Q2 2025 Earnings Summary
| Metric | YoY Change | Reason |
|---|---|---|
Total Revenue | +4.2% | **Total Revenue increased from $2,302 million in Q2 2024 to $2,396 million in Q2 2025 due to stable contributions from Business Banking’s net interest income and noninterest income, with the absence of significant operational shifts contributing to modest overall growth. ** |
Net Interest Income (Business Banking) | N/A (steady performance) | **Net Interest Income of $1,713 million indicates continued steadiness, reflecting effective management of funding costs and margins similar to previous quarters where improvements in interest expense control were noted. ** |
Noninterest Income | N/A (stable) | **Noninterest Income reached $683 million, driven by balanced contributions from segments like mortgage banking, service charges, and trust income; this stability follows modest fluctuations observed in earlier quarters. ** |
Mortgage Banking Revenues | N/A (modest growth) | **At $130 million, Mortgage Banking Revenues show a modest improvement, building on prior period gains from increased residential sub-servicing fees and commercial loan sale gains, though the growth has moderated compared to the steep increases seen in Q1 2025. ** |
Service Charges on Deposit Accounts | N/A (modest increase) | **Service Charges reached $137 million due to pricing changes and increased customer usage of sweep products, reiterating the trend of modest increases noted in previous periods which have now stabilized. ** |
Trust Income | N/A (modest growth) | **Trust Income increased to $182 million, continuing the upward trend seen earlier through higher sales and fee income in institutional and wealth management segments, a consistent change from previous quarters. ** |
Brokerage Services Income | N/A (modest increase) | **Brokerage Services Income of $31 million demonstrates modest growth, aligning with earlier gains from higher annuity sales observed in Q1 2025, indicating steady performance in this line. ** |
Trading Account and Other Non-Hedging Derivative Gains | N/A (stable) | **At $12 million, this metric remains consistent with prior performances, reflecting stabilization in market conditions after earlier periods of slight volatility. ** |
Other Revenues from Operations | N/A (modest change) | **Other Revenues from Operations at $191 million reflect the impact of non-recurring items like BLG distributions being absent in the current quarter, resulting in steady performance compared to previous quarter fluctuations. ** |
| Metric | Period | Previous Guidance | Current Guidance | Change |
|---|---|---|---|---|
Net Interest Income | FY 2025 | no prior guidance | $7.0 billion to $7.15 billion | no prior guidance |
Net Interest Margin | FY 2025 | mid‑360s to high 360s basis points | mid to high 360s basis points | no change |
Loan Growth | FY 2025 | no prior guidance | $135 billion to $137 billion | no prior guidance |
Deposit Balances | FY 2025 | no prior guidance | $162 billion to $164 billion | no prior guidance |
Fee Income | FY 2025 | no prior guidance | high end of $2.5 billion to $2.6 billion range | no prior guidance |
Noninterest Expense | FY 2025 | $5.4 billion to $5.5 billion | $5.4 billion to $5.5 billion | no change |
Net Charge-Offs | FY 2025 | near 40 basis points | less than 40 basis points | lowered |
CET1 Ratio | FY 2025 | 11% | 10.75% to 11% | lowered |
Research analysts covering M&T BANK.