M&T Bank (MTB) investor relations material

Business model evolution and fee income

• Evolved from a small community bank to a diversified institution with broad service offerings, excluding only hardcore investment banking.

• Fee income businesses have driven recent record earnings, with 13% year-over-year growth in fees and strong performance in mortgage banking, commercial mortgage servicing, and trust income.

• Institutional and core capital markets businesses have matured, contributing to growth without increasing balance sheet risk.

• Private banking and packaging of services for top clients are seen as areas with further growth potential.

Technology and operational excellence

• Technology investment has tripled since 2017, with a focus on integrating tech into strategy, not just support.

• Major systems, including the general ledger and commercial credit, have been overhauled, with robust data programs implemented to prepare for AI adoption.

• High-quality data is recognized as essential for effective AI and future operational improvements.

Market environment and credit trends

• Multiple levers are used to maintain health in any economy, including capital allocation, efficiency, and buybacks.

• Credit spreads remain tight, with markets priced for perfection, but recent liquidity improvements in private markets are viewed positively.

• Loan growth is healthy, with customers drawing down lines and increased project activity, though lower-end consumers show reduced discretionary spending.

• Credit quality is improving, with non-performers declining for nine consecutive quarters.