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Bank of America is trumpeting the doubling of its profits in the second quarter as a payoff from its long cleanup efforts. But the results relied mainly on lower legal costs and expense savings, while revenue declined in four key business lines.
July 15 -
The combination of swelling deposits and weak loan growth continues to be a tough problem for regional banks. U.S. Bancorp's Richard Davis thinks higher loan growth is just around the corner to solve the problem, but PNC's Bill Demchak fears deposits could flee faster than lending will ramp up.
July 15 -
Commercial real estate lending and mortgages are banks' main source of hope to beat lukewarm expectations for the earnings season that begins Tuesday.
July 10
M&T Bank in Buffalo, N.Y., reported higher quarterly profit that reflected increased fees and higher net interest income.
The $97 billion-asset company reported Thursday that its second-quarter net income
The results included an after-tax gain of $23 million tied the sale of a trade processing business and a $40 million cash contribution to the company's charitable foundation. The items combined lowered net income by $1 million, or a penny.
Net interest income rose 2%, to $683 million. Total loans increased by 5.3%, to $68.1 billion. Commercial real estate loans, M&T's largest category, rose 8%, to $28.4 billion. The net interest margin narrowed by 23 basis points, to 3.17%.
Fee income rose 9%, to $497 million, boosted by the sale of the trade processing business, along with higher mortgage banking revenue and loan syndication fees.
Noninterest expenses rose 4%, to $697 million, reflecting the charitable contribution and the amortization of core deposits and other intangibles. The efficiency ratio rose slightly, to 58.23%.
