08:44 AM EDT, 08/26/2025 (MT Newswires) -- Bank of Montreal ( BNKD ) reported third quarter results before market open on Tuesday.

TD Securities analyst Mario Mendonca said BMO's EPS beat consensus and his estimate.

"PTPP was slightly better than expected on stronger underwriting income," Mendonca said in a note to clients. "PCLs were better than expected on lower performing PCLs."

"Capital was in line with our estimate and the bank remains active on the buyback," the analyst said. "ROE improved to 12% from 9.8% in 2024 (significantly lower PCLs, improvement in the US)."

"We view the quarter positively," Mendonca said.

The analyst maintained a Hold rating and $164 price target on BMO shares.

CIBC Capital Markets analyst Paul Holden said BMO's results are positive. He maintained a Neutral rating and $173 price target on the stock.

"The lack of loan growth might be the one thing to hold back the positive reaction," Holden said in a note to clients.

(MT Newswires covers equity, commodity and economic research from major banks and research firms in North America, Asia and Europe. Research providers may contact us here: https://www.mtnewswires.com/contact-us)