M&t Bank Corporation · NYSE:MTB
M&t Bank — Barclays Global Financial Services Conference 2019
25 slides from M&t Bank's conference presentation, Sep 9, 2019
Slide 1: Barclays Global Financial Services Conference September 9, 2019
Barclays Global Financial Services Conference September 9, 2019 Exhibit 99.1
Slide 2: Forward-looking statements
This presentation contains forward- looking statements within the meaning of the Private Securities Litigation Reform Act of 1995 giving M&T Bank Corporation’s (“M&T”) expectations or predictions of future financial or business performance or conditions. Forward-looking statements are typically iden
Slide 3: Who is M&T Bank Corporation?
Top 20 US-based, commercial bank holding company Substantial growth from $2 billion in assets in 1983 to $122 billion at June 30, 2019 17,835 employees across 752 domestic branches in eight states and Washington DC 4.1 million customers representing 6.2 million accounts $98 billion of assets under m
Slide 4: Key Ratios
Notes: The Efficiency Ratio and Pre-provision Net Revenue are non-GAAP financial measures. A reconciliation of GAAP to non-GAAP financial measures is available in the appendix. The Efficiency Ratio reflects non-interest expense (excluding amortization expense associated with intangible assets and me
Slide 5: M&T's Business Model – a Historical Perspective
M&T’s Business Model – a Historical Perspective Net Interest Margin Source: S&P Global Market Intelligence For MTB, Years prior to 2011 not restated for LIHTC. Refer to appendix for peer group list and GAAP reconciliation. PPNR / RWA NCO / Average Loans Operating Efficiency Ratio M&T NIM D vs. Peer
Slide 6: Efficient Balance Sheet Supports Margin and Returns
Above-average returns with below-average credit losses Strong core deposit funding, with less reliance on higher cost time deposits and wholesale funding Greater share of funding from noninterest deposits Source: S&P Global Market Intelligence and company reports Coloring based on favorable (green)
Slide 7: Balance Sheet Management Initiatives – 2016 to Present
Balance Sheet Management Initiatives – 2016 to Present Assets: Transitioning loan portfolio to higher-return categories Replacing residential mortgages from Hudson City with commercial and consumer loans Funding: Maintain limited reliance on longer-term, high-cost funding Aggressively reduced time d
Slide 8: Focus on Growing Profitable Assets
Focus on Growing Profitable Assets 2016 2017 2018 1H ‘19 2016- 1H ‘19 Chg. Total Earning Assets 3.49% 3.82% 4.33% 4.68% +119 bps Commercial Loans 3.98% 4.34% 4.95% 5.30% +132 bps Consumer Loans 4.54% 4.82% 5.19% 5.52% +98 bps Residential Mortgages, Cash, and Securities 2.83% 2.98% 3.19% 3.39% +55 bp
Slide 9: Stable, Low-Cost Funding
Stable, Low-Cost Funding… 2016 2017 2018 1H ‘19 2016- 1H ‘19 Chg. Total Interest-bearing Liabilities 0.56% 0.55% 0.78% 1.08% +52 bps Borrowings and Foreign Deposits 2.08% 2.21% 2.71% 3.00% +92 bps Time Deposits 0.84% 0.75% 0.85% 1.44% +60bps Savings and Interest Checking Deposits 0.17% 0.25% 0.41% 0
Slide 10: Supported by Deposit Franchise
…Supported by Deposit Franchise Deposit Composition – M&T and Peers (Average Balances) Source: S&P Global Market Intelligence and company reports Reduced high-cost time deposit share while industry time deposits increased Leading share in core markets provides deposit cost advantage Stable, above-av
Slide 11: Proactive Hedging Reduces Net Interest Income Variability
Total Active Hedges Proactive Hedging Reduces Net Interest Income Variability Hedging program initiated early in interest rate cycle and increased in 1H 2019 Recent increase in notional balance largely driven by forward-starting extensions of current hedges All forward-starting hedges are extensions
Slide 12: Uncertain Interest Rate Environment
Forward Curve-Implied Fed Funds Target Rate1 Uncertain Interest Rate Environment Source: Bloomberg Note: (1) Chart and table shows the upper rate of the Federal Funds target rates. The data is an interpretation of the effective Fed Funds forward curve translated to illustrate the implied path of the
Slide 13: Understanding M&T's Interest Rate Positioning
Understanding M&T’s Interest Rate Positioning ($ in billions) 2Q19 Average Balance % of Earning Assets Primarily Floating?(1) Implied Floating % of Earning Assets Earning Assets Commercial Loans(2) $58.1 54% ü 64% Residential Mortgages 16.7 16% HELOC 4.7 4% ü Other Consumer Loans 9.6 9% Securities 1
Slide 14: Low Net Interest Income Volatility Through Cycle
Low Net Interest Income Volatility Through Cycle Source: S&P Global Market Intelligence and company reports 1. NII volatility excludes periods impacted by acquisitions. NII volatility defined as standard deviation of quarter over quarter percent change in NII. Transient deposit balances, such as tru
Slide 15: Prudent Investments and Expense Management
PPNR / RWA Relative to Peers Prudent Investments and Expense Management… Source: S&P Global Market Intelligence and company reports Note: Operating leverage is the difference between the annual growth rate in total operating revenue minus the annual growth rate in operating expenses. Refer to the ap
Slide 16: Support Top Quartile Profitability
…Support Top Quartile Profitability Source: S&P Global Market Intelligence Return on Tangible Assets
Slide 17: Deploying Capital Where and When it Makes Sense
Cumulative Capital Retained, Dividends and Share Repurchases Deploying Capital Where and When it Makes Sense Source: Federal Reserve Note: Calculated using Net Operating Income, less preferred dividends and discount amortization – see appendix 20% 104% 87% 71% 112% 52% 78% 48% 43% 35% 33% 37% 35% 85
Slide 18: M&T Outlook Summary
M&T Outlook Summary Loan Growth FY 2019 average year-over-year loan growth remains in low single-digit range Mid single-digit commercial and consumer loan growth Partially offset by continued planned runoff of Hudson City residential mortgages Net Interest Income / Margin Continue to expect low sing
Slide 19: Appendix and GAAP Reconciliations
Appendix and GAAP Reconciliations
Slide 20: Earnings & Dividend Growth: 1983 – 1H 2019
15% Net Operating EPS CAGR 13% Dividend CAGR Earnings & Dividend Growth: 1983 – 1H 2019
Slide 21: M&T Bank Corporation…a solid investment
Of the largest 100 banks operating in 1983, only 23 remain today. Among the remaining, M&T ranks 1st in stock price growth M&T Bank Corporation…a solid investment (1) 1983 Stock Prices Source: Compustat, Bigcharts.com, and/or Company website
Slide 22: M&T Bank Corporation…a solid investment
18.2% Annual rate of return since 19801 In the top 30 of the entire universe2 of U.S. based stocks traded publicly since 1980 M&T Bank Corporation…a solid investment $1,373 invested in M&T in 1980 would be worth $1 million as of today CAGR calculated assuming reinvestment of dividends through June 3
Slide 23: Reconciliation of GAAP and Non-GAAP Measures
Reconciliation of GAAP and Non-GAAP Measures
Slide 24: Reconciliation of GAAP and Non-GAAP Measures
Reconciliation of GAAP and Non-GAAP Measures
Slide 25: M&T Peer Group
BB&T Corporation PNC Financial Services Group, Inc. Comerica Incorporated Regions Financial Corporation Fifth Third Bancorp SunTrust Banks, Inc. Huntington Bancshares Incorporated Zions Bancorporation KeyCorp M&T Peer Group U.S. Bancorp M&T Bank Corporation Citizens Financial Group, Inc.
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