M&T Hikes Small-Business Loans - Analyst Blog

By
A A A

In an effort to add impetus to the economic recovery, M&T Bank Corporation ( MTB ) has augmented its lending to small-business owners by $196 million from the last year's level. This was almost four times the previous year's target of increasing small-business loans by $50 million.

Earlier, in September 2011, M&T had committed to the Small Business Administration (SBA) that it would increase small business lending by $50 million from 2010 levels for each of the next three years.

M&T's announcement related to the year-over-year hike in lending comes on the back of the declaration made by the SBA earlier this week. The SBA stated that thirteen of U.S. banks - such as KeyCorp ( KEY ), JPMorgan Chase & Co. ( JPM ) and Citizens Financial Group, Inc., a fully owned subsidiary of The Royal Bank of Scotland Group plc ( RBS ) - have hiked lending to small-business by roughly $11 billion in a year's time. Further, these banks have committed to hike small business loans by a minimum of $20 million annually in the following three years.

M&T is the leader in SBA lending in the Buffalo, Rochester, Syracuse, Philadelphia, Wilmington, Baltimore and Washington, D.C. markets. The company issued 1,227 of the SBA's primary 7(a) loans totaling $174.5 million during fiscal year 2011, which made it the sixth-largest SBA lender in the U.S.

Management at M&T believes that the development of small-business would lead to creation of new jobs, which would further add momentum to the economic recovery. Moreover, according to the company, although it has surpassed its target of enhancing small-business loans, it will continue working on its efforts to collaborate with small-businesses that will help increase the pace of economic recovery.

M&T currently retains a Zacks #3 Rank, which translates into a short-term Hold rating. Considering the fundamentals, we also maintain our long-term Neutral recommendation on the stock.


 
JPMORGAN CHASE (JPM): Free Stock Analysis Report
 
KEYCORP NEW (KEY): Free Stock Analysis Report
 
M&T BANK CORP (MTB): Free Stock Analysis Report
 
ROYAL BK SC-ADR (RBS): Free Stock Analysis Report
 
To read this article on Zacks.com click here.
 
Zacks Investment Research




The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of The NASDAQ OMX Group, Inc.



This article appears in: Investing , Business , Stocks

Referenced Stocks: JPM , KEY , MTB , RBS

Zacks.com

Zacks.com

More from Zacks.com:

Related Videos

Stocks

Referenced

Most Active by Volume

33,974,386
  • $17.98 ▲ 0.28%
20,763,901
  • $91.29 ▲ 2.06%
19,110,793
  • $7.26 ▼ 1.22%
18,528,869
    $8.33 unch
18,014,920
  • $4.19 ▼ 1.18%
16,448,919
  • $25.83 ▼ 0.19%
14,748,190
  • $7.60 ▼ 1.43%
14,144,383
  • $112.01 ▼ 0.47%
As of 12/24/2014, 02:12 PM


Find a Credit Card

Select a credit card product by:
Select an offer:
Search
Data Provided by BankRate.com