Uncertainty Surrounding M&T Bank Is Holding Back Share Price
Thu, Jun. 23, 4:51 PM
- Ally Financial (NYSE:ALLY): Actual end of 2015 CET1 ratio of 9.2%, Q1 2018 CET1 ratio under severely adverse scenario of 6.1%, minimum 6.1%.
- American Express (NYSE:AXP): Actual 12.4%, Q1 2018 12.3%, minimum 11.4%.
- Bank of America (NYSE:BAC): Actual 11.6%, Q1 2018 8.1%, minimum 8.1%.
- BNY Mellon (NYSE:BK): Actual 11.5%, Q1 2018 11.2%; minimum 10.5%.
- BB&T (NYSE:BBT): 10.3%, 6.9%, 6.9%
- BBVA Compass (NYSE:BBVA): 10.7%, 6.5%, 6.5%.
- BMO Financial (NYSE:BMO): 11.9%, 5.9%, 5.9%.
- Capital One (NYSE:COF): 11.1%, 8.2%, 8.2%.
- Citigroup (NYSE:C): 15.3%, 9.2%, 9.2%.
- Citizens Financial (NYSE:CFG): 11.7%, 8.8%, 8.8%.
- Comerica (NYSE:CMA): 10.5%, 8.3%, 8.3%.
- Discover (NYSE:DFS): 13.9%, 12.4%, 11.9%.
- Fifth Third (NASDAQ:FITB): 9.8%, 6.8%, 6.8%.
- Goldman Sachs (NYSE:GS): 13.6%, 10.2%, 8.4%.
- HSBC N.A. (NYSE:HSBC): 15.7%, 9.1%, 9.1%.
- Huntington Bancshares (NASDAQ:HBAN): 9.8%, 5%, 5%.
- JPMorgan (NYSE:JPM): 12%, 8.3%, 8.3%.
- KeyCorp (NYSE:KEY): 10.9%, 6.4%, 6.4%.
- M&T (NYSE:MTB): 11.1%, 6.9%, 6.9%.
- Morgan Stanley (NYSE:MS): 16.4%, 10%, 9.1%.
- Northern Trust (NASDAQ:NTRS): 10.8%, 9.6%, 9.6%.
- PNC Financial (NYSE:PNC): 10.6%, 7.6%, 7.6%.
- Regions (NYSE:RF): 10.9%, 7.3%, 7.3%.
- Santander Holdings (NYSE:SAN): 12%, 11.8%, 11.8%
- State Street (NYSE:STT): 13%, 9.6%, 9.6%
- SunTrust (NYSE:STI): 10%, 7.5%, 7.5%.
- TD Group (NYSE:TD): 13.1%, 8.4%, 8.4%.
- U.S. Bancorp (NYSE:USB): 9.6%, 7.5%, 7.5%.
- Wells Fargo (NYSE:WFC): 11.1%, 7.2%, 7.2%.
- Zions (NASDAQ:ZION): 12.2%, 6.6%, 6.6%.
- Previously: All 33 banks pass this year's stress tests (June 23)
Mon, Jun. 13, 2:25 PM
- Not very excited about the prospects for bank stocks given the significant flattening in the yield curve as potentially signaling a deteriorating H2 and 2017 environment, a bank stock analyst nevertheless needs to recommend bank stocks.
- Given low expectations as reflected in its cheap valuation, its highly asset-sensitive balance sheet, and the chance for good news from CCAR, Bank of America (BAC -1.3%) is the team's top bank idea.
- Looking at regionals, they like the M&A optionality in Comerica (CMA -1.1%), but don't see much value in names like Citizens Financial Group (CFG -1.1%), Regions Financial (RF -1.1%), SunTrust (STI -0.9%), and Zions Bancorp (ZION -0.9%). Baird also sticks with its Underperform rating on M&T Bank (MTB +0.3%), which trades at 13.5x 2017E EPS vs. about 11x for the peer group.
Tue, May 31, 10:43 AM
- "The regulatory environment is completely different than it was five years ago,” says M&T Bank (NYSE:MTB) Chief Compliance Officer Greg Imm. "You can accept it and move on, or fight it and lose."
- The 2010 Dodd-Frank law has more than 22K pages of rules on matters ranging from bank capital to how lenders may advertise. Alongside those rules are thousands of regulators set out to watch banks, and tens of thousands of new staff hired by banks to keep those regulators happy.
- That sort of stuff adds up, and the six largest U.S. banks in 2013 spent $70.2B on compliance, double the amount in 2007 ... and costs have mounted since.
- "The dynamic can be maddening for all sides, with regulators, internal compliance executives and employees operating like rival tribes," write Kirsten Grind and Emily Glazer in the WSJ.
- ETFs: XLF, FAS, FAZ, UYG, VFH, IYF, BTO, IYG, FNCL, SEF, FXO, RYF, FINU, RWW, XLFS, FINZ, JHMF, FAZZ, FNCF
Tue, May 17, 5:21 PM
Fri, Apr. 22, 10:11 AM
- Deutsche Bank upgrades BB&T (BBT +1.7%) to Buy from Hold, while downgrading M&T (MTB +1%) to Hold from Buy.
- Both lenders reported earnings beats this week, and both have been busy on the acquisition front.
- It could be a value play as a check of the scoreboard shows MTB as roughly flat over the last year - outperforming BBT by about 700 basis points.
- Now read: BB&T (BBT) Kelly S. King on Q1 2016 Results - Earnings Call Transcript (April 21)
Wed, Apr. 20, 7:39 AM
- In addition to his oversight of the bank's Treasury function and Wilmington Trust division, Vice Chairman Rene Jones as of May 2 will take over mortgage and consumer lending.
- Taking over at CFO will be EVP Darren King, the current head of the MTB's retail and business banking operations.
- Source: Press release
- Now read: M&T Bank: A Lesson In 'Frozen' Dividends (March 31)
Mon, Apr. 18, 8:05 AM
- Q1 operating earnings of $320M or $1.87 per share vs. $246M and $1.68 one year ago. ROA of 1.09% up one basis points. ROW of 11.62% down 28 basis points.
- Net interest income of $878M up 32% Y/Y thanks to the addition of assets from the Hudson City purchase. NIM of 3.18% up one basis points.
- Provisions of $49M vs. $38M a year ago. Loans classified as non-accrual of $877M, or 1% of total loans vs. $799M and 0.91% a quarter earlier.
- Efficiency ratio improves to 57% from 61.5% a year ago. Total assets of $124.6B vs. $98.4B.
- Tangible book value per share of $65.65 up 13% from a year ago. CET1 ratio of 11.06%.
- Conference call at 11 ET
- Previously: M&T Bank beats by $0.03, misses on revenue (April 18)
- MTB flat premarket
Mon, Apr. 18, 6:54 AM
Sun, Apr. 17, 5:30 PM
Thu, Apr. 7, 12:44 PM
- "We are confident in the capital strength of the large and mid-cap banks - and with that, their capacity for increased capital returns," says Credit Suisse's Susan Roth Katzke.
- Stronger balance sheets, she says, should outweigh what is a harsher adverse scenario from the Fed.
- Roth and team see a total net capital return increase of 77% vs. 58% in 2015, with a median payout ratio of 31% vs. 27%. Incremental dollars should be skewed to buybacks given cheap stock valuations and the Fed's preference for the flexibility afforded by repurchases.
- Best positioned for the highest capital return are Morgan Stanley (NYSE:MS), Regions Financial (NYSE:RF), Goldman Sachs (NYSE:GS), Fifth Third Bancorp (NASDAQ:FITB), PNC Financial (NYSE:PNC), and U.S. Bancorp (NYSE:USB).
- The highest incremental capital returns should come from Zions Bancorp (NASDAQ:ZION), Citigroup (NYSE:C), Bank of America (NYSE:BAC), and M&T Bank (NYSE:MTB).
- The lower end of payout ratios should fall on Huntington Bancshares (NASDAQ:HBAN) and Bank of America.
- Now read: Sell The Banks: The Invisible Hand Is Broken (April 4)
Fri, Apr. 1, 8:06 AM
Thu, Feb. 18, 11:53 AM
Tue, Jan. 19, 8:12 AM
- This quarter's results include the numbers of Hudson City Bancorp after that long-awaited deal finally took place. Assets acquired totaled about $34.6B, including $19B of loans and $7.9B of investment securities. Liabilities were $31.5B, including $17.9B of deposits and $13.2B of borrowings. Merger-related expenses during the quarter were $61M or $0.40 per share.
- Net interest margin in Q4 of 3.12% up two basis points from a year ago. Net charge-offs ratio of 0.18% down one basis points. Efficiency ratio of 55.53% improves 231 basis points.
- Previously: M&T Bank beats by $0.13, misses on revenue (Jan. 19)
- MTB flat premarket
Tue, Jan. 19, 6:51 AM
Mon, Jan. 18, 5:30 PM
Thu, Jan. 7, 7:47 AM
- At issue is the concealment of problematic loans from the eyes of regulators. U.S. Attorney Charles Oberly notes the alleged criminal conduct came before M&T's (NYSE:MTB) May 2011 purchase of Wilmington.
- Wilmington Trust received $330M from TARP and yesterday's move makes it the first bailout recipient to be indicted.
M&T Bank Corp. operates as a bank holding company. The company, through its wholly owned subsidiaries, M&T Bank and Wilmington Trust NA, offers a wide range of retail and commercial banking, trust, wealth management and investment services to their customers. It offers a broad range of financial... More
Industry: Regional - Northeast Banks
Country: United States
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