M&T Bank (MTB) Earnings Beat on Net Interest Income Growth
Have you been eager to see how M&T Bank Corporation MTB performed in Q4 in comparison with the market expectations? Let’s quickly scan through the key facts from this New York-based major bank’s earnings release this morning:
An Earnings Beat
M&T Bank came out with earnings per share of $2.09 for fourth-quarter 2015, beating the Zacks Consensus Estimate of $1.98.
Results were primarily aided by higher net interest income, partially offset by increases in provision for credit losses and expenses.
How Was the Estimate Revision Trend?
You should note that the earnings estimate for M&T Bank depicted pessimism prior to the earnings release. The Zacks Consensus Estimate declined 1.5% to $1.98 over the last 7 days.
Revenue Came In Higher Than Expected
M&T Bank posted revenues of $1.26 billion, which came slightly above the Zacks Consensus Estimate of $1.25 billion. Also, it compared favorably with the year-ago number of $1.13 billion.
Key Takeaways
Net operating income : $337.6 million, up 20% year over year
Efficiency ratio : 55.53% in Q4, down from 57.84% in the prior year quarter.
Provision for credit losses : $58 million, up 76% year over year.
Non-interest expense : $786.1 million, up 18% year over year.
Regarding M&T Bank’s merger with Hudson City Bancorp. which was completed on Nov 1 , 2015, Vice Chairman and Chief Financial Officer of M&T Bank, Rene F. Jones, mentioned, “The full integration of Hudson City's operations will be completed in February after the conversion of the deposit system and branch network.” Jones further added, “ While financial results for the fourth quarter reflect only two months of the operations associated with Hudson City, the acquisition has already had a positive impact on M&T's operating results and capital position, contributing to a 13% rise in tangible book value per share from the 2014 year end."
What Zacks Rank Says
The estimate revisions that we discussed earlier have driven a Zacks Rank #3 (Hold) for M&T Bank. However, since the latest earnings performance is yet to be reflected in the estimate revisions, the rank is subject to change. Now, it all depends on what sense the just-released report makes to the analysts.
Check back later for our full write up on this M&T Bank earnings report!
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M&T BANK CORP (MTB): Free Stock Analysis Report
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