M&T Bank has today reported a more than 9% rise in second-quarter profit, helped by higher fee revenue from its mortgage banking and trust businesses.
The Buffalo, New York-based regional bank, also set aside lower buffers in the quarter for potential losses on loans.
US consumers have remained healthy despite heightened uncertainty from tariffs and geopolitical turmoil.
Executives across industries have noted that sentiment is improving, with businesses seeking further clarity on trade and monetary policy before making investments. Dealmaking has also picked up, anchored by tech-heavy initial public offerings and multi-billion dollar buyouts.
M&T’s total non-interest income rose to $683m in the second quarter from $584m a year earlier. This reflected a 23% increase in mortgage banking revenues, helped by higher residential mortgage loan servicing income.
Trust income rose to $182m from $170m, while the lender’s provision for credit losses fell to $125m from $150m a year ago.
M&T has historically had greater exposure to commercial real estate (CRE) loans compared with other regional banking peers.
The lender has been trying to reduce the concentration of CRE loans on its balance sheet as the sector continues to struggle amid elevated interest rates and a dour macroeconomic outlook.
Analysts believe the bank’s loan growth will increasingly start pulling ahead of peers as CRE headwinds fade. The company recently said CRE forms about 19% of its balance sheet.
M&T’s average CRE loans fell 19.5% to $25.33 billion in the quarter, while average consumer loans rose to $25.35 billion from $21.97 billion the same time last year.
Its net income rose to $679m, or $4.24 per share, in the three months ended June 30 from $626m, or $3.73 per share, a year ago.
