Key facts
- M&T Bank's second-quarter profit increased due to higher interest and trust income.
- Net interest income grew 4.6% to $1.79 billion compared to the previous year.
- The bank's net interest margin widened by 8 basis points to 3.70%.
- Non-interest income rose to $740 million.
- Net income available to common shareholders was $781 million, or $5.32 per share.
M&T Bank reported an increase in its second-quarter profit, primarily driven by growth in interest income and trust income. The bank's net interest income, which represents the difference between interest earned on loans and paid on deposits, rose by 4.6% to $1.79 billion compared to the same period last year. This growth is attributed to the prevailing higher interest rate environment, which allows banks to generate more income from borrowing and investment activities.
The bank's net interest margin also expanded by 8 basis points to 3.70%. Non-interest income saw an increase, reaching $740 million from $683 million a year prior. Within non-interest income, trust income grew to $197 million, although mortgage banking revenue experienced a slight decline of 2% to $127 million.
Provisions for credit losses decreased to $120 million from $125 million in the prior year. Total loans held by the bank increased to $141.4 billion from $135.4 billion. Consequently, net income available to common shareholders climbed to $781 million, or $5.32 per share, for the quarter ended June 30, up from $679 million, or $4.24 per share, a year earlier.