M&T Bank delivers record Q2 2026 EPS of $5.32 on $818 million net income

M&T Bank Corporation reported the highest quarterly earnings per share in its history on Wednesday, with diluted EPS of $5.32 for the second quarter and net income of $818 million, up from $664 million in the previous quarter.

The Buffalo-based regional lender delivered a return on assets of 1.51% and return on average common shareholders' equity of 12.30% for the three months to the end of June, according to the earnings release published on its investor relations site. Compared with the first quarter, net interest income and noninterest income rose and noninterest expense fell.

NONINTEREST INCOME PROVIDES THE LIFT

Noninterest income rose $51 million, or 8%, from the first quarter to $740 million. Within that total, trust income increased $14 million, reflecting higher revenues from the institutional services and wealth management businesses, including seasonal tax service fees.

Taxable-equivalent net interest income increased $41 million, or 2%, from the first quarter to $1.80 billion, and the net interest margin was unchanged at 3.70%.

The sequential increase also included a larger $47 million distribution from M&T's investment in Bayview Lending Group, up from $33 million in the first quarter.

PROFITABILITY IMPROVES

The 1.51% return on assets compares with 1.26% in the first quarter and 1.37% a year earlier. The sequential jump in net income, from $664 million in the previous quarter to $818 million, also reflects lower noninterest expense after seasonal salaries and benefits costs recognised in the first quarter, alongside higher revenue.

Chief financial officer Daryl Bible said the record earnings per share reflected "strong contributions from our commercial, retail and institutional services and wealth management businesses."

The provision for credit losses fell to $120 million from $140 million in the first quarter, and M&T repurchased 2.1 million shares at a cost of $465 million during the quarter.