M&T Bank (MTB) Q1 Earnings Beat Estimates on Higher Revenues

Have you been eager to see how M&T Bank Corporation MTB performed in Q1 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 net operating earnings per share of $3.38 that surpassed the Zacks Consensus Estimate of $3.29. Also, the figure compares favorably with $2.26 reported in the year-ago quarter. Results benefitted from higher revenues, decline in expenses and lower provisions.

How Was the Estimate Revision Trend?

You should note that the earnings estimate for M&T Bank depicted neutral stance prior to the earnings release. The Zacks Consensus Estimate remained unchanged over the last seven days.

Regarding earnings surprise history, before posting Q1 earnings beat, the company delivered positive earnings surprises in each of the trailing four quarters, with an average positive surprise of 6.3% in the trailing four quarters.

M&T Bank Corporation Price and EPS Surprise

M&T Bank Corporation Price and EPS Surprise | M&T Bank Corporation Quote

Revenue Came In Higher Than Expected   

M&T Bank posted net revenues of $1.55 billion, which surpassed the Zacks Consensus Estimate of $1.51 billion. Also, it compared favorably with the year-ago number of $1.43 billion.

Key Takeaways

  • Net interest margin expanded 33 basis points year over year.
  • Taxable-equivalent Net interest income increased 8% year over year to $1.06 billion.
  • Non-interest expense of $894 million declined 4% year over year.
  • Efficiency ratio came in at 57.6% in quarter, compared with 64% in the prior year quarter. Generally, a lower ratio indicates increased efficiency.
  • Provision for credit losses declined 49% year over year to $22 million.


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. While things apparently look favorable, it all depends on what sense the just-released report makes to the analysts.

(You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.)

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

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