M&T Bank Q4 2024 Net Income Drops

By Tamara Parker • Thursday, January 16 15:24 • Permanent Link

M&T Bank Corporation (NYSE:MTB) has reported its fourth quarter 2024 results, showing a quarterly net income of $681 million or $3.86 of diluted earnings per common share. Additionally, the full-year net income for 2024 was $2.59 billion or $14.64 of diluted earnings per common share. Comparing these figures to the same period in 2023, the net income decreased from $2.741 billion to $2.588 billion, and diluted earnings per common share decreased from $15.79 to $14.64.

Key financial highlights include the net interest income, which totaled $1,740 million in the fourth quarter of 2024, almost unchanged from the third quarter of 2024. However, this figure represents a decrease from the same period in 2023, where net interest income was reported at $7,169 million for the full year. Similarly, noninterest income declined from $2,528 million in 2023 to $2,427 million in 2024.

The company's capital position continues to strengthen, with the Common Equity Tier 1 ("CET1") capital ratio increasing to an estimated 11.67% at December 31, 2024, representing a 13 basis-point increase from 11.54% at September 30, 2024.

M&T also repurchased shares of its common stock for a total cost of $200 million, including the share repurchase excise tax, in the fourth quarter of 2024.

The net interest margin narrowed from 3.62% in the third quarter of 2024 to 3.58% in the fourth quarter of 2024. The efficiency ratio also changed, decreasing from 62.1% in the third quarter of 2024 to 56.8% in the fourth quarter of 2024.

Moreover, the level of nonaccrual loans improved to 1.25% of loans outstanding at December 31, 2024, from 1.42% at September 30, 2024.

In terms of asset quality, the provision for credit losses decreased to $140 million in the fourth quarter of 2024 from $225 million in the third quarter of 2024, reflecting a decline in commercial real estate criticized loans, partially offset by growth in certain sectors of M&T's commercial and industrial and consumer loan portfolios.

The market has reacted to these announcements by moving the company's shares -2.9% to a price of $194.95. For the full picture, make sure to review M&T Bank's 8-K report.

The above analysis is intended for educational purposes only and was performed on the basis of publicly available data. It is not to be construed as a recommendation to buy or sell any security. Any buy, sell, or other recommendations mentioned in the article are direct quotations of consensus recommendations from the analysts covering the stock, and do not represent the opinions of Market Inference or its writers. Past performance, accounting data, and inferences about market position and corporate valuation are not reliable indicators of future price movements. Market Inference does not provide financial advice. Investors should conduct their own review and analysis of any company of interest before making an investment decision.