M&T Bank Corporation: SWOT Analysis & Company Profile by BusinessReview

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									M&T Bank Corporation

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M&T Bank Corporation: SWOT Analysis &
Company Profile


Reference code: BRFS144CP10-Q4

Published: Oct 2010




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M&T Bank Corporation - SWOT Profile                                                 Page 1
M&T Bank Corporation

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M&T Bank Corporation - Company Overview

M&T Bank Corporation (M&T Bank) is one of the 20 largest independent bank holding companies in the US, with current
assets of USD 68.2 billion as of June 30, 2010. The bank through its subsidiaries provides commercial and retail banking
services to individuals, corporations and other businesses, and institutions. It offers business loans and leases, business
credit cards, deposit products, financial services. The bank also offers consumer loans, and commercial loans and leases;
insurance agency services; credit life, and accident and health reinsurance. In addition, it provides residential real estate
loans, commercial real estate loans, multifamily commercial real estate loans, residential mortgage loans and other
assets, short-term and long-term borrowed funds, investment and trading securities, and offshore branch deposits. M&T
Bank operates a network of branch offices in New York, Maryland, Pennsylvania, Delaware, New Jersey, Virginia, West
Virginia and the District of Columbia as well as in the Cayman Islands. M&T Bank is headquartered in New York, the US.


Financial Performance

The bank reported interest income of (U.S. Dollars) USD 2,725.20 million during the fiscal year ended December 2009, a
decrease of 16.85% from 2008. Its interest income recorded a declining compound annual rate of 12.32%, during the
period, 2007-2009. Moreover, during the fiscal year 2009, the company’s net profit margin was 13.94% as against a
negative net profit margin of 16.96% during the fiscal year 2008.




M&T Bank Corporation - Key Facts

M&T Bank Corporation, Key Facts

                                  One M&T Plaza, Buffalo, New
                                                                    Ticker Symbol, Stock       MTB (New York Stock
Corporate Address:                York (NY), 14203, United States Exchange                     Exchange)



Telephone                         + 1 716 8425445                   No. of Employees           12,802



Fax                               + 1 716 8425021                   Financial Year End         December



URL                               www.mtb.com                       Revenue (in USD Million)   2,725.20



Industry                          Financial Services



Locations                         United States

Source: Annual Report, Company Website, Primary and Secondary Research




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M&T Bank Corporation - SWOT Profile                                                                                  Page 2
M&T Bank Corporation

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M&T Bank Corporation - Business Description

M&T Bank Corporation (M&T Bank) is the US based bank holding company. The bank offers a wide range of commercial
banking, trust and investment services to the customers. M&T Bank operates through a wide network of approximately
750 branches and 1,800 ATM's across Delaware, Maryland, Pennsylvania, New York, Virginia, New Jersey, West Virginia
and Washington. As of June 2010, M&T Bank had 12,802 people.

M&T Bank operates through six segments namely, Business Banking, Commercial Banking, Commercial Real Estate,
Discretionary Portfolio, Residential Mortgage Banking and Retail Banking.

Through the Business Banking segment, the bank provides a comprehensive array of products and services, including
business loans, leases such as loans guaranteed by the small business administration, business credit cards, deposit
products and financial services such as cash management, payroll, direct deposit, merchant credit card and letters of
credit. These products are marketed to small businesses and professionals through its branch network, business banking
centers and other delivery channels including telephone banking, Internet banking and automated teller machines. During
the year ended December 31, 2009, the segment contributed USD 321.21 million towards the company’s total net interest
income, an increase of 11.33% over 2008.

Through the Commercial Banking segment, the bank provides a wide range of credit products and banking services for
middle-market and large commercial customers. It also offers commercial lending and leasing, deposit products, and cash
management services. During the year ended December 31, 2009, the segment contributed USD 531.59 million towards
the company’s total net interest income, an increase of 22.7% over 2008.


The bank, through the Commercial Real Estate segment engaged in origination, sales and servicing of commercial real
estate loans through the FNMA DUS program and other programs. It provides credit and deposit services to the
customers. Commercial real estate loans of the segment may be secured by apartment/multifamily buildings; office, retail
and industrial space; or other types of collateral. During the year ended December 31, 2009, the segment contributed
USD 346.513 million towards the company’s total net interest income, an increase of 20.43% over 2008.

Through the Discretionary Portfolio segment, the bank offers investment and trading securities, residential mortgage loans
and other assets, short-term and long-term borrowed funds, brokered certificates of deposit and interest rate swap
agreements, and offshore branch deposits. In addition, it provides foreign exchange services to customers. During the
year ended December 31, 2009, the segment contributed USD 137.51 million towards the company’s total net interest
income, an increase of 5.1% over 2008.

The bank, through Residential Mortgage Banking segment, offers origination and servicing of residential mortgage loans
and sells of the loans in the secondary market to investors or to the Discretionary Portfolio segment. In addition, it offers
origination and servicing of loans to developers of residential real estate properties. During the year ended December 31,
2009, the segment contributed USD 78.865 million towards the company’s total net interest income, an increase of 19.4%
over 2008.

Through Retail Banking segment, the bank offers certain deposit and loan products on a nationwide basis through M&T
Bank, N.A. Its credit services include consumer installment loans, student loans, automobile loans and home equity loans
and lines of credit. In addition, it offers deposit products, including demand, savings and time accounts; investment
products, including mutual funds, annuities and other services. During the year ended December 31, 2009, the segment
contributed USD 878.52 million towards the company’s total net interest income, an increase of 5.8% over 2008.

Recently, Banco Santander SA has had conversations on merging its U.S. operations with M&T Bank. Further, the bank
has received final approval from the Office of the Superintendent of Financial Institutions Canada (OSFI) to open a
commercial banking office in Canada.




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M&T Bank Corporation - SWOT Profile                                                                                 Page 3
M&T Bank Corporation

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M&T Bank Corporation - Major Products and Services

M&T Bank Corporation (M&T Bank) is one of the leading commercial bank holding companies in the US. Its key services
includes the following:

M&T Bank Corporation, Major Products and Services
Services:

Personal Banking:

Everyday Banking:

Switch to M&T Bank

Checking

Savings and CDs

Online Banking

M&T Check Cards

College Student Solutions

Reorder Checks

Health Savings Account

FDIC Insurance

Loans & Credit:

CHOICEquity

Home Equity Loans

Mortgage

Overdraft Protection

Credit Cards

Bank Properties for Sale

Auto, Boat & RV

General Purpose

Student Loans

Mortgage Repayment Assistance

Home Equity Repayment Assistance

Investing & Insurance:

Investments

Retirement Planning

Education Savings Planning

Insurance Planning

Additional Products and Services

Brokerage Services

Web Trading

Research & Tools

Insurance

Business Banking:

Checking




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M&T Bank Corporation - SWOT Profile                                                                          Page 4
M&T Bank Corporation

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Credit Inquiry

Insurance

Investments

Loans & Lines of Credit

SBA ARC Loan Program

Merchant Services

Savings

Treasury Management

Web Banking for Business

Commercial Banking:

Asset Based Finance

Credit Inquiry Services

Depository Services

Equipment Finance

Insurance

Investment Banking

Investments

Loans and Letters of Credit

Merchant Services

Treasury Management
Source: Annual Report, Company Website, Primary and Secondary Research




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M&T Bank Corporation - SWOT Profile                                                 Page 5
M&T Bank Corporation

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M&T Bank Corporation - History

M&T Bank Corporation, History

    Year                Event type                                                  Description


                                            M&T Bank completed its acquisition of Provident Bankshares Corp. and the merger of
   2009      Acquisitions/Mergers/Takeovers Provident Bankshares Corp.'s banking subsidiary, Provident Bank, into M&T Bank,
                                            M&T's principal banking subsidiary.


   2008      Acquisitions/Mergers/Takeovers The bank acquired Provident Bankshares Corporation.


                                                M&T Bank acquired the Partners Trust Financia
								
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