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M&T Bank Corporation’s MTB fourth-quarter 2024 adjusted net operating earnings per share of $3.92 beat the Zacks Consensus Estimate of $3.70. The bottom line compared favorably with earnings of $2.81 per share in the year-ago quarter.
Find the latest earnings estimates and surprises on the Zacks Earnings Calendar.
For 2024, adjusted net operating earnings per share was $14.64, which beat the Zacks Consensus Estimate of $14.58. This compares unfavorably with $15.79 reported in the year-ago quarter.
MTB shares moved up 2.1% in pre-market trading on better-than-anticipated earnings. A full day’s trading will depict a better picture.
Results have benefited from a rise in loans and leases and non-interest income. A decline in expenses and provision for credit losses were other positives. However, a fall in deposit balance was a headwind.
Net income available to common shareholders was $644 million, up 40.9% from the prior-year quarter.
For 2024, the company reported net income available to common shareholders of $2.44 billion, which declined 7.1% year over year.
MTB’s Quarterly Revenues Rise & Expenses Drop Y/Y
M&T Bank’s quarterly revenues were $2.39 billion, which surpassed the Zacks Consensus Estimate of $2.3 billion. Also, the reported figure increased 3.7% year over year.
Full-year revenues aggregated to $9.3 billion, down 3.8% year over year. Nonetheless, the top line surpassed the Zacks Consensus Estimate of $9.2 billion.
NII (tax equivalent) rose marginally year over year to $1.74 billion. The figure matched our estimate.
Total non-interest income was $657 million, up 13.7% year over year. An increase in trust income, service charges on deposit accounts, mortgage banking revenues and other revenues from operations mainly caused the uptick. Our estimate for the metric was $596 million.
Total non-interest expenses were $1.36 billion, down 6% year over year. The fall was primarily due to lower FDIC assessment charges and a fall in professional and other services fees. We projected the metric to be $1.32 billion.
The efficiency ratio was 56.8%, down from 62.1% in the year-earlier quarter. A lower ratio indicates a rise in profitability.
MTB’s Loans Increase, Deposits Decrease
Loans and leases, net of unearned discount, were $135.7 billion as of Dec. 31, 2024, up nearly 1% from the prior quarter. Total deposits fell 2.1% sequentially to $161.1 billion. Our estimate for the loans and leases was $140.1 billion. Our estimate for deposits was $165.3 billion.
M&T Bank’s Credit Quality: Mixed Bag
Net charge-offs increased 8.1% to $160 million from the prior-year quarter. Our estimate for the metric was $136.2 million.