M&T(MTB) ZACKS·2025-04-08 16:55Core Viewpoint - M&T Bank Corporation (MTB) is expected to report year-over-year increases in quarterly revenues and earnings for the first quarter of 2025, with results influenced by various factors including loan demand and net interest income [1][13]. Group 1: Financial Performance Expectations - M&T Bank is slated to report first-quarter 2025 results on April 14, with anticipated increases in revenues and earnings compared to the previous year [1]. - The consensus estimate for first-quarter earnings is 2.35 billion, indicating a 4% rise year-over-year [13]. - In the last reported quarter, M&T Bank's results benefited from a rise in loans and leases, non-interest income, and net interest income (NII), although a decline in deposit balance posed challenges [2]. Group 2: Factors Influencing Results - The uncertain macroeconomic environment, particularly due to tariff plans, has led to modest demand for commercial, industrial, real estate, and consumer loans in the first two months of the quarter [4]. - Management anticipates a decline in average loans for the first quarter of 2025, particularly due to a decrease in commercial real estate (CRE) loans, which may impact the growth of average interest-earning assets [5]. - The Federal Reserve's decision to keep interest rates unchanged at 4.25-4.5% is expected to result in only slight improvements in NII, with the consensus estimate for NII at 113.6 million, indicating a 2.9% decline from the previous quarter, while brokerage services income is expected to decline by 5.3% to 177.2 million [10]. Group 4: Expense Projections - Total expenses for the first quarter of 2025 are projected to rise to $1.39 billion, reflecting a sequential increase of 2.3%, driven by investments in strengthening franchises and seasonal compensation [11]. Group 5: Earnings Prediction Insights - The likelihood of M&T Bank beating earnings estimates is considered low, with an Earnings ESP of -0.73% and a Zacks Rank of 3 [12].