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

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Have you been eager to see how M&T Bank Corporation (MTB - Free Report) 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 $2.15, beating the Zacks Consensus Estimate of $1.94.  Earnings beat reflected higher revenues, partially offset by elevated expenses.

How Was the Estimate Revision Trend?

You should note that the earnings estimate for M&T Bank depicted optimism prior to the earnings release. The Zacks Consensus Estimate increased 1.0% over the last 7 days.

Regarding earnings surprise history, before posting an earnings beat in Q1, the company delivered positive earnings surprises in two of the trailing four quarters, with an average positive surprise of 0.87% in the trailing four quarters.
 

Revenue Came In Higher Than Expected   

M&T Bank posted net revenues of $1.36 billion, which outpaced the Zacks Consensus Estimate of $1.34 billion. Further, it compared favorably with the year-ago number of $1.29 billion.

Key Takeaways

  • Net operating income came in at $354 million, up 11% year over year.
  • Taxable-equivalent Net interest income increased 5% year over year to $922 million.
  • Non-interest expense of $788 million increased 1.5% year over year.
  • Efficiency ratio improved to 56.9% in quarter from 57% in the prior year quarter. Generally, a lower ratio indicates increased efficiency.

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. Now, 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.)

Check back later for our full write up on this M&T Bank earnings report!

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