Healthy Spreads And Efficiency Driving M&T Bank

While M&T Bank (MTB) closed its Hudson City deal about two and a half years ago, the bank has continued to reshape its loan book and drive higher returns on equity. At the same time, while M&T isn’t particularly asset-sensitive, the bank’s mix of higher-yielding loans and lower-cost funding are driving attractive net interest spreads while cost discipline is pushing the efficiency ratio lower and helping boost pre-provision income.

There are a lot of positives for M&T, including those attractive spreads and ongoing expense leverage. What I don’t find so positive at this point is the value proposition – even with mid-to-high single-digit long-term earnings growth and returns on tangible equity likely to approach 20% in the near future, the shares trade at a pretty healthy valuation already.

Read the full article:
Healthy Spreads And Efficiency Driving M&T Bank