On May 19, 2014, we issued an updated research report on
M&T Bank Corporation
) - one of the major regional banks. The company exhibits decent
fundamentals amid a competitive banking environment.
M&T Bank's solid capital position is reflected by the Federal
Reserve's approval of its 2014 capital plan. We believe the company
is well positioned to grow via strategic acquisitions as
well. These efforts will continue to boost investors'
M&T Bank enjoys a competitive advantage owing to its ability to
sustain growth in net interest income (NII) amid a low interest
rate environment. Over the last 5 years (ended Dec 2013) net
interest income has improved at a compound annual growth rate
(CAGR) of 6.7%. Further, the upward trend continued in the first
quarter with NII rising slightly on a year-over-year basis.
M&T Bank's first-quarter 2014 earnings per share of $1.66
outpaced the Zacks Consensus Estimate by 3.1%. Notably, with this
the company delivered positive earnings surprises in 3 of the
trailing 4 quarters with an average beat of 6.7%.
Despite the positives, we remain cautious owing to several issues
faced by M&T Bank that pose a threat to the company's
financials. These include absence of disciplined expense
management, litigation issues and the prevailing stringent
Analysts' mixed stance on the stock was reflected in the movement
of the Zacks Consensus Estimate over the past 60 days. For 2014,
the Zacks Consensus Estimate remained stable at $7.14 per share
while for 2015, it moved north marginally to $8.93 per share.
M&T Bank currently carries a Zacks Rank #3 (Hold).
Stocks That Warrant a Look
KCG Holdings, Inc.
Woori Finance Holdings Co., Ltd.
Central Pacific Financial Corp.
) are among the better-ranked stocks in the finance sector. All
these stocks hold a Zacks Rank #1 (Strong Buy).
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M&T BANK CORP (MTB): Free Stock Analysis
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