M&T Bank outperformed second-quarter expectations, driven by noninterest income.
M&T’s noninterest income rose 17% in the second quarter of this year compared to the same period a year ago. The increase reflects a spike in residential mortgage banking revenues, which swelled by $24 million, or 23%, and an increase in trust income, which grew by $12 million, or 7.1%, due to higher revenues from the company’s global capital markets and wealth advisory services businesses.
The Buffalo, New York-based company’s revenue totaled $2.4 billion, marginally surpassing analysts’ expectations of $2.38 billion and marking a 4.1% increase from the second quarter of 2024. Net income for the three months that ended June 30 hit $716 million, up 9.3% from the same period a year prior.
Earnings per share came in at $4.26, easily clearing analysts’ average estimate of $3.99, according to S&P Capital IQ.
The company produced just a 0.6% increase in loans and a .05% decrease in deposits compared to the second quarter of last year.
“M&T’s consistent profitability has supported a significant return of capital to shareholders while maintaining resiliency entering the second half of the year,” Chief Financial Officer Daryl Bible said in a statement. “We are thrilled with a reduction of M&T’s stress capital buffer and we remain committed to prudent risk management for the benefit of all of our stakeholders.”
M&T’s stress capital buffer is 3.8% and is estimated to improve to 2.7% effective Oct. 1.
The positive showing could provide reassurance to investors after the $210-billion asset company reported disappointing numbers last quarter, missing analysts’ expectations of its revenue and earnings per share. During the first quarter, M&T also posted an 11.5% decrease in revenue compared to the same period a year ago.
Entering the year, M&T was eyeing a potential expansion in the Northeast, hoping the Trump administration would encourage bank deals. The company has so far remained idle in the M&A arena and the expected uptick in merger activity did not materialize early in 2025. In the first five months of the year, there were 57 mergers and acquisitions, just one more than in the same period last year, according to S&P Global Market Intelligence.
Each of M&T’s last three acquisitions were of Northeast banks, with the most recent being Connecticut-based People’s United Financial in 2022. The company wants to become a “dominant player” in New England, Bible said earlier this year, much like it is in Baltimore, where it expanded in 2003.
The company identified expanding in New England and Long Island as one of its four priorities in its second quarter earnings report, with the other three being to optimize resources through simplification, make systems and processes resilient and scalable and continue to develop and scale capability to risk management.
