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M&T Bank posts Q2 earnings beat, revenue miss; Shares trade flat

EditorRachael Rajan
Published 07/18/2024, 06:28 AM
© Reuters.
MTB
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BUFFALO, N.Y. - M&T Bank Corporation (NYSE:MTB) announced its financial results for the second quarter, surpassing analyst expectations for earnings per share (EPS) but aligning closely with revenue estimates.

The bank reported an EPS of $3.79, which was $0.28 higher than the analyst consensus of $3.51. Revenue for the quarter was reported at $2.3 billion, meeting the consensus estimate of $2.28 billion. MTB shares were trading flat premarket following the report.

The second quarter results showed a robust performance with the bank's EPS exceeding analyst forecasts. This positive outcome can be attributed to a variety of factors, including a disciplined approach to expense management and a strong capital position. M&T Bank's Chief Financial Officer, Daryl N. Bible, highlighted the bank's achievements, noting a 24% increase in diluted earnings per share from the first quarter. "We continued to grow our commercial and industrial and consumer loan portfolios, while lessening our commercial real estate exposure," said Bible.

Despite the increase in EPS, the bank's net interest income experienced a 5% decline compared to the same quarter last year, falling from $1.813 billion to $1.731 billion. This decrease reflects the competitive landscape and the impact of interest rate fluctuations on the bank's earnings.

M&T Bank's capital ratios remained well above the minimum regulatory requirements, with the CET1 capital ratio estimated at 11.44% as of June 30, 2024. This represents a steady increase from the previous quarter and highlights the bank's solid financial foundation.

The bank's commitment to its customers and communities was also emphasized, with Bible expressing gratitude for the employees' dedication. "Our team continues to diligently deploy resources while controlling expense growth," he added.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

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