M&T profits hit $573.m

M&T Bank, in which AIB has a 22% stake, has reported a 26% rise in net profits for 2003.

The bank recorded profits of $573.9m, or $4.95 a share, from $456.8m, or $4.78 a share in 2002, excluding exceptional items operating earnings increased to $660.9m, or $5.70 a share, from $489.2m, or $5.12 a share.

The results include that of Allfirst, the Baltimore-based bank sold by AIB to M&T in 2003 after the John Rusnak currency fraud scandal.

M&T Bank’s net interest income jumped 31% to $421m. Other income grew by 69% to $233m due to increases in trading account and foreign-exchange gains, trust income and service charges on deposit accounts. Profits in the last three months of 2003 rose 41%, helped by an increase in net interest income. Profits were $166m from $118m in 2002.

The results included a $13m charge relating to the $3bn acquisition of Allfirst. The takeover will save AIB $100m a year in costs.

“The execution of the Allfirst merger was M&T’s most significant event in 2003. While the ultimate success of this merger will be measured over several years, we are pleased with the results, both financially and in the integration of Allfirst’s operations with those of M&T,” the bank said in a statement.

However, the results were below analysts’ expectations and the bank’s share was down nearly 2% yesterday.

M&T said it does not expect any significant additional merger-related expenses relating to the Allfirst purchase.