M&T Bank’s Q4 profit boosted by growth in interest income, as the regional lender reported higher earnings for the fourth quarter, supported by improving loan demand and a rebound in mortgage banking activity.
M&T Bank said its fourth-quarter profit increased from a year earlier, helped by stronger interest income and better performance in its mortgage business. Recent interest rate cuts by the U.S. Federal Reserve have encouraged households and businesses to borrow again, lifting loan volumes across the banking sector. At the same time, banks have been able to rein in deposit costs, cushioning interest income even as overall rates declined.
Net interest income — the difference between what the bank earns on loans and pays on deposits — rose nearly 3% year over year to $1.78 billion. The bank’s net interest margin also improved, expanding to 3.69% from 3.58% in the same period last year, reflecting more efficient balance sheet management.
Looking ahead, M&T Bank expects net interest income in 2026 to range between $7.2 billion and $7.35 billion. The midpoint of that forecast broadly aligns with analysts’ expectations of $7.27 billion, based on estimates compiled by LSEG.
Non-interest income climbed about 6% to $696 million during the quarter, driven by gains in mortgage banking, higher service charges on deposit accounts, and growth in trust income. Mortgage banking revenue jumped 32%, supported by increased residential mortgage loan servicing income and stronger gains from the sale of commercial mortgage loans.
On the credit front, the bank set aside $125 million in provisions for credit losses, down from $140 million a year earlier. This figure, closely watched by investors, serves as an indicator of how banks assess potential risks to borrowers and the broader economy. Lower provisions typically suggest more confidence in consumers’ and businesses’ ability to meet their debt obligations.
Net income available to common shareholders rose to $718 million, or $4.67 per share, compared with $644 million, or $3.86 per share, in the same quarter last year, underscoring the bank’s improved profitability as economic conditions stabilized.
