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M&T Bank (MTB) Q4 Earnings Lags on Higher Provisions

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Have you been eager to see how M&T Bank Corporation (MTB - Free Report) performed in Q4 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 Miss

M&T Bank came out with net operating earnings per share of $2.01 for fourth-quarter 2016, missing the Zacks Consensus Estimate by 2 cents.  Earnings miss reflected higher provision for credit losses.

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 slightly over the last 7 days.

Regarding earnings surprise history, before posting an earnings miss in Q4, the company delivered positive earnings surprises in two of the trailing four quarters.
 

M&T Bank Corp. Price and EPS Surprise

M&T Bank Corp. Price and EPS Surprise | M&T Bank Corp. Quote

Revenue Came In Higher Than Expected   

M&T Bank posted net revenues of $1.34 billion, which outpaced the Zacks Consensus Estimate of $1.32 billion. Further, it compared favorably with the year-ago number of $1.26 billion.

Key Takeaways

  • Net operating income came in at $336 million, slightly down year over year.
  • Taxable-equivalent Net interest income increased 9% year over year to $883 million.
  • Non-interest expense of $769 million decreased 2% year over year.
  • Efficiency ratio deteriorated to 56.4% in quarter from 55.5% in the prior year quarter. Generally, a higher ratio indicates decreased 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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