M&T Bank Profit Rises 49%, Topping Estimates (MTB)
Financial services company M&T Bank Corporation (MTB) reported a big jump in its Q2 earnings on Wednesday, which beat analysts estimates.
The Buffalo, NY based company reported second quarter net income of $328.56 million, or $2.55 per share, up 49% from $214.72 million, or $1.71 per share a year ago. On average, analysts expected to see much smaller earnings of $2.10 per share.
Net operating income rose to $360.73 million from $247.43 million in the second quarter of last year.
Net interest income increased to $677.59 million, from $647.98 million last year.
Rene F. Jones, Executive Vice President and CFO noted, “earnings quality in the second quarter continued to be supported by improved net interest income and strong mortgage banking revenues. These factors combined with above average credit quality. During the quarter, we took advantage of market conditions to reduce our exposure to private label mortgage-backed securities in favor of more liquid Ginnie Mae securities and we also liquidated our positions in Visa and MasterCard stock, for which the value had risen significantly. These actions combined with strong earnings resulted in a 62 basis point increase on our Tier 1 common ratio from March 31, while improving M&T’s liquidity profile. All in all, we are quite pleased with our second quarter results.”
M&T Bank shares were up $1.43, or 1.22% during premarket trading Wednesday. The stock has gained 19% YTD.
The Bottom Line
Shares of M&T Bank Corporation (MTB) have a 2.38% yield, based on Tuesday’s closing price of $117.59.
M&T Bank Corporation (MTB) is not recommended at this time, holding a Dividend.com DARS™ Rating of 3.4 out of 5 stars.
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