- M&T Bank’s Operating EPS for 1Q was $3.09, slightly below the estimated $3.10.
- The provision for credit losses was higher than anticipated at $200 million, with the estimate at $161 million.
- End-period deposits were $167.20 billion, beating the prediction of $162.75 billion.
- Loans and leases at end-period stood at $134.97 billion, slightly above the estimated $134.45 billion.
- Cash and dues from banks were a bit lower than estimated at $1.70 billion, compared to the projected $1.73 billion.
- Net interest income met the estimate at $1.68 billion.
- Net interest margin was slightly below the estimated 3.56% at 3.52%.
- Tier 1 ratio came in slightly lower at 11.1%, compared to the predicted 11.2%.
- The return on average common equity was 8.14%, slightly below the expected 8.22%.
- Net charge-offs were higher than predicted at $138 million against the estimated $134.2 million.
- Non-interest income was higher than the forecasted $578.9 million at $580 million.
- Efficiency ratio was higher than forecasted at 60.8%, compared to estimated 59.8%.
- Average growth in commercial and industrial and consumer loans was offset by a decline in average commercial real estate loans.
- M&T Bank has seen elevated levels of criticized commercial and industrial loans and loan growth.
- Decrease in nonaccrual loans predominantly due to lower levels of commercial real estate nonaccrual loans, and residential real estate nonaccrual loans, partially offset by a rise in commercial and industrial nonaccrual loans.
- M&T’s liquidity and capital position strengthened, reflecting a stable deposit base, higher levels of borrowings and solid earnings after considering seasonal employee compensation expenses and an incremental FDIC special assessment.
- The bank has 11 buys, 12 holds, and 0 sells.
M & T Bank Corp on Smartkarma
Analyst coverage of M & T Bank Corp on Smartkarma has been positive, with Baptista Research publishing a research report titled “M&T Bank Corporation: What Is Their Biggest Growth Catalysts? – Major Drivers“. In this report, it was highlighted that M&T Bank Corporation delivered an all-around beat in the previous quarter, with revenues growing by 4% compared to the previous year. Furthermore, net charge-offs decreased, and GAAP net income increased by 7%. Despite ongoing economic uncertainty, the report emphasizes M&T Bank’s historical outperformance during uncertain times, highlighting its resilience and potential for creating shareholder value.
A look at M & T Bank Corp Smart Scores
| Factor | Score | Magnitude |
|---|---|---|
| Value | 5 | |
| Dividend | 4 | |
| Growth | 4 | |
| Resilience | 3 | |
| Momentum | 4 | |
| OVERALL SMART SCORE | 4.0 |
Smart Score is a compound score for the Company indicating its overall outlook. It is derived by taking an equally weighted average of underlying Factor scores computed by Smartkarma
Based on the Smartkarma Smart Scores, M & T Bank Corp shows a promising long-term outlook in key areas. With a solid Value score of 5, the company is considered to offer good value for investors. Its Dividend and Growth scores of 4 each indicate a healthy balance between rewarding shareholders and potential for future expansion. While the Resilience score of 3 suggests some vulnerability, the Momentum score of 4 reflects positive market trends that may drive the company forward.
M & T Bank Corporation, a bank holding company known for its commercial banking, trust, and investment services, operates in multiple states along the East Coast. With a strong emphasis on value and growth, coupled with a solid dividend policy, the company appears well-positioned to capitalize on opportunities in its operational regions. Investors may find M & T Bank Corp a compelling choice for long-term investment based on its overall Smart Scores performance.
Disclaimer: This article by Smartkarma is general in nature and based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. Note that our articles may not factor in the latest price-sensitive company announcements or qualitative material.
While all reasonable care has been taken in the preparation, Smartkarma makes no assurance about the accuracy of any generated data or content. All content is indicative only and should be independently checked for accuracy and confirmed before use. Smartkarma accepts no responsibility for any loss or damage caused as a result of any inaccuracy or error within the Lab online tools or generated data.
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