Lower mortgage banking revenue pulls down M&T Bank profit
Jan 17 (Reuters) - M&T Bank Corp reported quarterly results that were worse than analysts' expectations as mortgage banking revenue fell and expenses increased.
M&T Bank shares slipped more than 3 percent on Friday.
Net income fell 17 percent to $245.72 million, or $1.74 per share, from $296.19 million, or $2.16 per share, a year earlier.
Mortgage banking revenue fell 29 percent to $82.1 million while expenses rose 12 percent to $703.07 million.
Net interest income, the difference between what banks earns on loans and pays out on deposits fell 1 percent to $734.46 million.
Excluding items, the bank earned $1.79 per share, well below analysts' average estimate of $1.92 per share, according to Thomson Reuters I/B/E/S.
The bank has been in the spotlight for more than one year over its proposed acquisition of Hudson City Bancorp Inc , which has been delayed due to the U.S. Federal Reserve's concerns about M&T's anti-money laundering procedures.
Last month M&T Bank said it now expected the acquisition to close at the end of 2014 instead of Jan. 31.
Credit card issuer Capital One Financial reported lower-than-expected quarterly results on Thursday as net interest income fell in both its credit card and consumer banking businesses.
Shares of Buffalo, New York-based M&T were down 3.4 percent at $110.76 on the New York Stock Exchange in afternoon trading.
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