M&T Bank reported fourth-quarter net income of $759 million, delivering diluted earnings per share of $4.67. This result exceeded consensus estimates by 12%, reflecting a 9% year-over-year increase in net interest income and an expanded net interest margin of 3.25%, up 15 basis points from the prior year period. Fee income also rose by 7%, supported by higher mortgage origination and wealth management advisory fees.

For the full year 2025, M&T Bank achieved net income of $2.85 billion, or $17.00 per diluted share, marking a 16% increase in EPS relative to 2024. Return on equity improved to 11.8%, driven by disciplined expense management that lowered the efficiency ratio to 58.2%, down from 60.5% a year earlier. Criticized loans declined by 22%, as credit quality stabilized across commercial real estate and energy portfolios.

Jefferies reaffirmed its Buy rating for M&T Bank and raised its 12-month price target from $250 to $255, citing the bank’s ability to capitalize on favorable funding costs and its diversified revenue streams. The firm noted that M&T’s strong capital ratios, including a CET1 ratio of 11.9%, provide ample capacity for future loan growth and potential shareholder returns through dividends and share repurchases.