US-based M&T Bank, in which AIB has a 23.5 per cent stake, has reported an 8 per cent rise in after-tax profits of $213 million (€168 million), up from $197 million (€155 million), in the second quarter of 2006. The bank, which is based in Buffalo, New York, posted earnings per share for the period of $1.87, up 11 per cent from $1.69 in the same quarter last year.
During the three-month period, M&T said its provisions for loan losses and net chargeoffs for bad loans fell. Its quarterly figures were slightly better than analyst forecasts. It said provisions for credit losses came to $17 million in the most recent quarter, down from $19 million in the second quarter of 2005, while net charge-offs of loans dropped to $10 million from $14 million.
The company said results for the latest quarter included costs of $2 million, or two cents a share, that related to its acquisition of 21 Citibank branches in Rochester and Buffalo. M&T said it expected "to incur additional acquisition-related expenses in the third quarter".
Commenting on the results yesterday, M&Texecutive vice-president and chief financial officer Rene Jones attributed the growth to continued attention to efficiency and the benefits of consistent credit standards.
"We are excited about the addition of approximately 60,000 consumer and business customers in our Buffalo and Rochester markets, the second and third-largest cities in New York State," he said. "Our new customers will benefit from having access to M&T's network of ATM branch facilities in western New York and our shareholders will benefit from increased operating leverage."
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