M&T Bank Corporation Outlook Following Q3 Results

Analysts at RBC Capital provide their view on M&T Bank Corporation (NYSE:MTB) following its Q3 results, with core EPS coming in at $3.74, beating the consensus estimate of $3.49. The strong performance was driven by better-than-expected revenues and a net provision benefit, offset in part by increased expenses.

The analysts increased their 2021 and 2022 EPS estimates for the company to $11.65 and $12.45, from $10.92 and $12.82, respectively, mentioning that the company is well-positioned for a stronger economy with higher interest rates.

According to the brokerage, the company’s balance sheet is loaded with liquidity that over the next 12–18 months should be put to work in higher-yielding earning assets, which should lead to higher net interest income. Moreover, the company’s net interest margin would be favorably impacted in a rising short-term interest rate environment.