Most of the largest banks in America took a hit last week when they performed worse than last year on the Federal Reserve’s stress test to see how they’d react to a financial crisis. One winner was Buffalo-based M&T Bank (MTB), which wasn’t just the highest-scoring regional bank to be tested but was today moved to the top position on Morgan Stanley’s midcap banks earnings preview.
With a market cap of $26 billion, M&T is currently trading at $150.08, an increase of 0.17% today, and 7.95% so far this year. In the report, Morgan Stanley equity analyst Manan Gosalia attributes the decision to move M&T to the bank’s top slot to a successful stress test, improving credit, and stable deposit costs supporting an increase in net interest margins.
