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Dec 31, 2023
M&T Bank Q4 2023 Earnings Report
M&T Bank's Q4 2023 earnings were announced, revealing a net income of $482 million and diluted earnings per common share of $2.74.
Key Takeaways
M&T Bank Corporation reported a net income of $482 million for Q4 2023, with diluted earnings per common share at $2.74. The quarter's results were impacted by a $197 million FDIC special assessment. The CET1 capital ratio increased to an estimated 10.98%.
CET1 capital ratio increased 3 basis points to an estimated 10.98%.
Net interest margin narrowed to 3.61% due to higher deposit costs.
Average commercial and industrial loan growth was offset by a decline in commercial real estate loans.
Average deposits increased 1% from the prior quarter.
M&T Bank
M&T Bank
Forward Guidance
M&T enters 2024 with stronger levels of capital, liquidity and credit reserves than a year earlier.
Positive Outlook
- Capital levels are stronger than the previous year.
- Liquidity is stronger than the previous year.
- Credit reserves are stronger than the previous year.
- Average commercial and consumer loans increased.
- Average deposits increased.
Challenges Ahead
- Commercial real estate values are impacting commercial clientele.
- Higher interest rates are impacting commercial clientele.
- There is pressure on investor-owned commercial real estate borrowers.
- Mortgage banking revenues rose $31 million due to higher servicing income related to the bulk purchase of residential real estate loan servicing rights in the first quarter of 2023 and higher gains on sales of commercial and residential real estate loans.
- Other revenues from operations declined $121 million due to a $136 million gain on sale of M&T Insurance Agency ("MTIA") in fourth quarter of 2022, partially offset by a rise in tax-exempt income earned from bank owned life insurance and higher letter of credit and other credit-related fees.