M&T Bank shares rise 2% as Q3 profit tops expectations

NEW YORK - M&T Bank Corp. (NYSE:MTB ) shares gained 2.46% on Tuesday after the regional lender reported third quarter earnings that beat analyst estimates, driven by higher interest income and lower credit costs.

The Buffalo, New York-based bank posted adjusted earnings per share of $4.08, surpassing the $3.64 expected by analysts. Revenue rose to $2.33 billion, slightly above the $2.32 billion consensus estimate.

M&T's net interest income increased 1% from the previous quarter to $1.74 billion, as higher yields on loans and securities offset a decline in average earning assets. The bank's net interest margin expanded to 3.62% from 3.59% in Q2.

Credit quality improved, with the provision for credit losses falling to $120 million from $150 million in the second quarter. Net charge-offs declined to 0.35% of average loans from 0.41% in Q2.

"M&T's positive earnings momentum, strong capital position and unyielding focus on delivering for our customers and the communities we serve have positioned the franchise for a strong finish to 2024," said Chief Financial Officer Daryl N. Bible.

The bank's common equity Tier 1 capital ratio rose to an estimated 11.54% at September 30, up from 11.45% at the end of June. M&T repurchased $200 million of common stock during the quarter.

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Source: Investing.com