M&T Bank Corporation's Financial Performance and Capital Efficiency Compared to Peers

• M&T Bank Corporation (NYSE:MTB) has a Return on Invested Capital (ROIC) of 5.86%, which is lower than its Weighted Average Cost of Capital (WACC) of 11.79%, indicating inefficiencies in capital utilization.
• Among its peers, Moody's Corporation stands out with a ROIC of 17.42% and a WACC of 9.83%, showcasing strong capital efficiency.
• Other competitors like Northern Trust Corporation, Comerica Incorporated, and The PNC Financial Services Group, Inc., also struggle to generate returns above their cost of capital.

M&T Bank Corporation (NYSE:MTB) is a regional financial services company headquartered in Buffalo, New York. It offers a range of financial services, including commercial banking, retail banking, and wealth management. M&T Bank competes with other financial institutions like Northern Trust Corporation, Comerica Incorporated, and The PNC Financial Services Group, Inc.

In evaluating M&T Bank's financial performance, the Return on Invested Capital (ROIC) is a key metric. M&T Bank's ROIC is 5.86%, which is lower than its Weighted Average Cost of Capital (WACC) of 11.79%. This indicates that the bank is not generating returns that exceed its cost of capital, suggesting inefficiencies in capital utilization.

When comparing M&T Bank to its peers, Northern Trust Corporation has a ROIC of 4.98% and a WACC of 19.97%, resulting in a ROIC to WACC ratio of 0.25. Similarly, Comerica Incorporated has a ROIC of 2.15% and a WACC of 13.56%, with a ratio of 0.16. Both companies, like M&T Bank, are not generating returns above their cost of capital.

The PNC Financial Services Group, Inc. shows a ROIC of 4.74% and a WACC of 12.91%, leading to a ROIC to WACC ratio of 0.37. While slightly better than some peers, PNC also falls short of generating returns above its cost of capital. In contrast, Moody's Corporation stands out with a ROIC of 17.42% and a WACC of 9.83%, resulting in a ROIC to WACC ratio of 1.77, indicating strong capital efficiency.

KeyCorp, another peer, has a ROIC of 0.38% and a WACC of 16.49%, with a ROIC to WACC ratio of 0.02, highlighting significant inefficiencies. Among these companies, Moody's Corporation demonstrates the most efficient capital utilization, with returns significantly exceeding its cost of capital.