M&T Bank (NYSE:MTB) reported a significant jump in full-year earnings as the Buffalo-based lender capitalized on higher interest rates and a leaner share count to deliver double-digit growth for shareholders.
The bank’s net income for 2025 reached $2.85 billion, or $17 per diluted share, up from the previous year.
For the fourth quarter alone, M&T earned $759 million, supported by taxable-equivalent net interest income of $1.79 billion.
A key driver of the performance was the expansion of the bank's net interest margin, which widened by 9 basis points over the year to 3.67%.
This metric, which measures the difference between what a bank earns on loans and pays out on deposits, remains a focal point for investors as regional banks navigate a shifting rate environment.
Credit quality remained a priority, with the lender setting aside $505 million in provisions for credit losses throughout the year.
Despite these reserves, M&T maintained a robust capital position, ending December with an estimated Common Equity Tier 1 (CET1) ratio of 10.84%.
The company also moved aggressively to reward investors, increasing its quarterly dividend by 11% and repurchasing 9% of its common stock over the course of the year.
The buybacks provided a meaningful tailwind to earnings per share, concentrated in a year of steady operational growth.