M&T Bank Stock In Spotlight After Upbeat Q4 Earnings, But Retail’s Unimpressed
Synopsis
During the fourth quarter, its net interest margin, a gauge of profitability, slipped to 3.58% from 3.61% last year.
M&T Bank Corp (MTB) garnered retail attention on Thursday after its fourth-quarter profit beat average analysts’ estimates on loan growth.
The company reported operating earnings of $3.92 per share for the October-December quarter, compared with a Wall Street estimate of $3.74 per share, according to FinChat data.
The Buffalo, New York-based lender’s fourth-quarter net interest income (NII) rose slightly to $1.73 billion.
Its net interest margin, a gauge of profitability, slipped to 3.58% from 3.61% last year.
The bank’s shares were down 2.7% in afternoon trade.
On Dec. 31, the company said its average earnings assets rose $2.6 billion, or 1%, compared to the year-ago quarter, as average loans and leases increased $3 billion.
The increase was primarily due to higher average commercial and industrial loans and leases of $5.3 billion, backed by growth spanning most industry types, and average consumer loans of $3.5 billion, reflecting higher average recreational finance and automobile loans.
However, the gains were partially offset by a reduction in the average balance of commercial real estate loans.
M&T Bank's provision for credit losses fell 38% year-over-year (YoY) to $140 million during the fourth quarter as it had offloaded most of its commercial real estate loans. However, on a quarter-on-quarter basis, provisions rose 17%.
The company forecasted 2025 NII to be between $7.1 billion and $7.2 billion, compared with $6.85 billion in 2024.
Retail sentiment on Stocktwits swung to ‘bearish’ (43/100) territory from ‘bullish’(64/100) a day ago, while retail chatter remained ‘extremely high.’
One user wrote that the stock may fall below $190.
On Thursday, peers PNC Financial Services and US Bancorp had also topped Street estimates.
Over the past year, stock is up 49.4%.
For updates and corrections, email newsroom[at]stocktwits[dot]com.<
Stay updated with all the latest Business News, including market trends, Share Market News, stock updates, taxation, IPOs, banking, finance, real estate, savings, and investments. Track daily Gold Price changes, updates on DA Hike, and the latest developments on the 8th Pay Commission. Get in-depth analysis, expert opinions, and real-time updates to make informed financial decisions. Download the Asianet News Official App from the Android Play Store and iPhone App Store to stay ahead in business.