M&T Bank Q3 adjusted EPS beats estimates on loan growth

Overview

• U.S. regional bank's Q3 adjusted EPS beat analyst expectations

• Q3 net interest income missed analyst expectations

• Company repurchased 1.3 mln shares for $323 mln in Q3

Outlook

• Company expects continued strength across customer-driven revenue streams due to diversified business model

Result Drivers

• LOAN GROWTH - Co said higher average commercial real estate, consumer and residential real estate loan balances drove loan growth in Q3

• MORTGAGE BANKING REVENUES - Co said higher residential mortgage banking revenues contributed to noninterest income in Q3

• TECHNOLOGY AND PERSONNEL COSTS - Co said higher technology infrastructure and personnel costs increased noninterest expense in Q3

Company press release:

Key Details

Analyst Coverage

• The current average analyst rating on the shares is "hold" and the breakdown of recommendations is 7 "strong buy" or "buy", 14 "hold" and 1 "sell" or "strong sell"

• The average consensus recommendation for the banks peer group is "buy."

• Wall Street's median 12-month price target for M&T Bank Corporation is $250.00, about 14.3% above its October 15 closing price of $218.65

• The stock recently traded at 11 times the next 12-month earnings vs. a P/E of 12 three months ago

Reuters Recommended Reads

• Oct 14 - US banks post solid third-quarter loan growth, but face more competition for deposits

• Oct 15 - First Horizon Corp reports Q3 loss on mortgage sale impact

• Oct 15 - PNC's Q3 revenue grows slightly less than expected on tepid capital markets activity

For questions concerning the data in this report, contact Estimates.Support@lseg.com. For any other questions or feedback, contact reuters.support@thomsonreuters.com.

(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)