M&T Bank (MTB) AI Stock Analysis

• Market Cap: $32.93B
• Dividend Yield: 2.76%
• Average Volume (3M): 1.01M
• Price to Earnings (P/E): 12.6
• Beta (1Y): 0.81
• Revenue Growth: -0.81%
• EPS Growth: 20.34%
• Country: US
• Employees: 22,291
• Sector: Financial
• Sector Strength: 70
• Industry: Banks - Regional
• EPS (TTM): 4.67
• Shares Outstanding: 153,690,780
• 10 Day Avg. Volume: 1,204,772
• 30 Day Avg. Volume: 1,009,784
• PEG Ratio: -1.68
• Price to Book (P/B): 1.08
• Price to Sales (P/S): 2.33
• P/FCF Ratio: 9.22
• Enterprise Value/Market Cap: 0.84
• Enterprise Value/Revenue: 2.24
• Enterprise Value/Gross Profit: 3.05
• Enterprise Value/Ebitda: 6.91
• 1Y Price Target: $232.25
• Price Target Upside: 6.79% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 13
• EPS Forecast (FY): 18.77
• Revenue Forecast (FY): $10.01B

• Rating: 77 Outperform
• Price Target: $241.00 ▲(10.81% Upside)

The score is driven primarily by solid financial performance and a positive earnings backdrop (margin expansion, improved efficiency and asset quality, plus increased dividends/buybacks). Technicals are supportive with price above key moving averages and positive MACD, while valuation (P/E ~12.9 and ~2.7% yield) remains reasonable. Key risks tempering the score include negative revenue growth, declining deposits, and higher charge-offs/CRE pressure.

Positive Factors

Free cash flow strength

Sustained, high free cash flow conversion demonstrates durable internal funding for dividends, buybacks, loan originations and capital needs. Strong FCF reduces reliance on external financing and supports strategic investment and balance-sheet resilience over the medium term.

NIM expansion and fee income diversification

Higher net interest margin alongside record fee income improves earnings resilience to rate cycles. Diversified noninterest revenue and an improved efficiency ratio create structural support for profitability, enabling sustainable shareholder returns and reinvestment capacity.

Regional franchise and strategic expansion

A strong regional franchise and targeted market expansion deepen customer relationships and deposit franchises in key Northeast/Long Island markets. Consistent community-banking positioning and awards support pricing power, loan origination pipelines and long-term deposit stability.

Negative Factors

Negative revenue trend

Persistent revenue decline is a structural concern that can erode operating leverage and limit investment capacity. If not reversed, falling revenue pressures margins, reduces ability to absorb credit losses or fund growth, and may force sustained cost actions that impair long-term competitiveness.

Deposit declines and funding pressure

Declining core deposits weakens low-cost funding, increasing reliance on pricier wholesale funding or deposit competition. Structurally higher funding costs compress net interest margin and constrain organic loan growth and liquidity cushions over the medium term.

Asset-quality pressure: charge-offs and CRE weakness

Rising net charge-offs and shrinking CRE balances indicate credit stress in commercial portfolios. Continued asset-quality deterioration would require higher provisions, reduce earnings power and limit risk appetite for new commercial lending, constraining long-term growth.

M&T Bank Business Overview & Revenue Model

Company Description

M&T Bank Corporation operates as a bank holding company that provides commercial and retail banking services. The company's Business Banking segment offers deposit, lending, cash management, and other financial services to small businesses and professionals. Its Commercial Banking segment provides deposit products, commercial lending and leasing, letters of credit, and cash management services for middle-market and large commercial customers. The company's Commercial Real Estate segment originates, sells, and services commercial real estate loans; and offers deposit services. Its Discretionary Portfolio segment provides deposits; securities, residential real estate loans, and other assets; and short and long term borrowed funds, as well as foreign exchange services. The company's Residential Mortgage Banking segment offers residential real estate loans for consumers and sells those loans in the secondary market; and purchases servicing rights to loans originated by other entities. Its Retail Banking segment offers demand, savings, and time accounts; consumer installment loans, automobile and recreational finance loans, home equity loans and lines of credit, and credit cards; mutual funds and annuities; and other services. The company also provides trust and wealth management; fiduciary and custodial; insurance agency; institutional brokerage and securities; and investment management services. It offers its services through banking offices, business banking centers, telephone and internet banking, and automated teller machines. As of December 31, 2021, the company operates 688 domestic banking offices in New York State, Maryland, New Jersey, Pennsylvania, Delaware, Connecticut, Virginia, West Virginia, and the District of Columbia; and a full-service commercial banking office in Ontario, Canada. M&T Bank Corporation was founded in 1856 and is headquartered in Buffalo, New York.

How the Company Makes Money

M&T Bank generates revenue through several key streams primarily related to its banking operations. The largest source of income comes from net interest income, which is the difference between the interest earned on loans and the interest paid on deposits. The bank also earns non-interest income through fees for services such as account maintenance, ATM usage, and transaction services. Additionally, M&T Bank engages in investment banking, providing advisory services and capital market solutions to corporate clients, which contributes to its revenue. Significant partnerships with other financial institutions and businesses enhance its offerings and customer base, further supporting its earnings. Economic factors such as interest rates and loan demand, as well as regulatory changes, also influence the bank's financial performance.

M&T Bank Financial Statement Overview

Summary

Solid overall fundamentals driven by strong profitability and cash generation (income statement 75; cash flow 80), with manageable but rising leverage and some profitability/revenue pressure (balance sheet 70; TTM revenue growth -6.65%, net margin down to 22.5%).

Income Statement

M&T Bank's income statement shows a strong gross profit margin of 73.5% for TTM, indicating efficient cost management. However, the net profit margin has slightly decreased to 22.5% from 24.8% in 2022, reflecting some pressure on profitability. Revenue growth has been negative at -6.65% for TTM, which is a concern, but the company has maintained stable EBIT and EBITDA margins around 29.3% and 32.4%, respectively, showcasing operational efficiency.

Balance Sheet

The balance sheet reflects a moderate debt-to-equity ratio of 0.52 for TTM, which is manageable but has increased from previous years, indicating a rise in leverage. Return on equity is healthy at 9.6%, though slightly down from 10.2% in 2023, suggesting effective use of shareholder funds. The equity ratio stands at 13.6%, showing a stable capital structure, but there's room for improvement in reducing debt levels.

Cash Flow

Cash flow analysis reveals a robust free cash flow growth rate of 37.5% for TTM, highlighting strong cash generation capabilities. The operating cash flow to net income ratio is low at 1.89%, suggesting potential volatility in cash flow relative to earnings. However, the free cash flow to net income ratio is solid at 94.7%, indicating efficient conversion of earnings into cash.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	12.32B	13.40B	12.51B	8.44B	6.08B	6.28B
Gross Profit	9.06B	8.62B	8.75B	7.50B	6.04B	5.15B
EBITDA	4.00B	3.82B	4.12B	3.05B	2.78B	2.09B
Net Income	2.77B	2.59B	2.74B	1.99B	1.86B	1.35B
Balance Sheet
Total Assets	211.28B	208.10B	208.26B	200.73B	155.11B	142.60B
Cash, Cash Equivalents and Short-Term Investments	37.95B	35.33B	40.35B	37.35B	47.22B	30.04B
Total Debt	14.99B	13.66B	13.52B	7.52B	3.53B	4.44B
Total Liabilities	182.55B	179.08B	181.31B	175.41B	137.20B	126.41B
Stockholders Equity	28.73B	29.03B	26.96B	25.32B	17.90B	16.19B
Cash Flow
Free Cash Flow	4.07B	3.39B	3.65B	4.36B	2.57B	616.90M
Operating Cash Flow	4.16B	3.61B	3.90B	4.57B	2.71B	789.19M
Investing Cash Flow	-1.24B	-550.00M	-7.87B	16.59B	-13.63B	-22.02B
Financing Cash Flow	-3.73B	-2.88B	4.18B	-20.98B	10.70B	21.35B

M&T Bank Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 217.49
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For MTB, the sentiment is Positive. The current price of 217.49 is above the 20-day moving average (MA) of 210.93, above the 50-day MA of 201.60, and above the 200-day MA of 188.80, indicating a bullish trend. The MACD of 3.94 indicates Positive momentum. The RSI at 64.33 is Neutral, neither overbought nor oversold. The STOCH value of 58.08 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for MTB.

M&T Bank Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
RF	80 Outperform	$24.32B	12.06	11.68%	3.74%	4.00%	28.54%
HBAN	78 Outperform	$27.31B	12.47	10.03%	3.50%	5.73%	38.39%
MTB	77 Outperform	$32.93B	12.60	9.78%	2.76%	-0.81%	20.34%
FITB	75 Outperform	$33.38B	14.29	12.20%	3.14%	0.15%	11.62%
CFG	74 Outperform	$26.85B	16.20	7.24%	2.89%	-3.93%	40.62%
KEY	72 Outperform	$23.12B	14.01	9.48%	3.90%	3.86%	5473.29%
Sector *	68 Neutral	$18.00B	11.42	9.92%	3.81%	9.73%	1.22%

M&T Bank Corporate Events

M&T Bank Reports Strong Fourth-Quarter and Full-Year 2025 Results

On January 16, 2026, M&T Bank Corporation reported fourth-quarter 2025 net income of $759 million, equivalent to diluted earnings of $4.67 per common share, and full-year 2025 net income of $2.85 billion, or $17.00 per diluted share, reflecting improved profitability versus 2024. For 2025, the bank posted higher net interest income and noninterest income, modest growth in average loans and deposits, and a stronger return on average assets and common equity, while maintaining solid asset quality metrics, slightly lower provisions for credit losses than the prior year, and a Common Equity Tier 1 capital ratio of 10.84%, underscoring continued balance-sheet resilience and stable operating performance for shareholders and other stakeholders.

The most recent analyst rating on (MTB) stock is a Hold with a $236.00 price target. To see the full list of analyst forecasts on M&T Bank stock, see the MTB Stock Forecast page.

M&T Bank Highlights Strategic Focus in Investor Presentation

On December 9, 2025, M&T Bank Corporation released an investor presentation on its website, highlighting its strategic focus on expanding markets in New England and Long Island, optimizing resources, and enhancing risk management capabilities. The bank has received numerous accolades, including ‘Best Bank’ awards across various categories, and has consistently delivered profitability and growth, outperforming peers in key financial metrics.

The most recent analyst rating on (MTB) stock is a Buy with a $223.00 price target. To see the full list of analyst forecasts on M&T Bank stock, see the MTB Stock Forecast page.

M&T Bank Completes Series K Preferred Stock Offering

On October 29, 2025, M&T Bank Corporation filed a certificate of amendment with the New York State Department of State to establish the rights and preferences of a new series of preferred stock, the Perpetual 6.350% Non-Cumulative Preferred Stock, Series K. This move was part of an underwriting agreement with several major financial institutions, leading to the sale of 18,000,000 depositary shares. The Series K Preferred Stock, which ranks senior to common stock and equally with other preferred stocks, allows for noncumulative cash dividends and has specific voting rights. The public offering of these depositary shares was completed on October 31, 2025, marking a strategic financial maneuver for M&T Bank to strengthen its capital structure.

The most recent analyst rating on (MTB) stock is a Hold with a $220.00 price target. To see the full list of analyst forecasts on M&T Bank stock, see the MTB Stock Forecast page.

M&T Bank Highlights Strategic Priorities in Investor Presentation

On October 28, 2025, M&T Bank Corporation released an investor presentation highlighting its strategic priorities and achievements. The presentation emphasized M&T’s focus on expanding its market presence in New England and Long Island, optimizing resources, and enhancing risk management capabilities. M&T also showcased its consistent profitability and growth, outperforming peers in key financial metrics over the past two decades. The bank’s commitment to community banking and customer service was recognized with several awards, reinforcing its position as a trusted financial institution.

The most recent analyst rating on (MTB) stock is a Hold with a $220.00 price target. To see the full list of analyst forecasts on M&T Bank stock, see the MTB Stock Forecast page.

M&T Bank Reports Strong Q3 2025 Financial Results

On October 16, 2025, M&T Bank Corporation announced its third quarter 2025 financial results, reporting a net income of $792 million, or $4.82 per diluted share. The results indicate a strong financial performance with an increase in net interest income and noninterest income compared to previous quarters, reflecting positively on the company’s operational efficiency and market position.

The most recent analyst rating on (MTB) stock is a Hold with a $207.50 price target. To see the full list of analyst forecasts on M&T Bank stock, see the MTB Stock Forecast page.