M&T Bank Corporation (MTB) Harvard Case Solution & Analysis

M&T Bank Corporation (MTB)  Case Solution

Recommendation:

The management should go for M&T Bank shares as M&T Bank Corporation is creating its wealth by performing well in the industry as there is significant increase in Bank’s revenue, gross profit margin, and net profit margin. As it can be seen that bank's net profit margin decreased in 2015. However, EPS increased by 2.65%. It is expected that in future, this prospective growth will continue and share prices will also increase. Therefore, it is recommended that one should buy M&T Bank Corporation’s shares, So that when the prices increase, profits can be earned by selling of the shares.

Industry & Company Description

The M & T Bank Corporation was founded to provide commercial and retail banking services to people. The Bank competes in offering commercial and retail financial service with other institutions in the banking industry. In comparison to other banks, the total revenue of M & T Bank Corporation in 2015 decreased by -0.92% and in the meanwhile, its competitors saw  a-16.88% decrease in total revenue. According to quarterly chat, bank revenue is growing by 9.98% while industry competitors falling by 5.78%.

 Net profit margin of the bank is 20.72% and competitors’ profitability is 21.64%. It means the bank is performing well according to these figures. As bank’s net income increased, it means that the bank is serving its customers effectively. Nevertheless, in 2014 bank’s net income decreased. The reason behind this is that bank’s cost got a little higher than those in the industry. They have to manage their costs effectively. In 2015, net income increased in compasiron to the previous year.

Competitive Positioning: 

Market share of the banking industry is divided in five segments. Their segments are based on the products. Like commercial banking, commercial real estate, residential mortgage banking, retail banking, and business banking. According to data from recent quarters, M&T Bank Corporation’s growth revenue is 9.98%, which is higher than the industry level. M&T Bank Corporations has 73.31% market share in the product of commercial real estate; it is a sign of relative competitiveness of bank’s product and services. As total market of the product grows, the bank is maintaining its market share while simultaneously increasing its revenue at the same rate along with its market share ...................

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