M&T Bank Corporation has today beaten Wall Street estimates for second-quarter profit, as the US Federal Reserve's rapid rate hikes to tame inflation boosted the lender's interest income.
Most consumer-facing lenders have tapped higher rates to charge more interest on their loans and credit card debt, with M&T's upbeat results echoing larger rivals JPMorgan Chase, Wells Fargo and Bank of America.
M&T's net interest income surged 27% to $1.81 billion, helping the bank report an adjusted profit of $4.11 per share, above analysts' average estimates of $4.04 per share, according to Refinitiv IBES data.
But banks have been slow to pass on high interest rates to their deposit holders, driving a shift to higher-yielding assets such as money market funds.
A US banking crisis in March had also triggered deposit outflows worth billions, which has since stabilised.
M&T said its total deposits rose to $162.1 billion from $159.1 billion at the end of the first quarter, but fell about 4.9% year-over-year.
Net income available to common shareholders in the quarter was $841m, or $5.05 per share, compared with $192m, or $1.08 per share, a year earlier.
