M&T Bank's Q3 Earnings Top Estimates, NII and Fee Income Boost Profitability

M&T Bank reported Q3 2025 adjusted net operating earnings per share of $4.87, beating estimates. Revenue was $2.51 billion, up 7.7% YoY, driven by higher non-interest income and NII. Loan balance increased slightly, while deposits decreased marginally. Net charge-offs increased 21.6% YoY, but non-performing assets declined 21.1% YoY. The estimated Common Equity Tier 1 ratio was 10.99%, down from 11.54% in Q3 2024.

M&T Bank Corporation (NYSE:MTB) released its third quarter 2025 earnings results, showcasing robust financial performance that exceeded analyst expectations. The bank reported adjusted net operating earnings per share of $4.87, surpassing the estimated $4.42 per share. Total revenue for the quarter reached $2.51 billion, up 7.7% year-over-year (YoY), driven by a 10% increase in non-interest income (NII) to $752 million and a 3% rise in net interest income (NII) to $1.77 billion.

The bank's loan balance increased slightly to $136.5 billion, while deposits decreased marginally to $162.7 billion. Net charge-offs rose 21.6% YoY to 0.42% of total loans, but non-performing assets declined 21.1% YoY to 1.10% of total loans. The estimated Common Equity Tier 1 (CET1) ratio remained strong at 10.99%, down from 11.54% in Q3 2024.

M&T Bank's return on average assets (ROA) improved to 1.49%, and the return on average common shareholders' equity (ROE) rose to 11.45%. These metrics highlight the bank's effective asset utilization and shareholder value creation. The bank also repurchased 2.1 million shares for $409 million, demonstrating confidence in its financial position and commitment to returning capital to shareholders.

The bank's strategic focus on fee income and credit quality, as emphasized by CFO Daryl N. Bible, underscores its commitment to prudent lending and sustainable growth. M&T Bank's ability to navigate credit challenges while enhancing shareholder value positions it well in the competitive banking landscape. Investors and stakeholders will be keenly observing how M&T Bank continues to leverage its community banking model and strategic initiatives in the coming quarters.