Fees Boost M&T Bank, And Expenses Look Better Heading Into 2020

Valuation and a recent trend of missing operating expense estimates were my biggest concerns when I wrote about M&T Bank (MTB) last quarter, and even after a big post-earnings pop, the shares haven’t moved much beyond the price of that last article. Since then, though, M&T has posted a pretty good fourth quarter report, including real progress on expenses and commentary that loan run-off pressures should start abating in 2020.

I don’t have any quality issues with M&T Bank, but I still don’t find the valuation compelling for a bank that will likely only produce low single-digit pre-provision profit growth for a couple of years (and 2021 could still see a contraction). M&T is a decent enough hold, but with several quality banks out there trading at meaningful discounts to fair value, I’d shop around before buying this one.

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Fees Boost M&T Bank, And Expenses Look Better Heading Into 2020