M&T BANK, the US financial institution in which AIB has a stake, reported better than expected quarterly profits yesterday, as its net write-offs on loans decreased and it reduced its provision for credit losses.
The company posted fourth-quarter net income of $137 million, or $1.04 per share, compared with a profit of $102.2 million, or 92 cents per share, in the same quarter the previous year.
AIB has a 22.5 per cent interest in M&T, which also counts Warren Buffett’s Berkshire Hathaway among its investors. The bank operates about 800 branches and is based in Buffalo, New York.
The provision for credit losses was $145 million during the recently completed quarter, compared with $151 million in the corresponding 2008 period.
Net write-offs of loans were $135 million in the final quarter of 2009, representing around 1 per cent of the average loans outstanding.
This was an improvement on the write-offs of $144 million or 1.17 per cent in the same quarter in 2008.
“By sticking with our approach of providing lending and banking services in our local markets, M&T produced solid earnings for both the fourth quarter and the full-year of 2009,” said chief financial officer Rene Jones.
Margins and credit costs also improved during the quarter.
US regional banks have seen their interest margins squeezed as they compete for deposits. (Additional reporting – Reuters)
