025 |
Total gross assets |
Pledged as collateral |
Other encumbered |
Other unencumbered |
Available as collateral |
|||||||||||||||||||
Cash and deposits with other banks |
70,322 |
– |
108 |
– |
70,214 |
|||||||||||||||||||
Securities (5)
|
682,594 |
271,748 |
87,525 |
25,739 |
297,582 |
|||||||||||||||||||
Loans |
650,883 |
58,052 |
1,834 |
435,852 |
155,145 |
|||||||||||||||||||
Other assets |
||||||||||||||||||||||||
Derivative instruments |
57,151 |
– |
– |
57,151 |
– |
|||||||||||||||||||
Customers’ liability under acceptances |
711 |
– |
– |
711 |
– |
|||||||||||||||||||
Premises and equipment |
6,252 |
– |
– |
6,252 |
– |
|||||||||||||||||||
Goodwill |
16,797 |
– |
– |
16,797 |
– |
|||||||||||||||||||
Intangible assets |
4,758 |
– |
– |
4,758 |
– |
|||||||||||||||||||
Current tax assets |
1,970 |
– |
– |
1,970 |
– |
|||||||||||||||||||
Deferred tax assets |
2,732 |
– |
– |
2,732 |
– |
|||||||||||||||||||
Receivable from brokers, dealers and clients |
43,167 |
– |
– |
43,167 |
– |
|||||||||||||||||||
Other |
42,884 |
11,149 |
– |
31,735 |
– |
|||||||||||||||||||
Total other assets |
176,422 |
11,149 |
– |
165,273 |
– |
|||||||||||||||||||
Total assets |
1,580,221 |
340,949 |
89,467 |
626,864 |
522,941 |
|||||||||||||||||||
Encumbered (2) |
Net unencumbered |
|||||||||||||||||||||||
|
(Canadian $ in millions) As at October 31, 2024 |
Total gross assets (1) |
Pledged as collateral |
Other encumbered |
Other unencumbered (3) |
Available as collateral (4) |
|||||||||||||||||||
Cash and deposits with other banks |
68,738 |
– |
80 |
– |
68,658 |
|||||||||||||||||||
Securities (5)
|
617,217 |
233,907 |
55,630 |
24,824 |
302,856 |
|||||||||||||||||||
Loans |
652,750 |
69,615 |
1,804 |
427,863 |
153,468 |
|||||||||||||||||||
Other assets |
||||||||||||||||||||||||
Derivative instruments |
47,253 |
– |
– |
47,253 |
– |
|||||||||||||||||||
Customers’ liability under acceptances |
359 |
– |
– |
359 |
– |
|||||||||||||||||||
Premises and equipment |
6,249 |
– |
– |
6,249 |
– |
|||||||||||||||||||
Goodwill |
16,774 |
– |
– |
16,774 |
– |
|||||||||||||||||||
Intangible assets |
4,925 |
– |
– |
4,925 |
– |
|||||||||||||||||||
Current tax assets |
2,219 |
– |
– |
2,219 |
– |
|||||||||||||||||||
Deferred tax assets |
3,024 |
– |
– |
3,024 |
– |
|||||||||||||||||||
Receivable from brokers, dealers and clients |
31,916 |
– |
– |
31,916 |
– |
|||||||||||||||||||
Other |
42,387 |
10,314 |
– |
32,073 |
– |
|||||||||||||||||||
Total other assets |
155,106 |
10,314 |
– |
144,792 |
– |
|||||||||||||||||||
Total assets |
1,493,811 |
313,836 |
57,514 |
597,479 |
524,982 |
|||||||||||||||||||
(1) |
Gross assets include on-balance sheet and off-balance sheet assets. |
(2) |
Pledged as collateral refers to the portion of on-balance sheet assets and other cash and securities that is pledged through repurchase agreements, securities lending, derivative contracts and requirements associated with participation in clearing houses and payment systems. Other encumbered assets include assets that are restricted for legal or other reasons, such as minimum required deposits at central banks, short sales and certain U.S. agency securities that have been sold to third parties but are consolidated under IFRS. |
(3) |
Other unencumbered assets include select liquid asset holdings that management believes are not readily available to support BMO’s liquidity requirements. These include securities of $25.7 billion as at October 31, 2025, and include securities held at BMO’s insurance subsidiary, seller financing securities and certain investments held at our merchant banking business. Other unencumbered assets include mortgages and loans that may be securitized to access secured funding. |
(4) |
Loans included in available as collateral represent loans currently lodged at central banks that may be used to access central bank funding. Loans available for pledging as collateral do not include other sources of additional liquidity that may be realized from BMO’s loan portfolio, such as incremental securitization, covered bond issuances and U.S. Federal Home Loan Bank (FHLB) advances. |
(5) |
Includes securities, securities borrowed or purchased under resale agreements and NHA mortgage-backed securities (reported as loans at amortized cost). |
(Canadian $ in millions) |
As at October 31, 2025 |
As at October 31, 2024 |
||||||
BMO (parent) |
232,874 |
240,796 |
||||||
BMO Bank N.A. |
127,012 |
128,521 |
||||||
Broker dealers |
33,649 |
27,021 |
||||||
Total net unencumbered liquid assets by legal entity |
393,535 |
396,338 |
||||||
BMO Financial Group 208th Annual Report 2025 |
91 |
As at October 31, 2025 |
As at October 31, 2024 |
|||||||||||||||||||||||||||||||||||||||
(Canadian $ in millions) |
Less than 1 month |
1 to 3 months |
3 to 6 months |
6 to 12 months |
Subtotal less than 1 year |
1 to 2 years |
Over 2 years |
Total |
Total |
|||||||||||||||||||||||||||||||
Deposits from banks |
1,472 |
1,603 |
483 |
845 |
4,403 |
– |
– |
4,403 |
5,599 |
|||||||||||||||||||||||||||||||
Certificates of deposit and commercial paper |
7,502 |
25,957 |
23,280 |
32,467 |
89,206 |
456 |
– |
89,662 |
90,349 |
|||||||||||||||||||||||||||||||
Bearer deposit notes |
1,935 |
1,485 |
1,655 |
724 |
5,799 |
– |
– |
5,799 |
4,638 |
|||||||||||||||||||||||||||||||
Asset-backed commercial paper (ABCP) |
1,788 |
4,970 |
5,775 |
2,744 |
15,277 |
– |
– |
15,277 |
9,612 |
|||||||||||||||||||||||||||||||
Senior unsecured medium-term notes |
– |
1,150 |
1,748 |
10,480 |
13,378 |
19,764 |
31,583 |
64,725 |
67,913 |
|||||||||||||||||||||||||||||||
Senior unsecured structured notes (2)
|
215 |
161 |
59 |
288 |
723 |
1,077 |
15,535 |
17,335 |
14,621 |
|||||||||||||||||||||||||||||||
Secured funding |
||||||||||||||||||||||||||||||||||||||||
Mortgage and HELOC securitizations |
4 |
835 |
291 |
1,677 |
2,807 |
2,129 |
13,447 |
18,383 |
18,187 |
|||||||||||||||||||||||||||||||
Covered bonds |
– |
2,192 |
3,105 |
7,608 |
12,905 |
6,928 |
4,220 |
24,053 |
26,969 |
|||||||||||||||||||||||||||||||
Other asset-backed securitizations (3)
|
– |
816 |
– |
– |
816 |
742 |
4,153 |
5,711 |
7,116 |
|||||||||||||||||||||||||||||||
Federal Home Loan Bank advances |
– |
1,752 |
10 |
175 |
1,937 |
1,402 |
1,402 |
4,741 |
5,633 |
|||||||||||||||||||||||||||||||
Subordinated debt |
– |
25 |
– |
– |
25 |
– |
8,474 |
8,499 |
8,403 |
|||||||||||||||||||||||||||||||
Total |
12,916 |
40,946 |
36,406 |
57,008 |
147,276 |
32,498 |
78,814 |
258,588 |
259,040 |
|||||||||||||||||||||||||||||||
Of which: |
||||||||||||||||||||||||||||||||||||||||
Secured |
1,792 |
10,565 |
9,181 |
12,204 |
33,742 |
11,201 |
23,222 |
68,165 |
67,517 |
|||||||||||||||||||||||||||||||
Unsecured |
11,124 |
30,381 |
27,225 |
44,804 |
113,534 |
21,297 |
55,592 |
190,423 |
191,523 |
|||||||||||||||||||||||||||||||
Total (4)
|
12,916 |
40,946 |
36,406 |
57,008 |
147,276 |
32,498 |
78,814 |
258,588 |
259,040 |
|||||||||||||||||||||||||||||||
(1) |
Wholesale unsecured funding primarily includes funding raised through the issuance of negotiable marketable securities. Wholesale funding excludes repo transactions, which are disclosed in the Contractual Maturities of Assets and Liabilities and Off-Balance Sheet Commitments section, and also excludes ABCP issued by certain ABCP conduits that are not consolidated for financial reporting purposes. |
(2) |
Includes structured notes issued to institutional investors and exchange-traded notes. |
(3) |
Includes credit card loan securitizations. |
(4) |
Total wholesale funding comprised Canadian dollar-denominated funding of $54.3 billion ($51.8 billion as at October 31, 2024) and U.S. dollar-denominated and other foreign currency-denominated funding of $204.3 billion as at October 31, 2025 ($207.2 billion as at October 31, 2024). |
92 |
BMO Financial Group 208th Annual Report 2025 |
As at October 31, 2025 |
||||||||||||||
Rating agency (1) |
Short-term debt |
Senior debt (2) |
Long-term deposits/
Legacy senior debt (3) |
Subordinated debt (NVCC) |
Outlook |
|||||||||
Moody’s |
P-1 |
A2 |
Aa2 |
Baa1 (hyb) |
Stable |
|||||||||
S&P |
A-1 |
A- |
A+ |
BBB+ |
Stable |
|||||||||
Fitch |
F1+ |
AA- |
AA |
A |
Stable |
|||||||||
DBRS |
R-1 (high) |
AA (low) |
AA |
A (low) |
Stable |
|||||||||
(1) |
Credit ratings are not recommendations to purchase, hold or sell a financial obligation and do not address the market price or suitability for a particular investor. Ratings are subject to revision or withdrawal at any time by the rating organization. |
(2) |
Subject to conversion under the Bank Recapitalization (Bail-In) Regime. |
(3) |
Long-term deposits / Legacy senior debt includes senior debt issued prior to September 23, 2018 and senior debt issued on or after September 23, 2018 that is excluded from the Bank Recapitalization (Bail-In) Regime. |
BMO Financial Group 208th Annual Report 2025 |
93 |
As at October 31, 2025 |
||||||||
(Canadian $ in billions, except as noted) |
Total unweighted value (average) |
Total weighted value (average) |
||||||
| High-Quality Liquid Assets |
||||||||
| Total high-quality liquid assets (HQLA) |
* |
252.1 |
||||||
| Cash Outflows |
||||||||
| Retail deposits and deposits from small business customers, of which: |
305.5 |
21.7 |
||||||
| Stable deposits |
141.2 |
4.2 |
||||||
| Less stable deposits |
164.3 |
17.5 |
||||||
| Unsecured wholesale funding, of which: |
324.2 |
139.4 |
||||||
| Operational deposits (all counterparties) and deposits in networks of cooperative banks |
163.0 |
40.3 |
||||||
| Non-operational deposits (all counterparties) |
141.3 |
79.2 |
||||||
| Unsecured debt |
19.9 |
19.9 |
||||||
| Secured wholesale funding |
* |
31.9 |
||||||
| Additional requirements, of which: |
257.3 |
59.8 |
||||||
| Outflows related to derivatives exposures and other collateral requirements |
40.2 |
14.2 |
||||||
| Outflows related to loss of funding on debt products |
2.6 |
2.6 |
||||||
| Credit and liquidity facilities |
214.5 |
43.0 |
||||||
| Other contractual funding obligations |
1.0 |
– |
||||||
| Other contingent funding obligations |
563.7 |
12.3 |
||||||
| Total cash outflows |
* |
265.1 |
||||||
| Cash Inflows |
||||||||
| Secured lending (e.g., reverse repos) |
192.4 |
32.9 |
||||||
| Inflows from fully performing exposures |
19.0 |
10.6 |
||||||
| Other cash inflows |
30.2 |
30.2 |
||||||
| Total cash inflows |
241.6 |
73.7 |
||||||
Total adjusted value |
||||||||
| Total HQLA |
252.1 |
|||||||
| Total net cash outflows |
191.4 |
|||||||
| Liquidity Coverage Ratio (%)
|
132 |
|||||||
For the quarter ended October 31, 2024 |
Total adjusted value (4) |
|||||||
| Total HQLA |
253.4 |
|||||||
| Total net cash outflows |
192.4 |
|||||||
| Liquidity Coverage Ratio (%)
|
132 |
|||||||
(1) |
Unweighted values are calculated at market value (for HQLA) or as outstanding balances maturing or callable within 30 days (for inflows and outflows). |
(2) |
Values are calculated based on the simple average of the daily LCR over 62 business days in the fourth quarter of fiscal 2025. |
(3) |
Weighted values are calculated after the application of the weights prescribed under the OSFI LAR Guideline for HQLA and cash inflows and outflows. |
(4) |
Adjusted values are calculated based on total weighted values after applicable caps, as defined in the LAR Guideline. |
94 |
BMO Financial Group 208th Annual Report 2025 |
For the quarter ended October 31, 2025 |
||||||||||||||||||||
Unweighted value by residual maturity |
Weighted value |
|||||||||||||||||||
| (Canadian $ in billions, except as noted) |
No maturity |
Less than 6 months |
6 to 12 months |
Over 1 year |
||||||||||||||||
| Available Stable Funding (ASF) Item |
||||||||||||||||||||
| Capital: |
88.6 |
– |
– |
8.4 |
97.0 |
|||||||||||||||
| Regulatory capital |
88.6 |
– |
– |
8.4 |
97.0 |
|||||||||||||||
| Other capital instruments |
– |
– |
– |
– |
– |
|||||||||||||||
| Retail deposits and deposits from small business customers: |
244.9 |
61.1 |
30.0 |
61.6 |
368.0 |
|||||||||||||||
| Stable deposits |
120.5 |
26.3 |
12.8 |
12.4 |
164.1 |
|||||||||||||||
| Less stable deposits |
124.4 |
34.8 |
17.2 |
49.2 |
203.9 |
|||||||||||||||
| Wholesale funding: |
339.0 |
290.8 |
72.4 |
95.9 |
285.4 |
|||||||||||||||
| Operational deposits |
158.5 |
– |
– |
0.5 |
79.8 |
|||||||||||||||
| Other wholesale funding |
180.5 |
290.8 |
72.4 |
95.4 |
205.6 |
|||||||||||||||
| Liabilities with matching interdependent assets |
– |
1.0 |
0.7 |
15.3 |
– |
|||||||||||||||
| Other liabilities: |
2.1 |
* |
* |
100.5 |
32.9 |
|||||||||||||||
| NSFR derivative liabilities |
* |
* |
* |
5.5 |
* |
|||||||||||||||
| All other liabilities and equity not included in the above categories |
2.1 |
61.9 |
0.3 |
32.8 |
32.9 |
|||||||||||||||
| Total ASF |
* |
* |
* |
* |
783.3 |
|||||||||||||||
| Required Stable Funding (RSF) Item |
||||||||||||||||||||
| Total NSFR high-quality liquid assets (HQLA) |
* |
* |
* |
* |
13.6 |
|||||||||||||||
| Deposits held at other financial institutions for operational purposes |
– |
0.2 |
– |
– |
0.1 |
|||||||||||||||
| Performing loans and securities: |
205.2 |
233.0 |
79.8 |
339.4 |
524.9 |
|||||||||||||||
| Performing loans to financial institutions secured by Level 1 HQLA |
– |
100.5 |
2.2 |
– |
3.1 |
|||||||||||||||
| Performing loans to financial institutions secured by non-Level 1 HQLA and unsecured performing loans to financial institutions |
32.1 |
74.3 |
10.7 |
15.5 |
61.4 |
|||||||||||||||
| Performing loans to non-financial corporate clients, loans to retail and small business customers, and loans to sovereigns, central banks and public sector entities, of which: |
126.8 |
34.6 |
35.3 |
168.6 |
285.4 |
|||||||||||||||
| With a risk weight of less than or equal to 35% under the Basel II standardized approach for credit risk |
– |
– |
– |
– |
– |
|||||||||||||||
| Performing residential mortgages, of which: |
14.0 |
21.3 |
31.4 |
129.7 |
124.5 |
|||||||||||||||
| With a risk weight of less than or equal to 35% under the Basel II standardized approach for credit risk |
14.0 |
21.3 |
31.4 |
129.7 |
124.5 |
|||||||||||||||
| Securities that are not in default and do not qualify as HQLA, including exchange-traded equities |
32.3 |
2.3 |
0.2 |
25.6 |
50.5 |
|||||||||||||||
| Assets with matching interdependent liabilities |
– |
1.0 |
0.7 |
15.3 |
– |
|||||||||||||||
| Other assets: |
44.2 |
* |
* |
127.1 |
108.1 |
|||||||||||||||
| Physical traded commodities, including gold |
6.4 |
* |
* |
* |
5.4 |
|||||||||||||||
| Assets posted as initial margin for derivative contracts and contributions to default funds of CCPs |
* |
* |
* |
20.8 |
17.7 |
|||||||||||||||
| NSFR derivative assets |
* |
* |
* |
3.1 |
– |
|||||||||||||||
| NSFR derivative liabilities before deduction of variation margin posted |
* |
* |
* |
15.2 |
0.8 |
|||||||||||||||
| All other assets not included in the above categories |
37.8 |
50.8 |
0.5 |
36.7 |
84.2 |
|||||||||||||||
| Off-balance sheet items |
– |
– |
– |
638.5 |
22.1 |
|||||||||||||||
| Total RSF |
* |
* |
* |
* |
668.8 |
|||||||||||||||
| Net Stable Funding Ratio (%)
|
* |
* |
* |
* |
117 |
|||||||||||||||
| For the quarter ended October 31, 2024 | Weighted value (2) |
|||||||||||||||||||
| Total ASF |
788.7 | |||||||||||||||||||
| Total RSF |
673.3 | |||||||||||||||||||
| Net Stable Funding Ratio (%)
|
117 | |||||||||||||||||||
(1) |
Items in the no maturity column do not have a stated maturity. These may include, but are not limited to, capital with perpetual maturity, non-maturity deposits, short positions, open maturity positions, non-HQLA equities, physical traded commodities and demand loans. |
(2) |
Weighted values are calculated after the application of the weights prescribed under the OSFI LAR Guideline for ASF and RSF. |
BMO Financial Group 208th Annual Report 2025 |
95 |
2025 |
||||||||||||||||||||||||||||||||||||||||
(Canadian $ in millions) |
0 to 1 month |
1 to 3 months |
3 to 6 months |
6 to 9 months |
9 to 12 months |
1 to 2 years |
2 to 5 years |
Over 5 years |
No specific maturity |
Total |
||||||||||||||||||||||||||||||
Assets |
||||||||||||||||||||||||||||||||||||||||
| Cash and cash equivalents |
65,232 |
– |
– |
– |
– |
– |
– |
– |
2,252 |
67,484 |
||||||||||||||||||||||||||||||
| Interest bearing deposits with banks |
2,461 |
328 |
47 |
2 |
– |
– |
– |
– |
– |
2,838 |
||||||||||||||||||||||||||||||
| Securities |
4,613 |
5,026 |
7,358 |
6,635 |
11,121 |
43,792 |
84,041 |
190,809 |
70,081 |
423,476 |
||||||||||||||||||||||||||||||
| Securities borrowed or purchased under resale agreements |
105,268 |
15,571 |
6,399 |
1,880 |
303 |
– |
– |
– |
– |
129,421 |
||||||||||||||||||||||||||||||
| Loans
(1)
|
||||||||||||||||||||||||||||||||||||||||
| Residential mortgages |
2,596 |
6,037 |
10,583 |
14,475 |
13,025 |
46,764 |
66,853 |
35,365 |
335 |
196,033 |
||||||||||||||||||||||||||||||
| Consumer instalment and other personal |
691 |
1,584 |
3,079 |
4,292 |
3,376 |
12,991 |
20,184 |
19,079 |
27,465 |
92,741 |
||||||||||||||||||||||||||||||
| Credit cards |
– |
– |
– |
– |
– |
– |
– |
– |
12,649 |
12,649 |
||||||||||||||||||||||||||||||
| Business and government |
11,283 |
14,430 |
18,395 |
23,398 |
20,399 |
61,935 |
98,451 |
36,768 |
95,729 |
380,788 |
||||||||||||||||||||||||||||||
| Allowance for credit losses |
– |
– |
– |
– |
– |
– |
– |
– |
(5,050 |
) |
(5,050 |
) | ||||||||||||||||||||||||||||
| Total loans, net of allowance |
14,570 |
22,051 |
32,057 |
42,165 |
36,800 |
121,690 |
185,488 |
91,212 |
131,128 |
677,161 |
||||||||||||||||||||||||||||||
| Other assets |
||||||||||||||||||||||||||||||||||||||||
| Derivative instruments |
6,336 |
10,429 |
5,146 |
4,122 |
3,997 |
7,688 |
10,420 |
9,013 |
– |
57,151 |
||||||||||||||||||||||||||||||
| Customers’ liability under acceptances |
711 |
– |
– |
– |
– |
– |
– |
– |
– |
711 |
||||||||||||||||||||||||||||||
| Receivable from brokers, dealers and clients |
43,167 |
– |
– |
– |
– |
– |
– |
– |
– |
43,167 |
||||||||||||||||||||||||||||||
| Other |
3,752 |
1,155 |
455 |
26 |
8 |
15 |
14 |
7,990 |
61,978 |
75,393 |
||||||||||||||||||||||||||||||
| Total other assets |
53,966 |
11,584 |
5,601 |
4,148 |
4,005 |
7,703 |
10,434 |
17,003 |
61,978 |
176,422 |
||||||||||||||||||||||||||||||
| Total assets |
246,110 |
54,560 |
51,462 |
54,830 |
52,229 |
173,185 |
279,963 |
299,024 |
265,439 |
1,476,802 |
||||||||||||||||||||||||||||||
2025 |
||||||||||||||||||||||||||||||||||||||||
(Canadian $ in millions) |
0 to 1 month |
1 to 3 months |
3 to 6 months |
6 to 9 months |
9 to 12 months |
1 to 2 years |
2 to 5 years |
Over 5 years |
No specific maturity |
Total |
||||||||||||||||||||||||||||||
Liabilities and Equity |
||||||||||||||||||||||||||||||||||||||||
| Deposits
(2) (3)
|
37,399 |
65,186 |
66,458 |
58,424 |
49,572 |
55,403 |
68,983 |
29,023 |
545,754 |
976,202 |
||||||||||||||||||||||||||||||
| Other liabilities |
||||||||||||||||||||||||||||||||||||||||
| Derivative instruments |
5,789 |
9,844 |
6,317 |
4,517 |
4,264 |
7,180 |
10,924 |
9,894 |
– |
58,729 |
||||||||||||||||||||||||||||||
| Acceptances |
711 |
– |
– |
– |
– |
– |
– |
– |
– |
711 |
||||||||||||||||||||||||||||||
| Securities sold but not yet purchased
(4)
|
54,876 |
– |
– |
– |
– |
– |
– |
– |
– |
54,876 |
||||||||||||||||||||||||||||||
| Securities lent or sold under repurchase agreements
(4)
|
113,549 |
17,158 |
762 |
– |
– |
3,498 |
– |
– |
– |
134,967 |
||||||||||||||||||||||||||||||
| Securitization and structured entities’ liabilities |
1 |
2,375 |
200 |
481 |
1,377 |
2,980 |
10,287 |
33,861 |
– |
51,562 |
||||||||||||||||||||||||||||||
| Insurance-related liabilities |
90 |
82 |
21 |
23 |
33 |
91 |
220 |
745 |
19,131 |
20,436 |
||||||||||||||||||||||||||||||
| Payable to brokers, dealers and clients |
45,170 |
– |
– |
– |
– |
– |
– |
– |
– |
45,170 |
||||||||||||||||||||||||||||||
| Other |
11,733 |
5,244 |
222 |
339 |
120 |
2,567 |
2,784 |
2,659 |
11,881 |
37,549 |
||||||||||||||||||||||||||||||
| Total other liabilities |
231,919 |
34,703 |
7,522 |
5,360 |
5,794 |
16,316 |
24,215 |
47,159 |
31,012 |
404,000 |
||||||||||||||||||||||||||||||
| Subordinated debt |
– |
25 |
– |
– |
– |
– |
25 |
8,450 |
– |
8,500 |
||||||||||||||||||||||||||||||
| Total equity |
– |
– |
– |
– |
– |
– |
– |
– |
88,100 |
88,100 |
||||||||||||||||||||||||||||||
| Total liabilities and equity |
269,318 |
99,914 |
73,980 |
63,784 |
55,366 |
71,719 |
93,223 |
84,632 |
664,866 |
1,476,802 |
||||||||||||||||||||||||||||||
(1) |
Loans receivable on demand have been included under no specific maturity. |
(2) |
Deposits payable on demand and payable after notice have been included under no specific maturity. |
(3) |
Deposits totalling $ 27,819 million as at October 31, 2025 have a fixed maturity date; however, they can be redeemed early (either fully or partially) by customers without penalty. These are classified as payable on a fixed date due to their stated contractual maturity date. |
(4) |
These are presented based on their earliest maturity date. |
2025 |
||||||||||||||||||||||||||||||||||||||||
(Canadian $ in millions ) |
0 to 1 month |
1 to 3 months |
3 to 6 months |
6 to 9 months |
9 to 12 months |
1 to 2 years |
2 to 5 years |
Over 5 years |
No specific maturity |
Total |
||||||||||||||||||||||||||||||
Off-Balance Sheet Commitments |
||||||||||||||||||||||||||||||||||||||||
| Commitments to extend credit
(1)
|
2,889 |
4,405 |
10,029 |
15,588 |
22,066 |
55,191 |
130,267 |
6,417 |
– |
246,852 |
||||||||||||||||||||||||||||||
| Letters of credit
(2)
|
2,372 |
5,167 |
6,192 |
5,787 |
5,982 |
2,530 |
3,807 |
76 |
– |
31,913 |
||||||||||||||||||||||||||||||
| Backstop liquidity facilities |
429 |
72 |
– |
2,304 |
2,845 |
4,543 |
7,804 |
361 |
– |
18,358 |
||||||||||||||||||||||||||||||
| Other commitments
(3)
|
59 |
92 |
154 |
144 |
136 |
444 |
805 |
256 |
– |
2,090 |
||||||||||||||||||||||||||||||
(1) |
Commitments to extend credit exclude personal lines of credit and credit cards that are unconditionally cancellable at BMO’s discretion. A large majority of these commitments expire without being drawn upon. As a result, the total contractual amounts may not be representative of the funding likely to be required for these commitments. |
(2) |
Letters of credit can be drawn down at any time. These are classified based on their stated contractual maturity. |
(3) |
Other commitments comprise purchase obligations and lease commitments for leases signed but not yet commenced. |
96 |
BMO Financial Group 208th Annual Report 2025 |
2024 |
||||||||||||||||||||||||||||||||||||||||
(Canadian $ in millions) |
0 to 1 month |
1 to 3 months |
3 to 6 months |
6 to 9 months |
9 to 12 months |
1 to 2 years |
2 to 5 years |
Over 5 years |
No specific maturity |
Total |
||||||||||||||||||||||||||||||
Assets |
||||||||||||||||||||||||||||||||||||||||
| Cash and cash equivalents
|
62,827 |
– |
– |
– |
– |
– |
– |
– |
2,271 |
65,098 |
||||||||||||||||||||||||||||||
| Interest bearing deposits with banks |
2,513 |
628 |
481 |
18 |
– |
– |
– |
– |
– |
3,640 |
||||||||||||||||||||||||||||||
| Securities |
6,787 |
14,011 |
7,840 |
6,707 |
9,720 |
21,264 |
84,775 |
172,886 |
72,890 |
396,880 |
||||||||||||||||||||||||||||||
| Securities borrowed or purchased under resale agreements |
85,185 |
16,803 |
5,701 |
2,330 |
888 |
– |
– |
– |
– |
110,907 |
||||||||||||||||||||||||||||||
| Loans
(1)
|
||||||||||||||||||||||||||||||||||||||||
| Residential mortgages |
1,683 |
3,284 |
6,413 |
6,653 |
9,252 |
52,489 |
77,867 |
33,227 |
212 |
191,080 |
||||||||||||||||||||||||||||||
| Consumer instalment and other personal |
581 |
974 |
1,703 |
1,827 |
2,671 |
14,815 |
24,595 |
18,830 |
26,691 |
92,687 |
||||||||||||||||||||||||||||||
| Credit cards |
– |
– |
– |
– |
– |
– |
– |
– |
13,612 |
13,612 |
||||||||||||||||||||||||||||||
| Business and government |
8,647 |
14,418 |
16,461 |
19,448 |
21,828 |
63,613 |
105,740 |
32,444 |
102,394 |
384,993 |
||||||||||||||||||||||||||||||
| Allowance for credit losses |
– |
– |
– |
– |
– |
– |
– |
– |
(4,356 |
) |
(4,356 |
) | ||||||||||||||||||||||||||||
| Total loans, net of allowance |
10,911 |
18,676 |
24,577 |
27,928 |
33,751 |
130,917 |
208,202 |
84,501 |
138,553 |
678,016 |
||||||||||||||||||||||||||||||
| Other assets |
||||||||||||||||||||||||||||||||||||||||
| Derivative instruments |
5,573 |
7,996 |
7,211 |
2,482 |
1,660 |
6,365 |
8,374 |
7,592 |
– |
47,253 |
||||||||||||||||||||||||||||||
| Customers’ liability under acceptances |
359 |
– |
– |
– |
– |
– |
– |
– |
– |
359 |
||||||||||||||||||||||||||||||
| Receivable from brokers, dealers and clients |
31,916 |
– |
– |
– |
– |
– |
– |
– |
– |
31,916 |
||||||||||||||||||||||||||||||
| Other |
3,847 |
1,012 |
948 |
31 |
14 |
13 |
13 |
7,717 |
61,983 |
75,578 |
||||||||||||||||||||||||||||||
| Total other assets |
41,695 |
9,008 |
8,159 |
2,513 |
1,674 |
6,378 |
8,387 |
15,309 |
61,983 |
155,106 |
||||||||||||||||||||||||||||||
| Total assets |
209,918 |
59,126 |
46,758 |
39,496 |
46,033 |
158,559 |
301,364 |
272,696 |
275,697 |
1,409,647 |
||||||||||||||||||||||||||||||
2024 |
|||||||||||||||||||||||||||||||||||||||
(Canadian $ in millions ) |
0 to 1 month |
1 to 3 months |
3 to 6 months |
6 to 9 months |
9 to 12 months |
1 to 2 years |
2 to 5 years |
Over 5 years |
No specific maturity |
Total |
|||||||||||||||||||||||||||||
Liabilities and Equity |
|||||||||||||||||||||||||||||||||||||||
| Deposits
(2) (3)
|
47,637 |
74,759 |
69,479 |
68,110 |
48,835 |
51,789 |
87,297 |
25,602 |
508,932 |
982,440 |
|||||||||||||||||||||||||||||
| Other liabilities |
|||||||||||||||||||||||||||||||||||||||
| Derivative instruments |
6,769 |
10,541 |
10,828 |
3,311 |
2,160 |
6,470 |
9,112 |
9,112 |
– |
58,303 |
|||||||||||||||||||||||||||||
| Acceptances |
359 |
– |
– |
– |
– |
– |
– |
– |
– |
359 |
|||||||||||||||||||||||||||||
| Securities sold but not yet purchased
(4)
|
35,030 |
– |
– |
– |
– |
– |
– |
– |
– |
35,030 |
|||||||||||||||||||||||||||||
| Securities lent or sold under repurchase agreements
(4)
|
99,364 |
7,777 |
721 |
106 |
1,016 |
1,807 |
– |
– |
– |
110,791 |
|||||||||||||||||||||||||||||
| Securitization and structured entities’ liabilities |
44 |
981 |
1,072 |
2,183 |
152 |
4,353 |
9,913 |
21,466 |
– |
40,164 |
|||||||||||||||||||||||||||||
| Insurance-related liabilities |
93 |
89 |
18 |
18 |
30 |
83 |
195 |
701 |
17,543 |
18,770 |
|||||||||||||||||||||||||||||
| Payable to brokers, dealers and clients |
34,407 |
– |
– |
– |
– |
– |
– |
– |
– |
34,407 |
|||||||||||||||||||||||||||||
| Other |
12,409 |
2,968 |
805 |
144 |
1,611 |
2,492 |
4,058 |
2,799 |
9,434 |
36,720 |
|||||||||||||||||||||||||||||
| Total other liabilities |
188,475 |
22,356 |
13,444 |
5,762 |
4,969 |
15,205 |
23,278 |
34,078 |
26,977 |
334,544 |
|||||||||||||||||||||||||||||
| Subordinated debt |
– |
– |
– |
– |
– |
25 |
25 |
8,327 |
– |
8,377 |
|||||||||||||||||||||||||||||
| Total equity |
– |
– |
– |
– |
– |
– |
– |
– |
84,286 |
84,286 |
|||||||||||||||||||||||||||||
| Total liabilities and equity |
236,112 |
97,115 |
82,923 |
73,872 |
53,804 |
67,019 |
110,600 |
68,007 |
620,195 |
1,409,647 |
|||||||||||||||||||||||||||||
(1) |
Loans receivable on demand have been included under no specific maturity. |
(2) |
Deposits payable on demand and payable after notice have been included under no specific maturity. |
(3) |
Deposits totalling $ 29,136 million as at October 31, 2024 have a fixed maturity date; however, they can be redeemed early (either fully or partially) by customers without penalty. These are classified as payable on a fixed date due to their stated contractual maturity date. |
(4) |
These are presented based on their earliest maturity date. |
2024 |
||||||||||||||||||||||||||||||||||||||||
(Canadian $ in millions)
|
0 to 1 month |
1 to 3 months |
3 to 6 months |
6 to 9 months |
9 to 12 months |
1 to 2 years |
2 to 5 years |
Over 5 years |
No specific maturity |
Total |
||||||||||||||||||||||||||||||
| Off-Balance Sheet Commitments |
||||||||||||||||||||||||||||||||||||||||
| Commitments to extend credit
(1)
|
3,720 |
5,220 |
10,229 |
16,052 |
16,284 |
47,054 |
130,664 |
7,048 |
– |
236,271 |
||||||||||||||||||||||||||||||
| Letters of credit
(2)
|
2,109 |
5,235 |
6,113 |
6,761 |
6,163 |
2,310 |
3,689 |
36 |
– |
32,416 |
||||||||||||||||||||||||||||||
| Backstop liquidity facilities |
283 |
213 |
213 |
3,408 |
1,132 |
3,047 |
9,110 |
818 |
– |
18,224 |
||||||||||||||||||||||||||||||
| Other commitments
(3)
|
30 |
78 |
94 |
87 |
187 |
399 |
486 |
98 |
– |
1,459 |
||||||||||||||||||||||||||||||
(1) |
Commitments to extend credit exclude personal lines of credit and credit cards that are unconditionally cancellable at BMO’s discretion. A large majority of these commitments expire without being drawn upon. As a result, the total contractual amounts may not be representative of the funding likely to be required for these commitments. |
(2) |
Letters of credit can be drawn down at any time. These are classified based on their stated contractual maturity. |
(3) |
Other commitments comprise purchase obligations and lease commitments for leases signed but not yet commenced. |
BMO Financial Group 208th Annual Report 2025 |
97 |
• |
BMO’s Product/Service and Process Risk Assessment |
• |
BMO’s Initiative Assessment and Approval Process |
98 |
BMO Financial Group 208th Annual Report 2025 |
• |
KRIs, Issues Management and Internal Loss Data Events |
• |
Operational Risk Capital Measurement: on 10-year average historical losses (net of recoveries) and the three-year average BIC. |
• |
Stress Testing Scenario Analysis |
• |
BMO’s Corporate Risk and Insurance (CR&I) |
| BMO Financial Group 208th Annual Report 2025 | 99 |
100 |
BMO Financial Group 208th Annual Report 2025 |
| BMO Financial Group 208th Annual Report 2025 | 101 |
102 |
BMO Financial Group 208th Annual Report 2025 |
| BMO Financial Group 208th Annual Report 2025 | 103 |
• |
Claims risk |
• |
Policyholder behaviour risk |
• |
Expense risk |
104 |
BMO Financial Group 208th Annual Report 2025 |
| BMO Financial Group 208th Annual Report 2025 | 105 |
106 |
BMO Financial Group 208th Annual Report 2025 |
| BMO Financial Group 208th Annual Report 2025 | 107 |
108 |
BMO Financial Group 208th Annual Report 2025 |
• |
Developing and maintaining valuation policies, procedures and methodologies in accordance with International Financial Reporting Standards (IFRS) and regulatory requirements. |
• |
Establishing official rate sources for valuation data inputs. |
• |
Providing independent review of portfolios for which prices supplied by traders are used for valuation. |
| BMO Financial Group 208th Annual Report 2025 | 109 |
110 |
BMO Financial Group 208th Annual Report 2025 |
| BMO Financial Group 208th Annual Report 2025 | 111 |
• |
Annually reviewing the audit plan in two separate meetings, including a consideration of the impact of business risks on the audit plan and an assessment of the reasonableness of the audit fee |
• |
Reviewing the qualifications of the senior engagement team members |
• |
Monitoring the execution of the audit plan of the shareholders’ auditors, with a focus on the more complex and challenging areas of the audit |
• |
Reviewing and evaluating the audit findings, including during in-camera sessions |
• |
Evaluating audit quality and performance, including recent Canadian Public Accountability Board (CPAB) and Public Company Accounting Oversight Board (PCAOB) inspection reports on the shareholders’ auditors and their peer firms |
• |
At a minimum, holding quarterly meetings with the chair of the ACRC and the lead audit partner to discuss audit-related issues independently of management |
• |
Performing a comprehensive review of the shareholders’ auditors every five years, and performing an annual review in the years between these comprehensive reviews, following the guidelines set out by the Chartered Professional Accountants of Canada (CPA Canada) and the CPAB. |
(Canadian $ in millions) |
2025 |
2024 | ||||||
Audit fees (2)
|
32.9 |
30.5 | ||||||
Audit-related fees (3)
|
3.5 |
3.4 | ||||||
Tax services fees (4)
|
– |
0.1 | ||||||
All other fees (5)
|
1.6 |
2.1 | ||||||
Total |
38.0 |
36.1 | ||||||
| (1) | The classification of fees is based on applicable Canadian securities laws and U.S. Securities and Exchange Commission definitions. |
| (2) | Includes fees paid for the audit of the consolidated financial statements of the bank, including the audit of the bank’s internal controls over financial reporting and any financial statement audits of the bank’s subsidiaries. Audit fees also include fees paid for services in connection with statutory and regulatory filings, including those related to prospectuses. |
| (3) | Includes fees paid for specified procedures on BMO’s Proxy Circular and other services, and French translation of financial statements, related continuous disclosures and other public documents containing financial information. |
| (4) | Includes fees paid for tax compliance services provided to various BMO-managed investment company complexes. |
| (5) | Includes other fees paid by BMO-managed investment company complexes, and for ESG-related services. |
112 |
BMO Financial Group 208th Annual Report 2025 |
• |
Pertain to the maintenance of records that, in reasonable detail, accurately and fairly reflect the transactions and dispositions of the assets of BMO. |
• |
Are designed to provide reasonable assurance that transactions are recorded as necessary to permit preparation of the consolidated financial statements in accordance with IFRS and the requirements of the SEC in the United States, as applicable, and that receipts and expenditures of BMO are being made only in accordance with authorizations by management and directors of BMO. |
• |
Are designed to provide reasonable assurance that any unauthorized acquisition, use or disposition of BMO’s assets that could have a material effect on the consolidated financial statements is prevented or detected in a timely manner. |
| BMO Financial Group 208th Annual Report 2025 | 113 |
|
($ millions) As at or for the year ended October 31 |
2025 |
2024 | 2023 | 2022 | 2021 | 2020 | 2019 | 2018 | 2017 | 2016 | ||||||||||||||||||||||||||||||
Condensed Consolidated Balance Sheet |
||||||||||||||||||||||||||||||||||||||||
Assets |
||||||||||||||||||||||||||||||||||||||||
Cash and cash equivalents |
67,484 |
65,098 | 77,934 | 87,466 | 93,261 | 57,408 | 48,803 | 42,142 | 32,599 | 31,653 | ||||||||||||||||||||||||||||||
Interest bearing deposits with banks |
2,838 |
3,640 | 4,109 | 5,677 | 8,303 | 9,035 | 7,987 | 8,305 | 6,490 | 4,449 | ||||||||||||||||||||||||||||||
Securities |
423,476 |
396,880 | 320,084 | 272,551 | 232,849 | 234,260 | 189,438 | 180,935 | 163,198 | 149,985 | ||||||||||||||||||||||||||||||
Securities borrowed or purchased under resale agreements |
129,421 |
110,907 | 115,662 | 113,194 | 107,382 | 111,878 | 104,004 | 85,051 | 75,047 | 66,646 | ||||||||||||||||||||||||||||||
Loans, net of allowances |
677,161 |
678,016 | 656,665 | 551,814 | 458,262 | 447,420 | 426,984 | 384,172 | 358,507 | 357,518 | ||||||||||||||||||||||||||||||
Other |
176,422 |
155,106 | 172,552 | 142,695 | 88,118 | 89,260 | 74,979 | 72,688 | 73,763 | 77,709 | ||||||||||||||||||||||||||||||
Total assets |
1,476,802 |
1,409,647 | 1,347,006 | 1,173,397 | 988,175 | 949,261 | 852,195 | 773,293 | 709,604 | 687,960 | ||||||||||||||||||||||||||||||
Liabilities |
||||||||||||||||||||||||||||||||||||||||
Deposits |
976,202 |
982,440 | 910,879 | 776,547 | 685,631 | 659,034 | 568,143 | 520,928 | 479,792 | 470,281 | ||||||||||||||||||||||||||||||
Other |
404,000 |
334,544 | 351,776 | 317,662 | 238,128 | 225,218 | 225,981 | 199,862 | 180,438 | 170,910 | ||||||||||||||||||||||||||||||
Subordinated debt |
8,500 |
8,377 | 8,228 | 8,150 | 6,893 | 8,416 | 6,995 | 6,782 | 5,029 | 4,439 | ||||||||||||||||||||||||||||||
Total liabilities |
1,388,702 |
1,325,361 | 1,270,883 | 1,102,359 | 930,652 | 892,668 | 801,119 | 727,572 | 665,259 | 645,630 | ||||||||||||||||||||||||||||||
Total equity |
88,100 |
84,286 | 76,123 | 71,038 | 57,523 | 56,593 | 51,076 | 45,721 | 44,345 | 42,330 | ||||||||||||||||||||||||||||||
Total liabilities and equity |
1,476,802 |
1,409,647 | 1,347,006 | 1,173,397 | 988,175 | 949,261 | 852,195 | 773,293 | 709,604 | 687,960 | ||||||||||||||||||||||||||||||
Condensed Consolidated Statement of Income |
||||||||||||||||||||||||||||||||||||||||
Net interest income |
21,487 |
19,468 | 18,681 | 15,885 | 14,310 | 13,971 | 12,888 | 11,438 | 11,275 | 10,945 | ||||||||||||||||||||||||||||||
Non-interest revenue |
14,787 |
13,327 | 10,578 | 17,825 | 12,876 | 11,215 | 12,595 | 11,467 | 10,832 | 10,015 | ||||||||||||||||||||||||||||||
Total revenue |
36,274 |
32,795 | 29,259 | 33,710 | 27,186 | 25,186 | 25,483 | 22,905 | 22,107 | 20,960 | ||||||||||||||||||||||||||||||
Insurance claims, commissions and changes in policy benefit liabilities (CCPB) (1)
|
– |
– | – | (683 | ) | 1,399 | 1,708 | 2,709 | 1,352 | 1,538 | 1,543 | |||||||||||||||||||||||||||||
Provision for credit losses (PCL) |
3,617 |
3,761 | 2,178 | 313 | 20 | 2,953 | 872 | 662 | 746 | 771 | ||||||||||||||||||||||||||||||
Non-interest expense |
21,107 |
19,499 | 21,134 | 16,194 | 15,509 | 14,177 | 14,630 | 13,477 | 13,192 | 12,916 | ||||||||||||||||||||||||||||||
Income before income taxes |
11,550 |
9,535 | 5,947 | 17,886 | 10,258 | 6,348 | 7,272 | 7,414 | 6,631 | 5,730 | ||||||||||||||||||||||||||||||
Provision for income taxes |
2,825 |
2,208 | 1,510 | 4,349 | 2,504 | 1,251 | 1,514 | 1,961 | 1,292 | 1,100 | ||||||||||||||||||||||||||||||
Net income |
8,725 |
7,327 | 4,437 | 13,537 | 7,754 | 5,097 | 5,758 | 5,453 | 5,339 | 4,630 | ||||||||||||||||||||||||||||||
Net income available to common shareholders |
8,273 |
6,932 | 4,094 | 13,306 | 7,510 | 4,850 | 5,547 | 5,269 | 5,153 | 4,471 | ||||||||||||||||||||||||||||||
Condensed Consolidated Statement of Changes in Equity |
||||||||||||||||||||||||||||||||||||||||
Preferred shares and other equity instruments |
8,956 |
8,087 | 6,958 | 6,308 | 5,558 | 6,598 | 5,348 | 4,340 | 4,240 | 3,840 | ||||||||||||||||||||||||||||||
Common shares |
23,359 |
23,921 | 22,941 | 17,744 | 13,599 | 13,430 | 12,971 | 12,929 | 13,032 | 12,539 | ||||||||||||||||||||||||||||||
Contributed surplus |
373 |
354 | 328 | 317 | 313 | 302 | 303 | 300 | 307 | 294 | ||||||||||||||||||||||||||||||
Retained earnings |
47,377 |
46,469 | 44,006 | 45,117 | 35,497 | 30,745 | 28,725 | 25,850 | 23,700 | 21,207 | ||||||||||||||||||||||||||||||
Accumulated other comprehensive income |
7,986 |
5,419 | 1,862 | 1,552 | 2,556 | 5,518 | 3,729 | 2,302 | 3,066 | 4,426 | ||||||||||||||||||||||||||||||
Non-controlling interest in subsidiaries |
49 |
36 | 28 | – | – | – | – | – | – | 24 | ||||||||||||||||||||||||||||||
Total equity |
88,100 |
84,286 | 76,123 | 71,038 | 57,523 | 56,593 | 51,076 | 45,721 | 44,345 | 42,330 | ||||||||||||||||||||||||||||||
| (1) | Beginning 2023, the Bank no longer reports insurance claims, commissions and changes in policy benefit liabilities (CCPB), and non-GAAP measures and metrics net of CCPB, given the adoption and retrospective application of IFRS 17. |
114 |
BMO Financial Group 208th Annual Report 2025 |
|
($ millions, except as noted) As at or for the year ended October 31 |
2025 |
2024 | 2023 | 2022 | 2021 | 2020 | 2019 | 2018 | 2017 | 2016 | ||||||||||||||||||||||||||||||
Other Financial Measures |
||||||||||||||||||||||||||||||||||||||||
Common Share Data ($)
|
||||||||||||||||||||||||||||||||||||||||
Basic earnings per share |
11.46 |
9.52 | 5.77 | 20.04 | 11.60 | 7.56 | 8.68 | 8.19 | 7.93 | 6.94 | ||||||||||||||||||||||||||||||
Diluted earnings per share |
11.44 |
9.51 | 5.76 | 19.99 | 11.58 | 7.55 | 8.66 | 8.17 | 7.90 | 6.92 | ||||||||||||||||||||||||||||||
Dividends declared per common share |
6.44 |
6.12 | 5.80 | 5.44 | 4.24 | 4.24 | 4.06 | 3.78 | 3.56 | 3.40 | ||||||||||||||||||||||||||||||
Book value per share |
111.57 |
104.40 | 95.90 | 95.60 | 80.18 | 77.40 | 71.54 | 64.73 | 61.91 | 59.57 | ||||||||||||||||||||||||||||||
Closing share price |
174.23 |
126.88 | 104.79 | 125.49 | 134.37 | 79.33 | 97.50 | 98.43 | 98.83 | 85.36 | ||||||||||||||||||||||||||||||
Number outstanding (in millions) |
||||||||||||||||||||||||||||||||||||||||
End of year |
708.9 |
729.5 | 720.9 | 677.1 | 648.1 | 645.9 | 639.2 | 639.3 | 647.8 | 645.8 | ||||||||||||||||||||||||||||||
Market capitalization |
123,513 |
92,563 | 75,544 | 84,970 | 87,090 | 51,238 | 62,325 | 62,929 | 64,024 | 55,122 | ||||||||||||||||||||||||||||||
Price-to-earnings |
15.2 |
13.3 | 18.2 | 6.3 | 11.6 | 10.5 | 11.3 | 12.0 | 12.5 | 12.3 | ||||||||||||||||||||||||||||||
Market to book value ratio |
1.56 |
1.22 | 1.09 | 1.31 | 1.68 | 1.02 | 1.36 | 1.52 | 1.60 | 1.43 | ||||||||||||||||||||||||||||||
Dividend yield (%)
|
3.7 |
4.8 | 5.5 | 4.3 | 3.2 | 5.3 | 4.2 | 3.8 | 3.6 | 4.0 | ||||||||||||||||||||||||||||||
Dividend payout ratio (%)
|
56.2 |
64.3 | 100.5 | 27.1 | 36.5 | 56.1 | 46.8 | 46.1 | 44.9 | 49.0 | ||||||||||||||||||||||||||||||
Financial Measures and Ratios (%)
|
||||||||||||||||||||||||||||||||||||||||
Return on equity |
10.6 |
9.7 | 6.2 | 22.9 | 14.9 | 10.1 | 12.6 | 13.3 | 13.2 | 12.1 | ||||||||||||||||||||||||||||||
Efficiency ratio |
58.2 |
59.5 | 72.2 | 48.0 | 57.0 | 56.3 | 57.4 | 58.8 | 59.7 | 61.6 | ||||||||||||||||||||||||||||||
Net interest margin on average earning assets |
1.65 |
1.58 | 1.63 | 1.62 | 1.59 | 1.64 | 1.70 | 1.67 | 1.74 | 1.76 | ||||||||||||||||||||||||||||||
Total PCL-to-average |
0.53 |
0.57 | 0.35 | 0.06 | – | 0.63 | 0.20 | 0.17 | 0.20 | 0.22 | ||||||||||||||||||||||||||||||
PCL on impaired loans-to-average |
0.46 |
0.47 | 0.19 | 0.10 | 0.11 | 0.33 | 0.17 | 0.18 | 0.22 | 0.22 | ||||||||||||||||||||||||||||||
Return on average assets |
0.59 |
0.53 | 0.34 | 1.22 | 0.79 | 0.54 | 0.69 | 0.72 | 0.74 | 0.65 | ||||||||||||||||||||||||||||||
Return on average risk-weighted assets (%) (2)
|
2.02 |
1.74 | 1.10 | 3.89 | 2.38 | 1.51 | 1.86 | 1.97 | 1.98 | 1.71 | ||||||||||||||||||||||||||||||
Average assets ($ millions)
|
1,480,561 |
1,369,415 | 1,299,524 | 1,106,512 | 981,140 | 942,450 | 833,252 | 754,295 | 722,626 | 707,122 | ||||||||||||||||||||||||||||||
Capital Measures (%) (2)
|
||||||||||||||||||||||||||||||||||||||||
Common Equity Tier 1 Ratio |
13.3 |
13.6 | 12.5 | 16.7 | 13.7 | 11.9 | 11.4 | 11.3 | 11.4 | 10.1 | ||||||||||||||||||||||||||||||
Tier 1 Capital Ratio |
15.0 |
15.4 | 14.1 | 18.4 | 15.4 | 13.6 | 13.0 | 12.9 | 13.0 | 11.6 | ||||||||||||||||||||||||||||||
Total Capital Ratio |
17.3 |
17.6 | 16.2 | 20.7 | 17.6 | 16.2 | 15.2 | 15.2 | 15.1 | 13.6 | ||||||||||||||||||||||||||||||
Leverage Ratio |
4.3 |
4.4 | 4.2 | 5.6 | 5.1 | 4.8 | 4.3 | 4.2 | 4.4 | 4.2 | ||||||||||||||||||||||||||||||
Other Statistical Information |
||||||||||||||||||||||||||||||||||||||||
Number of employees |
53,234 |
53,597 | 55,767 | 46,722 | 43,863 | 43,360 | 45,513 | 45,454 | 45,200 | 45,234 | ||||||||||||||||||||||||||||||
Number of bank branches |
1,832 |
1,861 | 1,890 | 1,383 | 1,405 | 1,409 | 1,456 | 1,483 | 1,503 | 1,522 | ||||||||||||||||||||||||||||||
Number of automated teller machines |
5,710 |
5,766 | 5,765 | 4,717 | 4,851 | 4,820 | 4,967 | 4,828 | 4,731 | 4,599 | ||||||||||||||||||||||||||||||
| (2) | Capital ratios and risk-weighted assets are disclosed in accordance with the CAR Guideline, as set out by OSFI, as applicable. |
| BMO Financial Group 208th Annual Report 2025 | 115 |
2025 |
2024 | |||||||||||||||||||||||
|
($ millions, except as noted) For the year ended October 31 |
Average balances |
Average interest rate (%) |
Interest income/ expense |
Average balances |
Average interest rate (%) |
Interest income/ expense |
||||||||||||||||||
Assets |
||||||||||||||||||||||||
Canadian Dollar |
||||||||||||||||||||||||
Interest bearing deposits with banks and other interest bearing assets (1)
|
48,337 |
0.94 |
456 |
33,804 | 3.87 | 1,307 | ||||||||||||||||||
Securities |
123,179 |
3.41 |
4,201 |
105,225 | 4.32 | 4,546 | ||||||||||||||||||
Securities borrowed or purchased under resale agreements |
37,092 |
4.02 |
1,489 |
35,340 | 5.62 | 1,988 | ||||||||||||||||||
Loans |
||||||||||||||||||||||||
Residential mortgages |
160,203 |
4.12 |
6,594 |
152,790 | 4.46 | 6,816 | ||||||||||||||||||
Consumer instalment and other personal |
68,517 |
5.42 |
3,714 |
68,681 | 6.20 | 4,256 | ||||||||||||||||||
Credit cards |
11,558 |
16.15 |
1,867 |
11,225 | 15.44 | 1,733 | ||||||||||||||||||
Business and government |
137,223 |
5.22 |
7,169 |
127,928 | 5.54 | 7,090 | ||||||||||||||||||
Total loans |
377,501 |
5.12 |
19,344 |
360,624 | 5.52 | 19,895 | ||||||||||||||||||
Total Canadian dollar |
586,109 |
4.35 |
25,490 |
534,993 | 5.18 | 27,736 | ||||||||||||||||||
U.S. Dollar and Other Currencies |
||||||||||||||||||||||||
Interest bearing deposits with banks and other interest bearing assets (1)
|
38,175 |
7.41 |
2,828 |
57,512 | 5.60 | 3,221 | ||||||||||||||||||
Securities |
296,246 |
3.94 |
11,661 |
268,401 | 3.91 | 10,492 | ||||||||||||||||||
Securities borrowed or purchased under resale agreements |
82,542 |
5.55 |
4,583 |
80,168 | 6.06 | 4,855 | ||||||||||||||||||
Loans |
||||||||||||||||||||||||
Residential mortgages |
33,226 |
5.01 |
1,663 |
28,485 | 4.90 | 1,395 | ||||||||||||||||||
Consumer instalment and other personal |
23,097 |
7.31 |
1,688 |
23,931 | 6.73 | 1,611 | ||||||||||||||||||
Credit cards |
1,334 |
13.67 |
182 |
1,509 | 12.23 | 185 | ||||||||||||||||||
Business and government |
244,343 |
6.32 |
15,442 |
240,831 | 6.85 | 16,490 | ||||||||||||||||||
Total loans |
302,000 |
6.28 |
18,975 |
294,756 | 6.68 | 19,681 | ||||||||||||||||||
Total U.S. dollar and other currencies |
718,963 |
5.29 |
38,047 |
700,837 | 5.46 | 38,249 | ||||||||||||||||||
Other non-interest bearing assets |
175,489 |
– |
– |
133,585 | – | – | ||||||||||||||||||
Total All Currencies |
||||||||||||||||||||||||
Total assets and interest income |
1,480,561 |
4.29 |
63,537 |
1,369,415 | 4.82 | 65,985 | ||||||||||||||||||
Liabilities |
||||||||||||||||||||||||
Canadian Dollar |
||||||||||||||||||||||||
Deposits |
||||||||||||||||||||||||
Banks |
4,314 |
1.44 |
62 |
4,362 | 2.47 | 108 | ||||||||||||||||||
Business and government |
213,652 |
2.86 |
6,107 |
199,249 | 3.94 | 7,846 | ||||||||||||||||||
Individuals |
186,717 |
2.16 |
4,035 |
181,924 | 2.72 | 4,950 | ||||||||||||||||||
Total deposits |
404,683 |
2.52 |
10,204 |
385,535 | 3.35 | 12,904 | ||||||||||||||||||
Securities sold but not yet purchased and securities lent or sold under repurchase agreements |
47,920 |
4.23 |
2,028 |
43,159 | 5.03 | 2,171 | ||||||||||||||||||
Subordinated debt and other interest bearing liabilities |
27,288 |
3.18 |
869 |
26,076 | 3.83 | 999 | ||||||||||||||||||
Total Canadian dollar |
479,891 |
2.73 |
13,101 |
454,770 | 3.53 | 16,074 | ||||||||||||||||||
U.S. Dollar and Other Currencies |
||||||||||||||||||||||||
Deposits |
||||||||||||||||||||||||
Banks |
28,356 |
4.29 |
1,217 |
27,243 | 5.12 | 1,395 | ||||||||||||||||||
Business and government |
415,530 |
3.51 |
14,589 |
399,499 | 4.17 | 16,661 | ||||||||||||||||||
Individuals |
139,241 |
2.33 |
3,245 |
136,679 | 2.65 | 3,620 | ||||||||||||||||||
Total deposits |
583,127 |
3.27 |
19,051 |
563,421 | 3.85 | 21,676 | ||||||||||||||||||
Securities sold but not yet purchased and securities lent or sold under repurchase agreements |
135,530 |
5.19 |
7,036 |
118,474 | 5.69 | 6,736 | ||||||||||||||||||
Subordinated debt and other interest bearing liabilities |
42,356 |
6.76 |
2,862 |
34,188 | 5.94 | 2,031 | ||||||||||||||||||
Total U.S. dollar and other currencies |
761,013 |
3.80 |
28,949 |
716,083 | 4.25 | 30,443 | ||||||||||||||||||
Other non-interest bearing liabilities |
153,366 |
– |
– |
119,016 | – | – | ||||||||||||||||||
Total All Currencies |
||||||||||||||||||||||||
Total liabilities and interest expense |
1,394,270 |
3.02 |
42,050 |
1,289,869 | 3.61 | 46,517 | ||||||||||||||||||
Shareholders’ equity |
86,251 |
– |
– |
79,516 | – | – | ||||||||||||||||||
Non-controlling interest in subsidiaries |
40 |
– |
– |
30 | – | – | ||||||||||||||||||
Total Liabilities, Equity and Interest Expense |
1,480,561 |
2.84 |
42,050 |
1,369,415 | 3.40 | 46,517 | ||||||||||||||||||
Net interest margin |
||||||||||||||||||||||||
– based on earning assets |
– |
1.65 |
– |
– | 1.58 | – | ||||||||||||||||||
– based on total assets |
– |
1.45 |
– |
– | 1.42 | – | ||||||||||||||||||
Net interest income |
– |
– |
21,487 |
– | – | 19,468 | ||||||||||||||||||
| (1) | Includes cheques and other items in transit, which represent the net position of the uncleared cheques and other items in transit between BMO and other banks. |
116 |
BMO Financial Group 208th Annual Report 2025 |
2025/2024 |
||||||||||||
Increase (decrease) due to change in |
||||||||||||
| ($ millions) For the year ended October 31 |
Average balance |
Average rate |
Total |
|||||||||
Assets |
||||||||||||
Canadian Dollar |
||||||||||||
Interest bearing deposits with banks and other interest bearing assets |
562 |
(1,413 |
) |
(851 |
) |
|||||||
Securities |
775 |
(1,120 |
) |
(345 |
) |
|||||||
Securities borrowed or purchased under resale agreements |
99 |
(598 |
) |
(499 |
) |
|||||||
Loans |
||||||||||||
Residential mortgages |
331 |
(553 |
) |
(222 |
) |
|||||||
Consumer instalment and other personal |
(10 |
) |
(532 |
) |
(542 |
) |
||||||
Credit cards |
51 |
83 |
134 |
|||||||||
Business and government |
515 |
(436 |
) |
79 |
||||||||
Total loans |
887 |
(1,438 |
) |
(551 |
) |
|||||||
Change in Canadian dollar interest income |
2,323 |
(4,569 |
) |
(2,246 |
) |
|||||||
U.S. Dollar and Other Currencies |
||||||||||||
Interest bearing deposits with banks and other interest bearing assets |
(1,084 |
) |
691 |
(393 |
) |
|||||||
Securities |
1,090 |
79 |
1,169 |
|||||||||
Securities borrowed or purchased under resale agreements |
144 |
(416 |
) |
(272 |
) |
|||||||
Loans |
||||||||||||
Residential mortgages |
232 |
36 |
268 |
|||||||||
Consumer instalment and other personal |
(56 |
) |
133 |
77 |
||||||||
Credit cards |
(21 |
) |
18 |
(3 |
) |
|||||||
Business and government |
240 |
(1,288 |
) |
(1,048 |
) |
|||||||
Total loans |
395 |
(1,101 |
) |
(706 |
) |
|||||||
Change in U.S. dollar and other currencies interest income |
545 |
(747 |
) |
(202 |
) |
|||||||
Total All Currencies |
||||||||||||
Change in total interest income (a)
|
2,868 |
(5,316 |
) |
(2,448 |
) |
|||||||
Liabilities |
||||||||||||
Canadian Dollar |
||||||||||||
Deposits |
||||||||||||
Banks |
(2 |
) |
(44 |
) |
(46 |
) |
||||||
Business and government |
567 |
(2,306 |
) |
(1,739 |
) |
|||||||
Individuals |
130 |
(1,045 |
) |
(915 |
) |
|||||||
Total deposits |
695 |
(3,395 |
) |
(2,700 |
) |
|||||||
Securities sold but not yet purchased and securities lent or sold under repurchase agreements |
239 |
(382 |
) |
(143 |
) |
|||||||
Subordinated debt and other interest bearing liabilities |
47 |
(177 |
) |
(130 |
) |
|||||||
Change in Canadian dollar interest expense |
981 |
(3,954 |
) |
(2,973 |
) |
|||||||
U.S. Dollar and Other Currencies |
||||||||||||
Deposits |
||||||||||||
Banks |
57 |
(235 |
) |
(178 |
) |
|||||||
Business and government |
670 |
(2,742 |
) |
(2,072 |
) |
|||||||
Individuals |
68 |
(443 |
) |
(375 |
) |
|||||||
Total deposits |
795 |
(3,420 |
) |
(2,625 |
) |
|||||||
Securities sold but not yet purchased and securities lent or sold under repurchase agreements |
969 |
(669 |
) |
300 |
||||||||
Subordinated debt and other interest bearing liabilities |
485 |
346 |
831 |
|||||||||
Change in U.S. dollar and other currencies interest expense |
2,249 |
(3,743 |
) |
(1,494 |
) |
|||||||
Total All Currencies |
||||||||||||
Change in total interest expense (b)
|
3,230 |
(7,697 |
) |
(4,467 |
) |
|||||||
Change in total net interest income (a – b)
|
(362 |
) |
2,381 |
2,019 |
||||||||
| BMO Financial Group 208th Annual Report 2025 | 117 |
| ($ millions) | Canada | United States | Other countries | Total | ||||||||||||||||||||||||||||
| As at October 31 | 2025 |
2024 | 2025 |
2024 | 2025 |
2024 | 2025 |
2024 | ||||||||||||||||||||||||
Consumer |
||||||||||||||||||||||||||||||||
Residential mortgages |
162,328 |
158,902 | 33,693 |
32,168 | – |
– | 196,021 |
191,070 | ||||||||||||||||||||||||
Consumer instalment and other personal |
69,721 |
69,557 | 22,860 |
22,962 | – |
– | 92,581 |
92,519 | ||||||||||||||||||||||||
Credit cards |
11,528 |
12,271 | 1,121 |
1,341 | – |
– | 12,649 |
13,612 | ||||||||||||||||||||||||
Total consumer |
243,577 |
240,730 | 57,674 |
56,471 | – |
– | 301,251 |
297,201 | ||||||||||||||||||||||||
Business and government |
||||||||||||||||||||||||||||||||
Commercial real estate |
44,061 |
41,317 | 32,829 |
34,032 | 29 |
3 | 76,919 |
75,352 | ||||||||||||||||||||||||
Construction (non-real estate) |
2,950 |
2,712 | 4,790 |
4,402 | – |
82 | 7,740 |
7,196 | ||||||||||||||||||||||||
Retail trade |
17,429 |
17,682 | 13,485 |
15,555 | 61 |
58 | 30,975 |
33,295 | ||||||||||||||||||||||||
Wholesale trade |
7,006 |
6,968 | 17,969 |
18,470 | 94 |
51 | 25,069 |
25,489 | ||||||||||||||||||||||||
Agriculture |
14,003 |
13,449 | 4,328 |
5,031 | – |
– | 18,331 |
18,480 | ||||||||||||||||||||||||
Communications |
806 |
817 | 376 |
559 | – |
– | 1,182 |
1,376 | ||||||||||||||||||||||||
Financing products |
12 |
– | 10,750 |
7,070 | – |
– | 10,762 |
7,070 | ||||||||||||||||||||||||
Manufacturing |
8,551 |
7,949 | 28,575 |
30,678 | 1,921 |
1,593 | 39,047 |
40,220 | ||||||||||||||||||||||||
Mining |
1,139 |
1,015 | 196 |
433 | 2,118 |
1,876 | 3,453 |
3,324 | ||||||||||||||||||||||||
Oil and gas |
2,884 |
2,345 | 400 |
860 | 263 |
261 | 3,547 |
3,466 | ||||||||||||||||||||||||
Transportation |
3,978 |
4,594 | 8,850 |
9,936 | 87 |
16 | 12,915 |
14,546 | ||||||||||||||||||||||||
Utilities |
3,086 |
7,031 | 3,853 |
3,365 | 407 |
589 | 7,346 |
10,985 | ||||||||||||||||||||||||
Forest products |
616 |
708 | 558 |
648 | 3 |
– | 1,177 |
1,356 | ||||||||||||||||||||||||
Service industries |
28,809 |
27,695 | 33,533 |
36,052 | 310 |
386 | 62,652 |
64,133 | ||||||||||||||||||||||||
Financial |
14,035 |
11,965 | 53,700 |
52,757 | 6,104 |
7,076 | 73,839 |
71,798 | ||||||||||||||||||||||||
Government |
1,963 |
1,870 | 308 |
341 | 283 |
459 | 2,554 |
2,670 | ||||||||||||||||||||||||
Other |
2,649 |
3,232 | 512 |
873 | 28 |
16 | 3,189 |
4,121 | ||||||||||||||||||||||||
Total business and government
|
153,977 |
151,349 | 215,012 |
221,062 | 11,708 |
12,466 | 380,697 |
384,877 | ||||||||||||||||||||||||
Total loans and acceptances, net of allowance for credit losses on impaired loans |
397,554 |
392,079 | 272,686 |
277,533 | 11,708 |
12,466 | 681,948 |
682,078 | ||||||||||||||||||||||||
Allowance for credit losses on performing loans |
(1,842 |
) |
(1,531 | ) | (2,203 |
) |
(2,141 | ) | (31 |
) |
(31 | ) | (4,076 |
) |
(3,703 | ) | ||||||||||||||||
Total net loans and acceptances |
395,712 |
390,548 | 270,483 |
275,392 | 11,677 |
12,435 | 677,872 |
678,375 | ||||||||||||||||||||||||
| (1) | Segmented credit information by geographic area is based upon the country of ultimate risk. |
| (2) | Consumer and Business and government Net Loans and Acceptances balances are net of allowance for credit losses on impaired loans only. |
|
($ millions) As at October 31 |
2025 |
2024 | ||||||
Net Loans and Acceptances in Canada by Province |
||||||||
Atlantic provinces |
20,314 |
19,431 | ||||||
Quebec |
56,654 |
57,974 | ||||||
Ontario |
184,771 |
177,878 | ||||||
Prairie provinces |
57,866 |
60,975 | ||||||
British Columbia and territories |
76,107 |
74,290 | ||||||
Total net loans and acceptances in Canada |
395,712 |
390,548 | ||||||
| (1) | Segmented credit information by geographic area is based upon the country of ultimate risk. |
118 |
BMO Financial Group 208th Annual Report 2025 |
| ($ millions, except as noted) | Canada | United States | Other countries | Total | ||||||||||||||||||||||||||||
| As at October 31 | 2025 |
2024 | 2025 |
2024 | 2025 |
2024 | 2025 |
2024 | ||||||||||||||||||||||||
Consumer |
||||||||||||||||||||||||||||||||
Residential mortgages |
693 |
444 | 210 |
213 | – |
– | 903 |
657 | ||||||||||||||||||||||||
Consumer instalment and other personal |
449 |
369 | 178 |
208 | – |
– | 627 |
577 | ||||||||||||||||||||||||
Total consumer |
1,142 |
813 | 388 |
421 | – |
– | 1,530 |
1,234 | ||||||||||||||||||||||||
Business and government |
||||||||||||||||||||||||||||||||
Commercial real estate |
541 |
270 | 450 |
463 | – |
– | 991 |
733 | ||||||||||||||||||||||||
Construction (non-real estate) |
134 |
82 | 106 |
162 | – |
– | 240 |
244 | ||||||||||||||||||||||||
Retail trade |
351 |
269 | 153 |
239 | – |
– | 504 |
508 | ||||||||||||||||||||||||
Wholesale trade |
142 |
75 | 130 |
294 | – |
– | 272 |
369 | ||||||||||||||||||||||||
Agriculture |
303 |
84 | 111 |
85 | – |
– | 414 |
169 | ||||||||||||||||||||||||
Communications |
9 |
7 | 39 |
2 | – |
– | 48 |
9 | ||||||||||||||||||||||||
Financing products |
– |
– | 2 |
– | – |
– | 2 |
– | ||||||||||||||||||||||||
Manufacturing |
185 |
155 | 974 |
635 | – |
– | 1,159 |
790 | ||||||||||||||||||||||||
Mining |
13 |
15 | 2 |
1 | – |
– | 15 |
16 | ||||||||||||||||||||||||
Oil and gas |
1 |
1 | – |
2 | – |
– | 1 |
3 | ||||||||||||||||||||||||
Transportation |
187 |
246 | 398 |
218 | – |
– | 585 |
464 | ||||||||||||||||||||||||
Utilities |
1 |
2 | 2 |
3 | – |
– | 3 |
5 | ||||||||||||||||||||||||
Forest products |
7 |
4 | – |
1 | – |
– | 7 |
5 | ||||||||||||||||||||||||
Service industries |
465 |
410 | 742 |
760 | 1 |
3 | 1,208 |
1,173 | ||||||||||||||||||||||||
Financial |
6 |
4 | 15 |
22 | – |
– | 21 |
26 | ||||||||||||||||||||||||
Government |
21 |
– | – |
– | – |
– | 21 |
– | ||||||||||||||||||||||||
Other |
42 |
76 | 28 |
19 | – |
– | 70 |
95 | ||||||||||||||||||||||||
Total business and government |
2,408 |
1,700 | 3,152 |
2,906 | 1 |
3 | 5,561 |
4,609 | ||||||||||||||||||||||||
Total gross impaired loans and acceptances (GIL) |
3,550 |
2,513 | 3,540 |
3,327 | 1 |
3 | 7,091 |
5,843 | ||||||||||||||||||||||||
Condition Ratios |
||||||||||||||||||||||||||||||||
GIL as a % of gross loans and acceptances |
||||||||||||||||||||||||||||||||
Consumer |
0.47 |
0.34 | 0.67 |
0.75 | – |
– | 0.51 |
0.41 | ||||||||||||||||||||||||
Business and government |
1.56 |
1.12 | 1.46 |
1.31 | 0.01 |
0.02 | 1.46 |
1.20 | ||||||||||||||||||||||||
Total |
0.89 |
0.64 | 1.30 |
1.20 | 0.01 |
0.02 | 1.04 |
0.86 | ||||||||||||||||||||||||
| (1) | Segmented credit information by geographic area is based upon the country of ultimate risk. |
| ($ millions, except as noted) | Canada | United States | Other countries | Total | ||||||||||||||||||||||||||||
| As at October 31 | 2025 |
2024 | 2025 |
2024 | 2025 |
2024 | 2025 |
2024 | ||||||||||||||||||||||||
Gross impaired loans and acceptances (GIL), beginning of year |
||||||||||||||||||||||||||||||||
Consumer |
813 |
539 | 421 |
434 | – |
– | 1,234 |
973 | ||||||||||||||||||||||||
Business and government |
1,700 |
1,090 | 2,906 |
1,897 | 3 |
– | 4,609 |
2,987 | ||||||||||||||||||||||||
Total GIL, beginning of year |
2,513 |
1,629 | 3,327 |
2,331 | 3 |
– | 5,843 |
3,960 | ||||||||||||||||||||||||
Additions to impaired loans and acceptances |
||||||||||||||||||||||||||||||||
Consumer |
1,809 |
1,355 | 285 |
351 | – |
– | 2,094 |
1,706 | ||||||||||||||||||||||||
Business and government |
2,095 |
1,491 | 3,586 |
4,219 | – |
3 | 5,681 |
5,713 | ||||||||||||||||||||||||
Total additions |
3,904 |
2,846 | 3,871 |
4,570 | – |
3 | 7,775 |
7,419 | ||||||||||||||||||||||||
Reductions to impaired loans and acceptances (2)
|
||||||||||||||||||||||||||||||||
Consumer |
(955 |
) |
(649 | ) | (141 |
) |
(168 | ) | – |
– | (1,096 |
) |
(817 | ) | ||||||||||||||||||
Business and government |
(896 |
) |
(480 | ) | (2,484 |
) |
(1,810 | ) | 18 |
1 | (3,362 |
) |
(2,289 | ) | ||||||||||||||||||
Total reductions to impaired loans and acceptances |
(1,851 |
) |
(1,129 | ) | (2,625 |
) |
(1,978 | ) | 18 |
1 | (4,458 |
) |
(3,106 | ) | ||||||||||||||||||
Write-offs (3)
|
||||||||||||||||||||||||||||||||
Consumer |
(525 |
) |
(432 | ) | (177 |
) |
(196 | ) | – |
– | (702 |
) |
(628 | ) | ||||||||||||||||||
Business and government |
(491 |
) |
(401 | ) | (856 |
) |
(1,400 | ) | (20 |
) |
(1 | ) | (1,367 |
) |
(1,802 | ) | ||||||||||||||||
Total write-offs |
(1,016 |
) |
(833 | ) | (1,033 |
) |
(1,596 | ) | (20 |
) |
(1 | ) | (2,069 |
) |
(2,430 | ) | ||||||||||||||||
GIL, end of year |
||||||||||||||||||||||||||||||||
Consumer |
1,142 |
813 | 388 |
421 | – |
– | 1,530 |
1,234 | ||||||||||||||||||||||||
Business and government |
2,408 |
1,700 | 3,152 |
2,906 | 1 |
3 | 5,561 |
4,609 | ||||||||||||||||||||||||
Total GIL, end of year |
3,550 |
2,513 | 3,540 |
3,327 | 1 |
3 | 7,091 |
5,843 | ||||||||||||||||||||||||
| (1) | Segmented credit information by geographic area is based upon the country of ultimate risk. |
| (2) | Includes impaired amounts returned to performing status, sales, repayments, the impact of foreign exchange fluctuations and offsets for consumer write-offs which have not been recognized in formations. |
| (3) | Excludes certain loans that are written off directly and not classified as new formations. |
| BMO Financial Group 208th Annual Report 2025 | 119 |
| ($ millions, except as noted) | Canada | United States | Other countries | Total | ||||||||||||||||||||||||||||
| As at October 31 | 2025 |
2024 | 2025 |
2024 | 2025 |
2024 | 2025 |
2024 | ||||||||||||||||||||||||
Consumer |
||||||||||||||||||||||||||||||||
Residential mortgages |
12 |
8 | – |
2 | – |
– | 12 |
10 | ||||||||||||||||||||||||
Consumer instalment and other personal |
143 |
136 | 17 |
32 | – |
– | 160 |
168 | ||||||||||||||||||||||||
Total consumer |
155 |
144 | 17 |
34 | – |
– | 172 |
178 | ||||||||||||||||||||||||
Business and government |
||||||||||||||||||||||||||||||||
Commercial real estate |
57 |
24 | 11 |
15 | – |
– | 68 |
39 | ||||||||||||||||||||||||
Construction (non-real estate) |
52 |
33 | 23 |
11 | – |
– | 75 |
44 | ||||||||||||||||||||||||
Retail trade |
85 |
28 | 14 |
18 | – |
– | 99 |
46 | ||||||||||||||||||||||||
Wholesale trade |
32 |
24 | 24 |
14 | – |
– | 56 |
38 | ||||||||||||||||||||||||
Agriculture |
17 |
2 | 10 |
5 | – |
– | 27 |
7 | ||||||||||||||||||||||||
Communications |
3 |
1 | 14 |
1 | – |
– | 17 |
2 | ||||||||||||||||||||||||
Financing products |
– |
– | – |
– | – |
– | – |
– | ||||||||||||||||||||||||
Manufacturing |
61 |
48 | 121 |
44 | – |
– | 182 |
92 | ||||||||||||||||||||||||
Mining |
1 |
– | – |
– | – |
– | 1 |
– | ||||||||||||||||||||||||
Oil and gas |
1 |
1 | – |
1 | – |
– | 1 |
2 | ||||||||||||||||||||||||
Transportation |
42 |
46 | 29 |
22 | – |
– | 71 |
68 | ||||||||||||||||||||||||
Utilities |
1 |
2 | – |
– | – |
– | 1 |
2 | ||||||||||||||||||||||||
Forest products |
4 |
3 | – |
– | – |
– | 4 |
3 | ||||||||||||||||||||||||
Service industries |
141 |
93 | 47 |
17 | – |
– | 188 |
110 | ||||||||||||||||||||||||
Financial |
2 |
2 | 1 |
– | – |
– | 3 |
2 | ||||||||||||||||||||||||
Government |
– |
– | – |
– | – |
– | – |
– | ||||||||||||||||||||||||
Other |
9 |
10 | – |
10 | – |
– | 9 |
20 | ||||||||||||||||||||||||
Total business and government |
508 |
317 | 294 |
158 | – |
– | 802 |
475 | ||||||||||||||||||||||||
Total allowance for credit losses on impaired loans |
663 |
461 | 311 |
192 | – |
– | 974 |
653 | ||||||||||||||||||||||||
Total allowance for credit losses on performing loans |
1,842 |
1,531 | 2,203 |
2,141 | 31 |
31 | 4,076 |
3,703 | ||||||||||||||||||||||||
Total allowance for credit losses on loans |
2,505 |
1,992 | 2,514 |
2,333 | 31 |
31 | 5,050 |
4,356 | ||||||||||||||||||||||||
Allowance for credit losses related to off-balance sheet instruments (2)
|
253 |
193 | 378 |
318 | 58 |
69 | 689 |
580 | ||||||||||||||||||||||||
Total allowance for credit losses |
2,758 |
2,185 | 2,892 |
2,651 | 89 |
100 | 5,739 |
4,936 | ||||||||||||||||||||||||
Coverage Ratios |
||||||||||||||||||||||||||||||||
Allowance for credit losses (ACL) on impaired loans as a % of gross impaired loans and acceptances |
||||||||||||||||||||||||||||||||
Consumer |
13.57 |
17.71 | 4.38 |
8.08 | – |
– | 11.24 |
14.42 | ||||||||||||||||||||||||
Business and government |
21.10 |
18.65 | 9.33 |
5.44 | – |
– | 14.42 |
10.31 | ||||||||||||||||||||||||
Total |
18.68 |
18.34 | 8.79 |
5.77 | – |
– | 13.74 |
11.18 | ||||||||||||||||||||||||
| (1) | Segmented credit information by geographic area is based upon the country of ultimate risk. |
| (2) | Reported in Other Liabilities. |
| ($ millions, except as noted) | Canada | United States | Other countries | Total | ||||||||||||||||||||||||||||
| As at October 31 | 2025 |
2024 | 2025 |
2024 | 2025 |
2024 | 2025 |
2024 | ||||||||||||||||||||||||
Allowance for credit losses (ACL), beginning of year |
||||||||||||||||||||||||||||||||
Consumer |
1,365 |
1,074 | 444 |
462 | – |
– | 1,809 |
1,536 | ||||||||||||||||||||||||
Business and government |
820 |
824 | 2,207 |
1,885 | 100 |
22 | 3,127 |
2,731 | ||||||||||||||||||||||||
Total ACL, beginning of year |
2,185 |
1,898 | 2,651 |
2,347 | 100 |
22 | 4,936 |
4,267 | ||||||||||||||||||||||||
Provision for credit losses (2)
|
||||||||||||||||||||||||||||||||
Consumer |
1,426 |
1,225 | 181 |
258 | – |
– | 1,607 |
1,483 | ||||||||||||||||||||||||
Business and government |
950 |
407 | 1,054 |
1,778 | 7 |
83 | 2,011 |
2,268 | ||||||||||||||||||||||||
Total provision for credit losses |
2,376 |
1,632 | 1,235 |
2,036 | 7 |
83 | 3,618 |
3,751 | ||||||||||||||||||||||||
Recoveries |
||||||||||||||||||||||||||||||||
Consumer |
259 |
230 | 110 |
143 | – |
– | 369 |
373 | ||||||||||||||||||||||||
Business and government |
52 |
106 | 262 |
88 | – |
– | 314 |
194 | ||||||||||||||||||||||||
Total recoveries |
311 |
336 | 372 |
231 | – |
– | 683 |
567 | ||||||||||||||||||||||||
Write-offs |
||||||||||||||||||||||||||||||||
Consumer |
(1,308 |
) |
(1,032 | ) | (297 |
) |
(316 | ) | – |
– | (1,605 |
) |
(1,348 | ) | ||||||||||||||||||
Business and government |
(491 |
) |
(401 | ) | (856 |
) |
(1,400 | ) | (20 |
) |
(1 | ) | (1,367 |
) |
(1,802 | ) | ||||||||||||||||
Total write-offs |
(1,799 |
) |
(1,433 | ) | (1,153 |
) |
(1,716 | ) | (20 |
) |
(1 | ) | (2,972 |
) |
(3,150 | ) | ||||||||||||||||
Other, including foreign exchange rate changes |
||||||||||||||||||||||||||||||||
Consumer |
(180 |
) |
(132 | ) | (47 |
) |
(103 | ) | – |
– | (227 |
) |
(235 | ) | ||||||||||||||||||
Business and government |
(135 |
) |
(116 | ) | (166 |
) |
(144 | ) | 2 |
(4 | ) | (299 |
) |
(264 | ) | |||||||||||||||||
Total other, including foreign exchange rate changes |
(315 |
) |
(248 | ) | (213 |
) |
(247 | ) | 2 |
(4 | ) | (526 |
) |
(499 | ) | |||||||||||||||||
ACL, end of year |
||||||||||||||||||||||||||||||||
Consumer |
1,562 |
1,365 | 391 |
444 | – |
– | 1,953 |
1,809 | ||||||||||||||||||||||||
Business and government |
1,196 |
820 | 2,501 |
2,207 | 89 |
100 | 3,786 |
3,127 | ||||||||||||||||||||||||
Total ACL, end of year |
2,758 |
2,185 | 2,892 |
2,651 | 89 |
100 | 5,739 |
4,936 | ||||||||||||||||||||||||
Net write-offs as a % of average net loans and acceptances (3)
|
0.38 |
0.29 | 0.28 |
0.54 | 0.17 |
0.01 | 0.34 |
0.39 | ||||||||||||||||||||||||
| (1) | Segmented credit information by geographic area is based upon the country of ultimate risk. |
| (2) | Excludes provision for credit losses on other assets. |
| (3) | Aggregate Net Loans and Acceptances balances are net of allowance for credit losses on performing loans and impaired loans (excluding those related to off-balance sheet instruments). |
120 |
BMO Financial Group 208th Annual Report 2025 |
| ($ millions) | Canada | United States | Other countries | Total | ||||||||||||||||||||||||||||
| For the year ended October 31 | 2025 |
2024 | 2025 |
2024 | 2025 |
2024 | 2025 |
2024 | ||||||||||||||||||||||||
Consumer |
||||||||||||||||||||||||||||||||
Residential mortgages |
59 |
38 | 1 |
10 | – |
– | 60 |
48 | ||||||||||||||||||||||||
Consumer instalment and other personal |
498 |
420 | 96 |
80 | – |
– | 594 |
500 | ||||||||||||||||||||||||
Credit cards |
682 |
496 | 90 |
108 | – |
– | 772 |
604 | ||||||||||||||||||||||||
Total consumer |
1,239 |
954 | 187 |
198 | – |
– | 1,426 |
1,152 | ||||||||||||||||||||||||
Business and Government |
||||||||||||||||||||||||||||||||
Commercial real estate |
76 |
29 | 37 |
143 | – |
– | 113 |
172 | ||||||||||||||||||||||||
Construction (non-real estate) |
56 |
16 | 55 |
49 | – |
– | 111 |
65 | ||||||||||||||||||||||||
Retail trade |
135 |
(4 | ) | 107 |
106 | – |
– | 242 |
102 | |||||||||||||||||||||||
Wholesale trade |
71 |
23 | 65 |
229 | – |
– | 136 |
252 | ||||||||||||||||||||||||
Agriculture |
21 |
8 | (6 |
) |
8 | – |
– | 15 |
16 | |||||||||||||||||||||||
Communications |
2 |
6 | 21 |
2 | – |
– | 23 |
8 | ||||||||||||||||||||||||
Financing products |
– |
– | – |
– | – |
– | – |
– | ||||||||||||||||||||||||
Manufacturing |
129 |
50 | 270 |
315 | – |
– | 399 |
365 | ||||||||||||||||||||||||
Mining |
1 |
37 | – |
– | – |
– | 1 |
37 | ||||||||||||||||||||||||
Oil and gas |
– |
1 | (2 |
) |
(7 | ) | – |
– | (2 |
) |
(6 | ) | ||||||||||||||||||||
Transportation |
62 |
71 | 134 |
188 | – |
– | 196 |
259 | ||||||||||||||||||||||||
Utilities |
– |
– | – |
1 | – |
– | – |
1 | ||||||||||||||||||||||||
Forest products |
2 |
1 | – |
– | – |
– | 2 |
1 | ||||||||||||||||||||||||
Service industries |
139 |
95 | 236 |
354 | – |
1 | 375 |
450 | ||||||||||||||||||||||||
Financial |
4 |
1 | 7 |
63 | 4 |
62 | 15 |
126 | ||||||||||||||||||||||||
Government |
1 |
– | – |
– | – |
– | 1 |
– | ||||||||||||||||||||||||
Other |
68 |
53 | 26 |
13 | – |
– | 94 |
66 | ||||||||||||||||||||||||
Total business and government |
767 |
387 | 950 |
1,464 | 4 |
63 | 1,721 |
1,914 | ||||||||||||||||||||||||
Total provision for credit losses on impaired loans |
2,006 |
1,341 | 1,137 |
1,662 | 4 |
63 | 3,147 |
3,066 | ||||||||||||||||||||||||
Provision for credit losses on performing loans |
366 |
296 | 100 |
378 | 4 |
21 | 470 |
695 | ||||||||||||||||||||||||
Total provision for credit losses |
2,372 |
1,637 | 1,237 |
2,040 | 8 |
84 | 3,617 |
3,761 | ||||||||||||||||||||||||
Performance Ratios (%)
|
||||||||||||||||||||||||||||||||
Total PCL-to-average |
0.60 |
0.44 | 0.45 |
0.75 | 0.07 |
0.73 | 0.53 |
0.57 | ||||||||||||||||||||||||
PCL on impaired loans-to-average |
||||||||||||||||||||||||||||||||
Consumer |
0.52 |
0.41 | 0.33 |
0.36 | – |
– | 0.48 |
0.40 | ||||||||||||||||||||||||
Business and government |
0.50 |
0.27 | 0.44 |
0.67 | 0.03 |
0.55 | 0.45 |
0.51 | ||||||||||||||||||||||||
Total PCL on impaired loans-to-average |
0.51 |
0.36 | 0.41 |
0.61 | 0.03 |
0.55 | 0.46 |
0.47 | ||||||||||||||||||||||||
| (1) | Segmented credit information by geographic area is based upon the country of ultimate risk. |
2025 |
2024 | |||||||||||||||
| ($ millions, except as noted) | Average balance |
Average rate paid (%) |
Average balance |
Average rate paid (%) |
||||||||||||
Deposits Booked in Canada |
||||||||||||||||
Payable on demand – interest bearing |
73,504 |
3.19 |
62,464 | 4.58 | ||||||||||||
Payable on demand – non-interest bearing |
67,292 |
– |
64,555 | – | ||||||||||||
Payable after notice |
157,775 |
2.50 |
135,487 | 3.59 | ||||||||||||
Payable on a fixed date |
322,715 |
3.89 |
329,317 | 4.55 | ||||||||||||
Total deposits booked in Canada |
621,286 |
3.03 |
591,823 | 3.84 | ||||||||||||
Deposits Booked in the United States |
||||||||||||||||
Payable on demand – interest bearing |
10,261 |
3.98 |
10,577 | 5.00 | ||||||||||||
Payable on demand – non-interest bearing |
10,640 |
– |
10,244 | – | ||||||||||||
Payable after notice |
204,155 |
1.98 |
195,017 | 2.19 | ||||||||||||
Payable on a fixed date |
87,247 |
4.27 |
93,339 | 4.97 | ||||||||||||
Total deposits booked in the United States |
312,303 |
2.61 |
309,177 | 3.05 | ||||||||||||
Deposits Booked in Other Countries |
||||||||||||||||
Payable on demand – interest bearing |
66 |
3.10 |
106 | 2.64 | ||||||||||||
Payable on demand – non-interest bearing |
2 |
– |
6 | – | ||||||||||||
Payable after notice |
1,966 |
4.34 |
2,202 | 5.20 | ||||||||||||
Payable on a fixed date |
52,187 |
4.15 |
45,642 | 5.07 | ||||||||||||
Total deposits booked in other countries |
54,221 |
4.15 |
47,956 | 5.07 | ||||||||||||
Total average deposits |
987,810 |
2.96 |
948,956 | 3.64 | ||||||||||||
| (1) | As at October 31, 2025 and 2024: deposits by foreign depositors in our Canadian bank offices amounted to $121,150 million and $123,141 million, respectively. |
| (2) | Average deposits payable on a fixed date included $24 million, $45,361 million and $19,042 million of federal funds purchased, commercial paper issued and other deposit liabilities, respectively, as at October 31, 2025 ($26 million, $44,501 million and $18,427 million, respectively, as at October 31, 2024). |
| BMO Financial Group 208th Annual Report 2025 | 121 |
122 |
BMO Financial Group 208th Annual Report 2025 |
| BMO Financial Group 208th Annual Report 2025 | 123 |
124 |
BMO Financial Group 208th Annual Report 2025 |
|
|
|||
Darryl White |
Tayfun Tuzun |
Toronto, Canada | ||
| Chief Executive Officer | Chief Financial Officer | December 4, 2025 |
| BMO Financial Group 208th Annual Report 2025 | 125 |
126 |
BMO Financial Group 208th Annual Report 2025 |
| BMO Financial Group 208th Annual Report 2025 | 127 |
128 |
BMO Financial Group 208th Annual Report 2025 |
| BMO Financial Group 208th Annual Report 2025 | 129 |
130 |
BMO Financial Group 208th Annual Report 2025 |
| BMO Financial Group 208th Annual Report 2025 | 131 |
132 |
BMO Financial Group 208th Annual Report 2025 |
| For the Year Ended October 31 (Canadian $ in millions, except as noted) | 2025 |
2024 | ||||||
| Interest, Dividend and Fee Income |
||||||||
| Loans |
$ |
38,747 |
$ | 40,069 | ||||
| Securities (Note 2) (1)
|
15,862 |
15,038 | ||||||
| Securities borrowed or purchased under resale agreements |
6,072 |
6,843 | ||||||
| Deposits with banks |
2,856 |
4,035 | ||||||
63,537 |
65,985 | |||||||
| Interest Expense |
||||||||
| Deposits |
29,255 |
34,580 | ||||||
| Securities sold but not yet purchased and securities lent or sold under repurchase agreements |
9,064 |
8,907 | ||||||
| Subordinated debt |
456 |
456 | ||||||
| Other liabilities (Note 13)
|
3,275 |
2,574 | ||||||
42,050 |
46,517 | |||||||
| Net Interest Income |
21,487 |
19,468 | ||||||
| Non-Interest Revenue |
||||||||
| Securities commissions and fees |
1,169 |
1,106 | ||||||
| Deposit and payment service charges |
1,791 |
1,626 | ||||||
| Trading revenues (Note 17)
|
2,584 |
2,377 | ||||||
| Lending fees |
1,342 |
1,464 | ||||||
| Card fees |
831 |
847 | ||||||
| Investment management and custodial fees |
2,339 |
2,056 | ||||||
| Mutual fund revenues |
1,495 |
1,324 | ||||||
| Underwriting and advisory fees |
1,703 |
1,399 | ||||||
| Securities gains, other than trading (Note 2)
|
287 |
200 | ||||||
| Foreign exchange gains, other than trading |
271 |
263 | ||||||
| Insurance service results (Note 14)
|
421 |
340 | ||||||
| Insurance investment results (Note 14)
|
124 |
105 | ||||||
| Share of profit in associates and joint ventures |
175 |
207 | ||||||
| Other revenues |
255 |
13 | ||||||
14,787 |
13,327 | |||||||
| Total Revenue |
36,274 |
32,795 | ||||||
| Provision for Credit Losses (Note 3)
|
3,617 |
3,761 | ||||||
| Non-Interest Expense |
||||||||
| Employee compensation (Notes 20 and 21)
|
12,018 |
10,872 | ||||||
| Premises and equipment (Note 8)
|
4,468 |
4,117 | ||||||
| Amortization of intangible assets (Note 10)
|
1,152 |
1,112 | ||||||
| Advertising and business development |
806 |
837 | ||||||
| Communications |
342 |
388 | ||||||
| Professional fees |
678 |
583 | ||||||
| Association, clearing and annual regulator fees |
302 |
321 | ||||||
| Other |
1,341 |
1,269 | ||||||
21,107 |
19,499 | |||||||
| Income Before Provision for Income Taxes |
11,550 |
9,535 | ||||||
| Provision for income taxes (Note 22)
|
2,825 |
2,208 | ||||||
| Net Income |
$ |
8,725 |
$ | 7,327 | ||||
| Attributable to: |
||||||||
| Bank shareholders |
$ |
8,709 |
$ | 7,318 | ||||
| Non-controlling interest in subsidiaries |
16 |
9 | ||||||
| Net Income |
$ |
8,725 |
$ | 7,327 | ||||
| Earnings Per Common Share (Canadian $) (Note 23)
|
||||||||
| Basic |
$ |
11.46 |
$ | 9.52 | ||||
| Diluted |
11.44 |
9.51 | ||||||
| Dividends per common share |
6.44 |
6.12 | ||||||
| (1) | Includes interest income on securities measured at fair value through other comprehensive income (FVOCI) and amortized cost, calculated using the effective interest rate method, of $7,136 million for the year ended October 31, 2025 ($7,826 million in 2024). |
|
|
| |
Darryl White |
Jan Babiak | |
Chief Executive Officer |
Chair, Audit and Conduct Review Committee |
| BMO Financial Group 208th Annual Report 2025 | 133 |
| For the Year Ended October 31 (Canadian $ in millions) | 2025 |
2024 | ||||||
Net Income |
$ |
8,725 |
$ | 7,327 | ||||
Other Comprehensive Income, net of taxes (Note 22)
|
||||||||
Items that will subsequently be reclassified to net income |
||||||||
Net change in unrealized gains on fair value through OCI debt securities |
||||||||
Unrealized gains on fair value through OCI debt securities arising during the year |
308 |
217 | ||||||
Reclassification to earnings of (gains) during the year |
(65 |
) |
(83 | ) | ||||
243 |
134 | |||||||
Net change in unrealized gains on derivatives designated as cash flow hedges |
||||||||
Gains on derivatives designated as cash flow hedges arising during the year (Note 7)
|
995 |
2,512 | ||||||
Reclassification to earnings of losses on derivatives designated as cash flow hedges during the year |
1,051 |
1,417 | ||||||
2,046 |
3,929 | |||||||
Net gains on translation of net foreign operations |
||||||||
Unrealized gains on translation of net foreign operations |
473 |
287 | ||||||
Unrealized (losses) on hedges of net foreign operations |
(76 |
) |
(100 | ) | ||||
397 |
187 | |||||||
Items that will not be subsequently reclassified to net income |
||||||||
Net unrealized gains (losses) on fair value through OCI equity securities arising during the year |
(11 |
) |
9 | |||||
Net gains (losses) on remeasurement of pension and other employee future benefit plans (Note 21)
|
137 |
(69 | ) | |||||
Net (losses) on remeasurement of own credit risk on financial liabilities designated at fair value |
(245 |
) |
(633 | ) | ||||
(119 |
) |
(693 | ) | |||||
Total Other Comprehensive Income, net of taxes (Note 22)
|
2,567 |
3,557 | ||||||
Total Comprehensive Income |
$ |
11,292 |
$ | 10,884 | ||||
Attributable to: |
||||||||
Bank shareholders |
$ |
11,276 |
$ | 10,875 | ||||
Non-controlling interest in subsidiaries |
16 |
9 | ||||||
Total Comprehensive Income |
$ |
11,292 |
$ | 10,884 | ||||
134 |
BMO Financial Group 208th Annual Report 2025 |
| As at October 31 (Canadian $ in millions) | 2025 |
2024 | ||||||
Assets |
||||||||
Cash and Cash Equivalents |
$ |
67,484 |
$ | 65,098 | ||||
Interest Bearing Deposits with Banks |
2,838 |
3,640 | ||||||
Securities (Note 2)
|
||||||||
Trading |
192,303 |
168,926 | ||||||
Fair value through profit or loss |
21,354 |
19,064 | ||||||
Fair value through other comprehensive income |
113,209 |
93,702 | ||||||
Debt securities at amortized cost |
96,610 |
115,188 | ||||||
423,476 |
396,880 | |||||||
Securities Borrowed or Purchased Under Resale Agreements (Note 3)
|
129,421 |
110,907 | ||||||
Loans (Notes 3 and 5)
|
||||||||
Residential mortgages |
196,033 |
191,080 | ||||||
Consumer instalment and other personal |
92,741 |
92,687 | ||||||
Credit cards |
12,649 |
13,612 | ||||||
Business and government |
380,788 |
384,993 | ||||||
682,211 |
682,372 | |||||||
Allowance for credit losses (Note 3)
|
(5,050 |
) |
(4,356 | ) | ||||
677,161 |
678,016 | |||||||
Other Assets |
||||||||
Derivative instruments (Note 7)
|
57,151 |
47,253 | ||||||
Customers’ liability under acceptances |
711 |
359 | ||||||
Premises and equipment (Note 8)
|
6,252 |
6,249 | ||||||
Goodwill (Note 10)
|
16,797 |
16,774 | ||||||
Intangible assets (Note 10)
|
4,758 |
4,925 | ||||||
Current tax assets |
1,970 |
2,219 | ||||||
Deferred tax assets (Note 22)
|
2,732 |
3,024 | ||||||
Receivable from brokers, dealers and clients |
43,167 |
31,916 | ||||||
Other (Note 11)
|
42,884 |
42,387 | ||||||
176,422 |
155,106 | |||||||
Total Assets |
$ |
1,476,802 |
$ | 1,409,647 | ||||
Liabilities and Equity |
||||||||
Deposits (Note 12)
|
$ |
976,202 |
$ | 982,440 | ||||
Other Liabilities |
||||||||
Derivative instruments (Note 7)
|
58,729 |
58,303 | ||||||
Acceptances |
711 |
359 | ||||||
Securities sold but not yet purchased (Note 13)
|
54,876 |
35,030 | ||||||
Securities lent or sold under repurchase agreements (Note 5)
|
134,967 |
110,791 | ||||||
Securitization and structured entities’ liabilities (Notes 5 and 6)
|
51,562 |
40,164 | ||||||
Insurance-related liabilities (Note 14)
|
20,436 |
18,770 | ||||||
Payable to brokers, dealers and clients |
45,170 |
34,407 | ||||||
Other (Note 13)
|
37,549 |
36,720 | ||||||
404,000 |
334,544 | |||||||
Subordinated Debt (Note 15)
|
8,500 |
8,377 | ||||||
Total Liabilities |
$ |
1,388,702 |
$ | 1,325,361 | ||||
Equity |
||||||||
Preferred shares and other equity instruments (Note 16)
|
8,956 |
8,087 | ||||||
Common shares (Note 16)
|
23,359 |
23,921 | ||||||
Contributed surplus |
373 |
354 | ||||||
Retained earnings |
47,377 |
46,469 | ||||||
Accumulated other comprehensive income |
7,986 |
5,419 | ||||||
Total shareholders’ equity |
88,051 |
84,250 | ||||||
Non-controlling interest in subsidiaries |
49 |
36 | ||||||
Total Equity |
88,100 |
84,286 | ||||||
Total Liabilities and Equity |
$ |
1,476,802 |
$ | 1,409,647 | ||||
BMO Financial Group 208th Annual Report 2025 |
135 |
| For the Year Ended October 31 (Canadian $ in millions) | 2025 |
2024 | ||||||
| Preferred Shares and Other Equity Instruments (Note 16)
|
||||||||
| Balance at beginning of year |
$ |
8,087 |
$ | 6,958 | ||||
| Issued during the year |
1,369 |
2,379 | ||||||
| Redeemed during the year |
(500 |
) |
(1,250 | ) | ||||
| Balance at end of year |
8,956 |
8,087 | ||||||
| Common Shares (Note 16)
|
||||||||
| Balance at beginning of year |
23,921 |
22,941 | ||||||
| Issued under the Shareholder Dividend Reinvestment and Share Purchase Plan |
– |
905 | ||||||
| Issued under the Stock Option Plan |
161 |
74 | ||||||
| Treasury shares sold |
7 |
1 | ||||||
| Purchased for cancellation |
(730 |
) |
– | |||||
| Balance at end of year |
23,359 |
23,921 | ||||||
| Contributed Surplus |
||||||||
| Balance at beginning of year |
354 |
328 | ||||||
| Stock option expense, net of options exercised (Note 20)
|
14 |
15 | ||||||
| Net premium on sale of treasury shares |
5 |
11 | ||||||
| Balance at end of year |
373 |
354 | ||||||
| Retained Earnings |
||||||||
| Balance at beginning of year |
46,469 |
44,006 | ||||||
| Net income attributable to bank shareholders |
8,709 |
7,318 | ||||||
| Dividends on preferred shares and distributions payable on other equity instruments (Note 16)
|
(436 |
) |
(386 | ) | ||||
| Dividends on common shares (Note 16)
|
(4,630 |
) |
(4,458 | ) | ||||
| Equity issue expense |
(4 |
) |
(11 | ) | ||||
| Common shares purchased for cancellation (Note 16)
|
(2,731 |
) |
– | |||||
| Balance at end of year |
47,377 |
46,469 | ||||||
| Accumulated Other Comprehensive (Loss) on Fair Value through OCI Securities, net of taxes |
||||||||
| Balance at beginning of year |
(321 |
) |
(464 | ) | ||||
| Unrealized gains on fair value through OCI debt securities arising during the year |
308 |
217 | ||||||
| Unrealized gains (losses) on fair value through OCI equity securities arising during the year |
(11 |
) |
9 | |||||
| Reclassification to earnings of (gains) during the year |
(65 |
) |
(83 | ) | ||||
| Balance at end of year |
(89 |
) |
(321 | ) | ||||
| Accumulated Other Comprehensive Income (Loss) on Cash Flow Hedges, net of taxes |
||||||||
| Balance at beginning of year |
(1,519 |
) |
(5,448 | ) | ||||
| Gains on derivatives designated as cash flow hedges arising during the year (Note 7)
|
995 |
2,512 | ||||||
| Reclassification to earnings of losses on derivatives designated as cash flow hedges during the year |
1,051 |
1,417 | ||||||
| Balance at end of year |
527 |
(1,519 | ) | |||||
| Accumulated Other Comprehensive Income on Translation of Net Foreign Operations, net of taxes |
||||||||
| Balance at beginning of year |
6,381 |
6,194 | ||||||
| Unrealized gains on translation of net foreign operations |
473 |
287 | ||||||
| Unrealized (losses) on hedges of net foreign operations |
(76 |
) |
(100 | ) | ||||
| Balance at end of year |
6,778 |
6,381 | ||||||
| Accumulated Other Comprehensive Income on Pension and Other Employee Future Benefit Plans, net of taxes |
||||||||
| Balance at beginning of year |
874 |
943 | ||||||
| Gains (losses) on remeasurement of pension and other employee future benefit plans (Note 21)
|
137 |
(69 | ) | |||||
| Balance at end of year |
1,011 |
874 | ||||||
| Accumulated Other Comprehensive Income (Loss) on Own Credit Risk on Financial Liabilities Designated at Fair Value, net of taxes |
||||||||
| Balance at beginning of year |
4 |
637 | ||||||
| (Losses) on remeasurement of own credit risk on financial liabilities designated at fair value |
(245 |
) |
(633 | ) | ||||
| Balance at end of year |
(241 |
) |
4 | |||||
| Total Accumulated Other Comprehensive Income |
7,986 |
5,419 | ||||||
| Total Shareholders’ Equity |
88,051 |
84,250 | ||||||
| Non-Controlling Interest in Subsidiaries |
||||||||
| Balance at beginning of year |
36 |
28 | ||||||
| Net income attributable to non-controlling interest in subsidiaries |
16 |
9 | ||||||
| Dividends to non-controlling interest in subsidiaries |
(3 |
) |
(3 | ) | ||||
| Other |
– |
2 | ||||||
| Balance at end of year |
49 |
36 | ||||||
| Total Equity |
$ |
88,100 |
$ | 84,286 | ||||
136 |
BMO Financial Group 208th Annual Report 2025 |
| For the Year Ended October 31 (Canadian $ in millions) | 2025 |
2024 | ||||||
Cash Flows Provided by Operating Activities |
||||||||
Net Income |
$ |
8,725 |
$ | 7,327 | ||||
Adjustments to determine net cash flows provided by operating activities: |
||||||||
Securities (gains), other than trading (Note 2)
|
(287 |
) |
(200 | ) | ||||
Depreciation of premises and equipment (Note 8)
|
1,015 |
970 | ||||||
Depreciation of other assets |
13 |
28 | ||||||
Amortization of intangible assets (Note 10)
|
1,152 |
1,112 | ||||||
Write-down of goodwill and intangible assets (Notes 9 and 10)
|
178 |
26 | ||||||
Provision for credit losses (Note 3)
|
3,617 |
3,761 | ||||||
Deferred taxes (Note 22)
|
12 |
153 | ||||||
Share of (profit) in associates and joint ventures |
(175 |
) |
(207 | ) | ||||
Changes in operating assets and liabilities: |
||||||||
Trading securities |
(21,315 |
) |
(42,700 | ) | ||||
Derivative assets |
(7,984 |
) |
(85 | ) | ||||
Derivative liabilities |
(1,182 |
) |
2,123 | |||||
Current income taxes |
104 |
257 | ||||||
Accrued interest receivable and payable |
(1,403 |
) |
785 | |||||
Insurance-related liabilities |
1,666 |
4,312 | ||||||
Brokers, dealers and clients receivable and payable |
(592 |
) |
1,529 | |||||
Other items and accruals, net |
3,479 |
(7,125 | ) | |||||
Deposits |
(13,233 |
) |
66,114 | |||||
Loans |
(82 |
) |
(24,636 | ) | ||||
Securities sold but not yet purchased |
19,582 |
(8,786 | ) | |||||
Securities lent or sold under repurchase agreements |
23,166 |
3,766 | ||||||
Securities borrowed or purchased under resale agreements |
(17,682 |
) |
5,480 | |||||
Securitization and structured entities’ liabilities |
11,466 |
12,699 | ||||||
Net cash provided by operating activities |
10,240 |
26,703 | ||||||
Cash Flows (Used in) Financing Activities |
||||||||
Net (decrease) in liabilities of subsidiaries |
(945 |
) |
(12,071 | ) | ||||
Proceeds from issuance of subordinated debt (Note 15)
|
1,250 |
1,000 | ||||||
Repayment of subordinated debt (Note 15)
|
(1,250 |
) |
(1,000 | ) | ||||
Proceeds from issuance of preferred shares, net of issuance costs (Note 16)
|
1,365 |
2,368 | ||||||
Redemption of preferred shares (Note 16)
|
(500 |
) |
(1,250 | ) | ||||
Net proceeds from issuance of common shares (Note 16)
|
146 |
67 | ||||||
Net sale of treasury shares (Note 16)
|
12 |
1 | ||||||
Common shares purchased for cancellation (Note 16)
|
(3,396 |
) |
– | |||||
Cash dividends and distributions paid |
(5,031 |
) |
(3,840 | ) | ||||
Cash dividends paid to non-controlling interest |
(3 |
) |
(3 | ) | ||||
Repayment of lease liabilities |
(321 |
) |
(357 | ) | ||||
Net cash (used in) financing activities |
(8,673 |
) |
(15,085 | ) | ||||
Cash Flows Provided by (Used in) Investing Activities |
||||||||
Interest bearing deposits with banks |
854 |
515 | ||||||
Purchases of securities, other than trading |
(78,686 |
) |
(86,980 | ) | ||||
Maturities of securities, other than trading |
37,244 |
27,323 | ||||||
Proceeds from sales of securities, other than trading |
42,922 |
36,177 | ||||||
Net purchases of premises and equipment and software (Notes 8 and 10)
|
(1,729 |
) |
(1,564 | ) | ||||
Net cash provided by (used in) investing activities |
605 |
(24,529 | ) | |||||
Effect of exchange rate changes on cash and cash equivalents |
214 |
75 | ||||||
Net increase (decrease) in cash and cash equivalents |
2,386 |
(12,836 | ) | |||||
Cash and cash equivalents at beginning of year |
65,098 |
77,934 | ||||||
Cash and Cash Equivalents at End of Year (1)
|
$ |
67,484 |
$ | 65,098 | ||||
Supplemental Disclosure of Cash Flow Information |
||||||||
Net cash provided by operating activities includes: |
||||||||
Interest paid in the year (2)
|
$ |
43,135 |
$ | 45,092 | ||||
Income taxes paid in the year |
2,831 |
2,450 | ||||||
Interest received in the year |
61,067 |
63,108 | ||||||
Dividends received in the year |
2,423 |
2,481 | ||||||
| (1) | We are required to maintain reserves or minimum balances with certain central banks, regulatory bodies and counterparties , totalling $108 million as at October 31, 2025 ($80 million as at October 31, 2024). |
| (2) | Includes dividends paid on securities sold but not yet purchased. |
BMO Financial Group 208th Annual Report 2025 |
137 |
Note |
Topic |
Page |
||||||
1 |
138 |
|||||||
2 |
143 |
|||||||
3 |
145 |
|||||||
4 |
152 |
|||||||
5 |
152 |
|||||||
6 |
154 |
|||||||
7 |
156 |
|||||||
8 |
165 |
|||||||
9 |
166 |
|||||||
10 |
167 |
|||||||
11 |
169 |
|||||||
12 |
169 |
|||||||
13 |
170 |
|||||||
14 |
171 |
|||||||
15 |
174 |
|||||||
Note |
Topic |
Page |
||||||||
16 |
175 |
|||||||||
17 |
177 |
|||||||||
18 |
184 |
|||||||||
19 |
185 |
|||||||||
20 |
186 |
|||||||||
21 |
188 |
|||||||||
22 |
192 |
|||||||||
23 |
195 |
|||||||||
24 |
195 |
|||||||||
25 |
198 |
|||||||||
26 |
201 |
|||||||||
27 |
201 |
|||||||||
138 |
BMO Financial Group 208th Annual Report 2025 |
BMO Financial Group 208th Annual Report 2025 |
139 |
140 |
BMO Financial Group 208th Annual Report 2025 |
BMO Financial Group 208th Annual Report 2025 |
141 |
142 |
BMO Financial Group 208th Annual Report 2025 |
BMO Financial Group 208th Annual Report 2025 |
143 |
(Canadian $ in millions, except as noted) |
Term to maturity |
2025 |
2024 |
|||||||||||||||||||||||||||||
Within 1 year |
1 to 3 years |
3 to 5 years |
5 to 10 years |
Over 10 years |
No specific maturity |
Total |
Total |
|||||||||||||||||||||||||
Trading Securities |
||||||||||||||||||||||||||||||||
Issued or guaranteed by: |
||||||||||||||||||||||||||||||||
Canadian federal government |
$ |
1,170 |
$ |
2,342 |
$ |
1,003 |
$ |
3,481 |
$ |
4,315 |
$ |
– |
$ |
12,311 |
$ | 10,036 | ||||||||||||||||
Canadian provincial and municipal governments |
715 |
316 |
1,494 |
2,007 |
4,503 |
– |
9,035 |
7,585 | ||||||||||||||||||||||||
U.S. federal government |
4,123 |
9,180 |
3,237 |
6,135 |
8,227 |
– |
30,902 |
24,248 | ||||||||||||||||||||||||
U.S. states, municipalities and agencies |
– |
34 |
214 |
429 |
467 |
– |
1,144 |
565 | ||||||||||||||||||||||||
Other governments |
592 |
1,177 |
1,348 |
740 |
269 |
– |
4,126 |
3,849 | ||||||||||||||||||||||||
NHA MBS, U.S. agency MBS and CMO (1) |
1,103 |
176 |
467 |
928 |
53,776 |
– |
56,450 |
40,995 | ||||||||||||||||||||||||
Corporate debt |
1,377 |
3,030 |
2,259 |
2,365 |
2,583 |
– |
11,614 |
10,172 | ||||||||||||||||||||||||
Trading loans |
1 |
976 |
1,641 |
1,950 |
– |
– |
4,568 |
5,493 | ||||||||||||||||||||||||
Corporate equity |
– |
– |
– |
– |
– |
62,153 |
62,153 |
65,983 | ||||||||||||||||||||||||
Total trading securities |
9,081 |
17,231 |
11,663 |
18,035 |
74,140 |
62,153 |
192,303 |
168,926 | ||||||||||||||||||||||||
FVTPL Securities |
||||||||||||||||||||||||||||||||
Issued or guaranteed by: |
||||||||||||||||||||||||||||||||
Canadian federal government |
876 |
7 |
146 |
342 |
248 |
– |
1,619 |
403 | ||||||||||||||||||||||||
Canadian provincial and municipal governments |
1 |
6 |
19 |
116 |
1,436 |
– |
1,578 |
1,578 | ||||||||||||||||||||||||
U.S. federal government |
4 |
– |
– |
– |
1,491 |
– |
1,495 |
1,527 | ||||||||||||||||||||||||
Other governments |
– |
– |
– |
– |
– |
– |
– |
25 | ||||||||||||||||||||||||
NHA MBS, U.S. agency MBS and CMO (1) |
– |
11 |
– |
7 |
– |
– |
18 |
21 | ||||||||||||||||||||||||
Corporate debt |
227 |
273 |
246 |
1,133 |
7,029 |
– |
8,908 |
8,780 | ||||||||||||||||||||||||
Corporate equity |
– |
– |
– |
– |
– |
7,736 |
7,736 |
6,730 | ||||||||||||||||||||||||
Total FVTPL securities |
1,108 |
297 |
411 |
1,598 |
10,204 |
7,736 |
21,354 |
19,064 | ||||||||||||||||||||||||
FVOCI Securities |
||||||||||||||||||||||||||||||||
Issued or guaranteed by: |
||||||||||||||||||||||||||||||||
Canadian federal government |
||||||||||||||||||||||||||||||||
Amortized cost |
15,795 |
15,202 |
10,077 |
3,820 |
– |
– |
44,894 |
33,892 | ||||||||||||||||||||||||
Fair value |
15,819 |
15,287 |
10,271 |
3,958 |
– |
– |
45,335 |
34,177 | ||||||||||||||||||||||||
Yield (%) |
2.29 |
2.48 |
2.78 |
3.08 |
– |
– |
2.53 |
3.33 | ||||||||||||||||||||||||
Canadian provincial and municipal governments |
||||||||||||||||||||||||||||||||
Amortized cost |
470 |
1,041 |
2,925 |
1,072 |
17 |
– |
5,525 |
5,939 | ||||||||||||||||||||||||
Fair value |
470 |
1,061 |
2,986 |
1,112 |
15 |
– |
5,644 |
5,996 | ||||||||||||||||||||||||
Yield (%) |
2.52 |
3.05 |
3.32 |
3.47 |
4.07 |
– |
3.23 |
3.61 | ||||||||||||||||||||||||
U.S. federal government |
||||||||||||||||||||||||||||||||
Amortized cost |
844 |
3,769 |
9,270 |
6,358 |
274 |
– |
20,515 |
17,033 | ||||||||||||||||||||||||
Fair value |
845 |
3,797 |
9,434 |
6,458 |
275 |
– |
20,809 |
16,965 | ||||||||||||||||||||||||
Yield (%) |
3.61 |
3.88 |
3.75 |
3.92 |
4.64 |
– |
3.83 |
4.06 | ||||||||||||||||||||||||
U.S. states, municipalities and agencies |
||||||||||||||||||||||||||||||||
Amortized cost |
399 |
538 |
732 |
3,408 |
545 |
– |
5,622 |
5,125 | ||||||||||||||||||||||||
Fair value |
398 |
534 |
733 |
3,423 |
546 |
– |
5,634 |
5,068 | ||||||||||||||||||||||||
Yield (%) |
2.89 |
2.87 |
3.06 |
3.02 |
4.77 |
– |
3.17 |
4.04 | ||||||||||||||||||||||||
Other governments |
||||||||||||||||||||||||||||||||
Amortized cost |
1,521 |
1,607 |
911 |
– |
– |
– |
4,039 |
5,643 | ||||||||||||||||||||||||
Fair value |
1,521 |
1,624 |
920 |
– |
– |
– |
4,065 |
5,656 | ||||||||||||||||||||||||
Yield (%) |
2.28 |
3.49 |
3.66 |
– |
– |
– |
3.07 |
3.15 | ||||||||||||||||||||||||
NHA MBS, U.S. agency MBS and CMO (1) |
||||||||||||||||||||||||||||||||
Amortized cost |
112 |
1,451 |
10,628 |
3,783 |
10,972 |
– |
26,946 |
21,570 | ||||||||||||||||||||||||
Fair value |
111 |
1,457 |
10,776 |
3,834 |
10,837 |
– |
27,015 |
21,293 | ||||||||||||||||||||||||
Yield (%) |
2.46 |
3.46 |
4.19 |
3.90 |
4.02 |
– |
4.03 |
3.92 | ||||||||||||||||||||||||
Corporate debt |
||||||||||||||||||||||||||||||||
Amortized cost |
1,663 |
523 |
550 |
1,686 |
69 |
– |
4,491 |
4,391 | ||||||||||||||||||||||||
Fair value |
1,664 |
530 |
557 |
1,699 |
65 |
– |
4,515 |
4,370 | ||||||||||||||||||||||||
Yield (%) |
4.48 |
2.69 |
3.35 |
4.79 |
5.02 |
– |
4.26 |
2.67 | ||||||||||||||||||||||||
Corporate equity |
||||||||||||||||||||||||||||||||
Cost |
– |
– |
– |
– |
– |
165 |
165 |
135 | ||||||||||||||||||||||||
Fair value |
– |
– |
– |
– |
– |
192 |
192 |
177 | ||||||||||||||||||||||||
Total cost or amortized cost |
20,804 |
24,131 |
35,093 |
20,127 |
11,877 |
165 |
112,197 |
93,728 | ||||||||||||||||||||||||
Total fair value |
20,828 |
24,290 |
35,677 |
20,484 |
11,738 |
192 |
113,209 |
93,702 | ||||||||||||||||||||||||
Yield (%) |
2.54 |
2.86 |
3.55 |
3.65 |
4.07 |
– |
3.28 |
3.61 | ||||||||||||||||||||||||
Amortized Cost Securities |
||||||||||||||||||||||||||||||||
Issued or guaranteed by: |
||||||||||||||||||||||||||||||||
Canadian federal government |
||||||||||||||||||||||||||||||||
Amortized cost |
538 |
376 |
– |
35 |
– |
– |
949 |
2,465 | ||||||||||||||||||||||||
Fair value |
532 |
376 |
– |
35 |
– |
– |
943 |
2,403 | ||||||||||||||||||||||||
Yield (%) |
3.43 |
2.74 |
– |
3.12 |
– |
– |
3.15 |
1.81 | ||||||||||||||||||||||||
Canadian provincial and municipal governments |
||||||||||||||||||||||||||||||||
Amortized cost |
720 |
1,099 |
1,495 |
2,868 |
– |
– |
6,182 |
4,488 | ||||||||||||||||||||||||
Fair value |
719 |
1,106 |
1,506 |
2,889 |
– |
– |
6,220 |
4,216 | ||||||||||||||||||||||||
Yield (%) |
2.84 |
2.50 |
2.86 |
3.45 |
– |
– |
3.07 |
2.38 | ||||||||||||||||||||||||
U.S. federal government |
||||||||||||||||||||||||||||||||
Amortized cost |
773 |
17,536 |
12,377 |
8,992 |
3,790 |
– |
43,468 |
55,421 | ||||||||||||||||||||||||
Fair value |
765 |
17,037 |
11,601 |
7,980 |
3,049 |
– |
40,432 |
51,319 | ||||||||||||||||||||||||
Yield (%) |
3.87 |
2.74 |
2.32 |
2.69 |
3.96 |
– |
2.74 |
1.49 | ||||||||||||||||||||||||
U.S. states, municipalities and agencies |
||||||||||||||||||||||||||||||||
Amortized cost |
– |
– |
– |
165 |
– |
– |
165 |
182 | ||||||||||||||||||||||||
Fair value |
– |
– |
– |
167 |
– |
– |
167 |
180 | ||||||||||||||||||||||||
Yield (%) |
– |
– |
– |
4.66 |
– |
– |
4.66 |
4.65 | ||||||||||||||||||||||||
Other governments |
||||||||||||||||||||||||||||||||
Amortized cost |
186 |
217 |
122 |
– |
– |
– |
525 |
681 | ||||||||||||||||||||||||
Fair value |
186 |
217 |
120 |
– |
– |
– |
523 |
675 | ||||||||||||||||||||||||
Yield (%) |
3.76 |
3.96 |
4.00 |
– |
– |
– |
3.90 |
1.80 | ||||||||||||||||||||||||
NHA MBS, U.S. agency MBS and CMO |
||||||||||||||||||||||||||||||||
Amortized cost |
1,127 |
3,783 |
455 |
2,532 |
29,873 |
– |
37,770 |
42,773 | ||||||||||||||||||||||||
Fair value |
1,119 |
3,670 |
425 |
2,317 |
27,307 |
– |
34,838 |
38,619 | ||||||||||||||||||||||||
Yield (%) |
2.51 |
1.78 |
1.84 |
1.69 |
2.81 |
– |
2.61 |
2.58 | ||||||||||||||||||||||||
Corporate debt |
||||||||||||||||||||||||||||||||
Amortized cost |
392 |
664 |
140 |
58 |
6,297 |
– |
7,551 |
9,178 | ||||||||||||||||||||||||
Fair value |
387 |
660 |
141 |
57 |
6,080 |
– |
7,325 |
9,049 | ||||||||||||||||||||||||
Yield (%) |
3.73 |
3.97 |
2.94 |
3.73 |
5.06 |
– |
4.85 |
4.57 | ||||||||||||||||||||||||
Total carrying value |
3,736 |
23,675 |
14,589 |
14,650 |
39,960 |
– |
96,610 |
115,188 | ||||||||||||||||||||||||
Total fair value |
3,708 |
23,066 |
13,793 |
13,445 |
36,436 |
– |
90,448 |
106,461 | ||||||||||||||||||||||||
Yield (%) |
3.18 |
2.62 |
2.38 |
2.69 |
3.27 |
– |
2.89 |
2.19 | ||||||||||||||||||||||||
Total carrying value of securities |
34,753 |
65,493 |
62,340 |
54,767 |
136,042 |
70,081 |
423,476 |
396,880 | ||||||||||||||||||||||||
Total by Currency |
||||||||||||||||||||||||||||||||
Canadian dollar |
23,158 |
24,896 |
16,194 |
15,622 |
18,796 |
27,159 |
125,825 |
111,370 | ||||||||||||||||||||||||
U.S. dollar |
10,390 |
39,787 |
45,617 |
38,820 |
116,911 |
41,434 |
292,959 |
278,558 | ||||||||||||||||||||||||
Other currencies |
1,205 |
810 |
529 |
325 |
335 |
1,488 |
4,692 |
6,952 | ||||||||||||||||||||||||
Total securities |
$ |
34,753 |
$ |
65,493 |
$ |
62,340 |
$ |
54,767 |
$ |
136,042 |
$ |
70,081 |
$ |
423,476 |
$ | 396,880 | ||||||||||||||||
| (1) | These amounts are either supported by insured mortgages or issued by U.S. agencies and government-sponsored enterprises. NHA refers to the National Housing Act, MBS refers to mortgage-backed securities and CMO refers to collateralized mortgage obligations. |
| (2) | The carrying values of securities that are part of fair value hedging relationships are adjusted for related gains (losses) on hedge contracts. |
144 |
BMO Financial Group 208th Annual Report 2025 |
| (Canadian $ in millions) | 2025 |
2024 | ||||||||||||||||||||||||||||||
|
Cost or amortized cost |
Gross unrealized gains |
Gross unrealized losses |
Fair value |
Cost or amortized cost |
Gross unrealized gains |
Gross unrealized losses |
Fair value |
|||||||||||||||||||||||||
Issued or guaranteed by: |
||||||||||||||||||||||||||||||||
Canadian federal government |
$ |
44,894 |
$ |
443 |
$ |
(2 |
) |
$ |
45,335 |
$ | 33,892 | $ | 303 | $ | (18 | ) | $ | 34,177 | ||||||||||||||
Canadian provincial and municipal governments |
5,525 |
132 |
(13 |
) |
5,644 |
5,939 | 82 | (25 | ) | 5,996 | ||||||||||||||||||||||
U.S. federal government |
20,515 |
327 |
(33 |
) |
20,809 |
17,033 | 100 | (168 | ) | 16,965 | ||||||||||||||||||||||
U.S. states, municipalities and agencies |
5,622 |
77 |
(65 |
) |
5,634 |
5,125 | 24 | (81 | ) | 5,068 | ||||||||||||||||||||||
Other governments |
4,039 |
35 |
(9 |
) |
4,065 |
5,643 | 20 | (7 | ) | 5,656 | ||||||||||||||||||||||
NHA MBS, U.S. agency MBS and CMO |
26,946 |
291 |
(222 |
) |
27,015 |
21,570 | 58 | (335 | ) | 21,293 | ||||||||||||||||||||||
Corporate debt |
4,491 |
37 |
(13 |
) |
4,515 |
4,391 | 31 | (52 | ) | 4,370 | ||||||||||||||||||||||
Corporate equity |
165 |
27 |
– |
192 |
135 | 42 | – | 177 | ||||||||||||||||||||||||
Total |
$ |
112,197 |
$ |
1,369 |
$ |
(357 |
) |
$ |
113,209 |
$ | 93,728 | $ | 660 | $ | (686 | ) | $ | 93,702 | ||||||||||||||
| (Canadian $ in millions) | 2025 |
2024 | ||||||||||||||||||||||||||||||
FVTPL securities |
$ |
143 |
$ | 161 | ||||||||||||||||||||||||||||
FVOCI securities |
4,427 |
3,874 | ||||||||||||||||||||||||||||||
Amortized cost securities |
2,709 |
3,952 | ||||||||||||||||||||||||||||||
Total |
$ |
7,279 |
$ | 7,987 | ||||||||||||||||||||||||||||
| (Canadian $ in millions) | 2025 |
2024 | ||||||||||||||||||||||||||||||
FVTPL securities |
$ |
201 |
$ | 87 | ||||||||||||||||||||||||||||
FVOCI securities – realized gains (1)
|
89 |
114 | ||||||||||||||||||||||||||||||
Impairment on FVOCI and amortized cost securities |
(3 |
) |
(1 | ) | ||||||||||||||||||||||||||||
Securities gains, other than trading |
$ |
287 |
$ | 200 | ||||||||||||||||||||||||||||
| (1) | Gains are net of (losses) on hedge contracts. |
| (Canadian $ in millions) | 2025 |
2024 | ||||||||||||||||||||||||||||||
Interest and dividend income |
$ |
546 |
$ | 515 | ||||||||||||||||||||||||||||
Gains from securities designated at FVTPL (1)
|
374 |
1,270 | ||||||||||||||||||||||||||||||
Realized gains from FVOCI securities |
– |
1 | ||||||||||||||||||||||||||||||
Total interest and dividend income and gains held in our Insurance business |
$ |
920 |
$ | 1,786 | ||||||||||||||||||||||||||||
| (1) | Gains (losses) on these securities may be offset by certain (losses) gains from changes in insurance-related liabilities, as described above under Securities Designated at FVTPL. |
BMO Financial Group 208th Annual Report 2025 |
145 |
146 |
BMO Financial Group 208th Annual Report 2025 |
BMO Financial Group 208th Annual Report 2025 |
147 |
| (Canadian $ in millions) | 2025 |
2024 | ||||||||||||||||||||||||||||||
Stage 1 |
Stage 2 |
Stage 3 |
Total |
Stage 1 | Stage 2 | Stage 3 (1) | Total | |||||||||||||||||||||||||
| Loans: Residential mortgages |
||||||||||||||||||||||||||||||||
| Balance as at beginning of year |
$ |
56 |
$ |
186 |
$ |
19 |
$ |
261 |
$ | 73 | $ | 151 | $ | 10 | $ | 234 | ||||||||||||||||
| Transfer to Stage 1 |
151 |
(148 |
) |
(3 |
) |
– |
132 | (130 | ) | (2 | ) | – | ||||||||||||||||||||
| Transfer to Stage 2 |
(15 |
) |
50 |
(35 |
) |
– |
(26 | ) | 42 | (16 | ) | – | ||||||||||||||||||||
| Transfer to Stage 3 |
– |
(44 |
) |
44 |
– |
(1 | ) | (29 | ) | 30 | – | |||||||||||||||||||||
| Net remeasurement of loss allowance |
(135 |
) |
154 |
54 |
73 |
(142 | ) | 170 | 36 | 64 | ||||||||||||||||||||||
| Loan originations |
23 |
– |
– |
23 |
24 | – | – | 24 | ||||||||||||||||||||||||
| Derecognitions and maturities |
(5 |
) |
(16 |
) |
– |
(21 |
) |
(3 | ) | (13 | ) | – | (16 | ) | ||||||||||||||||||
| Model changes |
(20 |
) |
(3 |
) |
– |
(23 |
) |
(1 | ) | (5 | ) | – | (6 | ) | ||||||||||||||||||
| Total PCL (2)
|
(1 |
) |
(7 |
) |
60 |
52 |
(17 | ) | 35 | 48 | 66 | |||||||||||||||||||||
| Write-offs (3)
|
– |
– |
(10 |
) |
(10 |
) |
– | – | (5 | ) | (5 | ) | ||||||||||||||||||||
| Recoveries of previous write-offs |
– |
– |
9 |
9 |
– | – | 7 | 7 | ||||||||||||||||||||||||
| Foreign exchange and other |
1 |
– |
(66 |
) |
(65 |
) |
– | – | (41 | ) | (41 | ) | ||||||||||||||||||||
| Balance as at end of year |
$ |
56 |
$ |
179 |
$ |
12 |
$ |
247 |
$ | 56 | $ | 186 | $ | 19 | $ | 261 | ||||||||||||||||
| Loans: Consumer instalment and other personal |
||||||||||||||||||||||||||||||||
| Balance as at beginning of year |
$ |
197 |
$ |
471 |
$ |
175 |
$ |
843 |
$ | 220 | $ | 434 | $ | 152 | $ | 806 | ||||||||||||||||
| Transfer to Stage 1 |
331 |
(310 |
) |
(21 |
) |
– |
301 | (283 | ) | (18 | ) | – | ||||||||||||||||||||
| Transfer to Stage 2 |
(62 |
) |
114 |
(52 |
) |
– |
(44 | ) | 91 | (47 | ) | – | ||||||||||||||||||||
| Transfer to Stage 3 |
(7 |
) |
(177 |
) |
184 |
– |
(7 | ) | (133 | ) | 140 | – | ||||||||||||||||||||
| Net remeasurement of loss allowance |
(317 |
) |
421 |
483 |
587 |
(237 | ) | 355 | 437 | 555 | ||||||||||||||||||||||
| Loan originations |
32 |
– |
– |
32 |
54 | – | – | 54 | ||||||||||||||||||||||||
| Derecognitions and maturities |
(19 |
) |
(40 |
) |
– |
(59 |
) |
(16 | ) | (38 | ) | (12 | ) | (66 | ) | |||||||||||||||||
| Model changes |
46 |
77 |
– |
123 |
15 | 46 | – | 61 | ||||||||||||||||||||||||
| Total PCL (2)
|
4 |
85 |
594 |
683 |
66 | 38 | 500 | 604 | ||||||||||||||||||||||||
| Write-offs (3)
|
– |
– |
(692 |
) |
(692 |
) |
– | – | (623 | ) | (623 | ) | ||||||||||||||||||||
| Recoveries of previous write-offs |
– |
– |
151 |
151 |
– | – | 195 | 195 | ||||||||||||||||||||||||
| Foreign exchange and other |
(1 |
) |
(1 |
) |
(68 |
) |
(70 |
) |
(89 | ) | (1 | ) | (49 | ) | (139 | ) | ||||||||||||||||
| Balance as at end of year |
$ |
200 |
$ |
555 |
$ |
160 |
$ |
915 |
$ | 197 | $ | 471 | $ | 175 | $ | 843 | ||||||||||||||||
| Loans: Credit cards |
||||||||||||||||||||||||||||||||
| Balance as at beginning of year |
$ |
233 |
$ |
472 |
$ |
– |
$ |
705 |
$ | 188 | $ | 308 | $ | – | $ | 496 | ||||||||||||||||
| Transfer to Stage 1 |
239 |
(239 |
) |
– |
– |
226 | (226 | ) | – | – | ||||||||||||||||||||||
| Transfer to Stage 2 |
(115 |
) |
116 |
(1 |
) |
– |
(64 | ) | 64 | – | – | |||||||||||||||||||||
| Transfer to Stage 3 |
(9 |
) |
(453 |
) |
462 |
– |
(6 | ) | (290 | ) | 296 | – | ||||||||||||||||||||
| Net remeasurement of loss allowance |
(194 |
) |
633 |
311 |
750 |
(182 | ) | 633 | 308 | 759 | ||||||||||||||||||||||
| Loan originations |
52 |
– |
– |
52 |
76 | – | – | 76 | ||||||||||||||||||||||||
| Derecognitions and maturities |
(13 |
) |
(50 |
) |
– |
(63 |
) |
(8 | ) | (27 | ) | – | (35 | ) | ||||||||||||||||||
| Model changes |
(2 |
) |
135 |
– |
133 |
4 | 9 | – | 13 | |||||||||||||||||||||||
| Total PCL (2)
|
(42 |
) |
142 |
772 |
872 |
46 | 163 | 604 | 813 | |||||||||||||||||||||||
| Write-offs (3)
|
– |
– |
(903 |
) |
(903 |
) |
– | – | (720 | ) | (720 | ) | ||||||||||||||||||||
| Recoveries of previous write-offs |
– |
– |
209 |
209 |
– | – | 171 | 171 | ||||||||||||||||||||||||
| Foreign exchange and other |
(3 |
) |
(11 |
) |
(78 |
) |
(92 |
) |
(1 | ) | 1 | (55 | ) | (55 | ) | |||||||||||||||||
| Balance as at end of year |
$ |
188 |
$ |
603 |
$ |
– |
$ |
791 |
$ | 233 | $ | 472 | $ | – | $ | 705 | ||||||||||||||||
| Loans: Business and government |
||||||||||||||||||||||||||||||||
| Balance as at beginning of year |
$ |
892 |
$ |
1,698 |
$ |
537 |
$ |
3,127 |
$ | 1,043 | $ | 1,155 | $ | 533 | $ | 2,731 | ||||||||||||||||
| Transfer to Stage 1 |
553 |
(510 |
) |
(43 |
) |
– |
601 | (575 | ) | (26 | ) | – | ||||||||||||||||||||
| Transfer to Stage 2 |
(254 |
) |
362 |
(108 |
) |
– |
(278 | ) | 394 | (116 | ) | – | ||||||||||||||||||||
| Transfer to Stage 3 |
(8 |
) |
(388 |
) |
396 |
– |
(9 | ) | (310 | ) | 319 | – | ||||||||||||||||||||
| Net remeasurement of loss allowance |
(419 |
) |
1,166 |
1,476 |
2,223 |
(599 | ) | 1,189 | 1,748 | 2,338 | ||||||||||||||||||||||
| Loan originations |
285 |
– |
– |
285 |
278 | 8 | – | 286 | ||||||||||||||||||||||||
| Derecognitions and maturities |
(146 |
) |
(402 |
) |
– |
(548 |
) |
(147 | ) | (308 | ) | (11 | ) | (466 | ) | |||||||||||||||||
| Model changes |
24 |
27 |
– |
51 |
53 | 57 | – | 110 | ||||||||||||||||||||||||
| Total PCL (2)
|
35 |
255 |
1,721 |
2,011 |
(101 | ) | 455 | 1,914 | 2,268 | |||||||||||||||||||||||
| Write-offs (3)
|
– |
– |
(1,367 |
) |
(1,367 |
) |
– | – | (1,802 | ) | (1,802 | ) | ||||||||||||||||||||
| Recoveries of previous write-offs |
– |
– |
314 |
314 |
– | – | 194 | 194 | ||||||||||||||||||||||||
| Foreign exchange and other |
4 |
44 |
(347 |
) |
(299 |
) |
(50 | ) | 88 | (302 | ) | (264 | ) | |||||||||||||||||||
| Balance as at end of year |
$ |
931 |
$ |
1,997 |
$ |
858 |
$ |
3,786 |
$ | 892 | $ | 1,698 | $ | 537 | $ | 3,127 | ||||||||||||||||
| Total as at end of year |
$ |
1,375 |
$ |
3,334 |
$ |
1,030 |
$ |
5,739 |
$ | 1,378 | $ | 2,827 | $ | 731 | $ | 4,936 | ||||||||||||||||
| Comprising: Loans |
$ |
1,119 |
$ |
2,957 |
$ |
974 |
$ |
5,050 |
$ | 1,143 | $ | 2,560 | $ | 653 | $ | 4,356 | ||||||||||||||||
| Other credit instruments (4)
|
256 |
377 |
56 |
689 |
235 | 267 | 78 | 580 | ||||||||||||||||||||||||
| (1) | Includes changes in allowance for purchased credit impaired (PCI) loans. |
| (2) | Excludes PCL on other assets of $(1) million for the year ended October 31, 2025 ($10 million for the year ended October 31 , 2024). |
| (3) | Generally, we continue to seek recovery on amounts that were written off during the year, unless the loan is sold, we no longer have the right to collect or we have exhausted all reasonable efforts to collect. |
| (4) | Other credit instruments, including off-balance sheet items, are recorded in other liabilities in our Consolidated Balance Sheet. |
148 |
BMO Financial Group 208th Annual Report 2025 |
| (Canadian $ in millions) | 2025 |
2024 | ||||||||||||||||||||||||||||||
Stage 1 |
Stage 2 |
Stage 3 |
Total |
Stage 1 | Stage 2 | Stage 3 |
Total | |||||||||||||||||||||||||
| Loans: Residential mortgages (3)
|
||||||||||||||||||||||||||||||||
| Exceptionally low |
$ |
1 |
$ |
– |
$ |
– |
$ |
1 |
$ | 1 | $ | – | $ | – | $ | 1 | ||||||||||||||||
| Very low |
110,299 |
844 |
– |
111,143 |
86,730 | 5,631 | – | 92,361 | ||||||||||||||||||||||||
| Low |
50,148 |
3,051 |
– |
53,199 |
52,111 | 15,080 | – | 67,191 | ||||||||||||||||||||||||
| Medium |
7,048 |
6,713 |
– |
13,761 |
7,402 | 5,329 | – | 12,731 | ||||||||||||||||||||||||
| High |
240 |
3,032 |
– |
3,272 |
268 | 2,622 | – | 2,890 | ||||||||||||||||||||||||
| Not rated (4)
|
12,802 |
952 |
– |
13,754 |
14,207 | 1,042 | – | 15,249 | ||||||||||||||||||||||||
| Impaired |
– |
– |
903 |
903 |
– | – | 657 | 657 | ||||||||||||||||||||||||
| Gross residential mortgages |
180,538 |
14,592 |
903 |
196,033 |
160,719 | 29,704 | 657 | 191,080 | ||||||||||||||||||||||||
| ACL |
56 |
178 |
12 |
246 |
56 | 185 | 10 | 251 | ||||||||||||||||||||||||
| Carrying amount |
180,482 |
14,414 |
891 |
195,787 |
160,663 | 29,519 | 647 | 190,829 | ||||||||||||||||||||||||
| Loans: Consumer instalment and other personal |
||||||||||||||||||||||||||||||||
| Exceptionally low |
9,984 |
1 |
– |
9,985 |
9,162 | 145 | – | 9,307 | ||||||||||||||||||||||||
| Very low |
21,962 |
35 |
– |
21,997 |
20,466 | 903 | – | 21,369 | ||||||||||||||||||||||||
| Low |
26,238 |
2,682 |
– |
28,920 |
26,125 | 4,575 | – | 30,700 | ||||||||||||||||||||||||
| Medium |
6,991 |
5,566 |
– |
12,557 |
7,405 | 5,526 | – | 12,931 | ||||||||||||||||||||||||
| High |
670 |
2,164 |
– |
2,834 |
789 | 2,017 | – | 2,806 | ||||||||||||||||||||||||
| Not rated (4)
|
14,812 |
1,009 |
– |
15,821 |
14,522 | 475 | – | 14,997 | ||||||||||||||||||||||||
| Impaired |
– |
– |
627 |
627 |
– | – | 577 | 577 | ||||||||||||||||||||||||
| Gross consumer instalment and other personal |
80,657 |
11,457 |
627 |
92,741 |
78,469 | 13,641 | 577 | 92,687 | ||||||||||||||||||||||||
| ACL |
182 |
532 |
160 |
874 |
183 | 447 | 168 | 798 | ||||||||||||||||||||||||
| Carrying amount |
80,475 |
10,925 |
467 |
91,867 |
78,286 | 13,194 | 409 | 91,889 | ||||||||||||||||||||||||
| Loans: Credit cards (5)
|
||||||||||||||||||||||||||||||||
| Exceptionally low |
1,643 |
– |
– |
1,643 |
1,660 | – | – | 1,660 | ||||||||||||||||||||||||
| Very low |
2,129 |
4 |
– |
2,133 |
2,166 | 1 | – | 2,167 | ||||||||||||||||||||||||
| Low |
1,846 |
80 |
– |
1,926 |
2,110 | 60 | – | 2,170 | ||||||||||||||||||||||||
| Medium |
3,550 |
1,191 |
– |
4,741 |
4,544 | 824 | – | 5,368 | ||||||||||||||||||||||||
| High |
592 |
1,232 |
– |
1,824 |
746 | 922 | – | 1,668 | ||||||||||||||||||||||||
| Not rated (4)
|
260 |
122 |
– |
382 |
430 | 149 | – | 579 | ||||||||||||||||||||||||
| Impaired |
– |
– |
– |
– |
– | – | – | – | ||||||||||||||||||||||||
| Gross credit cards |
10,020 |
2,629 |
– |
12,649 |
11,656 | 1,956 | – | 13,612 | ||||||||||||||||||||||||
| ACL |
125 |
527 |
– |
652 |
161 | 421 | – | 582 | ||||||||||||||||||||||||
| Carrying amount |
9,895 |
2,102 |
– |
11,997 |
11,495 | 1,535 | – | 13,030 | ||||||||||||||||||||||||
| Loans: Business and government (3) (6)
|
||||||||||||||||||||||||||||||||
| Acceptable |
||||||||||||||||||||||||||||||||
| Investment grade |
188,707 |
3,873 |
– |
192,580 |
191,742 | 3,437 | – | 195,179 | ||||||||||||||||||||||||
| Sub-investment grade |
139,069 |
22,700 |
– |
161,769 |
147,713 | 15,078 | – | 162,791 | ||||||||||||||||||||||||
| Watchlist |
123 |
21,466 |
– |
21,589 |
238 | 22,535 | – | 22,773 | ||||||||||||||||||||||||
| Impaired |
– |
– |
5,561 |
5,561 |
– | – | 4,609 | 4,609 | ||||||||||||||||||||||||
| Gross business and government |
327,899 |
48,039 |
5,561 |
381,499 |
339,693 | 41,050 | 4,609 | 385,352 | ||||||||||||||||||||||||
| ACL |
756 |
1,720 |
802 |
3,278 |
743 | 1,507 | 475 | 2,725 | ||||||||||||||||||||||||
| Carrying amount |
327,143 |
46,319 |
4,759 |
378,221 |
338,950 | 39,543 | 4,134 | 382,627 | ||||||||||||||||||||||||
| Total gross loans and acceptances |
599,114 |
76,717 |
7,091 |
682,922 |
590,537 | 86,351 | 5,843 | 682,731 | ||||||||||||||||||||||||
| Total net loans and acceptances |
597,995 |
73,760 |
6,117 |
677,872 |
589,394 | 83,791 | 5,190 | 678,375 | ||||||||||||||||||||||||
| Commitments and financial guarantee contracts |
||||||||||||||||||||||||||||||||
| Acceptable |
||||||||||||||||||||||||||||||||
| Investment grade |
202,913 |
1,544 |
– |
204,457 |
198,132 | 787 | – | 198,919 | ||||||||||||||||||||||||
| Sub-investment grade |
65,393 |
13,733 |
– |
79,126 |
68,177 | 6,647 | – | 74,824 | ||||||||||||||||||||||||
| Watchlist |
6 |
9,086 |
– |
9,092 |
59 | 8,765 | – | 8,824 | ||||||||||||||||||||||||
| Impaired |
– |
– |
1,660 |
1,660 |
– | – | 1,373 | 1,373 | ||||||||||||||||||||||||
| Gross commitments and financial guarantee contracts |
268,312 |
24,363 |
1,660 |
294,335 |
266,368 | 16,199 | 1,373 | 283,940 | ||||||||||||||||||||||||
| ACL |
256 |
377 |
56 |
689 |
235 | 267 | 78 | 580 | ||||||||||||||||||||||||
| Carrying amount (7) (8)
|
$ |
268,056 |
$ |
23,986 |
$ |
1,604 |
$ |
293,646 |
$ | 266,133 | $ | 15,932 | $ | 1,295 | $ | 283,360 | ||||||||||||||||
| (1) | Includes PCI loans. |
| (2) | 94% of Stage 3 loans were either fully or partially collateralized as at October 31, 2025 (92% as at October 31, 2024). |
| (3) | Includes $79 million ($163 million as at October 31, 2024) of residential mortgages and $13,231 million ($12,431 million as at October 31, 2024) of business and government loans that are classified and measured at FVTPL , and not subject to ECL. |
| (4) | Includes purchased portfolios and certain cases where an internal risk rating is not assigned. Alternative credit risk assessments, rating methodologies, policies and tools are used to manage credit risk for these portfolios. |
| (5) | Credit card loans are immediately written off when principal or interest payments are 180 days past due, and as a result are not reported as impaired in Stage 3. |
| (6) | Includes customers’ liability under acceptances. |
| (7) | Represents the total contractual amounts of undrawn credit facilities and other off-balance sheet exposures, excluding personal lines of credit and credit cards, which are unconditionally cancellable at our discretion. |
| (8) | Certain commercial borrower commitments are conditional and may include recourse to counterparties. |
BMO Financial Group 208th Annual Report 2025 |
149 |
| (Canadian $ in millions) | 2025 |
2024 | ||||||||||||||||||||||||||||||
|
Gross amount |
ACL on impaired loans |
ACL on performing loans |
Net amount |
Gross amount |
ACL on impaired loans (1) |
ACL on performing loans |
Net amount |
|||||||||||||||||||||||||
By geographic region (3)
|
||||||||||||||||||||||||||||||||
Canada |
$ |
398,001 |
$ |
663 |
$ |
1,842 |
$ |
395,496 |
$ | 392,398 | $ | 461 | $ | 1,531 | $ | 390,406 | ||||||||||||||||
United States |
272,996 |
311 |
2,203 |
270,482 |
277,718 | 192 | 2,141 | 275,385 | ||||||||||||||||||||||||
Other countries |
11,214 |
– |
31 |
11,183 |
12,256 | – | 31 | 12,225 | ||||||||||||||||||||||||
Total |
$ |
682,211 |
$ |
974 |
$ |
4,076 |
$ |
677,161 |
$ | 682,372 | $ | 653 | $ | 3,703 | $ | 678,016 | ||||||||||||||||
| (1) | Excludes ACL on impaired loans of $56 million for other credit instruments, which is included in other liabilities ($78 million as at October 31, 2024). |
| (2) | Excludes ACL on performing loans of $633 million for other credit instruments, which is included in other liabilities ($502 million as at October 31, 2024). |
| (3) | Geographic region is based upon the country of ultimate risk. |
| (Canadian $ in millions) | 2025 |
2024 | ||||||||||||||||||||||
Gross impaired amount |
ACL on impaired loans |
Net impaired amount |
Gross impaired amount |
ACL on impaired loans (1) |
Net impaired amount |
|||||||||||||||||||
Residential mortgages |
$ |
903 |
$ |
12 |
$ |
891 |
$ | 657 | $ | 10 | $ | 647 | ||||||||||||
Consumer instalment and other personal |
627 |
160 |
467 |
577 | 168 | 409 | ||||||||||||||||||
Business and government (2)
|
5,561 |
802 |
4,759 |
4,609 | 475 | 4,134 | ||||||||||||||||||
Total |
$ |
7,091 |
$ |
974 |
$ |
6,117 |
$ | 5,843 | $ | 653 | $ | 5,190 | ||||||||||||
By geographic region (3)
|
||||||||||||||||||||||||
Canada |
$ |
3,550 |
$ |
663 |
$ |
2,887 |
$ | 2,513 | $ | 461 | $ | 2,052 | ||||||||||||
United States |
3,540 |
311 |
3,229 |
3,327 | 192 | 3,135 | ||||||||||||||||||
Other countries |
1 |
– |
1 |
3 | – | 3 | ||||||||||||||||||
Total |
$ |
7,091 |
$ |
974 |
$ |
6,117 |
$ | 5,843 | $ | 653 | $ | 5,190 | ||||||||||||
| (1) | Excludes ACL on impaired loans of $56 million for other credit instruments, which is included in other liabilities ($78 million as at October 31, 2024). |
| (2) | Includes customers’ liability under acceptances. |
| (3) | Geographic region is based upon the country of ultimate risk. |
(Canadian $ in millions) |
2025 |
2024 |
||||||||||||||||||||||
30 to 89 days |
90 days or more |
Total |
30 to 89 days |
90 days or more (1) |
Total |
|||||||||||||||||||
Residential mortgages |
$ |
854 |
$ |
7 |
$ |
861 |
$ | 696 | $ | 15 | $ | 711 | ||||||||||||
Credit cards, consumer instalment and other personal |
661 |
171 |
832 |
734 | 173 | 907 | ||||||||||||||||||
Business and government |
616 |
8 |
624 |
689 | 16 | 705 | ||||||||||||||||||
Total |
$ |
2,131 |
$ |
186 |
$ |
2,317 |
$ | 2,119 | $ | 204 | $ | 2,323 | ||||||||||||
| (1) | Fully secured loans with amounts between 90 and 180 days past due that we have not classified as impaired totalled $7 million as at October 31, 2025 ($16 million as at October 31, 2024). |
150 |
BMO Financial Group 208th Annual Report 2025 |
As at October 31, 2025 |
||||||||||||||||||||||||||||||||
Scenarios |
||||||||||||||||||||||||||||||||
All figures are average annual values |
Upside |
Base |
Downside |
Severe downside |
||||||||||||||||||||||||||||
First 12 months |
Remaining horizon |
First 12 months |
Remaining horizon |
First 12 months |
Remaining horizon |
First 12 months |
Remaining horizon |
|||||||||||||||||||||||||
Real GDP growth rates (2)
|
||||||||||||||||||||||||||||||||
Canada |
3.6% |
2.8% |
1.1% |
2.1% |
(2.7)% |
1.6% |
(4.0)% |
1.2% |
||||||||||||||||||||||||
United States |
4.5% |
2.4% |
1.7% |
1.8% |
(2.3)% |
1.4% |
(3.5)% |
1.3% |
||||||||||||||||||||||||
Corporate BBB 10-year spread |
||||||||||||||||||||||||||||||||
Canada |
1.2% |
1.8% |
1.7% |
2.0% |
3.4% |
3.0% |
4.2% |
3.5% |
||||||||||||||||||||||||
United States |
0.8% |
1.5% |
1.5% |
1.9% |
3.5% |
3.0% |
4.6% |
3.6% |
||||||||||||||||||||||||
Unemployment rates |
||||||||||||||||||||||||||||||||
Canada |
6.0% |
5.5% |
7.1% |
6.4% |
9.4% |
9.6% |
9.9% |
10.5% |
||||||||||||||||||||||||
United States |
3.6% |
3.1% |
4.5% |
4.4% |
6.8% |
7.5% |
7.5% |
8.4% |
||||||||||||||||||||||||
Housing Price Index (2)
|
||||||||||||||||||||||||||||||||
Canada (3)
|
3.9% |
5.8% |
(0.4)% |
3.4% |
(10.5)% |
(0.7)% |
(19.4)% |
(5.0)% |
||||||||||||||||||||||||
United States (4)
|
3.7% |
3.9% |
0.7% |
2.4% |
(11.6)% |
(1.1)% |
(20.0)% |
(4.3)% |
||||||||||||||||||||||||
As at October 31, 2024 |
||||||||||||||||||||||||||||||||
Scenarios |
||||||||||||||||||||||||||||||||
All figures are average annual values |
Upside |
Base |
Downside |
Severe downside |
||||||||||||||||||||||||||||
First 12 months |
Remaining horizon (1) |
First 12 months |
Remaining horizon (1) |
First 12 months |
Remaining horizon (1) |
First 12 months |
Remaining horizon (1) |
|||||||||||||||||||||||||
Real GDP growth rates (2)
|
||||||||||||||||||||||||||||||||
Canada |
4.6% |
2.6% |
1.8% |
1.9% |
(2.3)% |
1.3% |
(3.6)% |
1.2% |
||||||||||||||||||||||||
United States |
4.3% |
2.4% |
1.9% |
1.9% |
(2.1)% |
1.4% |
(3.4)% |
1.3% |
||||||||||||||||||||||||
Corporate BBB 10-year spread |
||||||||||||||||||||||||||||||||
Canada |
1.3% |
1.8% |
1.9% |
2.0% |
3.6% |
3.0% |
4.2% |
3.5% |
||||||||||||||||||||||||
United States |
0.9% |
1.6% |
1.6% |
2.0% |
3.4% |
3.1% |
4.6% |
3.6% |
||||||||||||||||||||||||
Unemployment rates |
||||||||||||||||||||||||||||||||
Canada |
5.3% |
4.8% |
7.0% |
6.8% |
8.8% |
9.4% |
9.8% |
10.5% |
||||||||||||||||||||||||
United States |
3.4% |
3.0% |
4.7% |
4.4% |
6.7% |
7.3% |
7.6% |
8.4% |
||||||||||||||||||||||||
Housing Price Index (2)
|
||||||||||||||||||||||||||||||||
Canada (3)
|
5.9% |
5.4% |
1.6% |
3.0% |
(10.9)% |
(1.0)% |
(19.0)% |
(5.0)% |
||||||||||||||||||||||||
United States (4)
|
5.9% |
4.0% |
2.8% |
2.6% |
(9.6)% |
(1.0)% |
(19.3)% |
(4.3)% |
||||||||||||||||||||||||
(1) |
The remaining forecast period is two years. |
(2) |
Real gross domestic product (GDP) and housing price index are averages of quarterly year-over-year growth rates. |
(3) |
In Canada, we use the Housing Price Index Benchmark Composite. |
(4) |
In the United States, we use the National Case-Shiller House Price Index. |
BMO Financial Group 208th Annual Report 2025 |
151 |
152 |
BMO Financial Group 208th Annual Report 2025 |
(Canadian $ in millions) |
2025 |
2024 |
||||||||||||||
Carrying value |
Fair value |
Carrying value (1) |
Fair value |
|||||||||||||
| Assets |
||||||||||||||||
| Trading securities (2)
|
$ |
22 |
$ |
– |
$ | 106 | $ | – | ||||||||
| Loans |
10,525 |
– |
9,277 | – | ||||||||||||
| Other related assets (3)
|
6,752 |
– |
6,952 | – | ||||||||||||
| Total |
$ |
17,299 |
$ |
17,209 |
$ | 16,335 | $ | 16,118 | ||||||||
| Associated liabilities (4)
|
$ |
16,977 |
$ |
16,815 |
$ | 15,790 | $ | 15,598 | ||||||||
| (1) | Carrying value of loans is net of ACL, where applicable. |
| (2) | Trading securities represent CMO issued by third-party sponsored vehicles, where we do not substantially transfer all of the risks and rewards of ownership to third-party investors. |
| (3) | Other related assets represent payments received on account of mortgages pledged under securitization programs that have not yet been applied against the associated liabilities. The payments received are held in permitted instruments on behalf of investors in the securitization vehicles until principal payments are required to be made on the associated liabilities. In order to compare all assets supporting the associated liabilities, this amount is added to the carrying value of the securitized assets in the table above. |
| (4) | Associated liabilities are recognized in securitization and structured entities’ liabilities in our Consolidated Balance Sheet. |
BMO Financial Group 208th Annual Report 2025 |
153 |
(Canadian $ in millions) |
2025 |
2024 |
||||||||||||||
Carrying value |
Fair value |
Carrying value |
Fair value |
|||||||||||||
| Assets |
||||||||||||||||
| Credit cards |
$ |
10,071 |
$ |
10,071 |
$ | 10,964 | $ | 10,964 | ||||||||
| Consumer instalment and other personal (2)
|
5,158 |
5,152 |
3,732 | 3,728 | ||||||||||||
| Total |
$ |
15,229 |
$ |
15,223 |
$ | 14,696 | $ | 14,692 | ||||||||
| Associated liabilities (3)
|
$ |
7,017 |
$ |
7,068 |
$ | 9,151 | $ | 9,146 | ||||||||
| (1) | Carrying value of loans is net of ACL. |
| (2) | Includes real estate lines of credit in 2025 and real estate lines of credit and auto loans in 2024. |
| (3) | Associated liabilities are recognized in securitization and structured entities’ liabilities in our Consolidated Balance Sheet. |
154 |
BMO Financial Group 208th Annual Report 2025 |
| (Canadian $ in millions) | 2025 |
2024 | ||||||||||||||||||||||
|
Customer securitization vehicles |
Capital vehicles |
Other securitization vehicles |
Customer securitization vehicles (1) |
Capital vehicles |
Other securitization vehicles |
|||||||||||||||||||
| Interests recorded in our Consolidated Balance Sheet |
|
|||||||||||||||||||||||
| Financial Assets |
||||||||||||||||||||||||
| Cash and cash equivalents |
$ |
104 |
$ |
4,519 |
$ |
– |
$ | 107 | $ | 5,536 | $ | – | ||||||||||||
| Trading securities |
12 |
– |
32,048 |
170 | – | 21,485 | ||||||||||||||||||
| FVTPL securities |
84 |
– |
– |
40 | – | – | ||||||||||||||||||
| FVOCI securities |
1,465 |
– |
– |
1,484 | – | – | ||||||||||||||||||
| Derivatives |
3 |
– |
– |
1 | – | – | ||||||||||||||||||
| Other |
48 |
2 |
181 |
8 | – | 169 | ||||||||||||||||||
| Total |
$ |
1,716 |
$ |
4,521 |
$ |
32,229 |
$ | 1,810 | $ | 5,536 | $ | 21,654 | ||||||||||||
| Financial Liabilities |
||||||||||||||||||||||||
| Deposits |
$ |
104 |
$ |
4,519 |
$ |
– |
$ | 107 | $ | 5,536 | $ | – | ||||||||||||
| Derivatives |
– |
– |
– |
3 | – | – | ||||||||||||||||||
| Other |
– |
62 |
– |
– | 87 | – | ||||||||||||||||||
| Total |
$ |
104 |
$ |
4,581 |
$ |
– |
$ | 110 | $ | 5,623 | $ | – | ||||||||||||
| Maximum exposure to loss (2)
|
$ |
21,290 |
$ |
1 |
$ |
32,229 |
$ | 20,998 | $ | 1 | $ | 21,654 | ||||||||||||
| Total assets of the entities |
$ |
12,866 |
$ |
4,581 |
$ |
112,946 |
$ | 12,956 | $ | 5,624 | $ | 87,611 | ||||||||||||
| (1) | Securities held that are issued by our Canadian and U.S. customer securitization vehicles comprise asset-backed commercial paper (ABCP) and are classified as either trading securities, FVTPL securities or FVOCI securities. |
| (2) | Maximum exposure to loss represents securities held, undrawn liquidity facilities, any remaining unfunded committed amounts to the BMO funded vehicle, derivative assets and other assets. |
BMO Financial Group 208th Annual Report 2025 |
155 |
• |
Interest rate swaps – counterparties generally exchange fixed and floating rate interest payments based on a notional value in a single currency. |
• |
Cross-currency swaps – counterparties exchange fixed rate interest payments and principal amounts in different currencies. |
• |
Cross-currency interest rate swaps – counterparties exchange fixed and/or floating rate interest payments and principal amounts in different currencies. |
• |
Commodity swaps – counterparties generally exchange fixed and floating rate payments based on a notional value of a single commodity. |
• |
Equity swaps – counterparties exchange the return on an equity security or a group of equity securities for the return based on a fixed or floating interest rate or the return on another equity security or group of equity securities. |
• |
Credit default swaps – one counterparty pays the other a fee in exchange for that other counterparty agreeing to make a payment if a credit event occurs, such as bankruptcy or failure to pay. |
• |
Total return swaps – one counterparty agrees to pay or receive from the other cash amounts based on changes in the value of a reference asset or group of assets, including returns such as interest earned on these assets, in exchange for amounts that are based on prevailing market funding rates. |
156 |
BMO Financial Group 208th Annual Report 2025 |
BMO Financial Group 208th Annual Report 2025 |
157 |
(Canadian $ in millions) |
2025 |
2024 |
||||||||||||||||||||||
Gross assets |
Gross liabilities |
Net |
Gross assets |
Gross liabilities |
Net |
|||||||||||||||||||
| Trading |
||||||||||||||||||||||||
| Interest Rate Contracts |
||||||||||||||||||||||||
| Swaps |
$ |
2,081 |
$ |
(4,905 |
) |
$ |
(2,824 |
) |
$ | 3,203 | $ | (5,707 | ) | $ | (2,504 | ) | ||||||||
| Forward rate agreements |
96 |
(155 |
) |
(59 |
) |
477 | (281 | ) | 196 | |||||||||||||||
| Purchased options |
2,783 |
– |
2,783 |
2,574 | – | 2,574 | ||||||||||||||||||
| Written options |
– |
(2,639 |
) |
(2,639 |
) |
– | (2,341 | ) | (2,341 | ) | ||||||||||||||
| Futures |
4 |
(10 |
) |
(6 |
) |
21 | (10 | ) | 11 | |||||||||||||||
| Foreign Exchange Contracts (1)
|
||||||||||||||||||||||||
| Cross-currency swaps |
2,796 |
(311 |
) |
2,485 |
1,989 | (1,378 | ) | 611 | ||||||||||||||||
| Cross-currency interest rate swaps |
11,078 |
(12,349 |
) |
(1,271 |
) |
9,777 | (10,867 | ) | (1,090 | ) | ||||||||||||||
| Forward foreign exchange contracts |
13,535 |
(10,458 |
) |
3,077 |
8,150 | (6,096 | ) | 2,054 | ||||||||||||||||
| Purchased options |
1,534 |
– |
1,534 |
657 | – | 657 | ||||||||||||||||||
| Written options |
– |
(1,362 |
) |
(1,362 |
) |
– | (528 | ) | (528 | ) | ||||||||||||||
| Commodity Contracts |
||||||||||||||||||||||||
| Swaps |
1,004 |
(1,082 |
) |
(78 |
) |
1,023 | (1,097 | ) | (74 | ) | ||||||||||||||
| Purchased options |
257 |
– |
257 |
644 | – | 644 | ||||||||||||||||||
| Written options |
– |
(304 |
) |
(304 |
) |
– | (607 | ) | (607 | ) | ||||||||||||||
| Futures |
201 |
(222 |
) |
(21 |
) |
160 | (117 | ) | 43 | |||||||||||||||
| Equity Contracts |
16,459 |
(20,973 |
) |
(4,514 |
) |
14,194 | (25,673 | ) | (11,479 | ) | ||||||||||||||
| Credit Contracts |
||||||||||||||||||||||||
| Purchased |
– |
– |
– |
1 | (10 | ) | (9 | ) | ||||||||||||||||
| Written |
1 |
– |
1 |
9 | (1 | ) | 8 | |||||||||||||||||
| Total fair value – trading derivatives |
$ |
51,829 |
$ |
(54,770 |
) |
$ |
(2,941 |
) |
$ | 42,879 | $ | (54,713 | ) | $ | (11,834 | ) | ||||||||
| Hedging |
||||||||||||||||||||||||
| Interest Rate Contracts (2)
|
||||||||||||||||||||||||
| Cash flow hedges – swaps |
$ |
2,931 |
$ |
(464 |
) |
$ |
2,467 |
$ | 2,148 | $ | (915 | ) | $ | 1,233 | ||||||||||
| Fair value hedges – swaps |
786 |
(1,926 |
) |
(1,140 |
) |
1,464 | (1,589 | ) | (125 | ) | ||||||||||||||
| Total swaps |
3,717 |
(2,390 |
) |
1,327 |
3,612 | (2,504 | ) | 1,108 | ||||||||||||||||
| Foreign Exchange Contracts |
||||||||||||||||||||||||
| Cash flow hedges |
1,576 |
(1,553 |
) |
23 |
699 | (1,080 | ) | (381 | ) | |||||||||||||||
| Fair value hedges |
– |
– |
– |
– | (2 | ) | (2 | ) | ||||||||||||||||
| Net investment hedges |
– |
(16 |
) |
(16 |
) |
– | (4 | ) | (4 | ) | ||||||||||||||
| Total foreign exchange contracts |
1,576 |
(1,569 |
) |
7 |
699 | (1,086 | ) | (387 | ) | |||||||||||||||
| Equity Contracts |
||||||||||||||||||||||||
| Cash flow hedges |
29 |
– |
29 |
63 | – | 63 | ||||||||||||||||||
| Total equity contracts |
29 |
– |
29 |
63 | – | 63 | ||||||||||||||||||
| Total fair value – hedging derivatives (3)
|
5,322 |
(3,959 |
) |
1,363 |
4,374 | (3,590 | ) | 784 | ||||||||||||||||
| Total fair value – trading and hedging derivatives |
57,151 |
(58,729 |
) |
(1,578 |
) |
47,253 | (58,303 | ) | (11,050 | ) | ||||||||||||||
| Less: impact of master netting agreements |
(43,254 |
) |
43,254 |
– |
(31,576 | ) | 31,576 | – | ||||||||||||||||
| Total |
$ |
13,897 |
$ |
(15,475 |
) |
$ |
(1,578 |
) |
$ | 15,677 | $ | (26,727 | ) | $ | (11,050 | ) | ||||||||
| (1) | Gold contracts are included in foreign exchange contracts. |
| (2) | Includes the fair value of bond futures in fair value hedges rounded down to $nil million as at October 31, 2025 ($nil million as at October 31, 2024). |
| (3) | The fair values of hedging derivatives wholly or partially offset the changes in fair values of the related on-balance sheet financial instruments. |
158 |
BMO Financial Group 208th Annual Report 2025 |
(Canadian $ in millions) |
2025 |
2024 |
||||||||||||||||||||||
Exchange-traded |
Over-the-counter |
Total |
Exchange-traded |
Over-the-counter |
Total |
|||||||||||||||||||
| Interest Rate Contracts |
||||||||||||||||||||||||
| Swaps |
$ |
– |
$ |
14,178,539 |
$ |
14,178,539 |
$ | – | $ | 16,390,827 | $ | 16,390,827 | ||||||||||||
| Forward rate agreements |
– |
841,547 |
841,547 |
– | 3,414,449 | 3,414,449 | ||||||||||||||||||
| Purchased options |
130,231 |
369,216 |
499,447 |
136,796 | 253,694 | 390,490 | ||||||||||||||||||
| Written options |
54,221 |
385,166 |
439,387 |
26,468 | 255,721 | 282,189 | ||||||||||||||||||
| Futures |
1,737,629 |
– |
1,737,629 |
1,735,442 | – | 1,735,442 | ||||||||||||||||||
| Total interest rate contracts |
1,922,081 |
15,774,468 |
17,696,549 |
1,898,706 | 20,314,691 | 22,213,397 | ||||||||||||||||||
| Foreign Exchange Contracts (1)
|
||||||||||||||||||||||||
| Cross-currency swaps |
– |
63,306 |
63,306 |
– | 64,100 | 64,100 | ||||||||||||||||||
| Cross-currency interest rate swaps |
– |
1,235,923 |
1,235,923 |
– | 891,272 | 891,272 | ||||||||||||||||||
| Forward foreign exchange contracts |
– |
939,971 |
939,971 |
– | 679,250 | 679,250 | ||||||||||||||||||
| Purchased options |
6,800 |
98,391 |
105,191 |
3,572 | 76,576 | 80,148 | ||||||||||||||||||
| Written options |
5,645 |
107,570 |
113,215 |
3,248 | 88,210 | 91,458 | ||||||||||||||||||
| Futures |
10,864 |
– |
10,864 |
1,751 | – | 1,751 | ||||||||||||||||||
| Total foreign exchange contracts |
23,309 |
2,445,161 |
2,468,470 |
8,571 | 1,799,408 | 1,807,979 | ||||||||||||||||||
| Commodity Contracts |
||||||||||||||||||||||||
| Swaps |
– |
22,128 |
22,128 |
– | 20,328 | 20,328 | ||||||||||||||||||
| Purchased options |
25,126 |
6,706 |
31,832 |
43,931 | 5,495 | 49,426 | ||||||||||||||||||
| Written options |
26,830 |
4,090 |
30,920 |
45,440 | 4,268 | 49,708 | ||||||||||||||||||
| Futures |
38,470 |
– |
38,470 |
36,071 | – | 36,071 | ||||||||||||||||||
| Total commodity contracts |
90,426 |
32,924 |
123,350 |
125,442 | 30,091 | 155,533 | ||||||||||||||||||
| Equity Contracts |
256,701 |
187,279 |
443,980 |
333,126 | 138,034 | 471,160 | ||||||||||||||||||
| Credit Contracts |
||||||||||||||||||||||||
| Purchased |
– |
31,760 |
31,760 |
– | 23,350 | 23,350 | ||||||||||||||||||
| Written |
– |
23,507 |
23,507 |
– | 16,211 | 16,211 | ||||||||||||||||||
| Total credit contracts |
– |
55,267 |
55,267 |
– | 39,561 | 39,561 | ||||||||||||||||||
| Total |
$ |
2,292,517 |
$ |
18,495,099 |
$ |
20,787,616 |
$ | 2,365,845 | $ | 22,321,785 | $ | 24,687,630 | ||||||||||||
BMO Financial Group 208th Annual Report 2025 |
159 |
(Canadian $ in millions, except as noted) |
Remaining term to maturity |
2025 |
2024 |
|||||||||||||||||||||||||||
| Within 1 year |
1 to 3 years |
3 to 5 years |
5 to 10 years |
Over 10 years |
Total |
Total |
||||||||||||||||||||||||
| Cash Flow Hedges |
||||||||||||||||||||||||||||||
| Interest rate risk – Interest rate swaps |
||||||||||||||||||||||||||||||
| Notional amount |
$ |
85,536
|
$ |
84,666
|
$ |
54,048
|
$ |
31,409
|
$ |
5,440
|
$ |
261,099
|
$ |
266,872
|
||||||||||||||||
| Average fixed interest rate |
3.49 % |
3.06 % |
3.53 % |
3.22 % |
3.87 % |
3.33 % |
3.75 % |
|||||||||||||||||||||||
| Foreign exchange risk – Cross-currency swaps and foreign exchange forwards (1)
|
||||||||||||||||||||||||||||||
| CAD-USD pair |
Notional amount |
10,865 |
16,681 |
11,303 |
334 |
50 |
39,233 |
40,933 |
||||||||||||||||||||||
Average fixed interest rate |
3.46 % |
3.49 % |
2.99 % |
3.68 % |
2.83 % |
3.34 % |
3.14 % |
|||||||||||||||||||||||
Average exchange rate: CAD-USD
|
1.3341 |
1.3258 |
1.3560 |
1.3157 |
1.2327 |
1.3366 |
1.3252 |
|||||||||||||||||||||||
| CAD-EUR pair |
Notional amount |
6,732 |
8,066 |
3,310 |
1,807 |
– |
19,915 |
17,399 |
||||||||||||||||||||||
Average fixed interest rate |
3.74 % |
3.08 % |
3.21 % |
3.77 % |
– |
3.39 % |
3.47 % |
|||||||||||||||||||||||
Average exchange rate: CAD-EUR
|
1.4190 |
1.4588 |
1.4711 |
1.5935 |
– |
1.4596 |
1.4293 |
|||||||||||||||||||||||
| Other currency pairs (2)
|
Notional amount |
5,219 |
2,511 |
2,379 |
134 |
– |
10,243 |
9,927 |
||||||||||||||||||||||
Average fixed interest rate |
2.63 % |
4.23 % |
4.12 % |
5.13 % |
– |
3.40 % |
3.26 % |
|||||||||||||||||||||||
Average exchange rate: CAD-Non USD/EUR
|
1.7080 |
1.5621 |
1.3796 |
0.5717 |
– |
1.5812 |
1.5391 |
|||||||||||||||||||||||
| Equity price risk – Total return swap |
||||||||||||||||||||||||||||||
| Notional amount |
552 |
– |
– |
– |
– |
552 |
480 |
|||||||||||||||||||||||
| Fair Value Hedges |
||||||||||||||||||||||||||||||
| Interest rate risk – Interest rate swaps |
||||||||||||||||||||||||||||||
| Notional amount |
65,785 |
59,859 |
58,913 |
31,494 |
4,458 |
220,509 |
188,278 |
|||||||||||||||||||||||
| Average fixed interest rate |
3.52 % |
3.62 % |
3.49 % |
3.60 % |
3.82 % |
3.56 % |
3.99 % |
|||||||||||||||||||||||
| Interest rate risk – Bond futures (exchange-traded derivatives) |
||||||||||||||||||||||||||||||
| Notional amount |
432 |
– |
– |
– |
– |
432 |
1,479 |
|||||||||||||||||||||||
| Average price in dollars |
154 |
– |
– |
– |
– |
154 |
108 |
|||||||||||||||||||||||
| Foreign exchange risk – Cross-currency swaps |
||||||||||||||||||||||||||||||
| USD-EUR pair |
Notional amount |
– |
– |
– |
– |
– |
– |
21 |
||||||||||||||||||||||
Average fixed interest rate |
– |
– |
– |
– |
– |
– |
3.25 % |
|||||||||||||||||||||||
Average exchange rate: USD-EUR
|
– |
– |
– |
– |
– |
– |
0.9706 |
|||||||||||||||||||||||
| Net Investment Hedges |
||||||||||||||||||||||||||||||
| Foreign exchange risk – Cross-currency swaps and foreign exchange forwards |
||||||||||||||||||||||||||||||
| CAD-CNH pair |
Notional amount |
669 |
– |
– |
– |
– |
669 |
677 |
||||||||||||||||||||||
| Foreign exchange risk – Deposit liabilities |
||||||||||||||||||||||||||||||
| USD denominated deposit – carrying amount |
22,395 |
– |
– |
– |
– |
22,395 |
16,053 |
|||||||||||||||||||||||
| GBP denominated deposit – carrying amount |
355 |
– |
– |
– |
– |
355 |
300 |
|||||||||||||||||||||||
(1) |
Under certain hedge strategies using cross-currency swaps, a CAD leg is inserted to create two swaps designated as separate hedges (for example, a EUR-USD cross-currency swap split into EUR-CAD and CAD-USD cross-currency swaps). The relevant notional amount is grossed up in this table, as the cross-currency swaps are disclosed by CAD-foreign currency pair. |
(2) |
Includes CAD-AUD, CAD-CHF, CAD-CNH, CAD-GBP, CAD-HKD, CAD-JPY or CAD-NOK cross-currency swaps, where applicable. |
160 |
BMO Financial Group 208th Annual Report 2025 |
(Canadian $ in millions) |
2025 |
|||||||||||||||||||||||
Carrying amount of hedging instruments |
Hedge ineffectiveness |
|||||||||||||||||||||||
Asset |
Liability |
Gains (losses) on hedging derivatives used to calculate hedge ineffectiveness |
Gains (losses) on hypothetical derivatives used to calculate hedge ineffectiveness |
Ineffectiveness recorded in non-interest revenue,
other revenues |
||||||||||||||||||||
| Cash Flow Hedges |
||||||||||||||||||||||||
| Interest rate risk – Interest rate swaps |
$ |
2,931 |
$ |
(464 |
) |
$ 1,319 |
$ (1,382 |
) |
$ 3 |
|||||||||||||||
| Foreign exchange risk – Cross-currency swaps and foreign exchange forwards |
1,576 |
(1,553 |
) |
(214 |
) |
214 |
– |
|||||||||||||||||
| Equity price risk – Total return swaps |
29 |
– |
258 |
(258 |
) |
– |
||||||||||||||||||
4,536 |
(2,017 |
) |
1,363 |
(1,426 |
) |
3 |
||||||||||||||||||
| Net Investment Hedges |
||||||||||||||||||||||||
| Foreign exchange risk – Cross-currency swaps and foreign exchange forwards |
– |
(16 |
) |
(5 |
) |
3 |
(2 |
) | ||||||||||||||||
| Foreign exchange risk – Deposit liabilities |
– |
(22,750 |
) |
(102 |
) |
102 |
– |
|||||||||||||||||
| Total |
$ |
4,536 |
$ |
(24,783 |
) |
$ 1,256 |
$ (1,321 |
) |
$ 1 |
|||||||||||||||
2024 |
||||||||||||||||||||||||
| Carrying amount of hedging instruments (1) |
Hedge ineffectiveness |
|||||||||||||||||||||||
Asset |
Liability |
Gains (losses) on hedging derivatives used to calculate hedge ineffectiveness (2) |
Gains (losses) on hypothetical derivatives used to calculate hedge ineffectiveness (2) |
Ineffectiveness recorded in non-interest revenue,
other revenues |
||||||||||||||||||||
| Cash Flow Hedges |
||||||||||||||||||||||||
| Interest rate risk – Interest rate swaps |
$ |
2,148 |
$ |
(915 |
) |
$ 3,552 |
$ (3,615 |
) |
$ (12 |
) | ||||||||||||||
| Foreign exchange risk – Cross-currency swaps and foreign exchange forwards |
699 |
(1,080 |
) |
(251 |
) |
251 |
– |
|||||||||||||||||
| Equity price risk – Total return swaps |
63 |
– |
165 |
(165 |
) |
– |
||||||||||||||||||
2,910 |
(1,995 |
) |
3,466 |
(3,529 |
) |
(12 |
) | |||||||||||||||||
| Net Investment Hedges |
||||||||||||||||||||||||
| Foreign exchange risk – Cross-currency swaps and foreign exchange forwards |
– |
(4 |
) |
(23 |
) |
19 |
(4 |
) | ||||||||||||||||
| Foreign exchange risk – Deposit liabilities |
– |
(16,353 |
) |
(119 |
) |
119 |
– |
|||||||||||||||||
| Total |
$ |
2,910 |
$ |
(18,352 |
) |
$ 3,324 |
$ (3,391 |
) |
$ (16 |
) | ||||||||||||||
(1) |
Represents unrealized gains (losses) recorded as part of derivative instruments in assets and liabilities, respectively, in our Consolidated Balance Sheet. |
(2) |
Represents life to date amounts. |
BMO Financial Group 208th Annual Report 2025 |
161 |
(Canadian $ in millions) |
2025 |
|||||||||||||||||||||||||||
Balance in cash flow hedge AOCI / net foreign operations AOCI |
||||||||||||||||||||||||||||
Balance October 31, 2024 |
Gains / (losses) recognized in OCI |
Amount reclassified to net income as the hedged item affects net income |
Balance October 31, 2025 |
Active hedges |
Discontinued hedges |
|||||||||||||||||||||||
| Cash Flow Hedges |
||||||||||||||||||||||||||||
| Interest rate risk |
$ (2,480 |
) |
$ |
1,316 |
$ 1,600 |
$ 436 |
$ 2,453 |
$ (2,017 |
) | |||||||||||||||||||
| Foreign exchange risk |
357 |
(214 |
) |
(1 |
) |
142 |
142 |
– |
||||||||||||||||||||
| Equity price risk |
77 |
258 |
(151 |
) |
184 |
184 |
– |
|||||||||||||||||||||
(2,046 |
) |
1,360 |
1,448 |
762 |
2,779 |
(2,017 |
) | |||||||||||||||||||||
| Net Investment Hedges |
||||||||||||||||||||||||||||
| Foreign exchange risk |
(2,324 |
) |
(105 |
) |
– |
(2,429 |
) |
(2,429 |
) |
– |
||||||||||||||||||
| Total |
$ (4,370 |
) |
$ |
1,255 |
$ 1,448 |
$ (1,667 |
) |
$ 350 |
$ (2,017 |
) | ||||||||||||||||||
2024 |
||||||||||||||||||||||||||||
Balance in cash flow hedge AOCI / net foreign operations AOCI |
||||||||||||||||||||||||||||
Balance October 31, 2023 |
Gains / (losses) recognized in OCI |
Amount reclassified to net income as the hedged item affects net income |
Balance October 31, 2024 (1) (2) |
Active hedges |
Discontinued hedges |
|||||||||||||||||||||||
| Cash Flow Hedges |
||||||||||||||||||||||||||||
| Interest rate risk |
$ (8,015 |
) |
$ |
3,564 |
$ 1,971 |
$ (2,480 |
) |
$ 1,695 |
$ (4,175 |
) | ||||||||||||||||||
| Foreign exchange risk |
610 |
(251 |
) |
(2 |
) |
357 |
357 |
– |
||||||||||||||||||||
| Equity price risk |
(72 |
) |
165 |
(16 |
) |
77 |
77 |
– |
||||||||||||||||||||
(7,477 |
) |
3,478 |
1,953 |
(2,046 |
) |
2,129 |
(4,175 |
) | ||||||||||||||||||||
| Net Investment Hedges |
||||||||||||||||||||||||||||
| Foreign exchange risk |
(2,186 |
) |
(138 |
) |
– |
(2,324 |
) |
(2,324 |
) |
– |
||||||||||||||||||
| Total |
$ (9,663 |
) |
$ |
3,340 |
$ 1,953 |
$ (4,370 |
) |
$ (195 |
) |
$ (4,175 |
) | |||||||||||||||||
| (1) | Tax balance related to cash flow hedges accumulated other comprehensive income was $(235) million as at October 31, 2025 ($527 million as at October 31, 2024). |
| (2) | Tax balance related to net investment hedges accumulated other comprehensive income was $ 622 million as at October 31, 2025 ($593 million as at October 31, 2024). |
(Canadian $ in millions) |
2025 |
|||||||||||||||||||||||||||||||||||
Carrying amount of hedging derivatives |
Hedge ineffectiveness |
Accumulated amount of fair value hedge gains (losses) on hedged items |
||||||||||||||||||||||||||||||||||
Asset |
Liability |
Gains (losses) on hedging derivatives used to calculate hedge ineffectiveness |
Gains (losses) on hedged item used to calculate hedge ineffectiveness |
Ineffectiveness recorded in non-interest
revenue, other revenues |
Carrying amount of the hedged item |
Active hedges |
Discontinued hedges |
|||||||||||||||||||||||||||||
| Fair Value Hedge (3)
|
||||||||||||||||||||||||||||||||||||
| Interest rate swaps |
$ |
786 |
$ |
(1,926 |
) |
$ – |
$ – |
$ – |
$ – |
$ – |
$ – |
|||||||||||||||||||||||||
| Cross-currency swaps |
– |
– |
– |
– |
– |
– |
– |
– |
||||||||||||||||||||||||||||
| Securities and loans |
– |
– |
(1,204 |
) |
1,170 |
(34 |
) |
133,830 |
1,747 |
(1,902 |
) | |||||||||||||||||||||||||
| Deposits, subordinated debt and other liabilities |
– |
– |
291 |
(286 |
) |
5 |
(77,224 |
) |
(361 |
) |
429 |
|||||||||||||||||||||||||
| Total |
$ |
786 |
$ |
(1,926 |
) |
$ (913 |
) |
$ 884 |
$ (29 |
) |
$ 56,606 |
$ 1,386 |
$ (1,473 |
) | ||||||||||||||||||||||
(1) |
Represents the unrealized gains (losses) within derivative instruments in assets and liabilities, respectively, in our Consolidated Balance Sheet. |
(2) |
Represents the carrying value in our Consolidated Balance Sheet and includes amortized cost, before ACL, plus fair value hedge adjustments, except for FVOCI securities that are carried at fair value. |
| (3) | Includes the fair value of bond futures rounded down to $nil million as at October 31, 2025. |
162 |
BMO Financial Group 208th Annual Report 2025 |
2024 |
||||||||||||||||||||||||||||||||||||
Carrying amount of hedging derivatives (1) |
Hedge ineffectiveness |
Accumulated amount of fair value hedge gains (losses) on hedged items |
||||||||||||||||||||||||||||||||||
Asset |
Liability |
Gains (losses) on hedging derivatives used to calculate hedge ineffectiveness |
Gains (losses) on hedged item used to calculate hedge ineffectiveness |
Ineffectiveness recorded in non-interest
revenue, other revenues |
Carrying amount of the hedged item (2) |
Active hedges |
Discontinued hedges |
|||||||||||||||||||||||||||||
| Fair Value Hedge (3)
|
||||||||||||||||||||||||||||||||||||
| Interest rate swaps |
$ | 1,464 | $ | (1,589 | ) | $ | – | $ | – | $ | – | $ | – | $ | – | $ | – | |||||||||||||||||||
| Cross-currency swaps |
– | (2 | ) | – | – | – | – | – | – | |||||||||||||||||||||||||||
| Securities and loans |
– | – | (3,266 | ) | 3,117 | (149 | ) | 118,397 | 741 | (1,293 | ) | |||||||||||||||||||||||||
| Deposits, subordinated debt and other liabilities |
– | – | 1,234 | (1,217 | ) | 17 | (65,156 | ) | (214 | ) | 930 | |||||||||||||||||||||||||
| Total |
$ | 1,464 | $ | (1,591 | ) | $ | (2,032 | ) | $ | 1,900 | $ | (132 | ) | $ | 53,241 | $ | 527 | $ | (363 | ) | ||||||||||||||||
| (1) | Represents the unrealized gains (losses) within derivative instruments in assets and liabilities, respectively, in our Consolidated Balance Sheet. |
| (2) | Represents the carrying value in our Consolidated Balance Sheet and includes amortized cost, before ACL, plus fair value hedge adjustments, except for FVOCI securities that are carried at fair value. |
| (3) | Includes the fair value of bond futures rounded down to $nil million as at October 31, 2024. |
BMO Financial Group 208th Annual Report 2025 |
163 |
(Canadian $ in millions) |
2025 |
2024 |
||||||||||||||||||||||
Replacement cost |
Credit risk equivalent |
Risk-weighted
assets |
Replacement cost (1) |
Credit risk equivalent (1) |
Risk-weighted
assets |
|||||||||||||||||||
| Interest Rate Contracts |
||||||||||||||||||||||||
| Over-the-counter |
||||||||||||||||||||||||
| Swaps |
$ |
1,839 |
$ |
7,493 |
$ |
1,501 |
$ | 2,404 | $ | 7,797 | $ | 1,125 | ||||||||||||
| Forward rate agreements |
391 |
3,448 |
858 |
650 | 2,696 | 600 | ||||||||||||||||||
| Purchased options |
511 |
1,066 |
452 |
42 | 338 | 188 | ||||||||||||||||||
| Written options |
8 |
245 |
66 |
2 | 211 | 78 | ||||||||||||||||||
2,749 |
12,252 |
2,877 |
3,098 | 11,042 | 1,991 | |||||||||||||||||||
| Exchange-traded |
||||||||||||||||||||||||
| Futures |
9 |
49 |
1 |
122 | 279 | 6 | ||||||||||||||||||
| Purchased options |
2 |
7 |
– |
8 | 19 | – | ||||||||||||||||||
| Written options |
2 |
5 |
– |
– | 1 | – | ||||||||||||||||||
13 |
61 |
1 |
130 | 299 | 6 | |||||||||||||||||||
| Total interest rate contracts |
2,762 |
12,313 |
2,878 |
3,228 | 11,341 | 1,997 | ||||||||||||||||||
| Foreign Exchange Contracts (2)
|
||||||||||||||||||||||||
| Over-the-counter |
||||||||||||||||||||||||
| Swaps |
1,927 |
8,407 |
779 |
1,559 | 7,218 | 825 | ||||||||||||||||||
| Forward foreign exchange contracts |
1,838 |
9,399 |
1,672 |
2,709 | 9,643 | 1,764 | ||||||||||||||||||
| Purchased options |
119 |
476 |
139 |
142 | 447 | 142 | ||||||||||||||||||
| Written options |
1 |
155 |
38 |
1 | 119 | 27 | ||||||||||||||||||
3,885 |
18,437 |
2,628 |
4,411 | 17,427 | 2,758 | |||||||||||||||||||
| Exchange-traded |
||||||||||||||||||||||||
| Futures |
– |
1 |
– |
– | 1 | – | ||||||||||||||||||
| Purchased options |
– |
2 |
– |
– | 3 | – | ||||||||||||||||||
– |
3 |
– |
– | 4 | – | |||||||||||||||||||
| Total foreign exchange contracts |
3,885 |
18,440 |
2,628 |
4,411 | 17,431 | 2,758 | ||||||||||||||||||
| Commodity Contracts |
||||||||||||||||||||||||
| Over-the-counter |
||||||||||||||||||||||||
| Swaps |
1,165 |
4,822 |
1,228 |
993 | 4,256 | 1,035 | ||||||||||||||||||
| Purchased options |
205 |
688 |
308 |
155 | 484 | 182 | ||||||||||||||||||
| Written options |
4 |
366 |
140 |
10 | 246 | 86 | ||||||||||||||||||
1,374 |
5,876 |
1,676 |
1,158 | 4,986 | 1,303 | |||||||||||||||||||
| Exchange-traded |
||||||||||||||||||||||||
| Futures |
246 |
1,028 |
21 |
176 | 594 | 12 | ||||||||||||||||||
| Purchased options |
28 |
178 |
4 |
179 | 319 | 6 | ||||||||||||||||||
| Written options |
15 |
157 |
3 |
– | 73 | 1 | ||||||||||||||||||
289 |
1,363 |
28 |
355 | 986 | 19 | |||||||||||||||||||
| Total commodity contracts |
1,663 |
7,239 |
1,704 |
1,513 | 5,972 | 1,322 | ||||||||||||||||||
| Equity Contracts |
||||||||||||||||||||||||
| Over-the-counter |
306 |
10,247 |
2,132 |
199 | 8,625 | 1,645 | ||||||||||||||||||
| Exchange-traded |
2,036 |
3,909 |
78 |
675 | 2,899 | 58 | ||||||||||||||||||
| Total equity contracts |
2,342 |
14,156 |
2,210 |
874 | 11,524 | 1,703 | ||||||||||||||||||
| Credit Contracts |
24 |
177 |
22 |
103 | 309 | 39 | ||||||||||||||||||
| Total |
$ |
10,676 |
$ |
52,325 |
$ |
9,442 |
$ | 10,129 | $ | 46,577 | $ | 7,819 | ||||||||||||
| (1) | Replacement cost and credit risk equivalent are presented after the impact of master netting agreements and calculated using the Standardized Approach for Counterparty Credit Risk (SA-CCR) in accordance with the CAR Guideline issued by OSFI. This table therefore excludes loan commitment derivatives. |
| (2) | Gold contracts are included in foreign exchange contracts. |
164 |
BMO Financial Group 208th Annual Report 2025 |
(Canadian $ in millions) |
Term to maturity |
2025 |
2024 |
|||||||||||||||||||||||||||||
Within 1 year |
1 to 3 years |
3 to 5 years |
5 to 10 years |
Over 10 years |
Total notional amounts |
Total notional amounts |
||||||||||||||||||||||||||
| Interest Rate Contracts |
||||||||||||||||||||||||||||||||
| Swaps |
$ |
4,452,781 |
$ |
4,418,207 |
$ |
2,451,659 |
$ |
2,271,601 |
$ |
1,065,819 |
$ |
14,660,067 |
$ | 16,845,977 | ||||||||||||||||||
| Forward rate agreements, futures and options |
2,435,842 |
937,140 |
123,894 |
17,334 |
4,232 |
3,518,442 |
5,824,049 | |||||||||||||||||||||||||
| Total interest rate contracts |
6,888,623 |
5,355,347 |
2,575,553 |
2,288,935 |
1,070,051 |
18,178,509 |
22,670,026 | |||||||||||||||||||||||||
| Foreign Exchange Contracts (1)
|
||||||||||||||||||||||||||||||||
| Swaps |
349,612 |
447,928 |
271,998 |
224,379 |
77,590 |
1,371,507 |
1,002,323 | |||||||||||||||||||||||||
| Forward foreign exchange contracts |
903,972 |
27,903 |
4,423 |
1,336 |
3,006 |
940,640 |
679,927 | |||||||||||||||||||||||||
| Futures |
10,616 |
248 |
– |
– |
– |
10,864 |
1,751 | |||||||||||||||||||||||||
| Options |
194,461 |
21,524 |
2,089 |
332 |
– |
218,406 |
171,606 | |||||||||||||||||||||||||
| Total foreign exchange contracts |
1,458,661 |
497,603 |
278,510 |
226,047 |
80,596 |
2,541,417 |
1,855,607 | |||||||||||||||||||||||||
| Commodity Contracts |
||||||||||||||||||||||||||||||||
| Swaps |
15,030 |
6,088 |
601 |
409 |
– |
22,128 |
20,328 | |||||||||||||||||||||||||
| Futures |
24,278 |
12,212 |
1,492 |
488 |
– |
38,470 |
36,071 | |||||||||||||||||||||||||
| Options |
44,932 |
16,512 |
308 |
1,000 |
– |
62,752 |
99,134 | |||||||||||||||||||||||||
| Total commodity contracts |
84,240 |
34,812 |
2,401 |
1,897 |
– |
123,350 |
155,533 | |||||||||||||||||||||||||
| Equity Contracts |
354,512 |
65,709 |
17,852 |
5,796 |
663 |
444,532 |
471,640 | |||||||||||||||||||||||||
| Credit Contracts |
2,240 |
15,860 |
26,136 |
9,698 |
1,333 |
55,267 |
39,561 | |||||||||||||||||||||||||
| Total notional amount |
$ |
8,788,276 |
$ |
5,969,331 |
$ |
2,900,452 |
$ |
2,532,373 |
$ |
1,152,643 |
$ |
21,343,075 |
$ | 25,192,367 | ||||||||||||||||||
| (1) | Gold contracts are included in foreign exchange contracts. |
| Buildings |
10 to 40 years |
|||
| Computer equipment and operating system software |
5 to 7 years |
|||
| Other equipment |
10 years |
|||
| Leasehold improvements |
Lease term to a maximum of 10 years |
BMO Financial Group 208th Annual Report 2025 |
165 |
(Canadian $ in millions) |
||||||||||||||||||||||||
Land and buildings |
Computer equipment |
Other equipment |
Leasehold improvements |
Right-of-use assets |
Total |
|||||||||||||||||||
Cost |
||||||||||||||||||||||||
Balance at October 31, 2023 |
$ |
2,370 |
$ |
2,923 |
$ |
1,060 |
$ |
2,413 |
$ |
4,357 |
$ |
13,123 |
||||||||||||
Additions/lease modifications |
81 |
270 |
117 |
352 |
171 |
991 |
||||||||||||||||||
Disposals |
(48 |
) |
(22 |
) |
(11 |
) |
(26 |
) |
– |
(107 |
) |
|||||||||||||
Fully depreciated assets |
(32 |
) |
(694 |
) |
(257 |
) |
(71 |
) |
(96 |
) |
(1,150 |
) |
||||||||||||
Foreign exchange and other |
5 |
3 |
2 |
7 |
12 |
29 |
||||||||||||||||||
Balance at October 31, 2024 |
2,376 |
2,480 |
911 |
2,675 |
4,444 |
12,886 |
||||||||||||||||||
Additions/lease modifications |
86 |
358 |
67 |
209 |
287 |
1,007 |
||||||||||||||||||
Disposals |
(18 |
) |
(17 |
) |
(3 |
) |
(11 |
) |
(2 |
) |
(51 |
) |
||||||||||||
Fully depreciated assets |
(7 |
) |
(534 |
) |
(61 |
) |
(10 |
) |
(97 |
) |
(709 |
) |
||||||||||||
Foreign exchange and other |
8 |
5 |
3 |
8 |
24 |
48 |
||||||||||||||||||
Balance at October 31, 2025 |
$ |
2,445 |
$ |
2,292 |
$ |
917 |
$ |
2,871 |
$ |
4,656 |
$ |
13,181 |
||||||||||||
Accumulated Depreciation and Impairment |
||||||||||||||||||||||||
Balance at October 31, 2023 |
$ |
1,238 |
$ |
2,228 |
$ |
704 |
$ |
1,356 |
$ |
1,356 |
$ |
6,882 |
||||||||||||
Disposals |
(29 |
) |
(12 |
) |
(8 |
) |
(21 |
) |
– |
(70 |
) |
|||||||||||||
Depreciation |
64 |
261 |
76 |
167 |
402 |
970 |
||||||||||||||||||
Fully depreciated assets |
(32 |
) |
(694 |
) |
(257 |
) |
(71 |
) |
(96 |
) |
(1,150 |
) |
||||||||||||
Foreign exchange and other (1) |
1 |
(4 |
) |
(6 |
) |
5 |
9 |
5 |
||||||||||||||||
Balance at October 31, 2024 |
1,242 |
1,779 |
509 |
1,436 |
1,671 |
6,637 |
||||||||||||||||||
Disposals |
(16 |
) |
(15 |
) |
(1 |
) |
(7 |
) |
– |
(39 |
) |
|||||||||||||
Depreciation |
74 |
270 |
82 |
190 |
399 |
1,015 |
||||||||||||||||||
Fully depreciated assets |
(7 |
) |
(534 |
) |
(61 |
) |
(10 |
) |
(97 |
) |
(709 |
) |
||||||||||||
Foreign exchange and other (1) |
20 |
– |
(5 |
) |
2 |
8 |
25 |
|||||||||||||||||
Balance at October 31, 2025 |
$ |
1,313 |
$ |
1,500 |
$ |
524 |
$ |
1,611 |
$ |
1,981 |
$ |
6,929 |
||||||||||||
Net Carrying Value |
||||||||||||||||||||||||
Balance at October 31, 2025 |
$ |
1,132 |
$ |
792 |
$ |
393 |
$ |
1,260 |
$ |
2,675 |
$ |
6,252 |
||||||||||||
Balance at October 31, 2024 |
1,134 |
701 |
402 |
1,239 |
2,773 |
6,249 |
||||||||||||||||||
(1) |
Includes impairment charges. |
166 |
BMO Financial Group 208th Annual Report 2025 |
(Canadian $ in millions) |
||||||||||||||||||||||||||||
Canadian P&C |
U.S. Banking |
Wealth and Asset Management |
Insurance |
Total Wealth Management |
Capital Markets |
Total |
||||||||||||||||||||||
Balance at October 31, 2023 |
$ | 330 | $ | 15,610 | $ | 258 | $ |
2 | $ | 260 | $ | 528 | $ | 16,728 | ||||||||||||||
Foreign exchange and other |
– | 45 | – | – | – | 1 | 46 | |||||||||||||||||||||
Balance at October 31, 2024 |
330 | 15,655 | 258 | 2 | 260 | 529 | 16,774 | |||||||||||||||||||||
Write-downs |
– |
(102 |
)
(1)
|
– |
– |
– |
– |
(102 |
) |
|||||||||||||||||||
Foreign exchange and other |
– |
122 |
– |
– |
– |
3 |
125 |
|||||||||||||||||||||
Balance at October 31, 2025 |
$ |
330 |
$ |
15,675 |
$ |
258 |
$ |
2 |
$ |
260 |
$ |
532 |
$ |
16,797 |
||||||||||||||
| (1) | Relates to the sale of certain U.S. branches. Refer to Note 9. |
BMO Financial Group 208th Annual Report 2025 |
167 |
| (Canadian $ in millions) |
Customer relationships |
Core deposits |
Software – amortizing |
Software under development |
Other |
Total |
||||||||||||||||||
| Cost |
||||||||||||||||||||||||
| Balance at October 31, 2023 |
$ | 850 | $ | 3,553 | $ | 7,071 | $ | 324 | $ | 572 | $ | 12,370 | ||||||||||||
| Additions |
– | – | 22 | 782 | 48 | 852 | ||||||||||||||||||
| Transfers |
– | – | 688 | (688 | ) | – | – | |||||||||||||||||
| Fully amortized intangibles |
– | – | (1,696 | ) | – | (33 | ) | (1,729 | ) | |||||||||||||||
| Foreign exchange and other |
2 | 10 | 11 | (1 | ) | 1 | 23 | |||||||||||||||||
| Balance at October 31, 2024 |
852 | 3,563 | 6,096 |
(1) |
417 | 588 | 11,516 | |||||||||||||||||
| Additions |
– |
– |
71 |
938 |
39 |
1,048 |
||||||||||||||||||
| Transfers |
– |
– |
821 |
(821 |
) |
– |
– |
|||||||||||||||||
| Fully amortized intangibles |
(16 |
) |
– |
(673 |
) |
– |
(91 |
) |
(780 |
) | ||||||||||||||
| Foreign exchange and other |
– |
28 |
12 |
(2 |
) |
3 |
41 |
|||||||||||||||||
| Balance at October 31, 2025 |
$ |
836 |
$ |
3,591 |
$ |
6,327 |
(1) |
$ |
532 |
$ |
539 |
$ |
11,825 |
|||||||||||
| Accumulated Amortization |
||||||||||||||||||||||||
| Balance at October 31, 2023 |
$ | 487 | $ | 1,295 | $ | 5,073 | $ | – | $ | 299 | $ | 7,154 | ||||||||||||
| Amortization |
62 | 342 | 676 | – | 32 | 1,112 | ||||||||||||||||||
| Write-downs |
4 | – | 22 | – | – | 26 | ||||||||||||||||||
| Fully amortized intangibles |
– | – | (1,696 | ) | – | (33 | ) | (1,729 | ) | |||||||||||||||
| Foreign exchange and other |
3 | 10 | 15 | – | – | 28 | ||||||||||||||||||
| Balance at October 31, 2024 |
556 | 1,647 | 4,090 |
(1) |
– | 298 | 6,591 | |||||||||||||||||
| Amortization |
70 |
305 |
739 |
– |
38 |
1,152 |
||||||||||||||||||
| Write-downs |
14 |
– |
13 |
– |
49 |
76 |
||||||||||||||||||
| Fully amortized intangibles |
(16 |
) |
– |
(673 |
) |
– |
(91 |
) |
(780 |
) | ||||||||||||||
| Foreign exchange and other |
(1 |
) |
13 |
15 |
– |
1 |
28 |
|||||||||||||||||
| Balance at October 31, 2025 |
$ |
623 |
$ |
1,965 |
$ |
4,184 |
(1) |
$ |
– |
$ |
295 |
$ |
7,067 |
|||||||||||
| Net Carrying Value |
||||||||||||||||||||||||
| Balance at October 31, 2025 |
$ |
213 |
$ |
1,626 |
$ |
2,143 |
$ |
532 |
$ |
244 |
$ |
4,758 |
||||||||||||
| Balance at October 31, 2024 |
296 | 1,916 | 2,006 | 417 | 290 | 4,925 | ||||||||||||||||||
| (1) | Includes internally generated software of $5,752 million in cost and $3,760 million in accumulated amortization as at October 31, 2025 ($5,466 million in cost and $3,653 million in accumulated amortization as at October 31, 2024). |
168 |
BMO Financial Group 208th Annual Report 2025 |
| (Canadian $ in millions) | 2025 |
2024 | ||||||
| Accounts receivable, prepaid expenses and other items |
$ |
4,563 |
$ | 3,832 | ||||
| Accrued interest receivable |
4,478 |
4,463 | ||||||
| Bank owned life insurance policies |
6,514 |
6,350 | ||||||
| Leased vehicles, net of accumulated amortization |
25 |
67 | ||||||
| Cash collateral |
11,149 |
9,419 | ||||||
| Investments in associates and joint ventures |
1,786 |
1,727 | ||||||
| Insurance-related assets (1)
|
6,583 |
5,748 | ||||||
| Other employee future benefits assets (Note 21)
|
87 |
44 | ||||||
| Pension asset (Note 21)
|
1,316 |
1,252 | ||||||
| Precious metals (2)
|
6,383 |
9,485 | ||||||
| Total |
$ |
42,884 |
$ | 42,387 | ||||
| (1) | Includes $1,355 million of investment properties ($1,363 million as at October 31, 2024) carried at fair value. These investment properties support our insurance contract liabilities. The fair value is determined by external independent property valuers and categorized as Level 3 (refer to Note 17 for further information on fair value levels) using models with unobservable market inputs. |
| (2) | Precious metals are recorded at fair value based on quoted prices in active markets. Changes in fair value are recorded in our Consolidated Statement of Income in non-interest revenue, trading revenues. |
Payable on demand |
||||||||||||||||||||||||
| (Canadian $ in millions) | Interest bearing |
Non-interest
bearing |
Payable after notice |
Payable on a fixed date |
2025 |
2024 | ||||||||||||||||||
| Amortized cost deposits by: |
||||||||||||||||||||||||
| Banks (4)
|
$ |
5,058 |
$ |
1,963 |
$ |
1,396 |
$ |
19,204 |
$ |
27,621 |
$ | 32,546 | ||||||||||||
| Business and government (5)
|
80,445 |
42,847 |
219,450 |
242,755 |
585,497 |
575,019 | ||||||||||||||||||
| Individuals (5)
|
3,790 |
37,425 |
153,380 |
112,327 |
306,922 |
320,767 | ||||||||||||||||||
| Total amortized cost deposits |
89,293 |
82,235 |
374,226 |
374,286 |
920,040 |
928,332 | ||||||||||||||||||
| Deposits at FVTPL |
– |
– |
– |
56,162 |
56,162 |
54,108 | ||||||||||||||||||
| Total (6)
|
$ |
89,293 |
$ |
82,235 |
$ |
374,226 |
$ |
430,448 |
$ |
976,202 |
$ | 982,440 | ||||||||||||
| Booked in: |
||||||||||||||||||||||||
| Canada |
$ |
76,415 |
$ |
71,323 |
$ |
167,666 |
$ |
305,454 |
$ |
620,858 |
$ | 618,141 | ||||||||||||
| United States |
12,769 |
10,912 |
204,183 |
77,608 |
305,472 |
314,066 | ||||||||||||||||||
| Other countries |
109 |
– |
2,377 |
47,386 |
49,872 |
50,233 | ||||||||||||||||||
| Total |
$ |
89,293 |
$ |
82,235 |
$ |
374,226 |
$ |
430,448 |
$ |
976,202 |
$ | 982,440 | ||||||||||||
| (1) | Includes $43,766 million of non-interest bearing deposits as at October 31, 2025 ($44,617 million as at October 31, 2024). |
| (2) | Includes $62,843 million of senior unsecured debt as at October 31, 2025 subject to the Bank Recapitalization (Bail-In) regime ($65,986 million as at October 31, 2024). The Bail-In regime provides certain statutory powers to the Canada Deposit Insurance Corporation, including the ability to convert specified eligible shares and liabilities into common shares if the bank becomes non-viable. |
| (3) | We have unencumbered liquid assets of $393,535 million as at October 31, 2025 to support these and other deposit liabilities ($396,338 million as at October 31, 2024). |
| (4) | Includes regulated and central banks. |
| (5) | The carrying value of deposits that are part of fair value hedging relationships are adjusted for related gains (losses) on hedge contracts. |
(6) |
Included in deposits as at October 31, 2025 and 2024 are $508,058 million and $521,160 million, respectively, of deposits denominated in U.S. dollars, and $59,697 million and $54,397 million, respectively, of deposits denominated in other foreign currencies. |
• |
Various investment instruments purchased by our customers to earn interest over a fixed period, such as retail and small business term deposits, wholesale funding and guaranteed investment certificates. Deposits totalling $27,819 million as at October 31, 2025 ($29,136 million as at October 31, 2024) can be redeemed early, either fully or partially, by customers without penalty. |
• |
Commercial paper, which totalled $43,617 million as at October 31, 2025 ($51,500 million as at October 31, 2024). |
• |
Covered bonds, which totalled $24,053 million as at October 31, 2025 ($26,957 million as at October 31, 2024). |
BMO Financial Group 208th Annual Report 2025 |
169 |
| (Canadian $ in millions) | Canada |
United States |
Other |
Total |
||||||||||||
| As at October 31, 2025 |
$ |
259,670 |
$ |
69,206 |
$ |
47,386 |
$ |
376,262 |
||||||||
| As at October 31, 2024 |
285,555 | 77,313 | 48,086 | 410,954 | ||||||||||||
| (Canadian $ in millions) | Less than 3 months |
3 to 6 months |
6 to 12 months |
Over 12 months |
Total |
|||||||||||||||
| As at October 31, 2025 |
$ |
51,591 |
$ |
32,105 |
$ |
56,129 |
$ |
119,845 |
$ |
259,670 |
||||||||||
| As at October 31, 2024 |
63,442 | 33,704 | 62,674 | 125,735 | 285,555 | |||||||||||||||
| (Canadian $ in millions) | Fair value |
Notional amount due at contractual maturity |
Difference between fair value and amount due at contractual maturity |
Change in fair value – (losses) recorded in the Consolidated Statement of Income |
Change in fair value – (losses) due to own credit risk recorded in OCI (before tax) |
Cumulative change in fair value – gains (losses) due to own credit risk recognized in AOCI (before tax) |
||||||||||||||||||
| As at October 31, 2025 |
$ |
56,162 |
$ |
57,743 |
$ |
(1,581 |
) |
$ |
(1,313 |
) |
$ |
(365 |
) |
$ |
(341 |
) | ||||||||
| As at October 31, 2024 |
54,108 | 56,300 | (2,192 | ) | (4,815 | ) | (841 | ) | 24 | |||||||||||||||
| (1) | Change in fair value may be offset by the related change in fair value on hedge contracts. |
170 |
BMO Financial Group 208th Annual Report 2025 |
| (Canadian $ in millions) | 2025 |
2024 | ||||||
| Accounts payable, accrued expenses and other items |
$ |
12,638 |
$ | 11,311 | ||||
| Accrued interest payable |
5,092 |
6,468 | ||||||
| ACL on off-balance sheet items |
689 |
580 | ||||||
| Cash collateral |
8,206 |
6,414 | ||||||
| Credit card loyalty rewards |
1,486 |
1,465 | ||||||
| Current tax liabilities |
329 |
470 | ||||||
| Deferred tax liabilities (Note 22)
|
1 |
1 | ||||||
| Lease liabilities |
3,315 |
3,326 | ||||||
| Liabilities of subsidiaries |
4,740 |
5,633 | ||||||
| Other employee future benefits liability (Note 21)
|
863 |
863 | ||||||
| Pension liability (Note 21)
|
190 |
189 | ||||||
| Total |
$ |
37,549 |
$ | 36,720 | ||||
| (Canadian $ in millions) | 2025 |
2024 | ||||||
| Insurance revenue |
$ |
1,922 |
$ | 1,767 | ||||
| Insurance service expenses |
(1,464 |
) |
(1,330 | ) | ||||
| Net expenses from reinsurance contracts |
(37 |
) |
(97 | ) | ||||
| Insurance service results |
$ |
421 |
$ | 340 | ||||
| (Canadian $ in millions) | 2025 |
2024 | ||||||
| Investment return |
$ |
1,122 |
$ | 2,320 | ||||
| Insurance finance (expense) from insurance and reinsurance contracts held |
(955 |
) |
(2,098 | ) | ||||
| Movement in investment contract liabilities |
(43 |
) |
(117 | ) | ||||
| Insurance investment results |
$ |
124 |
$ | 105 | ||||
BMO Financial Group 208th Annual Report 2025 |
171 |
(Canadian $ in millions) |
2025 |
2024 |
||||||||||||||||||||||
Liabilities for remaining coverage |
Liabilities for incurred claims |
Total |
Liabilities for remaining coverage |
Liabilities for incurred claims |
Total |
|||||||||||||||||||
| Insurance contract liabilities, beginning of year |
$ |
17,047 |
$ |
201 |
$ |
17,248 |
$ | 13,114 | $ | 235 | $ | 13,349 | ||||||||||||
| Insurance service results |
(2,406 |
) |
2,048 |
(358 |
) |
(1,448 | ) | 1,101 | (347 | ) | ||||||||||||||
| Net finance expenses from insurance contracts |
1,048 |
– |
1,048 |
2,206 | – | 2,206 | ||||||||||||||||||
| Total cash flows |
3,763 |
(2,039 |
) |
1,724 |
3,176 | (1,136 | ) | 2,040 | ||||||||||||||||
| Other changes in the net carrying amount of the insurance contract (1)
|
(785 |
) |
(11 |
) |
(796 |
) |
(1 | ) | 1 | – | ||||||||||||||
| Insurance contract liabilities, end of year (2)
|
$ |
18,667 |
$ |
199 |
$ |
18,866 |
$ | 17,047 | $ | 201 | $ | 17,248 | ||||||||||||
| (1) | Includes $798 million relating to the sale of a non-strategic portfolio of insurance contracts for the year ended October 31, 2025. |
| (2) | The liabilities for incurred claims relating to insurance contracts in our creditor and reinsurance business were $102 million as at October 31, 2025 ( $115 million as at October 31, 2024) . |
Portfolio duration: |
2025 |
2024 |
||||||
| 1 year |
3.24% |
4.16% | ||||||
| 3 years |
3.54% |
4.17% | ||||||
| 5 years |
3.89% |
4.35% | ||||||
| 10 years |
4.67% |
4.82% | ||||||
| 20 years |
5.25% |
5.15% | ||||||
| 30 years |
4.99% |
4.98% | ||||||
| Ultimate |
5.00% |
5.00% | ||||||
172 |
BMO Financial Group 208th Annual Report 2025 |
(Canadian $ in millions) |
Fair value |
Notional amount due at contractual maturity |
Difference between fair value and amount due at contractual maturity |
Change in fair value – gains (losses) recorded in the Consolidated Statement of Income |
Change in fair value – gains (losses) due to own credit risk recorded in OCI (before tax) |
Cumulative change in fair value – gains (losses) due to own credit risk recognized in AOCI (before tax) |
||||||||||||||||||
| As at October 31, 2025 |
$ |
745 |
$ |
1,278 |
$ |
(533 |
) |
$ |
(35 |
) |
$ 28 |
$ |
2 |
|||||||||||
| As at October 31, 2024 |
796 |
1,336 |
(540 |
) |
(86 |
) |
(34 |
) |
(26 |
) | ||||||||||||||
| (Canadian $ in millions) | 2025 |
2024 | ||||||
| Interest Rate Sensitivity (1) (2)
|
||||||||
| 50 basis point increase |
$ 2 |
$ 6 | ||||||
| 50 basis point decrease |
(6 |
) |
(9 | ) | ||||
| Equity Market Sensitivity (3)
|
||||||||
| 10% increase |
$ 6 |
$ 28 | ||||||
| 10% decrease |
(7 |
) |
(26 | ) | ||||
(1) |
Estimated impact on, or sensitivity of, income before taxes to a 50 basis point increase or decrease in interest rates. |
(2) |
Interest rate sensitivities assume a parallel shift in assumed interest rates across the entire yield curve as at the end of the period with no change in the ultimate risk-free rate. |
(3) |
Estimated impact on, or sensitivity of, income before taxes to a 10% increase or decrease in our exposure to equity price risk arising from our investment in equity securities at the reporting date, assuming all other variables remain constant. |
| (Canadian $ in millions) | 2025 |
2024 | ||||||||||||||||||||||||||||||||||||||||||
Contractual service margin |
Profit or loss |
Contractual service margin | Profit or loss | |||||||||||||||||||||||||||||||||||||||||
Gross |
Net |
Gross |
Net |
Gross | Net | Gross | Net | |||||||||||||||||||||||||||||||||||||
| Policy-related Assumptions |
||||||||||||||||||||||||||||||||||||||||||||
| Mortality rates (1% increase) (1)
|
$ |
(8 |
) |
$ |
15 |
$ |
1 |
$ |
2 |
$ | (17 | ) | $ | 10 | $ | 1 | $ | 1 | ||||||||||||||||||||||||||
| Lapse rates (10% increase) (2)
|
(45 |
) |
38 |
(82 |
) |
(74 |
) |
(151 | ) | (52 | ) | (10 | ) | (4 | ) | |||||||||||||||||||||||||||||
| Expenses (5% increase) (3)
|
(14 |
) |
(14 |
) |
(1 |
) |
(1 |
) |
(15 | ) | (15 | ) | – | – | ||||||||||||||||||||||||||||||
| (1) | Mortality relates to the occurrence of death and is a key assumption for our life insurance business. |
| (2) | Policies are terminated through lapses and surrenders, where lapses represent the termination of policies due to non-payment of premiums and surrenders represent the voluntary termination of policies by policyholders. |
| (3) | Directly attributable operating expense assumptions reflect the projected cost of maintaining and servicing in-force policies, including associated directly attributable overhead expenses. |
BMO Financial Group 208th Annual Report 2025 |
173 |
| (Canadian $ in millions, except as noted) | Face value | Maturity date | Interest rate (%) | Reset premium (%) | Redeemable at our option (1) | 2025 Total |
2024 Total |
|||||||||||||||||||
Debentures Series 20 |
$ 150 | December 2025 to 2040 | 8.250 | na | Not redeemable | $ |
147 |
$ | 147 | |||||||||||||||||
3.803% Subordinated Notes due 2032 (2)
|
US$1,250 | December 2032 | 3.803 | 1.43 | (3) |
December 2027 | 1,656 |
1,602 | ||||||||||||||||||
Series J Medium-Term Notes, Second Tranche (2)
|
$1,250 | June 2030 | 2.077 | na | (4) |
June 2025 (5)
|
– |
1,237 | ||||||||||||||||||
Series K Medium-Term Notes, First Tranche (2)
|
$1,000 | July 2031 | 1.928 | na | (4) |
July 2026 | 959 |
992 | ||||||||||||||||||
3.088% Subordinated Notes due 2037 (2)
|
US$1,250 | January 2037 | 3.088 | 1.40 | (6) |
January 2032 | 1,551 |
1,466 | ||||||||||||||||||
Series L Medium-Term Notes, First Tranche (2)
|
$ 750 | October 2032 | 6.534 | 2.70 | (7) |
October 2027 | 749 |
732 | ||||||||||||||||||
Series M Medium-Term Notes , First Tranche (2)
|
$1,150 | September 2033 | 6.034 | 2.02 | (7) |
September 2028 | 1,190 |
1,202 | ||||||||||||||||||
Series M Medium-Term Notes, Second Tranche (2)
|
$1,000 | July 2034 | 4.976 | 1.63 | (7) |
July 2029 | 999 |
999 | ||||||||||||||||||
Series N Medium-Term Notes, First Tranche (2)
|
$1,250 | March 2035 | 4.077 | 1.54 | (7) |
March 2030 (8)
|
1,249 |
– | ||||||||||||||||||
Total (9)
|
$ |
8,500 |
$ | 8,377 | ||||||||||||||||||||||
| (1) | Redeemable at par with accrued and unpaid interest to and excluding the redemption date. |
| (2) | These notes include a NVCC provision, which is necessary for notes issued after a certain date to qualify as regulatory capital under Basel III. As such, they are convertible into a variable number of our common shares if OSFI announces that the bank is, or is about to become, non-viable or if a federal or provincial government in Canada publicly announces that the bank has accepted or agreed to accept a capital injection, or equivalent support, to avoid non-viability. In such an event, each note is convertible into common shares pursuant to an automatic conversion formula with a multiplier and a conversion price based on the greater of: (i) a floor priceof $5.00 and (ii) the current market price of our common shares based on the volume weighted-average trading price of our common shares on the TSX. The number of common shares issued is determined by dividing the par value of the note (including accrued and unpaid interest on such note) by the conversion price and then applying the multiplier. |
| (3) | Interest rate is for the period to but excluding the earliest par value redemption date, and thereafter will reset at a rate equal to the 5-year mid-swap rate plus the reset premium noted. |
| (4) | Interest rate will reset at a rate determined in accordance with the terms and conditions of the applicable subordinated notes. |
| (5) | All $1,250 million 2.077% Series J Medium-Term Notes (NVCC), Second Tranche were redeemed on June 17, 2025 for 100% of the principal amount, plus accrued interest to, but excluding, the redemption date. |
| (6) | Interest rate is for the period to but excluding the earliest par value redemption date, and thereafter will reset at a rate equal to the 5-year U.S. treasury bill rate plus the reset premium noted. |
| (7) | Interest rate is for the period to but excluding the earliest par value redemption date, and thereafter will reset at a rate equal to the daily compounding CORRA plus the reset premium noted. |
| (8) | On March 5, 2025, we issued $1,250 million of unsecured subordinated debt through our Canadian Medium-Term Note program. These notes will reset to a floating rate on March 5, 2030. |
| (9) | Certain amounts of subordinated debt were issued at a premium or discount and include fair value hedge adjustments, which together de creased their carrying value as at October 31, 2025 by $304by $400 million in 2024). Refer to Note 7 for further details on hedge adjustments. The carrying value is also adjusted for our subordinated debt holdings, held for market-making purposes. |
174 |
BMO Financial Group 208th Annual Report 2025 |
(Canadian $ in millions, except as noted) |
2025 |
2024 |
||||||||||||||||||||||
Number of shares |
Amount |
Dividends declared per share |
Number of shares |
Amount |
Dividends declared per share |
|||||||||||||||||||
Preferred Shares – Classified as Equity |
||||||||||||||||||||||||
Class B – Series 31 (1)
|
– |
$ |
– |
$ – |
12,000,000 |
$ |
300 |
$ 0.96 |
||||||||||||||||
Class B – Series 33 (2)
|
– |
– |
0.57 |
8,000,000 |
200 |
0.76 |
||||||||||||||||||
Class B – Series 44 |
16,000,000 |
400 |
1.70 |
16,000,000 |
400 |
1.70 |
||||||||||||||||||
Class B – Series 50 |
500,000 |
500 |
73.73 |
500,000 |
500 |
73.73 |
||||||||||||||||||
Class B – Series 52 |
650,000 |
650 |
70.57 |
650,000 |
650 |
70.57 |
||||||||||||||||||
Preferred Shares – Classified as Equity |
$ |
1,550 |
$ |
2,050 |
||||||||||||||||||||
Other Equity Instruments |
||||||||||||||||||||||||
4.800% Additional Tier 1 Capital Notes (AT1 Notes) |
$ |
658 |
$ |
658 |
||||||||||||||||||||
4.300% LRCNs, Series 1 (3)
|
1,250 |
1,250 |
||||||||||||||||||||||
5.625% LRCNs, Series 2 |
750 |
750 |
||||||||||||||||||||||
7.325% LRCNs, Series 3 |
1,000 |
1,000 |
||||||||||||||||||||||
7.700% LRCNs, Series 4 |
1,356 |
1,356 |
||||||||||||||||||||||
7.300% LRCNs, Series 5 |
1,023 |
1,023 |
||||||||||||||||||||||
6.875% LRCNs, Series 6 (4)
|
1,369 |
– |
||||||||||||||||||||||
Other Equity Instruments |
$ |
7,406 |
$ |
6,037 |
||||||||||||||||||||
Preferred Shares and Other Equity Instruments |
$ |
8,956 |
$ |
8,087 |
||||||||||||||||||||
Common Shares |
||||||||||||||||||||||||
Balance at beginning of year |
729,529,876 |
$ |
23,921 |
720,909,161 |
$ |
22,941 |
||||||||||||||||||
Issued under the Shareholder Dividend Reinvestment and Share Purchase Plan |
– |
– |
7,790,724 |
905 |
||||||||||||||||||||
Issued under the Stock Option Plan (Note 20)
|
1,520,631 |
161 |
811,652 |
74 |
||||||||||||||||||||
Treasury shares sold |
55,172 |
7 |
18,339 |
1 |
||||||||||||||||||||
Purchased for cancellation |
(22,200,000 |
) |
(730 |
) |
– |
– |
||||||||||||||||||
Balance at End of Year (5)
|
708,905,679 |
$ |
23,359 |
$ 6.44 |
729,529,876 |
$ |
23,921 |
$ 6.12 |
||||||||||||||||
(1) |
Series 31 was redeemed and final dividends were paid on November 25, 2024. |
(2) |
Series 33 was redeemed and final dividends were paid on August 25, 2025. |
(3) |
4.300% LRCNs, Series 1 was redeemed on November 12, 2025. |
(4) |
On July 29, 2025, we issued LRCNs, Series 6 for US$1,000 million. |
(5) |
Common shares are net of nil treasury shares as at October 31, 2025 (55,172 treasury shares as at October 31, 2024). |
(Canadian $, except as noted) |
||||||||||||||||||||
Redemption amount |
Non-cumulative dividend |
(1) |
Reset premium |
Date redeemable / convertible |
Convertible to |
|||||||||||||||
Class B – Series 44 |
25.00 |
$ 0.426000 |
(2) |
2.68% |
November 25, 2028 (3) (4)
|
Class B – Series 45 (5) (6)
|
||||||||||||||
Class B – Series 50 |
1,000.00 |
$36.865000 |
(2) |
4.25% |
November 26, 2027 (3)
|
Not convertible (6)
|
||||||||||||||
Class B – Series 52 |
1,000.00 |
$35.285000 |
(2) |
4.25% |
May 26, 2028 (3)
|
Not convertible (6)
|
||||||||||||||
(1) |
Non-cumulative dividends are payable quarterly as and when declared by the Board of Directors, except for Class B – Series 50 and 52 preferred shares, which are payable semi-annually. |
(2) |
The dividend rate will reset on the date redeemable and every five years thereafter at a rate equal to the 5-year Government of Canada bond yield plus the reset premium noted. If converted to a floating rate series, the rate will be set as and when declared at the 3-month Government of Canada treasury bill yield plus the reset premium. |
(3) |
Redeemable on the date noted and every five years thereafter. |
(4) |
Convertible on the date noted and every five years thereafter if not redeemed. If converted, the shares will become floating rate preferred shares. |
(5) |
If converted, the holders have the option to convert back to the original preferred shares on subsequent redemption dates. |
(6) |
The shares issued include a NVCC provision, which is necessary for the shares to qualify as regulatory capital under Basel III. Refer to the Non-Viability Contingent Capital paragraph below for details. |
BMO Financial Group 208th Annual Report 2025 |
175 |
| (Canadian $ in millions, except as noted) | 2025 |
2024 | ||||||||||||||||
| Face value | Interest rate (%) | Redeemable at our option | Convertible to | Total |
Total | |||||||||||||
4.800% AT1 Notes |
US$500 |
6.709
(1)
|
(2)
|
Variable number of common shares (3)
|
$ |
658 |
$ | 658 | ||||||||||
4.300% LRCNs, Series 1 |
$1,250 |
4.300
(4)
|
(2)
|
Variable number of common shares (3) (4)
|
1,250 |
1,250 | ||||||||||||
5.625% LRCNs, Series 2 |
$750 |
5.625
(4)
|
(2)
|
Variable number of common shares (3) (4)
|
750 |
750 | ||||||||||||
7.325% LRCNs, Series 3 |
$1,000 | 7.325 (4)
|
(2)
|
Variable number of common shares (3) (4)
|
1,000 |
1,000 | ||||||||||||
7.700% LRCNs, Series 4 |
US$1,000 | 7.700 (4)
|
(2)
|
Variable number of common shares (3) (4)
|
1,356 |
1,356 | ||||||||||||
7.300% LRCNs, Series 5 |
US$750 | 7.300 (4)
|
(2)
|
Variable number of common shares (3) (4)
|
1,023 |
1,023 | ||||||||||||
6.875% LRCNs, Series 6 |
US$1,000 | 6.875 (4)
|
(2)
|
Variable number of common shares (3) (4)
|
1,369 |
– | ||||||||||||
Total |
$ |
7,406 |
$ | 6,037 | ||||||||||||||
| (1) | Non-cumulative interest is payable semi-annually in arrears, at the bank’s discretion. The notes had an initial interest rate of 4.800% and reset on August 25, 2024 to 6.709%. |
| (2) | The notes are redeemable at a redemption price equal to 100% of the principal amount plus any accrued and unpaid interest, in whole or in part, at our option on any interest payment date on or after the first interest reset date or following certain regulatory or tax events. The bank may, at any time, purchase the notes at any price in the open market. |
| (3) | The notes issued include a NVCC provision, which is necessary for the notes to qualify as regulatory capital under Basel III. Refer to the
Non-Viability Contingent Capital paragraph below for details. |
| (4) | Non-deferrable interest is payable semi-annually on the LRCNs, Series 1, Series 2 and Series 3 and quarterly on the LRCNs, Series 4, Series 5 and Series 6, at the bank’s discretion. Non-payment of interest will result in a recourse event, with the noteholders’ sole remedy being their proportionate share of trust assets, which comprise our NVCC Preferred Shares Series 48 for LRCNs, Series 1, Preferred Shares Series 49 for LRCNs, Series 2, Preferred Shares Series 51 for LRCNs, Series 3, Preferred Shares Series 53 for LRCNs, Series 4, Preferred Shares Series 54 for LRCNs, Series 5 and Preferred Shares Series 55 for LRCNs, Series 6. In such an event, the delivery of the trust assets will represent the full and complete extinguishment of our obligations under the LRCNs. In circumstances under which NVCC, including the Preferred Shares Series 48, Series 49, Series 51, Series 53, Series 54 and Series 55 for LRCNs, Series 1, Series 2, Series 3, Series 4, Series 5 and Series 6, respectively, would be converted into common shares of the bank (as described below), the LRCNs would be redeemed, with the noteholders’ sole remedy being their proportionate share of trust assets, which comprise common shares of the bank received by the trust on conversion.
|
176 |
BMO Financial Group 208th Annual Report 2025 |
BMO Financial Group 208th Annual Report 2025 |
177 |
178 |
BMO Financial Group 208th Annual Report 2025 |
• |
For fixed rate, fixed maturity deposits, we discount the remaining contractual cash flows related to these deposits, adjusted for expected redemptions, at market interest rates currently offered for deposits with similar terms and risk profiles. The fair value of our senior note liabilities and covered bonds is determined by reference to current market prices for similar instruments or using valuation techniques, such as discounted cash flow models, that use market interest rate yield curves and funding spreads. |
• |
For fixed rate deposits with no defined maturities, we consider fair value to equal carrying value, since carrying value is equivalent to the amount payable on the reporting date. |
• |
For floating rate deposits, changes in interest rates have minimal impact on fair value, since deposits reprice to market frequently. On that basis, fair value is considered to equal carrying value. |
BMO Financial Group 208th Annual Report 2025 |
179 |
| (Canadian $ in millions) |
2025 |
2024 | ||||||||||||||
Carrying value |
Fair value |
Carrying value | Fair value (6) | |||||||||||||
| Securities (1)
|
||||||||||||||||
| Amortized cost |
$ |
96,610 |
$ |
90,448 |
$ | 115,188 | $ | 106,461 | ||||||||
| Loans (1) (2)
|
||||||||||||||||
| Residential mortgages |
195,708 |
194,755 |
190,666 | 188,848 | ||||||||||||
| Consumer instalment and other personal |
91,867 |
91,937 |
91,889 | 91,513 | ||||||||||||
| Credit cards |
11,997 |
11,997 |
13,030 | 13,030 | ||||||||||||
| Business and government |
364,265 |
364,866 |
369,776 | 370,101 | ||||||||||||
663,837 |
663,555 |
665,361 | 663,492 | |||||||||||||
| Deposits (3)
|
920,040 |
920,927 |
928,332 | 928,689 | ||||||||||||
| Securitization and structured entities’ liabilities (4)
|
20,211 |
20,100 |
21,850 | 21,653 | ||||||||||||
| Other liabilities (5)
|
3,103 |
2,953 |
2,929 | 2,669 | ||||||||||||
| Subordinated debt |
8,500 |
8,756 |
8,377 | 8,543 | ||||||||||||
| (1) | Carrying value is net of ACL. |
| (2) | Excludes $79 million of residential mortgages classified as FVTPL, $13,231 million of business and government loans classified as FVTPL and $14 million of business and government loans classified as FVOCI ($163 million, $12,431 million and $61 million, respectively, as at October 31, 2024). |
| (3) | Excludes $49,093 million of structured note liabilities, $1,129 million of money market deposits, $1,967 million of embedded options related to structured deposits carried at amortized cost and $3,973 million of metals deposits measured at fair value ($ 45,222 million, $6,032 million, $1,047 million and $1,807 million, respectively, as at October 31, 2024). |
| (4) | Excludes $31,351 million of securitization and structured entities’ liabilities classified as FVTPL ($18,314 million as at October 31, 2024). |
| (5) | Other liabilities include certain investment contract liabilities in our insurance business measured at amortized cost, as well as certain other liabilities of subsidiaries. |
| (6) | If financial instruments not carried at fair value were categorized based on the fair value hierarchy, all of these financial instruments would be categorized as Level 2, except for amortized cost securities, which would have $90,448 million categorized as Level 2 ($106,389 million as at October 31, 2024) and $nil million categorized as Level 3 ($72 million as at October 31, 2024). |
180 |
BMO Financial Group 208th Annual Report 2025 |
| (Canadian $ in millions) | 2025 |
2024 | ||||||||||||||||||||||||||||||
Level 1 |
Level 2 |
Level 3 |
Total |
Level 1 | Level 2 | Level 3 | Total | |||||||||||||||||||||||||
| Trading Securities |
||||||||||||||||||||||||||||||||
| Issued or guaranteed by: |
||||||||||||||||||||||||||||||||
| Canadian federal government |
$ |
757 |
$ |
11,554 |
$ |
– |
$ |
12,311 |
$ | 1,272 | $ | 8,764 | $ | – | $ | 10,036 | ||||||||||||||||
| Canadian provincial and municipal governments |
– |
9,035 |
– |
9,035 |
– | 7,585 | – | 7,585 | ||||||||||||||||||||||||
| U.S. federal government |
3,308 |
27,594 |
– |
30,902 |
2,688 | 21,560 | – | 24,248 | ||||||||||||||||||||||||
| U.S. states, municipalities and agencies |
– |
1,144 |
– |
1,144 |
– | 565 | – | 565 | ||||||||||||||||||||||||
| Other governments |
199 |
3,927 |
– |
4,126 |
92 | 3,757 | – | 3,849 | ||||||||||||||||||||||||
| NHA MBS, and U.S. agency MBS and CMO |
– |
56,450 |
– |
56,450 |
– | 40,995 | – | 40,995 | ||||||||||||||||||||||||
| Corporate debt |
– |
11,614 |
– |
11,614 |
– | 10,172 | – | 10,172 | ||||||||||||||||||||||||
| Trading loans |
– |
4,568 |
– |
4,568 |
– | 5,493 | – | 5,493 | ||||||||||||||||||||||||
| Corporate equity |
61,495 |
658 |
– |
62,153 |
65,559 | 420 | 4 | 65,983 | ||||||||||||||||||||||||
65,759 |
126,544 |
– |
192,303 |
69,611 | 99,311 | 4 | 168,926 | |||||||||||||||||||||||||
| FVTPL Securities |
||||||||||||||||||||||||||||||||
| Issued or guaranteed by: |
||||||||||||||||||||||||||||||||
| Canadian federal government |
56 |
1,563 |
– |
1,619 |
166 | 237 | – | 403 | ||||||||||||||||||||||||
| Canadian provincial and municipal governments |
– |
1,578 |
– |
1,578 |
– | 1,578 | – | 1,578 | ||||||||||||||||||||||||
| U.S. federal government |
– |
1,495 |
– |
1,495 |
– | 1,527 | – | 1,527 | ||||||||||||||||||||||||
| Other governments |
– |
– |
– |
– |
– | 25 | – | 25 | ||||||||||||||||||||||||
| NHA MBS, and U.S. agency MBS and CMO |
– |
18 |
– |
18 |
– | 21 | – | 21 | ||||||||||||||||||||||||
| Corporate debt |
– |
8,908 |
– |
8,908 |
– | 8,745 | 35 | 8,780 | ||||||||||||||||||||||||
| Corporate equity |
1,090 |
822 |
5,824 |
7,736 |
921 | 910 | 4,899 | 6,730 | ||||||||||||||||||||||||
1,146 |
14,384 |
5,824 |
21,354 |
1,087 | 13,043 | 4,934 | 19,064 | |||||||||||||||||||||||||
| FVOCI Securities |
||||||||||||||||||||||||||||||||
| Issued or guaranteed by: |
||||||||||||||||||||||||||||||||
| Canadian federal government |
1,158 |
44,177 |
– |
45,335 |
3,212 | 30,965 | – | 34,177 | ||||||||||||||||||||||||
| Canadian provincial and municipal governments |
– |
5,644 |
– |
5,644 |
– | 5,996 | – | 5,996 | ||||||||||||||||||||||||
| U.S. federal government |
16 |
20,793 |
– |
20,809 |
25 | 16,940 | – | 16,965 | ||||||||||||||||||||||||
| U.S. states, municipalities and agencies |
– |
5,634 |
– |
5,634 |
– | 5,068 | – | 5,068 | ||||||||||||||||||||||||
| Other governments |
37 |
4,028 |
– |
4,065 |
– | 5,656 | – | 5,656 | ||||||||||||||||||||||||
| NHA MBS, and U.S. agency MBS and CMO |
– |
27,015 |
– |
27,015 |
– | 21,293 | – | 21,293 | ||||||||||||||||||||||||
| Corporate debt |
– |
4,515 |
– |
4,515 |
– | 4,370 | – | 4,370 | ||||||||||||||||||||||||
| Corporate equity |
– |
– |
192 |
192 |
– | – | 177 | 177 | ||||||||||||||||||||||||
1,211 |
111,806 |
192 |
113,209 |
3,237 | 90,288 | 177 | 93,702 | |||||||||||||||||||||||||
| Loans |
||||||||||||||||||||||||||||||||
| Residential mortgages |
– |
79 |
– |
79 |
– | 163 | – | 163 | ||||||||||||||||||||||||
| Business and government loans |
– |
12,921 |
324 |
13,245 |
– | 12,190 | 302 | 12,492 | ||||||||||||||||||||||||
– |
13,000 |
324 |
13,324 |
– | 12,353 | 302 | 12,655 | |||||||||||||||||||||||||
| Other Assets (1)
|
8,521 |
– |
1,483 |
10,004 |
11,236 | – | 1,717 | 12,953 | ||||||||||||||||||||||||
| Fair Value Liabilities (2)
|
||||||||||||||||||||||||||||||||
| Deposits (3)
|
– |
56,162 |
– |
56,162 |
– | 54,108 | – | 54,108 | ||||||||||||||||||||||||
| Securities sold but not yet purchased |
14,998 |
39,878 |
– |
54,876 |
10,631 | 24,399 | – | 35,030 | ||||||||||||||||||||||||
| Other liabilities (4)
|
2,142 |
32,096 |
– |
34,238 |
1,754 | 19,110 | – | 20,864 | ||||||||||||||||||||||||
17,140 |
128,136 |
– |
145,276 |
12,385 | 97,617 | – | 110,002 | |||||||||||||||||||||||||
| Derivative Assets |
||||||||||||||||||||||||||||||||
| Interest rate contracts |
15 |
8,666 |
– |
8,681 |
36 | 9,851 | – | 9,887 | ||||||||||||||||||||||||
| Foreign exchange contracts |
43 |
30,474 |
2 |
30,519 |
4 | 21,258 | 10 | 21,272 | ||||||||||||||||||||||||
| Commodity contracts |
225 |
1,224 |
13 |
1,462 |
169 | 1,656 | 2 | 1,827 | ||||||||||||||||||||||||
| Equity contracts |
275 |
16,203 |
10 |
16,488 |
539 | 13,718 | – | 14,257 | ||||||||||||||||||||||||
| Credit default swaps |
– |
1 |
– |
1 |
– | 10 | – | 10 | ||||||||||||||||||||||||
558 |
56,568 |
25 |
57,151 |
748 | 46,493 | 12 | 47,253 | |||||||||||||||||||||||||
| Derivative Liabilities |
||||||||||||||||||||||||||||||||
| Interest rate contracts |
18 |
10,081 |
– |
10,099 |
32 | 10,811 | – | 10,843 | ||||||||||||||||||||||||
| Foreign exchange contracts |
– |
26,049 |
– |
26,049 |
– | 19,955 | – | 19,955 | ||||||||||||||||||||||||
| Commodity contracts |
196 |
1,412 |
– |
1,608 |
96 | 1,721 | 4 | 1,821 | ||||||||||||||||||||||||
| Equity contracts |
175 |
20,793 |
5 |
20,973 |
75 | 25,596 | 2 | 25,673 | ||||||||||||||||||||||||
| Credit default swaps |
– |
– |
– |
– |
– | 10 | 1 | 11 | ||||||||||||||||||||||||
$ |
389 |
$ |
58,335 |
$ |
5 |
$ |
58,729 |
$ | 203 | $ | 58,093 | $ | 7 | $ | 58,303 | |||||||||||||||||
| (1) | Other assets include precious metals, segregated fund assets and investment properties in our insurance business, carbon credits, certain receivables and other items measured at fair value. |
| (2) | Interest expense for liabilities carried at fair value is $3,476 million for the year ended October 31, 2025 ($2,774 million for the year ended October 31, 2024). Interest expense for liabilities carried at amortized cost is $38,574 million for the year ended October 31, 2025 ($43,743 million for the year ended October 31, 2024). |
| (3) | Deposits include structured note liabilities, money market and metals deposits designated at FVTPL and certain embedded options related to structured deposits carried at amortized cost. |
| (4) | Other liabilities include certain investment contract liabilities and segregated fund liabilities in our insurance business, as well as certain securitization and structured entities’ liabilities measured at FVTPL. |
BMO Financial Group 208th Annual Report 2025 |
181 |
| (Canadian $ in millions, except as noted) | 2025 |
|||||||||||||||||||||||||||
|
Reporting line in fair
value hierarchy table
|
Fair value
of assets
|
Valuation techniques |
Significant
unobservable inputs
|
Range of input values (1) |
Changes in fair value from using
reasonably possible alternatives (2)
|
|||||||||||||||||||||||
| Low | High | |||||||||||||||||||||||||||
Private equity |
Corporate equity | $ |
6,016 |
Net asset value | Net asset value | na |
na |
na |
||||||||||||||||||||
| EV/EBITDA | Multiple | 5 |
28 |
(38 )/38
|
||||||||||||||||||||||||
Investment properties |
Other assets | 1,396 |
Income approach | Capitalization rate | 5% |
7% |
(108)/128 |
|||||||||||||||||||||
| 2024 | ||||||||||||||||||||||||||||
Private equity |
Corporate equity | $ | 4,899 | Net asset value | Net asset value | na | na | na | ||||||||||||||||||||
| EV/EBITDA | Multiple | 5 | 21 | (18)/18 | ||||||||||||||||||||||||
Investment properties |
Other assets | 1,363 | Income approach | Capitalization rate | 2% | 8% | (118)/151 | |||||||||||||||||||||
| (1) | The low and high input values represent the lowest and highest actual level of inputs used to value a group of financial instruments in a particular product category. These value ranges do not reflect the level of input uncertainty but are affected by the specific underlying instruments within each product category. The value ranges will therefore vary from period to period based on the characteristics of the underlying instruments held at each balance sheet date. |
| (2) | Net asset values are provided by fund managers and therefore have no other reasonably possible alternative assumptions. Sensitivity of private equity investments is determined by adjusting the price multiples. Sensitivity of investment properties is determined by adjusting the capitalization rate. |
182 |
BMO Financial Group 208th Annual Report 2025 |
Change in fair value |
Movements |
Transfers |
||||||||||||||||||||||||||||||||||||||
| For the year ended October 31, 2025 (Canadian $ in millions) |
Fair value as at October 31, 2024 |
Included in earnings |
Included in other comprehensive income |
Purchases/ Issuances |
Sales |
Maturities/ Settlement |
Transfers into Level 3 |
Transfers out of Level 3 |
Fair value as at October 31, 2025 |
Change in unrealized gains (losses) recorded in income for instruments still held |
||||||||||||||||||||||||||||||
Trading Securities |
||||||||||||||||||||||||||||||||||||||||
NHA MBS and U.S. agency MBS and CMO |
$ | – | $ |
– |
$ |
– |
$ |
5 |
$ |
(5 |
) |
$ |
– |
$ |
– |
$ |
– |
$ |
– |
$ |
– |
|||||||||||||||||||
Corporate equity |
4 | – |
– |
2 |
– |
– |
– |
(6 |
) |
– |
– |
|||||||||||||||||||||||||||||
Total trading securities |
4 | – |
– |
7 |
(5 |
) |
– |
– |
(6 |
) |
– |
– |
||||||||||||||||||||||||||||
FVTPL Securities |
||||||||||||||||||||||||||||||||||||||||
Corporate debt |
35 | 1 |
– |
2 |
– |
– |
– |
(38 |
) |
– |
1 |
|||||||||||||||||||||||||||||
Corporate equity |
4,899 | (96 |
) |
17 |
1,180 |
(252 |
) |
– |
82 |
(6 |
) |
5,824 |
36 |
|||||||||||||||||||||||||||
Total FVTPL securities |
4,934 | (95 |
) |
17 |
1,182 |
(252 |
) |
– |
82 |
(44 |
) |
5,824 |
37 |
|||||||||||||||||||||||||||
FVOCI Securities |
||||||||||||||||||||||||||||||||||||||||
Corporate equity |
177 | – |
(14 |
) |
29 |
– |
– |
– |
– |
192 |
na |
|||||||||||||||||||||||||||||
Total FVOCI securities |
177 | – |
(14 |
) |
29 |
– |
– |
– |
– |
192 |
na |
|||||||||||||||||||||||||||||
Business and Government Loans |
302 | (21 |
) |
4 |
62 |
– |
(52 |
) |
29 |
– |
324 |
(21 |
) |
|||||||||||||||||||||||||||
Other Assets |
1,717 | (67 |
) |
– |
277 |
(7 |
) |
(437 |
) |
– |
– |
1,483 |
(63 |
) |
||||||||||||||||||||||||||
Derivative Assets |
||||||||||||||||||||||||||||||||||||||||
Foreign exchange contracts |
10 | (14 |
) |
– |
48 |
– |
(42 |
) |
– |
– |
2 |
(13 |
) |
|||||||||||||||||||||||||||
Commodity contracts |
2 | 11 |
– |
– |
– |
– |
– |
– |
13 |
12 |
||||||||||||||||||||||||||||||
Equity contracts |
– | 2 |
– |
– |
– |
– |
17 |
(9 |
) |
10 |
2 |
|||||||||||||||||||||||||||||
Credit default swaps |
– | – |
– |
– |
– |
(1 |
) |
1 |
– |
– |
– |
|||||||||||||||||||||||||||||
Total derivative assets |
12 | (1 |
) |
– |
48 |
– |
(43 |
) |
18 |
(9 |
) |
25 |
1 |
|||||||||||||||||||||||||||
Other Liabilities |
– | – |
– |
– |
– |
– |
– |
– |
– |
– |
||||||||||||||||||||||||||||||
Derivative Liabilities |
||||||||||||||||||||||||||||||||||||||||
Commodity contracts |
4 | (4 |
) |
– |
– |
– |
– |
– |
– |
– |
(4 |
) |
||||||||||||||||||||||||||||
Equity contracts |
2 | 3 |
– |
– |
– |
– |
3 |
(3 |
) |
5 |
3 |
|||||||||||||||||||||||||||||
Credit default swaps |
1 | – |
– |
– |
– |
(1 |
) |
– |
– |
– |
– |
|||||||||||||||||||||||||||||
Total derivative liabilities |
7 | (1 |
) |
– |
– |
– |
(1 |
) |
3 |
(3 |
) |
5 |
(1 |
) |
||||||||||||||||||||||||||
| Change in fair value | Movements | Transfers | ||||||||||||||||||||||||||||||||||||||
| For the year ended October 31, 2024 (Canadian |
Fair value as at October 31, 2023 |
Included in earnings |
Included in other comprehensive income (1) |
Purchases/ Issuances |
Sales | Maturities/ Settlement |
Transfers into Level 3 |
Transfers out of Level 3 |
Fair value as at October 31, 2024 |
Change in unrealized gains (losses) recorded in income for instruments still held (2) |
||||||||||||||||||||||||||||||
Trading Securities |
||||||||||||||||||||||||||||||||||||||||
NHA MBS and U.S. agency MBS and CMO |
$ | – | $ | – | $ | – | $ | 41 | $ | (41 | ) | $ | – | $ | – | $ | – | $ | – | $ | – | |||||||||||||||||||
Corporate equity |
37 | – | – | 4 | – | – | – | (37 | ) | 4 | – | |||||||||||||||||||||||||||||
Total trading securities |
37 | – | – | 45 | (41 | ) | – | – | (37 | ) | 4 | – | ||||||||||||||||||||||||||||
FVTPL Securities |
||||||||||||||||||||||||||||||||||||||||
Corporate debt |
27 | (10 | ) | – | 18 | – | – | – | – | 35 | (10 | ) | ||||||||||||||||||||||||||||
Corporate equity |
4,208 | (162 | ) | 11 | 1,068 | (240 | ) | (1 | ) | 16 | (1 | ) | 4,899 | 57 | ||||||||||||||||||||||||||
Total FVTPL securities |
4,235 | (172 | ) | 11 | 1,086 | (240 | ) | (1 | ) | 16 | (1 | ) | 4,934 | 47 | ||||||||||||||||||||||||||
FVOCI Securities |
||||||||||||||||||||||||||||||||||||||||
Corporate equity |
160 | – | 13 | 4 | – | – | – | – | 177 | na | ||||||||||||||||||||||||||||||
Total FVOCI securities |
160 | – | 13 | 4 | – | – | – | – | 177 | na | ||||||||||||||||||||||||||||||
Business and Government Loans |
186 | – | – | 89 | – | (171 | ) | 198 | – | 302 | – | |||||||||||||||||||||||||||||
Other Assets |
1,723 | 30 | – | 86 | (21 | ) | (101 | ) | – | – | 1,717 | 47 | ||||||||||||||||||||||||||||
Derivative Assets |
||||||||||||||||||||||||||||||||||||||||
Foreign exchange contracts |
– | – | – | 10 | – | – | – | – | 10 | – | ||||||||||||||||||||||||||||||
Commodity contracts |
5 | (3 | ) | – | – | – | – | – | – | 2 | (3 | ) | ||||||||||||||||||||||||||||
Equity contracts |
– | – | – | – | – | – | 13 | (13 | ) | – | – | |||||||||||||||||||||||||||||
Credit default swaps |
– | – | – | – | – | – | – | – | – | – | ||||||||||||||||||||||||||||||
Total derivative assets |
5 | (3 | ) | – | 10 | – | – | 13 | (13 | ) | 12 | (3 | ) | |||||||||||||||||||||||||||
Other Liabilities |
5 | – | – | 8 | – | (13 | ) | – | – | – | – | |||||||||||||||||||||||||||||
Derivative Liabilities |
||||||||||||||||||||||||||||||||||||||||
Commodity contracts |
1 | 3 | – | – | – | – | – | – | 4 | 3 | ||||||||||||||||||||||||||||||
Equity contracts |
8 | 1 | – | – | – | – | 2 | (9 | ) | 2 | 1 | |||||||||||||||||||||||||||||
Credit default swaps |
2 | (2 | ) | – | – | – | – | 1 | – | 1 | (1 | ) | ||||||||||||||||||||||||||||
Total derivative liabilities |
11 | 2 | – | – | – | – | 3 | (9 | ) | 7 | 3 | |||||||||||||||||||||||||||||
| (1) | Foreign exchange translation on assets and liabilities held by foreign operations is included in our Consolidated Statement of Comprehensive Income as part of net gains on translation of net foreign operations. |
| (2) | Changes in unrealized gains (losses) on trading and FVTPL securities still held on October 31, 2025 and 2024 are included in earnings for the year. |
BMO Financial Group 208th Annual Report 2025 |
183 |
| (Canadian $ in millions) | 2025 |
2024 | ||||||
Interest rates |
$ |
1,026 |
$ | 1,003 | ||||
Foreign exchange |
633 |
579 | ||||||
Equities |
1,131 |
759 | ||||||
Commodities |
365 |
150 | ||||||
Other |
212 |
55 | ||||||
Total trading-related revenue |
$ |
3,367 |
$ | 2,546 | ||||
Reported as: |
||||||||
Net interest income |
783 |
169 | ||||||
Non-interest revenue – trading revenues |
2,584 |
2,377 | ||||||
Total trading-related revenue |
$ |
3,367 |
$ | 2,546 | ||||
| (Canadian $ in millions) | 2025 |
|||||||||||||||||||||||||||
Amounts not offset in the balance sheet |
||||||||||||||||||||||||||||
Gross amounts |
Amounts offset in the balance sheet |
Net amounts presented in the balance sheet |
Impact of master netting agreements |
Securities received/pledged as collateral |
Cash collateral |
Net amount |
||||||||||||||||||||||
Financial Assets |
||||||||||||||||||||||||||||
Securities borrowed or purchased under resale agreements |
$ |
158,361 |
$ |
28,940 |
$ |
129,421 |
$ |
6,899 |
$ |
121,546 |
$ |
49 |
$ |
927 |
||||||||||||||
Derivative instruments |
57,489 |
338 |
57,151 |
43,254 |
2,655 |
5,665 |
5,577 |
|||||||||||||||||||||
$ |
215,850 |
$ |
29,278 |
$ |
186,572 |
$ |
50,153 |
$ |
124,201 |
$ |
5,714 |
$ |
6,504 |
|||||||||||||||
Financial Liabilities |
||||||||||||||||||||||||||||
Derivative instruments |
$ |
59,067 |
$ |
338 |
$ |
58,729 |
$ |
43,254 |
$ |
2,657 |
$ |
7,613 |
$ |
5,205 |
||||||||||||||
Securities lent or sold under repurchase agreements |
163,907 |
28,940 |
134,967 |
6,899 |
127,526 |
126 |
416 |
|||||||||||||||||||||
$ |
222,974 |
$ |
29,278 |
$ |
193,696 |
$ |
50,153 |
$ |
130,183 |
$ |
7,739 |
$ |
5,621 |
|||||||||||||||
| 2024 | ||||||||||||||||||||||||||||
Financial Assets |
||||||||||||||||||||||||||||
Securities borrowed or purchased under resale agreements |
$ | 135,282 | $ | 24,375 | $ | 110,907 | $ | 5,738 | $ | 103,814 | $ | 72 | $ | 1,283 | ||||||||||||||
Derivative instruments |
47,662 | 409 | 47,253 | 31,576 | 2,294 | 3,802 | 9,581 | |||||||||||||||||||||
| $ | 182,944 | $ | 24,784 | $ | 158,160 | $ | 37,314 | $ | 106,108 | $ | 3,874 | $ | 10,864 | |||||||||||||||
Financial Liabilities |
||||||||||||||||||||||||||||
Derivative instruments |
$ | 58,712 | $ | 409 | $ | 58,303 | $ | 31,576 | $ | 10,866 | $ | 7,378 | $ | 8,483 | ||||||||||||||
Securities lent or sold under repurchase agreements |
135,166 | 24,375 | 110,791 | 5,738 | 104,266 | 258 | 529 | |||||||||||||||||||||
| $ | 193,878 | $ | 24,784 | $ | 169,094 | $ | 37,314 | $ | 115,132 | $ | 7,636 | $ | 9,012 | |||||||||||||||
| (1) | Financial assets received/pledged as collateral are disclosed at fair value and limited to the net balance sheet exposure (i.e. any over-collateralization is excluded from the table). |
| (2) | Certain amounts of collateral are restricted from being sold or repledged except in the event of default or the occurrence of other predetermined events. |
| (3) | Not intended to represent our actual exposure to credit risk. |
184 |
BMO Financial Group 208th Annual Report 2025 |
• |
Regulatory capital ratios are calculated by dividing CET1 Capital, Tier 1 Capital, Total Capital and TLAC by their respective risk-weighted assets. |
• |
The Leverage Ratio is defined as Tier 1 Capital divided by leverage exposures, which consist of on-balance sheet items and specified off-balance sheet items, net of specified adjustments. The TLAC Leverage Ratio is defined as TLAC divided by leverage exposures. |
| (Canadian $ in millions, except as noted) | 2025 |
2024 | ||||||
CET1 Capital |
$ |
58,286 |
$ | 57,054 | ||||
Tier 1 Capital |
65,890 |
64,735 | ||||||
Total Capital |
75,562 |
73,911 | ||||||
TLAC |
129,957 |
123,288 | ||||||
Risk-Weighted Assets |
437,945 |
420,838 | ||||||
Leverage Exposures |
1,521,813 |
1,484,962 | ||||||
CET1 Ratio |
13.3% |
13.6% | ||||||
Tier 1 Capital Ratio |
15.0% |
15.4% | ||||||
Total Capital Ratio |
17.3% |
17.6% | ||||||
TLAC Ratio |
29.7% |
29.3% | ||||||
Leverage Ratio |
4.3% |
4.4% | ||||||
TLAC Leverage Ratio |
8.5% |
8.3% | ||||||
| (1) | Calculated in accordance with OSFI’s CAR Guideline, Leverage Requirements Guideline and TLAC Guideline, as applicable. |
BMO Financial Group 208th Annual Report 2025 |
185 |
| (Canadian $, except as noted) | 2025 |
2024 | ||||||||||||||
Number of stock options |
Weighted-average
exercise price |
Number of stock options |
Weighted-average
exercise price |
|||||||||||||
| Outstanding at beginning of year |
6,554,492 |
$ |
110.14 |
6,312,576 | $ | 105.26 | ||||||||||
| Granted |
716,633 |
141.00 |
1,113,853 | 118.50 | ||||||||||||
| Exercised |
(1,520,631 |
) |
95.74 |
(811,652 | ) | 82.74 | ||||||||||
| Forfeited/expired/cancelled |
(51,360 |
) |
122.96 |
(60,285 | ) | 122.22 | ||||||||||
| Outstanding at end of year |
5,699,134 |
117.75 |
6,554,492 | 110.14 | ||||||||||||
| Exercisable at end of year |
2,245,942 |
103.82 |
2,856,460 | 95.27 | ||||||||||||
| Available for grant |
8,900,641 |
9,565,914 | ||||||||||||||
| (Canadian $, except as noted) | 2025 |
|||||||||||||||||||
Options outstanding |
Options exercisable |
|||||||||||||||||||
| Range of exercise prices | Number of stock options |
Weighted- average remaining contractual life (years) |
Weighted-average
exercise price |
Number of stock options |
Weighted-average
exercise price |
|||||||||||||||
| $70.01 to $90.00 |
380,829 |
3.0 |
$ |
89.25 |
380,829 |
$ |
89.25 |
|||||||||||||
| $90.01 to $100.00 |
698,899 |
4.1 |
97.08 |
698,899 |
97.08 |
|||||||||||||||
| $100.01 to $120.00 |
1,842,015 |
6.2 |
111.19 |
779,359 |
101.23 |
|||||||||||||||
| $120.01 to $140.00 |
2,060,758 |
6.7 |
127.80 |
386,855 |
135.58 |
|||||||||||||||
| $140.01 and over |
716,633 |
9.1 |
141.00 |
– |
– |
|||||||||||||||
| (Canadian $ in millions, except as noted) | 2025 |
2024 | ||||||
| Unrecognized compensation cost for non-vested stock option awards |
$ |
10 |
$ | 12 | ||||
| Cash proceeds from stock options exercised |
146 |
67 | ||||||
| Weighted-average share price for stock options exercised (in dollars) |
152.59 |
120.40 | ||||||
2025 |
2024 | |||||||
| Expected dividend yield |
3.6% |
4.5% | ||||||
| Expected share price volatility |
16.7% |
17.4% – 17.6% | ||||||
| Risk-free rate of return |
2.8% |
3.3% – 3.4% | ||||||
| Expected period until exercise (in years) |
6.5 – 7.0 |
6.5 – 7.0 | ||||||
186 |
BMO Financial Group 208th Annual Report 2025 |
BMO Financial Group 208th Annual Report 2025 |
187 |
• |
monitoring surplus-at-risk, |
• |
stress testing and scenario analyses to evaluate the volatility of the plans’ financial positions and any potential impact on the bank; |
• |
hedging of foreign currency and interest rate risk exposures within policy limits; |
• |
controls related to asset mix allocations, geographic allocations, portfolio duration, credit quality of debt securities, sector guidelines, issuer/counterparty limits and others; and |
• |
ongoing monitoring of exposures, performance and risk levels. |
188 |
BMO Financial Group 208th Annual Report 2025 |
| (Canadian $ in millions) | Pension plans | Other employee future benefit plans | ||||||||||||||
2025 |
2024 | 2025 |
2024 | |||||||||||||
Defined benefit obligation |
$ |
8,582 |
$ | 8,365 | $ |
950 |
$ | 954 | ||||||||
Fair value of plan assets |
9,708 |
9,431 | 248 |
245 | ||||||||||||
Net surplus (deficit) |
1,126 |
1,066 | (702 |
) |
(709 | ) | ||||||||||
Effect of asset ceiling |
– |
(3 | ) | (74 |
) |
(110 | ) | |||||||||
Net surplus (deficit), net of the effect of the asset ceiling |
$ |
1,126 |
$ | 1,063 | $ |
(776 |
) |
$ | (819 | ) | ||||||
Net surplus (deficit) comprises: |
||||||||||||||||
Funded or partially funded plans |
1,271 |
1,223 | 87 |
44 | ||||||||||||
Unfunded plans |
(145 |
) |
(160 | ) | (863 |
) |
(863 | ) | ||||||||
Net surplus (deficit), net of the effect of the asset ceiling |
$ |
1,126 |
$ | 1,063 | $ |
(776 |
) |
$ | (819 | ) | ||||||
BMO Financial Group 208th Annual Report 2025 |
189 |
| (Canadian $ in millions) | Pension plans | Other employee future benefit plans | ||||||||||||||
2025 |
2024 | 2025 |
2024 | |||||||||||||
Annual benefits expense |
||||||||||||||||
Current service cost |
$ |
177 |
$ | 153 | $ |
6 |
$ | 5 | ||||||||
Net interest (income) expense (1)
|
(51 |
) |
(61 | ) | 38 |
40 | ||||||||||
Impact of plan amendments |
(19 |
) |
– | – |
(84 | ) | ||||||||||
Administrative expenses |
8 |
11 | – |
– | ||||||||||||
Remeasurement of other long-term benefits |
– |
– | 24 |
5 | ||||||||||||
Benefits expense |
$ |
115 |
$ | 103 | $ |
68 |
$ | (34 | ) | |||||||
Government pension plans expense (2)
|
388 |
375 | – |
– | ||||||||||||
Defined contribution expense |
306 |
290 | – |
– | ||||||||||||
Total annual pension and other employee future benefit expenses (recovery) recognized in our Consolidated Statement of Income |
$ |
809 |
$ | 768 | $ |
68 |
$ | (34 | ) | |||||||
| (1) | Net interest (income) expense is increased by $nil million for pension plans and $6 million for other employee future benefit plans for 2025 ($nil million and $3 million, respectively, for 2024) as a result of assets written down through other comprehensive income due to the asset ceiling. |
| (2) | Includes Canada Pension Plan, Quebec Pension Plan and U.S. Federal Insurance Contributions Act |
| Pension plans | Other employee future benefit plans | |||||||||||||||
2025 |
2024 | 2025 |
2024 | |||||||||||||
Defined Benefit Expenses |
||||||||||||||||
Discount rate at beginning of year (1) (2)
|
4.9% |
5.8% | 4.8% |
5.7% | ||||||||||||
Rate of compensation increase |
2.1% |
2.1% | na |
na | ||||||||||||
Assumed overall health care cost trend rate |
na |
na |
|
4.8%
|
(3)
|
4.8% | (3) |
|||||||||
Defined Benefit Obligation |
||||||||||||||||
Discount rate at end of year |
4.8% |
4.9% | 4.7% |
4.8% | ||||||||||||
Rate of compensation increase |
2.1% |
2.1% | na |
na | ||||||||||||
Assumed overall health care cost trend rate |
na |
na |
|
4.7%
|
(3)
|
4.8% | (3) |
|||||||||
| (1) | The pension benefit current service cost was calculated using a separate discount rate of 4.9% and 5.6% for 2025 and 2024, respectively. |
| (2) | The other employee future benefit plans current service cost was calculated using a separate discount rate of 5.0% and 5.7% for 2025 and 2024, respectively. |
| (3) | Trending to 4.0% in 2 and remaining at that level thereafter. 041
|
| (Years) | Canada | United States | ||||||||||||||
2025 |
2024 | 2025 |
2024 | |||||||||||||
Life expectancy for those currently age 65 |
||||||||||||||||
Males |
23.6 |
24.0 | 22.0 |
22.0 | ||||||||||||
Females |
24.7 |
24.3 | 23.4 |
23.3 | ||||||||||||
Life expectancy at age 65 for those currently age 45 |
||||||||||||||||
Males |
24.5 |
24.9 | 23.2 |
23.2 | ||||||||||||
Females |
25.6 |
25.2 | 24.6 |
24.5 | ||||||||||||
190 |
BMO Financial Group 208th Annual Report 2025 |
| (Canadian $ in millions, except as noted) | Pension plans | Other employee future benefit plans | ||||||||||||||
2025 |
2024 | 2025 |
2024 | |||||||||||||
Defined benefit obligation |
||||||||||||||||
Defined benefit obligation at beginning of year |
$ |
8,365 |
$ | 7,513 | $ |
954 |
$ | 880 | ||||||||
Transfer of defined benefit obligation |
3 |
– | (3 |
) |
– | |||||||||||
Settlements (1)
|
– |
(147 | ) | – |
– | |||||||||||
Current service cost |
177 |
153 | 6 |
5 | ||||||||||||
Interest cost |
399 |
418 | 45 |
49 | ||||||||||||
Impact of plan amendments |
(19 |
) |
– | – |
15 | |||||||||||
Benefits paid |
(500 |
) |
(481 | ) | (62 |
) |
(59 | ) | ||||||||
Employee contributions |
21 |
20 | 6 |
6 | ||||||||||||
Actuarial (gains) losses due to: |
||||||||||||||||
Changes in demographic assumptions |
6 |
– | (22 |
) |
(12 | ) | ||||||||||
Changes in financial assumptions |
45 |
851 | (2 |
) |
81 | |||||||||||
Plan member experience |
71 |
31 | 27 |
(11 | ) | |||||||||||
Foreign exchange and other |
14 |
7 | 1 |
– | ||||||||||||
Defined benefit obligation at end of year |
8,582 |
8,365 | 950 |
954 | ||||||||||||
Wholly or partially funded defined benefit obligation |
8,437 |
8,205 | 87 |
91 | ||||||||||||
Unfunded defined benefit obligation |
145 |
160 | 863 |
863 | ||||||||||||
Total defined benefit obligation |
8,582 |
8,365 | 950 |
954 | ||||||||||||
Fair value of plan assets |
||||||||||||||||
Fair value of plan assets at beginning of year |
9,431 |
8,559 | 245 |
138 | ||||||||||||
Settlements (1)
|
– |
(147 | ) | – |
– | |||||||||||
Impact of plan amendments |
– |
– | – |
100 | ||||||||||||
Interest income |
450 |
479 | 13 |
12 | ||||||||||||
Return on plan assets (excluding interest income) |
246 |
979 | 1 |
1 | ||||||||||||
Employer contributions |
55 |
25 | 43 |
45 | ||||||||||||
Employee contributions |
21 |
20 | 6 |
6 | ||||||||||||
Benefits paid |
(500 |
) |
(481 | ) | (62 |
) |
(59 | ) | ||||||||
Administrative expenses |
(8 |
) |
(12 | ) | – |
– | ||||||||||
Foreign exchange and other |
13 |
9 | 2 |
2 | ||||||||||||
Fair value of plan assets at end of year |
9,708 |
9,431 | 248 |
245 | ||||||||||||
Effect of asset ceiling |
– |
(3 | ) | (74 |
) |
(110 | ) | |||||||||
Net surplus (deficit), net of the effect of the asset ceiling |
$ |
1,126 |
$ | 1,063 | $ |
(776 |
) |
$ | (819 | ) | ||||||
Recorded in: |
||||||||||||||||
Other assets |
1,316 |
1,252 | 87 |
44 | ||||||||||||
Other liabilities |
(190 |
) |
(189 | ) | (863 |
) |
(863 | ) | ||||||||
Net surplus (deficit), net of the effect of the asset ceiling |
$ |
1,126 |
$ | 1,063 | $ |
(776 |
) |
$ | (819 | ) | ||||||
Actuarial gains (losses) recognized in other comprehensive income |
||||||||||||||||
Net actuarial gains (losses) on plan assets |
246 |
979 | 1 |
1 | ||||||||||||
Effect of asset ceiling |
3 |
(3 | ) | 43 |
(107 | ) | ||||||||||
Actuarial gains (losses) on defined benefit obligation due to: |
||||||||||||||||
Changes in demographic assumptions |
(6 |
) |
– | 22 |
15 | |||||||||||
Changes in financial assumptions |
(45 |
) |
(851 | ) | 3 |
(74 | ) | |||||||||
Plan member experience |
(71 |
) |
(31 | ) | (5 |
) |
6 | |||||||||
Foreign exchange and other |
(1 |
) |
(3 | ) | – |
– | ||||||||||
Actuarial gains (losses) recognized in other comprehensive income for the year |
$ |
126 |
$ | 91 | $ |
64 |
$ | (159 | ) | |||||||
| (1) | We completed a buyout of our UK pension plan in the fourth quarter of 2024, whereby we transferred our defined benefit obligations and an equal amount of plan assets to a third-party insurer, who has assumed responsibility for administering payments to plan members. We do not have any further involvement in the plan. There was
no pre-tax impact from this transfer. Deferred tax assets and liabilities related to the pension plan were reduced to $nil. |
| (Canadian $ in millions) | 2025 |
2024 | ||||||||||||||||||||||||||||||||||||||
|
Target
range
|
% of total |
Quoted |
Unquoted |
Total |
Target range | % of total | Quoted | Unquoted | Total | |||||||||||||||||||||||||||||||
Equities |
15 – 40% |
21% |
$ |
1,139 |
$ |
869 |
$ |
2,008 |
15 – 40% | 22% | $ | 1,060 | $ | 852 | $ | 1,912 | ||||||||||||||||||||||||
Fixed income investments |
40 – 55% |
49% |
106 |
4,551 |
4,657 |
40 – 55% | 49% | 96 | 4,467 | 4,563 | ||||||||||||||||||||||||||||||
Private investments |
10 – 35% |
30% |
– |
2,791 |
2,791 |
10 – 35% | 29% | – | 2,681 | 2,681 | ||||||||||||||||||||||||||||||
100% |
$ |
1,245 |
$ |
8,211 |
$ |
9,456 |
100% | $ | 1,156 | $ | 8,000 | $ | 9,156 | |||||||||||||||||||||||||||
BMO Financial Group 208th Annual Report 2025 |
191 |
| (Canadian $ in millions, except as noted) | Defined benefit obligation | |||||||||
| Pension plans | Other employee future benefit plans | |||||||||
Discount rate (%)
|
4.8 | 4.7 | ||||||||
Impact of: 1% increase ($)
|
(867 | ) | (70 | ) | ||||||
1% decrease ($)
|
1,073 | 83 | ||||||||
Rate of compensation increase (%)
|
2.1 | na | ||||||||
Impact of: 0.25% increase ($)
|
36 | na | ||||||||
0.25% decrease ($)
|
(35 | ) | na | |||||||
Mortality |
||||||||||
Impact of: 1 year shorter life expectancy ($)
|
(165 | ) | (19 | ) | ||||||
1 year longer life expectancy ($)
|
161 | 19 | ||||||||
Assumed overall health care cost trend rate (%)
|
na | 4.7 |
(1) |
|||||||
Impact of: 1% increase ($)
|
na | 30 | ||||||||
1% decrease ($)
|
na | (28 | ) | |||||||
| (1) | Trending to 4.0% in 2041 |
| (Years) | 2025 |
2024 | ||||||
Canadian pension plans |
13.1 |
13.0 | ||||||
U.S. pension plans |
7.3 |
7.5 | ||||||
Canadian other employee future benefit plans |
11.4 |
11.7 | ||||||
| (Canadian $ in millions) | Pension plans | Other employee future benefit plans | ||||||||||||||
2025 |
2024 | 2025 |
2024 | |||||||||||||
Net contributions (refund) |
$ |
4 |
$ | (25 | ) | $ |
– |
$ | – | |||||||
Contributions to defined contribution plans |
306 |
290 | – |
– | ||||||||||||
Benefits paid directly to pensioners |
51 |
50 | 47 |
45 | ||||||||||||
$ |
361 |
$ | 315 | $ |
47 |
$ | 45 | |||||||||
192 |
BMO Financial Group 208th Annual Report 2025 |
| (Canadian $ in millions) | 2025 |
2024 | ||||||
Consolidated Statement of Income |
||||||||
Current |
||||||||
Provision for income taxes for the current period |
$ |
2,813 |
$ | 2,055 | ||||
Deferred |
||||||||
Origination and reversal of temporary differences |
5 |
150 | ||||||
Effect of changes in tax rates |
7 |
3 | ||||||
2,825 |
2,208 | |||||||
Other Comprehensive Income and Equity |
||||||||
Income tax expense (recovery) related to: |
||||||||
Unrealized gains on FVOCI debt securities |
113 |
79 | ||||||
Reclassification to earnings of (gains) on FVOCI debt securities |
(23 |
) |
(31 | ) | ||||
Gains on derivatives designated as cash flow hedges |
365 |
966 | ||||||
Reclassification to earnings of losses on derivatives designated as cash flow hedges |
397 |
536 | ||||||
Unrealized (losses) on hedges of net foreign operations |
(29 |
) |
(38 | ) | ||||
Unrealized gains (losses) on FVOCI equity securities |
(4 |
) |
3 | |||||
Gains (losses) on remeasurement of pension and other employee future benefit plans |
53 |
1 | ||||||
(Losses) on remeasurement of own credit risk on financial liabilities designated at fair value |
(92 |
) |
(242 | ) | ||||
Income tax (recovery) recorded directly in equity |
(136 |
) |
(95 | ) | ||||
644 |
1,179 | |||||||
Total provision for income taxes |
$ |
3,469 |
$ | 3,387 | ||||
| (Canadian $ in millions, except as noted) | 2025 |
2024 | ||||||||||||||
Combined Canadian federal and provincial income taxes at the statutory tax rate |
$ |
3,211 |
27.8 |
% |
$ | 2,651 | 27.8 | % | ||||||||
Increase (decrease) resulting from: |
||||||||||||||||
Tax-exempt income from securities |
(36 |
) |
(0.3 |
) |
(45 | ) | (0.5 | ) | ||||||||
Foreign operations subject to different tax rates (1)
|
(264 |
) |
(2.3 |
) |
(365 | ) | (3.8 | ) | ||||||||
Change in tax rate for deferred taxes |
7 |
0.1 |
3 | – | ||||||||||||
Income attributable to investments in associates and joint ventures |
(51 |
) |
(0.4 |
) |
(36 | ) | (0.3 | ) | ||||||||
Other |
(42 |
) |
(0.4 |
) |
– | – | ||||||||||
Provision for income taxes in our Consolidated Statement of Income and effective tax rate |
$ |
2,825 |
24.5 |
% |
$ | 2,208 | 23.2 | % | ||||||||
(1) |
Global minimum tax rules became effective this fiscal year, and as a result, our effective tax rate increased by approximately 55 basis points for the year ended October 31, 2025. |
BMO Financial Group 208th Annual Report 2025 |
193 |
| (Canadian $ in millions) | ||||||||||||||||||||
Deferred Tax Asset (Liability) |
Net asset, November 1, 2024 |
Benefit (expense) to income statement |
Benefit (expense) to equity |
Translation and other |
Net asset, October 31, 2025 |
|||||||||||||||
| Allowance for credit losses |
$ | 1,343 | $ |
(56 |
) |
$ |
– |
$ |
5 |
$ |
1,292 |
|||||||||
| Employee future benefits |
282 | 23 |
(6 |
) |
– |
299 |
||||||||||||||
| Deferred compensation benefits |
749 | 308 |
– |
2 |
1,059 |
|||||||||||||||
| Other comprehensive income |
224 | – |
(261 |
) |
– |
(37 |
) | |||||||||||||
| Premises and equipment |
(480 | ) | (19 |
) |
– |
1 |
(498 |
) | ||||||||||||
| Pension benefits |
(338 | ) | 13 |
(47 |
) |
2 |
(370 |
) | ||||||||||||
| Goodwill and intangible assets |
(805 | ) | 36 |
– |
(6 |
) |
(775 |
) | ||||||||||||
| Securities |
867 | (294 |
) |
– |
5 |
578 |
||||||||||||||
| Other |
1,181 | (23 |
) |
2 |
23 |
1,183 |
||||||||||||||
| Net deferred tax assets (liabilities) |
$ | 3,023 | $ |
(12 |
) |
$ |
(312 |
) |
$ |
32 |
$ |
2,731 |
||||||||
| Comprising |
||||||||||||||||||||
| Deferred tax assets |
$ | 3,024 | $ |
2,732 |
||||||||||||||||
| Deferred tax liabilities |
(1 | ) | (1 |
) | ||||||||||||||||
| Net deferred tax assets (liabilities) |
$ | 3,023 | $ |
2,731 |
||||||||||||||||
| (Canadian $ in millions) | ||||||||||||||||||||
Deferred Tax Asset (Liability) |
Net asset, November 1, 2023 |
Benefit (expense) to income statement |
Benefit (expense) to equity |
Translation and other |
Net asset, October 31, 2024 |
|||||||||||||||
| Allowance for credit losses |
$ | 893 | $ | 449 | $ | – | $ | 1 | $ | 1,343 | ||||||||||
| Employee future benefits |
264 | 3 | 15 | – | 282 | |||||||||||||||
| Deferred compensation benefits |
783 | (35 | ) | – | 1 | 749 | ||||||||||||||
| Other comprehensive income |
522 | – | (298 | ) | – | 224 | ||||||||||||||
| Premises and equipment |
(343 | ) | (136 | ) | – | (1 | ) | (480 | ) | |||||||||||
| Pension benefits |
(395 | ) | 73 | (16 | ) | – | (338 | ) | ||||||||||||
| Goodwill and intangible assets |
(913 | ) | 107 | – | 1 | (805 | ) | |||||||||||||
| Securities |
987 | (119 | ) | – | (1 | ) | 867 | |||||||||||||
| Other |
1,606 | (495 | ) (1) |
4 | 66 | 1,181 | ||||||||||||||
| Net deferred tax assets (liabilities) |
$ | 3,404 | $ | (153 | ) | $ | (295 | ) | $ | 67 | $ | 3,023 | ||||||||
| Comprising |
||||||||||||||||||||
| Deferred tax assets |
$ | 3,420 | $ | 3,024 | ||||||||||||||||
| Deferred tax liabilities |
(16 | ) | (1 | ) | ||||||||||||||||
| Net deferred tax assets (liabilities) |
$ | 3,404 | $ | 3,023 | ||||||||||||||||
| (1) | Includes the tax impact of the legal provision reversal recorded in relation to the lawsuit described in Note 24. |
194 |
BMO Financial Group 208th Annual Report 2025 |
|
Basic Earnings Per Common Share (Canadian $ in millions, except as noted) |
2025 |
2024 | ||||||
| Net income attributable to bank shareholders |
$ |
8,709 |
$ | 7,318 | ||||
| Dividends on preferred shares and distributions on other equity instruments |
(436 |
) |
(386 | ) | ||||
| Net income available to common shareholders |
$ |
8,273 |
$ | 6,932 | ||||
| Weighted-average number of common shares outstanding (in thousands)
|
721,926 |
727,738 | ||||||
| Basic earnings per common share (Canadian $)
|
$ |
11.46 |
$ | 9.52 | ||||
| Diluted Earnings Per Common Share (Canadian $ in millions, except as noted) |
2025 |
2024 | ||||||
| Net income available to common shareholders |
$ |
8,273 |
$ | 6,932 | ||||
| Weighted-average number of common shares outstanding (in thousands)
|
721,926 |
727,738 | ||||||
| Dilutive impact of stock options (1)
|
||||||||
| Stock options potentially exercisable |
5,897 |
3,556 | ||||||
| Common shares potentially repurchased |
(4,556 |
) |
(2,759 | ) | ||||
| Weighted-average number of diluted common shares outstanding (in thousands)
|
723,267 |
728,535 | ||||||
| Diluted earnings per common share (Canadian $)
|
$ |
11.44 |
$ | 9.51 | ||||
| (1) | The dilutive effect of stock options was calculated using the treasury stock method. In computing diluted earnings per common share, we excluded average stock options outstanding of 477,101 with a weighted-average exercise price of $150.96 for the year ended October 31, 2025 (3,220,995 with a weighted-average exercise price of $130.33 for the year ended October 31, 2024), as the average share price in each of the two years did not exceed the exercise price. |
BMO Financial Group 208th Annual Report 2025 |
195 |
| (Canadian $ in millions) | 2025 |
2024 | ||||||
| Financial Guarantees |
||||||||
| Standby letters of credit |
$ |
29,409 |
$ | 30,523 | ||||
| Credit default swaps (1)
|
23,507 |
16,211 | ||||||
| Other Credit Instruments |
||||||||
| Backstop liquidity facilities |
18,358 |
18,224 | ||||||
| Documentary and commercial letters of credit |
2,504 |
1,893 | ||||||
| Commitments to extend credit (2)
|
238,884 |
230,689 | ||||||
| Other commitments (3)
|
9,632 |
10,093 | ||||||
| Total |
$ |
322,294 |
$ | 307,633 | ||||
| (1) | The fair value of the related derivatives included in our Consolidated Balance Sheet was $1 million as at October 31, 2025 ($8 million as at October 31, 2024). |
| (2) | Commitments to extend credit exclude personal lines of credit and credit cards that are unconditionally cancellable at our discretion. |
| (3) | Other commitments include $1,664 million as at October 31, 2025 ($4,511 million as at October 31, 2024) of underwriting commitments that are extended but not yet accepted by the borrower. |
196 |
BMO Financial Group 208th Annual Report 2025 |
| (Canadian $ in millions) | 2025 |
2024 | ||||||
| Bank Assets |
||||||||
| Cash and due from banks |
$ |
108 |
$ | 80 | ||||
| Securities (1)
|
174,514 |
139,553 | ||||||
| Loans |
59,886 |
71,419 | ||||||
| Other assets |
11,149 |
10,314 | ||||||
245,657 |
221,366 | |||||||
| Third-party Assets (2)
|
||||||||
| Collateral received and available for sale or re-pledging
|
232,840 |
195,071 | ||||||
| Less: Collateral not sold or re-pledged
|
(48,081 |
) |
(45,087 | ) | ||||
184,759 |
149,984 | |||||||
| Total pledged assets and collateral |
$ |
430,416 |
$ | 371,350 | ||||
| (Canadian $ in millions) | 2025 |
2024 | ||||||
| Uses of pledged assets and collateral |
||||||||
| Clearing systems, payment systems and depositories |
$ |
18,136 |
$ | 26,203 | ||||
| Foreign governments and central banks |
38 |
46 | ||||||
| Obligations related to securities sold short |
54,876 |
35,030 | ||||||
| Obligations related to securities sold under repurchase agreements |
119,956 |
97,878 | ||||||
| Securities borrowing and lending (3)
|
122,729 |
99,405 | ||||||
| Derivatives transactions |
21,870 |
19,224 | ||||||
| Securitization |
21,873 |
23,739 | ||||||
| Covered bonds |
23,125 |
27,235 | ||||||
| Other (4)
|
47,813 |
42,590 | ||||||
| Total pledged assets and collateral |
$ |
430,416 |
$ | 371,350 | ||||
| (1) | Includes NHA MBS of $6,690 million, which are included in loans in our Consolidated Balance Sheet ($5,492 million as at October 31, 2024). |
| (2) | Includes on-balance sheet securities borrowed or purchased under resale agreements and off-balance sheet collateral received. |
| (3) | Includes off-balance sheet securities borrowing and lending. |
| (4) | Includes $16,734 million of assets that have been pledged to support Federal Home Loan Bank activity ($21,235 million as at October 31, 2024). |
BMO Financial Group 208th Annual Report 2025 |
197 |
| (Canadian $ in millions) | 2025 |
2024 | ||||||||||||||||||||||
Restructuring and severance |
Legal |
Total |
Restructuring and severance |
Legal | Total | |||||||||||||||||||
Balance at beginning of year |
$ |
164 |
$ |
95 |
$ |
259 |
$ | 335 | $ | 1,243 | $ | 1,578 | ||||||||||||
Additional provisions/increase in provisions |
125 |
34 |
159 |
101 | 67 | 168 | ||||||||||||||||||
Provisions utilized |
(129 |
) |
(79 |
) |
(208 |
) |
(210 | ) | (19 | ) | (229 | ) | ||||||||||||
Amounts reversed |
(36 |
) |
(5 |
) |
(41 |
) |
(59 | ) | (1,196 | ) | (1,255 | ) | ||||||||||||
Foreign exchange and other |
– |
2 |
2 |
(3 | ) | – | (3 | ) | ||||||||||||||||
Balance at end of year |
$ |
124 |
$ |
47 |
$ |
171 |
$ | 164 | $ | 95 | $ | 259 | ||||||||||||
198 |
BMO Financial Group 208th Annual Report 2025 |
BMO Financial Group 208th Annual Report 2025 |
199 |
| (Canadian $ in millions) | Canadian P&C |
U.S. Banking |
Wealth
Management
|
Capital Markets |
Corporate Services |
2025 Total |
||||||||||||||||||
Net interest income |
$ |
9,667 |
$ |
9,017 |
$ |
1,020 |
$ |
2,482 |
$ |
(699 |
) |
$ |
21,487 |
|||||||||||
Non-interest revenue |
2,595 |
2,466 |
4,282 |
4,965 |
479 |
14,787 |
||||||||||||||||||
Total Revenue |
12,262 |
11,483 |
5,302 |
7,447 |
(220 |
) |
36,274 |
|||||||||||||||||
Provision for credit losses on impaired loans |
1,952 |
1,010 |
8 |
133 |
44 |
3,147 |
||||||||||||||||||
Provision for (recovery of) credit losses on performing loans |
412 |
33 |
2 |
68 |
(45 |
) |
470 |
|||||||||||||||||
Total provision (recovery of) for credit losses |
2,364 |
1,043 |
10 |
201 |
(1 |
) |
3,617 |
|||||||||||||||||
Depreciation and amortization |
644 |
990 |
215 |
331 |
– |
2,180 |
||||||||||||||||||
Non-interest expense |
4,716 |
5,865 |
3,245 |
4,285 |
816 |
18,927 |
||||||||||||||||||
Income (loss) before taxes and non-controlling interest in subsidiaries |
4,538 |
3,585 |
1,832 |
2,630 |
(1,035 |
) |
11,550 |
|||||||||||||||||
Provision for (recovery of) income taxes |
1,243 |
775 |
451 |
653 |
(297 |
) |
2,825 |
|||||||||||||||||
Reported net income (loss) |
$ |
3,295 |
$ |
2,810 |
$ |
1,381 |
$ |
1,977 |
$ |
(738 |
) |
$ |
8,725 |
|||||||||||
Non-controlling interest in subsidiaries |
$ |
– |
$ |
14 |
$ |
– |
$ |
– |
$ |
2 |
$ |
16 |
||||||||||||
Net income (loss) attributable to bank shareholders |
$ |
3,295 |
$ |
2,796 |
$ |
1,381 |
$ |
1,977 |
$ |
(740 |
) |
$ |
8,709 |
|||||||||||
Average assets (3)
|
$ |
344,176 |
$ |
257,177 |
$ |
53,224 |
$ |
551,491 |
$ |
274,493 |
$ |
1,480,561 |
||||||||||||
| Canadian P&C |
U.S. Banking (1) |
Wealth
Management
|
Capital
Markets (1)
|
Corporate Services (1) (2) |
2024 Total |
|||||||||||||||||||
Net interest income |
$ | 8,852 | $ | 8,602 | $ | 873 | $ | 1,731 | $ | (590 | ) | $ | 19,468 | |||||||||||
Non-interest revenue |
2,587 | 2,209 | 3,726 | 4,785 | 20 | 13,327 | ||||||||||||||||||
Total Revenue |
11,439 | 10,811 | 4,599 | 6,516 | (570 | ) | 32,795 | |||||||||||||||||
Provision for credit losses on impaired loans |
1,326 | 1,285 | 15 | 367 | 73 | 3,066 | ||||||||||||||||||
Provision for (recovery of) credit losses on performing loans |
333 | 392 | 2 | 2 | (34 | ) | 695 | |||||||||||||||||
Total provision for credit losses |
1,659 | 1,677 | 17 | 369 | 39 | 3,761 | ||||||||||||||||||
Depreciation and amortization |
590 | 1,006 | 215 | 299 | – | 2,110 | ||||||||||||||||||
Non-interest expense |
4,415 | 5,684 | 2,961 | 3,979 | 350 | 17,389 | ||||||||||||||||||
Income (loss) before taxes and non-controlling interest in subsidiaries |
4,775 | 2,444 | 1,406 | 1,869 | (959 | ) | 9,535 | |||||||||||||||||
Provision for (recovery of) income taxes |
1,318 | 434 | 339 | 377 | (260 | ) | 2,208 | |||||||||||||||||
Reported net income (loss) |
$ | 3,457 | $ | 2,010 | $ | 1,067 | $ | 1,492 | $ | (699 | ) | $ | 7,327 | |||||||||||
Non-controlling interest in subsidiaries |
$ | – | $ | 2 | $ | – | $ | – | $ | 7 | $ | 9 | ||||||||||||
Net income (loss) attributable to bank shareholders |
$ | 3,457 | $ | 2,008 | $ | 1,067 | $ | 1,492 | $ | (706 | ) | $ | 7,318 | |||||||||||
Average assets (3)
|
$ | 327,883 | $ | 251,881 | $ | 49,134 | $ | 468,963 | $ | 271,554 | $ | 1,369,415 | ||||||||||||
(1) |
Operating segments report on a teb basis – see Basis of Presentation section. |
| (2) | Corporate Services includes T&O. |
| (3) | Included within average assets are average earning assets, which comprise deposits with other banks, deposits at central banks, securities borrowed or purchased under resale agreements, loans and securities. Total average earning assets for 2025 are $1,305,072 million, including $342,361 million for Canadian P&C, $235,855 million for U.S. Banking and $726,856 million for all other operating segments, including Corporate Services (2024 – Total: $1,235,830 million, Canadian P&C: $319,518 million, U.S. Banking: $230,500 million and all other operating segments: $685,812 million). |
| (Canadian $ in millions) | 2025 |
|||||||||||||||||||||||
Canada |
United States |
Other countries |
Total |
|||||||||||||||||||||
Total Revenue |
$ |
18,885 |
$ |
15,194 |
$ |
2,195 |
$ |
36,274 |
||||||||||||||||
Income before taxes |
5,741 |
4,339 |
1,470 |
11,550 |
||||||||||||||||||||
Reported net income |
4,191 |
3,408 |
1,126 |
8,725 |
||||||||||||||||||||
Average Assets |
732,391 |
675,161 |
73,009 |
1,480,561 |
||||||||||||||||||||
| 2024 | ||||||||||||||||||||||||
Total Revenue |
$ | 16,107 | $ | 14,465 | $ | 2,223 | $ | 32,795 | ||||||||||||||||
Income before taxes |
4,434 | 3,547 | 1,554 | 9,535 | ||||||||||||||||||||
Reported net income |
3,199 | 2,865 | 1,263 | 7,327 | ||||||||||||||||||||
Average Assets |
692,750 | 613,098 | 63,567 | 1,369,415 | ||||||||||||||||||||
200 |
BMO Financial Group 208th Annual Report 2025 |
| Significant subsidiaries (1) (2) | Head or principal office | Book value of shares owned by the bank (Canadian $ in millions) |
||||||
AIR MILES Loyalty Inc. |
Toronto, Canada | $ 19 | ||||||
Bank of Montreal (China) Co. Ltd. |
Beijing, China | 497 | ||||||
Bank of Montreal Europe Public Limited Company |
Dublin, Ireland | 1,391 | ||||||
Bank of Montreal Holding Inc. and subsidiaries, including: |
Toronto, Canada | 35,455 | ||||||
Bank of Montreal Mortgage Corporation |
Calgary, Canada | |||||||
BMO Mortgage Corp. |
Vancouver, Canada | |||||||
BMO Investments Inc. |
Toronto, Canada | |||||||
BMO InvestorLine Inc. |
Toronto, Canad a |
|||||||
BMO Nesbitt Burns Inc. |
Toronto, Canada | |||||||
BMO Private Investment Counsel Inc. |
Toronto, Canada | |||||||
BMO Private Equity (Canada) Inc. |
Toronto, Canada | |||||||
BMO Capital Markets Limited |
London, England | 434 | ||||||
BMO Capital Partners Inc. |
Toronto, Canada | 1,067 | ||||||
BMO Financial Corp. and subsidiaries, including: |
Chicago, United States | 60,146 | ||||||
BMO Bank National Association |
Chicago, United States | |||||||
BMO Capital Markets Corp. |
New York, United States | |||||||
BMO Japan Securities Ltd. |
Tokyo, Japan | 6 | ||||||
BMO Life Insurance Company and subsidiary |
Toronto, Canada | 1,430 | ||||||
BMO Life Assurance Company |
Toronto, Canada | |||||||
BMO Trust Company |
Toronto, Canada | 630 | ||||||
| (1) | Each subsidiary is incorporated or organized under the laws of the state or country in which the principal office is situated, except for BMO Financial Corp. and BMO Capital Markets Corp., which are incorporated under the laws of the state of Delaware, United States. |
| (2) | Unless otherwise noted, the bank, either directly or indirectly through its subsidiaries, owns 100% of the outstanding voting shares of each subsidiary. |
• |
Assets pledged as security for various liabilities we incur. Refer to Note 24 for details. |
• |
Assets of our consolidated SEs that are held for the benefit of the note holders. Refer to Note 6 for details. |
• |
Assets held by our insurance subsidiaries. Refer to Note 14 for details. |
• |
Regulatory and statutory requirements that reflect capital and liquidity requirements. |
• |
Funds required to be held with certain central banks, regulatory bodies and counterparties. Refer to our Consolidated Statement of Cash Flows for details. |
| (Canadian $ in millions) | 2025 |
2024 | ||||||
Base salary and incentives |
$ |
29 |
$ | 20 | ||||
Post-employment benefits |
2 |
2 | ||||||
Share-based payments (1)
|
54 |
37 | ||||||
Total key management personnel compensation |
$ |
85 |
$ | 59 | ||||
| (1) | Amounts included in share-based payments are the fair values of awards granted in the year. |
BMO Financial Group 208th Annual Report 2025 |
201 |
| (Canadian $ in millions) | Joint ventures | Associates | ||||||||||||||
2025 |
2024 | 2025 |
2024 | |||||||||||||
Carrying amount |
$ |
878 |
$ | 907 | $ |
908 |
$ | 820 | ||||||||
Share of net income |
36 |
93 | 139 |
114 | ||||||||||||
| (Canadian $ in millions) | 2025 |
2024 | ||||||||||||||
Loans (1)
|
$ |
1,976 |
$ | 1,864 | ||||||||||||
Deposits |
269 |
241 | ||||||||||||||
Fees paid for services received |
63 |
66 | ||||||||||||||
Guarantees and commitments |
242 |
210 | ||||||||||||||
(1) |
We had no ACL on impaired loans related to these amounts as at October 31, 2025 and 2024. |
202 |
BMO Financial Group 208th Annual Report 2025 |
Exhibit 99.4
|
|
||||||
| KPMG LLP Bay Adelaide Centre 333 Bay Street, Suite 4600 Toronto, ON M5H 2S5 Canada Tel 416-777-8500 Fax 416-777-8818 |
CONSENT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM
To the Board of Directors of Bank of Montreal:
We consent to the use of:
| i) | our report of independent registered public accounting firm dated December 4, 2025 to the Shareholders and Board of Directors of Bank of Montreal (the “Bank”) on the consolidated financial statements of the Bank, which comprise the consolidated balance sheets as of October 31, 2025 and 2024, the related consolidated statements of income, comprehensive income, changes in equity and cash flows for the years then ended, and the related notes, and |
| ii) | our report of independent registered public accounting firm dated December 4, 2025 to the Shareholders and the Board of Directors of the Bank on the effectiveness of the Bank’s internal control over financial reporting as of October 31, 2025 |
each of which is included in the Annual Report on Form 40-F of the Bank for the fiscal year ended October 31, 2025.
We also consent to the incorporation by reference of the above-mentioned reports and to the reference to our firm under the heading “Experts”, in the following Registration Statements of the Bank:
| 1. | Registration Statement – Form F-3 – File No. 333-285508 |
| 2. | Registration Statement – Form F-3 – File No. 333-214934 |
We also consent to the incorporation by reference of the above-mentioned reports in the following Registration Statements of the Bank:
| 1. | Registration Statement – Form S-8 – File No. 333-276007 |
| 2. | Registration Statement – Form S-8 – File No. 333-237522 |
| 3. | Registration Statement – Form S-8 – File No. 333-207739 |
| 4. | Registration Statement – Form S-8 – File No. 333-191591 |
| 5. | Registration Statement – Form S-8 – File No. 333-180968 |
| 6. | Registration Statement – Form S-8 – File No. 333-177579 |
| 7. | Registration Statement – Form S-8 – File No. 333-177568 |
| 8. | Registration Statement – Form S-8 – File No. 333-176479 |
| 9. | Registration Statement – Form S-8 – File No. 333-175413 |
| 10. | Registration Statement – Form S-8 – File No. 333-175412 |
| 11. | Registration Statement – Form S-8 – File No. 333-113096 |
| 12. | Registration Statement – Form S-8 – File No. 333-14260 |
| 13. | Registration Statement – Form S-8 – File No. 33-92112 |
/s/ KPMG LLP
Chartered Professional Accountants, Licensed Public Accountants
Toronto, Canada
December 4, 2025
Exhibit 99.5
Certifications
Pursuant to Rule 13a-14(a) or 15d-14(a) under the Securities Exchange Act of 1934, as adopted pursuant to Section 302 of the Sarbanes-Oxley Act of 2002
I, Darryl White, Chief Executive Officer of Bank of Montreal, certify that:
1. I have reviewed this annual report on Form 40-F (the “report”) of Bank of Montreal (the “issuer”);
2. Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;
3. Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the issuer as of, and for, the periods presented in this report;
4. The issuer’s other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the issuer and have:
(a) Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the issuer, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;
(b) Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;
(c) Evaluated the effectiveness of the issuer’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and
(d) Disclosed in this report any change in the issuer’s internal control over financial reporting that occurred during the period covered by the annual report that has materially affected, or is reasonably likely to materially affect, the issuer’s internal control over financial reporting; and
5. The issuer’s other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the issuer’s auditors and the audit committee of the issuer’s board of directors (or persons performing the equivalent functions):
(a) All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the issuer’s ability to record, process, summarize and report financial information; and
(b) Any fraud, whether or not material, that involves management or other employees who have a significant role in the issuer’s internal control over financial reporting.
Date: December 4, 2025
| /s/ Darryl White |
| Darryl White |
| Chief Executive Officer |
Exhibit 99.6
Certifications
Pursuant to Rule 13a-14(a) or 15d-14(a) under the Securities Exchange Act of 1934, as adopted pursuant to Section 302 of the Sarbanes-Oxley Act of 2002
I, Tayfun Tuzun, Chief Financial Officer of Bank of Montreal, certify that:
1. I have reviewed this annual report on Form 40-F (the “report”) of Bank of Montreal (the “issuer”);
2. Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;
3. Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the issuer as of, and for, the periods presented in this report;
4. The issuer’s other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the issuer and have:
(a) Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the issuer, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;
(b) Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;
(c) Evaluated the effectiveness of the issuer’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and
(d) Disclosed in this report any change in the issuer’s internal control over financial reporting that occurred during the period covered by the annual report that has materially affected, or is reasonably likely to materially affect, the issuer’s internal control over financial reporting; and
5. The issuer’s other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the issuer’s auditors and the audit committee of the issuer’s board of directors (or persons performing the equivalent functions):
(a) All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the issuer’s ability to record, process, summarize and report financial information; and
(b) Any fraud, whether or not material, that involves management or other employees who have a significant role in the issuer’s internal control over financial reporting.
Date: December 4, 2025
| /s/ Tayfun Tuzun |
| Tayfun Tuzun |
| Chief Financial Officer |
Exhibit 99.7
Certifications
Pursuant to Rule 13(a) or 15(d) under the Securities Exchange Act of 1934, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002
Pursuant to 18 U.S.C. 1350, the undersigned officers of Bank of Montreal (the “Bank”), hereby certify that, to his knowledge, (a) the annual report on Form 40-F for the period ended October 31, 2025 (the “Report”) fully complies with the requirements of Section 13(a) or 15(d), as applicable, of the Securities Exchange Act of 1934 and (b) the information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Bank.
| Date: December 4, 2025 | /s/ Darryl White |
|||
| Darryl White Chief Executive Officer |
||||
| Date: December 4, 2025 | /s/ Tayfun Tuzun |
|||
| Tayfun Tuzun | ||||
| Chief Financial Officer |
||||
