The higher-for-longer interest rate environment has benefited major U.S. lenders such as such as JPMorgan (JPM.N), Wells Fargo (WFC.N) and Citigroup (C.N), who also beat quarterly estimates and raised FY23 interest income forecasts.
M&T's net interest income — or the difference between what a bank earns on loans and pays out on deposits — jumped 5.7% to $1.78 billion in the quarter ended Sept. 30.
The bank reported adjusted profit of $3.98 per share, compared with analysts' average estimate of $3.93 per share, according to LSEG data.
But the Fed's aggressive monetary policy has made it difficult for customers to borrow and repay debt, prompting lenders to set aside more rainy-day funds to cover for potential defaults.
M&T set aside $150 million as provision for credit losses, compared with $115 million a year earlier.
The company's total deposits in the quarter rose to $164.13 billion, 1.3% higher than the preceding three months and marginally up from the year earlier.
