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The Federal Reserve‘s unprecedented string of increases in rates has subsequently boosted returns for banks, which have begun to charge more loans during the tightening cycle.
At M&T, net interest income gained by 27% year-on-year to $1.81 billion, pushing its diluted net operating earnings per common share for the three months ended on June 30 up to $5.12. That topped Bloomberg consensus estimates $4.09 per share.
However, many lenders have not moved quickly to pass on the surge in borrowing costs to deposit holders, leading customers to seek out assets like money market funds that potentially offer better yields. As such, M&T’s total deposits in the second quarter dropped by 4.9% annually to $162.1B.
