NYSE$MTB

M&T Bank Corporation · Q1 2020 earnings

Q1 2020 earnings · · Investor relations

Briefing

Announced first quarter results, impacted by COVID-19 pandemic and adoption of amended accounting guidance for credit losses.

M&T Bank Corporation reported a GAAP-basis net income of $269 million for the first quarter of 2020, a decrease compared to $483 million in the same quarter of the previous year. The results were impacted by the COVID-19 pandemic and the adoption of amended accounting guidance for credit losses, which led to a $132 million increase in the allowance for credit losses as of January 1, 2020.

  • Diluted earnings per common share were $1.93, compared to $3.35 in the first quarter of 2019.
  • GAAP-basis net income expressed as an annualized rate of return on average assets was 0.90%.
  • A provision for credit losses of $250 million was recorded in the first quarter of 2020.
  • Taxable-equivalent net interest income was $982 million, compared to $1.06 billion in the first quarter of 2019.

Headline financials

Total Revenue

$1.51B

Previous: $1.55B-2.9%
EPS (adj)

$1.95

Previous: $3.38-42.3%
Net Interest Margin

3.6%

Previous: 4.0%-9.7%
Efficiency Ratio

58.9%

Previous: 57.6%+2.3%
Net Charge-offs

0.2%

Previous: 0.1%+120.0%
Free Cash Flow

$269M

Previous: $483M-44.3%
Net Income

$269M

Previous: $483M-44.3%
Operating Income

$1.37B

Previous: $1.35B+1.2%
Gross Profit

$1.49B

Previous: $1.53B-3.1%
Cash & Equivalents

$10.2B

Previous: $8.87B+14.9%
Total Assets

$125B

Previous: $120B+3.8%

Revenue & EPS history

M&T Bank · Revenue · Quarterly

$1.51B

Q1 2020-2.9%vs Q1 2019
Beat estimate in 11 of 16 quarters(69%)
ActualEstimate

Revenue by segment

M&T Bank · $422M total across 5 segments · Q1 2020

  • Trust Income
    $149M+12.0%
  • Other Revenues
    $133M-0.9%
  • Deposit Service Charges
    $106M+3.0%
  • Trading & Derivatives
    $21M+94.6%
  • Brokerage Services
    $13.1M+5.2%

Forward guidance

M&T Bank expects the COVID-19 pandemic to have a material impact on its future financial results, although the full extent is uncertain and not currently estimable.

Historical earnings impact

How earnings announcements have historically affected this stock's price.

Avg. return before/after earnings

Based on 20 quarterly earnings reports · overlaid with Q1 2020

Historical avgQ1 2020

+0.6%

Avg return

Earnings day

+0.8%

Avg return

5 days after

+3.2%

Avg return

30 days after

58%

42 / 73 earnings

Positive

+9.7%

Q1 2022

Best reaction

-14.8%

Q3 2022

Worst reaction

Earnings price reactions
QuarterReport dateReaction (Day 0)+5 days+30 days
Q4 2025+0.2%-0.4%-7.0%
Q1 2026+0.6%-0.4%-7.0%
Q3 2025-3.5%-1.8%+1.0%
Q2 2025+0.4%-1.5%+2.9%
Q1 2025+0.3%+1.4%+17.4%
Q4 2024-2.0%-1.3%-1.0%
Q3 2024+4.3%+2.5%+13.4%
Q2 2024+0.4%+4.6%-0.9%
Q1 2024+2.1%+6.6%+14.9%
Q4 2023+6.4%+8.3%+5.6%
Q3 2023-3.8%-10.3%+1.9%
Q2 2023+2.8%+3.7%-5.3%
Q1 2023+7.8%+6.4%+2.9%
Q4 2022+5.4%+6.3%+9.7%
Q3 2022-14.8%-13.8%-9.9%
Q2 2022+2.7%+4.7%+14.6%
Q1 2022+9.7%+7.4%+0.4%
Q4 2021-9.0%-6.4%+3.7%
Q3 2021+5.4%+4.9%+3.8%
Q2 2021-4.5%-2.1%+0.5%
Q1 2021-2.7%-0.5%+5.4%
Q4 2020-0.4%-4.5%+4.3%
Q3 2020+7.2%+0.3%+19.2%
Q2 2020+1.6%-0.6%-0.9%
Q1 2020-0.8%-0.4%-8.9%
Q4 2019+5.9%+5.5%+4.1%
Q3 2019-4.2%-1.6%+3.2%
Q2 2019-4.4%-4.6%-13.4%
Q1 2019+0.3%-0.8%-3.8%
Q4 2018+7.2%+7.9%+11.6%
Q3 2018+1.3%-0.5%+6.5%
Q2 2018+2.5%+3.6%+4.7%
Q1 2018-3.1%-0.9%+0.6%
Q4 2017+5.3%+5.4%+6.9%
Q3 2017-1.1%+0.5%-2.2%
Q2 2017-3.1%-3.1%-7.3%
Q1 2017+2.6%+4.0%+5.8%
Q4 2016+1.5%+3.2%+8.6%
Q3 2016+3.1%+3.2%+22.5%
Q2 2016-5.1%-4.5%-0.9%
Q1 2016+2.6%
Q4 2015+0.2%
Q3 2015-1.3%
Q2 2015+2.5%
Q1 2015-1.1%
Q4 2014-2.4%
Q3 2014-2.6%
Q2 2014-0.2%
Q1 2014+1.8%
Q4 2013-2.5%
Q3 2013-1.1%
Q2 2013+1.5%
Q1 2013-1.8%
Q4 2012-0.1%
Q3 2012+7.7%
Q2 2012+4.0%
Q1 2012+3.4%
Q4 2011+1.1%
Q3 2011-2.0%
Q2 2011-3.0%
Q1 2011+1.3%
Q4 2007-2.1%
Q4 2010-2.1%
Q4 2009-2.1%
Q3 2010-0.3%
Q2 2010+1.6%
Q1 2009+5.0%
Q1 2010-0.2%
Q3 2009+3.1%
Q3 2008+3.1%
Q4 2008+2.7%
Q2 2009+2.7%
Q2 2008+2.7%

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