M&T Bank (MTB) Barclays 22nd Annual Global Financial Services Conference summary

Leadership and strategy

• Recent executive off-site focused on grounding leadership in core beliefs and integrating new team members, emphasizing commitment to community banking and local market success.

• Four strategic priorities: expanding New England and Long Island markets, improving risk management, enhancing resiliency, and optimizing revenue and expenses, driving seven major projects.

• Community banking model leverages 28 regional headquarters with local decision-makers, aiming for deep market penetration and long-term growth.

• Focus remains on core business lines and supporting communities, with no current appetite for national expansion or immediate acquisitions.

Balance sheet and interest rate management

• Asset sensitivity has been significantly reduced through hedging and extending swaps into 2026, resulting in a more neutral rate position.

• Investment portfolio increased to over $31 billion with a duration of just over three years, supporting rate sensitivity management.

• Net interest income (NII) guidance for 2024 remains unchanged, with expectations to be in the high 350s to low 360s basis points for net interest margin.

• Interest-bearing deposit costs have declined, and core funding growth is prioritized over brokered or wholesale funding.

Fee income and business mix

• Fee income represents about 25% of revenue, with recent divestitures of insurance and CIT businesses to focus on core areas.

• Trust and corporate trust services are experiencing record years, gaining market share through service quality rather than pricing.

• Mortgage and brokerage businesses are performing strongly, with treasury management up 13% year over year.

• Fee businesses are expected to continue rising, with overall revenue growth anticipated.