Regional banking company M&T Bank (NYSE: MTB) met Wall Streets revenue expectations in Q4 CY2025, with sales up 4% year on year to $2.48 billion. Its non-GAAP profit of $4.72 per share was 5.7% above analysts’ consensus estimates.
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M&T Bank (MTB) Q4 CY2025 Highlights:
- Net Interest Income: $1.78 billion vs analyst estimates of $1.79 billion (3% year-on-year growth, 0.7% miss)
- Net Interest Margin: 3.7% vs analyst estimates of 3.7% (in line)
- Revenue: $2.48 billion vs analyst estimates of $2.48 billion (4% year-on-year growth, in line)
- Efficiency Ratio: 55.1% vs analyst estimates of 54.9% (16.1 basis point miss)
- Adjusted EPS: $4.72 vs analyst estimates of $4.47 (5.7% beat)
- Tangible Book Value per Share: $117.45 vs analyst estimates of $116.35 (7.6% year-on-year growth, 0.9% beat)
- Market Capitalization: $32.67 billion
Company Overview
Tracing its roots back to 1856 when it was founded as Manufacturers and Traders Bank in Buffalo, New York, M&T Bank (NYSE: MTB) is a regional bank holding company that provides retail and commercial banking, trust, wealth management, and investment services to consumers and businesses.
Sales Growth
From lending activities to service fees, most banks build their revenue model around two income sources. Interest rate spreads between loans and deposits create the first stream, with the second coming from charges on everything from basic bank accounts to complex investment banking transactions. Thankfully, M&T Bank’s 10.3% annualized revenue growth over the last five years was decent. Its growth was slightly above the average banking company and shows its offerings resonate with customers.
We at StockStory place the most emphasis on long-term growth, but within financials, a half-decade historical view may miss recent interest rate changes, market returns, and industry trends. M&T Bank’s recent performance shows its demand has slowed as its annualized revenue growth of 1.4% over the last two years was below its five-year trend. 
Note: Quarters not shown were determined to be outliers, impacted by outsized investment gains/losses that are not indicative of the recurring fundamentals of the business.
This quarter, M&T Bank grew its revenue by 4% year on year, and its $2.48 billion of revenue was in line with Wall Street’s estimates.
Net interest income made up 71.3% of the company’s total revenue during the last five years, meaning lending operations are M&T Bank’s largest source of revenue.
Our experience and research show the market cares primarily about a bank’s net interest income growth as non-interest income is considered a lower-quality and non-recurring revenue source.
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Tangible Book Value Per Share (TBVPS)
Banks operate as balance sheet businesses, with profits generated through borrowing and lending activities. Valuations reflect this reality, emphasizing balance sheet strength and long-term book value compounding ability.
This explains why tangible book value per share (TBVPS) stands as the premier banking metric. TBVPS strips away questionable intangible assets, revealing concrete per-share net worth that investors can trust. On the other hand, EPS is often distorted by mergers and flexible loan loss accounting. TBVPS provides clearer performance insights.
M&T Bank’s TBVPS grew at an impressive 7.8% annual clip over the last five years. TBVPS growth has also accelerated recently, growing by 9.3% annually over the last two years from $98.32 to $117.45 per share.
Over the next 12 months, Consensus estimates call for M&T Bank’s TBVPS to grow by 4.3% to $122.47, lousy growth rate.
Key Takeaways from M&T Bank’s Q4 Results
It was good to see M&T Bank narrowly top analysts’ tangible book value per share expectations this quarter. On the other hand, its net interest income slightly missed. Overall, this was a mixed quarter. The stock remained flat at $212.28 immediately following the results.
Should you buy the stock or not? The latest quarter does matter, but not nearly as much as longer-term fundamentals and valuation, when deciding if the stock is a buy. We cover that in our actionable full research report which you can read here (it’s free).
