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Investing.com --
M&T Bank Corporation (NYSE:MTB) reported first quarter earnings that fell short of analyst expectations on Monday.
The company’s stock was down -2.50% following the release.
The Buffalo, New York-based bank posted adjusted earnings per share of $3.32 for the quarter ended March 31, missing the consensus estimate of $3.42. Revenue came in at $2.31 billion, compared to $2.33 billion in the same quarter last year.
M&T’s net interest income rose 1% year-over-year to $1.70 billion, while noninterest income increased 5% to $611 million. However, the bank’s provision for credit losses of $130 million was higher than expected, weighing on overall results.
"I am pleased with the solid financial results we obtained in the first quarter," said Daryl N. Bible, M&T’s Chief Financial Officer. "M&T’s start to the year reflects the consistency and strength of our diversified banking model, healthy levels of capital and liquidity as well as improved credit results."
The bank reported average loans and leases of $134.8 billion in Q1, up 1% from $133.8 billion a year ago. Average deposits declined 1% year-over-year to $161.2 billion.
M&T’s net interest margin expanded to 3.66% in Q1 from 3.52% in the prior year quarter. The bank’s efficiency ratio worsened slightly to 60.5% from 60.8% a year earlier.
Despite the earnings miss, M&T maintained strong capital levels, with its common equity tier 1 ratio at an estimated 11.50% as of March 31.