M&T Bank Dividend Raised, Stock (NYSE:MTB) Moves Higher

M&T Bank Corporation (NYSE: MTB) has announced an 11% increase in its quarterly cash dividend, signaling robust financial health and a commitment to shareholder returns. The increased dividend, rising from $1.35 to $1.50 per share, is payable on September 30, 2025, to shareholders of record as of September 2, 2025.

The markets reacted positively to the news, with M&T Bank stock currently trading at $191.72, an increase of 0.72%.

This dividend increase is underpinned by a strong second quarter performance in 2025. M&T Bank reported diluted net operating earnings per share of $4.28, exceeding forecasts of $3.99. Total revenue for the quarter reached $2.4 billion, also surpassing estimates of $2.39 billion. These figures highlight the bank's solid earnings trajectory and operational efficiency.

Furthermore, M&T Bank's capital position remains robust, with a Common Equity Tier 1 (CET1) capital ratio of 10.98% as of June 30, 2025. While this represents a slight decrease from the 11.50% reported in March 2025, this reduction is primarily due to aggressive share repurchases totaling $1.1 billion during the second quarter. These buybacks, coupled with a 14% year-over-year increase in diluted earnings per share, illustrate the bank's strategic focus on enhancing shareholder value while maintaining a strong capital base.

The bank's loan portfolio reflects a strategic approach to growth and asset quality. Average consumer and residential real estate loans increased by $1.0 billion and $508 million, respectively, driven by demand in recreational finance and automobile loans. Conversely, commercial real estate loans saw a decline of $926 million due to payoffs and the sale of an out-of-footprint portfolio. This selective approach has contributed to improved asset quality, with nonaccrual loans decreasing to $1.57 billion, a 22% decline from June 2024.

M&T Bank's consistent dividend growth is a key factor in its appeal to markets. The recent 11% increase follows a 4% increase in May 2024, when the dividend was raised from $1.30 to $1.35 per share. This marks the bank's ninth consecutive year of dividend growth, demonstrating a sustained commitment to returning value to its shareholders.