M&T profit falls to 775 million dollars as lending grows
M&T Bank’s third-quarter net income fell to 775 million dollars from 792 million dollars a year earlier. Average loans increased from the preceding quarter, led by commercial real estate. Interest income remained close to the previous quarter’s level, while the bank set aside more for credit losses. Mortgage banking and trust income exceeded analyst expectations compiled by Zacks.
Economics & Markets··Morning
Profit declines as fee businesses diverge
M&T Bank, a banking group, reported third-quarter 2026 net income of 775 million dollars on October 16. A year earlier, net income had been 792 million dollars; the preceding quarter’s result was 818 million dollars. Income available to common shareholders on a diluted basis was 732 million dollars, compared with 754 million dollars a year earlier.[1]
Other income totalled 743 million dollars, above the 712.12 million dollar analyst average compiled by Zacks. Mortgage banking revenue reached 152 million dollars against a forecast of 143.89 million dollars. Trust income of 230 million dollars also exceeded the expected 225.98 million dollars, giving those service businesses stronger results than the forecasts had anticipated.[1], [2]
Interest income holds close to the previous quarter
Net interest income was 1.793 billion dollars, against 1.792 billion dollars in the preceding quarter and 1.761 billion dollars a year earlier. On a taxable-equivalent basis, it reached 1.805 billion dollars. The bank attributed support to an additional calendar day, partly offset by lower interest income on loans for which interest was no longer being accrued.[1]
The net interest margin narrowed to 3.65 per cent from 3.70 per cent in the preceding quarter. Noninterest expenses reached 1.393 billion dollars. The bank identified higher spending on outside data processing, software and professional services, while an additional working day also affected personnel expenses. Higher mortgage banking revenue was partly offset by weaker capital markets and advisory revenue.[1]
Lending expands and credit provisions increase
Average loans increased by 2.6 billion dollars from the preceding quarter to 143.296 billion dollars. Commercial real estate contributed 1.6 billion dollars of that increase, consumer lending 634 million dollars and residential real estate 367 million dollars. Average deposits totalled 166.777 billion dollars. The increase in lending was therefore concentrated most heavily in commercial real estate.[1]
The provision for credit losses rose to 135 million dollars. Annualised net charge-offs represented 0.35 per cent of average loans, and nonaccrual loans were 0.90 per cent of total loans. The loan-loss allowance stood at 1.51 per cent of loans. M&T repurchased 1.3 million shares for 323 million dollars and estimated its common equity capital ratio at 10.16 per cent.[1]
