M&T, the US bank in which AIB holds a 22.5 per cent stake, has reported an annual rise in first-quarter earnings, as low US interest rates drove gains in its mortgage and loan portfolios.
The Buffalo-based bank said net income had risen to $117 million (€108.6 million) in the first quarter, up from $114 million a year earlier. Diluted cash earnings per share rose to $1.34 from $1.27.
M&T also said it remained comfortable with its full-year earnings per share estimate of $5.25-$5.35. "We are encouraged by the operating results of our mortgage banking business and continued strong growth in our consumer loan portfolio," said M&T chief financial officer Mr Michael Pinto, in a statement.
"Those positive factors were offset by a generally lacklustre revenue growth in other business lines," he added.
The results include a $4 million charge tied to M&T's purchase of Allfirst, the Baltimore bank that suffered a $691 million fraud last year, from AIB.
The purchase deal, completed at the start of this month, included a cash payment of $886 million to AIB, which is now M&T's largest shareholder. M&T said yesterday that it expected to incur further expenses in relation to the merger transaction, over future quarters. - (Additional reporting, Reuters)
