(Reuters) - M&T Bank Corporation exceeded expectations for second-quarter profit on Wednesday, as the U.S. Federal Reserve’s aggressive interest rate hikes to control inflation boosted the lender’s interest income.
Like other consumer-facing lenders, M&T Bank took advantage of higher rates to increase the interest charged on loans and credit card debt. The positive results from M&T Bank mirror those of larger competitors JPMorgan Chase, Wells Fargo, and Bank of America.
M&T Bank’s net interest income soared by 27% to $1.81 billion, contributing to an adjusted profit of $4.11 per share. This surpassed the average estimate of $4.04 per share from analysts, according to Refinitiv IBES data.
However, banks have been slow to pass on high interest rates to their deposit holders, leading to a shift towards higher-yielding assets such as money market funds. The banking crisis in March caused billions of dollars in deposit outflows, but the situation has since stabilized.
M&T Bank’s total deposits increased to $162.1 billion from $159.1 billion at the end of the first quarter, but experienced a slight decline…
2023-07-19 05:53:18
Link from finance.yahoo.com