M&T Bank Q3 Earnings Surpass Estimates on Y/Y Rise in Fee Income

M&T Bank Corporation’s MTB third-quarter 2024 net operating earnings per share (EPS) of $4.08 topped the Zacks Consensus Estimate by 13.3%. The bottom line compared favorably with earnings of $4.05 per share in the year-ago quarter.Find the latest earnings estimates and surprises on the Zacks Earnings Calendar.MTB shares moved 2.2% in pre-market trading on better-than-anticipated earnings. A full day’s trading will depict a better picture.    Results have benefited from a rise in loans and leases and non-interest income. A decline in net interest income (NII) and higher expenses were spoilsport.Net income available to common shareholders was $674 million, up 1.5% from the prior-year quarter.MTB’s Revenues Dip & Expenses Rise Y/YM&T Bank’s quarterly revenues were $2.33 billion, surpassing the consensus estimate by 1.33%. However, the reported figure declined marginally year over year.NII (tax equivalent) fell 2.8% year over year to $1.74 billion. Our estimate for the metric was the same as the reported figure. The downside was due to an increase in interest-bearing deposits, which rose 6% year over year.  Total non-interest income was $606 million, up 8% year over year. An increase in trust income, service charges on deposit accounts, mortgage banking revenues and other revenues from operations mainly caused the uptick. Our estimate for the metric was $554 million.Total non-interest expenses were $1.30 billion, increasing 2% year over year. The rise was driven by higher salaries and employee benefits expenses, outside data processing and software, and advertising and marketing expenses. We projected the metric to be $1.29 billion.The efficiency ratio was 55%, up from 53.7% in the year-earlier quarter. A higher ratio indicates a fall in profitability.MTB’s Loans Increase, Deposits DecreaseLoans and leases, net of unearned discount, were $134.8 billion as of Sept. 30, 2024, marginally up from the prior quarter. Total deposits fell 1.2% sequentially to $161.5 billion. Our estimate for the loans and leases was $135.4 billion, and that for deposits was $163.6 billion.M&T Bank’s Credit Quality MixedNet charge-offs increased 25% to $120 million from $96 million in the prior-year quarter. Our estimate for the metric was $102.6 million. The company recorded a provision for credit losses of $120 million, down from $150 million in the previous-year quarter.Non-performing assets declined 17% year over year to $1.96 billion. Our estimate for the metric was $1.97 billion.The ratio of non-accrual loans to total net loans was 1.42%, down year over year from 1.77%. Our estimate for the metric was the same as the reported ratio.MTB’s Capital Position & Profitability Ratios Improve Y/YM&T Bank’s estimated Common Equity Tier 1 ratio was 11.54%, up from 10.95% as of third-quarter 2023. The tangible equity per share was $107.9, up from $93.99 in the third quarter of 2023.The company's return on average tangible assets (annualized) and average tangible common shareholder equity were 1.45% and 15.47% compared with 1.41% and 17.41%, respectively, in the prior-year quarter.M&T Bank’s Capital Distribution UpdateMTB repurchased 1,190,054 shares of its common stock in accordance with its capital plan for $200 million, including the share repurchase excise tax, in the third quarter of 2024.Our View on M&T BankThe rising loan balance and non-interest income will likely continue aiding M&T Bank’s organic growth. Strengthening capital position will support its financials in the long run. However, elevated operating expenses can impede the bottom line.M&T Bank Corporation Price, Consensus and EPS Surprise  M&T Bank Corporation price-consensus-eps-surprise-chart | M&T Bank Corporation QuoteCurrently, M&T Bank carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.Performances of Other BanksSynovus Financial Corp. SNV reported third-quarter 2024 adjusted earnings per share of $1.23, which surpassed the Zacks Consensus Estimate of $1.09. This compares to earnings of 84 cents a year ago. Results have benefited from strong growth in non-interest revenues (NIR), a fall in expenses and provisions for credit losses. Also, improving loans and deposit balances were tailwinds. However, a decline in NII and a rise in non-performing loans were major headwinds. State Street Corporation’s STT third-quarter 2024 earnings of $2.26 per share surpassed the Zacks Consensus Estimate of $2.08. The bottom line also increased 80.8% from the prior-year quarter.Results were primarily aided by growth in fee revenues and higher net interest revenues. Also, the company witnessed improvements in the total assets under custody and AUM balances. However, higher expenses hurt the results to some extent.Only $1 to See All Zacks' Buys and SellsWe're not kidding.Several years ago, we shocked our members by offering them 30-day access to all our picks for the total sum of only $1. No obligation to spend another cent.Thousands have taken advantage of this opportunity. Thousands did not - they thought there must be a catch. Yes, we do have a reason. We want you to get acquainted with our portfolio services like Surprise Trader, Stocks Under $10, Technology Innovators,and more, that closed 228 positions with double- and triple-digit gains in 2023 alone.See Stocks Now >>Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Synovus Financial Corp. (SNV): Free Stock Analysis Report State Street Corporation (STT): Free Stock Analysis Report M&T Bank Corporation (MTB): Free Stock Analysis ReportTo read this article on Zacks.com click here.Zacks Investment ResearchWeiter zum vollständigen Artikel bei Zacks Weiter zum vollständigen Artikel bei Zacks