M&T Bank (MTB) Q4 2024 earnings summary

Executive summary

• Full-year 2024 net income was $2.59 billion, down 6% from 2023, with diluted EPS of $14.64; Q4 net income was $681 million, up 41% year-over-year, and Q4 diluted EPS was $3.86.

• Tangible book value per share increased 11% year-over-year to $109.36.

• CET1 capital ratio rose to 11.67%, marking the seventh consecutive quarterly increase.

• Share repurchases totaled $200 million in Q4 and $400 million in H2 2024.

• Issued first sustainability bond and advanced ESG initiatives.

Financial highlights

• Net interest income for Q4 2024 was $1.74 billion, stable sequentially; full-year NII was $6.85 billion, down 4%.

• Net interest margin for 2024 was 3.58%, down from 3.83% in 2023.

• Average total loans grew for the fifth consecutive quarter to $135.7 billion; average total deposits increased by $3.1 billion to $164.6 billion.

• Noninterest income in Q4 2024 increased 8% sequentially and 14% year-over-year, driven by mortgage banking and securities gains.

• CET1 capital ratio improved to 11.67% at year-end 2024.

Outlook and guidance

• 2025 net interest income expected at $7.1–$7.2 billion, with NIM in the mid-3.60s.

• Full-year average loans and leases projected at $137–$139 billion; deposits at $164–$166 billion.

• Non-interest income forecasted at $2.5–$2.6 billion; non-interest expense expected at $5.4–$5.5 billion, including $43 million intangible amortization.

• Net charge-offs anticipated near 40 bps for 2025; tax rate ~24.5%.

• CET1 ratio target of 11% for 2025, with potential for increased share repurchases.