M&T Bank Exceeds Q2 Estimates, Net Income More Than Tripled On Asset Sale Gain

M&T Bank Corporation MTB reported a Q2 FY23 revenue of $2.60 billion, beating the consensus of $2.39 billion. 

Net income of $867 million came significantly above $218 million a year ago.

In Q2, M&T closed the sale of its Collective Investment Trust (CIT) business to a private equity firm, which resulted in a pre-tax gain of $225 million in the quarter.

EPS was $5.12, beating the consensus of $4.11.

Net interest income expressed on a taxable-equivalent basis was $1.81 billion, up 27% Y/Y.

Noninterest income totaled $803 million, higher than $571 million in the year-earlier quarter, with the net interest margin expanding to 3.91% vs 3.01% a year ago.

M&T's efficiency ratio was 48.9% compared to 58.3% in the year-earlier quarter.

M&T recorded a provision for credit losses of $150 million, down from $302 million in the year-earlier quarter.

The allowance for credit losses totaled $2.0 billion or 1.50% of loans outstanding on June 30, 2023, compared with $1.82 billion or 1.42% of loans outstanding in Q2 2022.

M&T held total assets of $207.7 billion as of June 30, 2023. Loans and leases, net of unearned discount, were $133.3 billion.

Daryl N. Bible, CFO, said, "The strong performance of our second quarter exemplifies the commitment of M&T to our operating principles and our purpose. Bolstered by the successful sale of the CIT business and healthy growth in commercial loans, we have further fortified our capital levels. Our dedication to our customers is evident through the resilience of our core deposit and funding levels. Moreover, our credit costs in the first half of 2023 were consistent with our long-term historical averages. As we move forward into the second half of 2023, our primary focus remains on serving the evolving needs of our diverse customer base by offering an extensive array of innovative products and services."

Price Action: MTB shares are trading higher by 2.02% at $137.48 premarket on the last check Wednesday.