M&t Bank Corporation · NYSE:MTB
M&t Bank — BancAnalysts Association of Boston Conference 2018
23 slides from M&t Bank's conference presentation, Nov 9, 2018
Slide 1: BancAnalysts Association of Boston Conference Presentation
BancAnalysts Association of Boston Conference Presentation November 9, 2018 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?
Who is M&T Bank Corporation? Top 20 US-based, commercial bank holding company Substantial growth from $2 billion in assets in 1983 to $117 billion at September 30, 2018 17,140 employees across 754 domestic branches in eight states and Washington DC 3.8 million customers representing 6.0 million acco
Slide 4: Key Ratios
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 as
Slide 5: M&T's Business Model – a Historical Perspective
M&T’s Business Model – a Historical Perspective Net Interest Margin Operating Efficiency Ratio PPNR / RWA NCO / Average Loans Note: The Efficiency Ratio and Pre-provision Net Revenue (PPNR) are non-GAAP financial measures. A reconciliation of GAAP to non-GAAP financial measures is available in the a
Slide 6: Today's Discussion Topics
Today’s Discussion Topics Leading deposit share in primary markets Lending discipline guided by focus on returns Superior capital generation Stable, low-cost core deposit funding advantage Maintaining profitability in competitive environment Flexible capital allocation throughout long-term cycles M&
Slide 7: Stable, Low-Cost Deposit Funding
Stable, Low-Cost Deposit Funding Interest-Bearing Deposit Cost Savings, MMDA, and Interest Checking Cost Time Deposit Cost Total Deposit Cost Source: S&P Global Market Intelligence and company reports
Slide 8: Commercial / Small Business Non-Interest Bearing Deposits Provide Sustainable Advantage
Commercial / Small Business Non-Interest Bearing Deposits Provide Sustainable Advantage Note: (1) Percentage change in average non-interest bearing deposits compared with 4Q16. Source: S&P Global Market Intelligence Average Non-Interest Deposits / Total Deposits Runoff Mitigants Operational deposits
Slide 9: Leading Deposit Market Share in Core Markets
Leading Deposit Market Share in Core Markets Note: Retail deposits cap branch level deposits at $1B; YoY Deposit Cost represents change in cost of total deposits from Q3 2017 to Q3 2018 Source: S&P Global Market Intelligence % of Retail Deposits in MSAs with Market Share > 15%
Slide 10: Focus on Growing Profitable Assets
Focus on Growing Profitable Assets 2016 2017 3Q ’18 2016- 3Q ‘18 Chg. Total Earning Assets 3.49% 3.82% 4.40% +91 bps Commercial and Consumer Loans 3.98% 4.34% 5.00% +102 bps Residential Mortgages, Cash, and Securities 2.83% 2.98% 3.22% +39 bps $ in billions Earning Assets – Average Balances Earning
Slide 11: Less Volatile Loan Growth Through Credit Cycles
Less Volatile Loan Growth Through Credit Cycles Note: (1) M&T’s loan growth is based on average loans and is adjusted for acquisitions Source: S&P Global Market Intelligence and Federal Reserve H8 data Loan Growth (Annualized) – M&T1 vs. US Commercial Banks 2005-2008 2009-2012 2013-2016 2017-3Q18 Co
Slide 12: Revenue growth and lower regulatory expenses support funding strategic initiatives
Revenue growth and lower regulatory expenses support funding strategic initiatives while improving overall profitability Operating Efficiency Ratio Operating Leverage (bps) Investments Aligned with Revenue Growth Notes: Noninterest operating expenses and the operating efficiency ratio are non-GAAP f
Slide 13: Top Quartile Pre-Provision Profitability
Top Quartile Pre-Provision Profitability Note: 3Q ‘18 RWA uses preliminary disclosed balances with estimated average RWA balances. PPNR is a non-GAAP figure. Refer to appendix for M&T’s calculation. M&T excludes $50 mln legal-related expense in 3Q ’17. Source: S&P Global Market Intelligence PPNR/RWA
Slide 14: Key Metrics Relative to Peers
Key Metrics Relative to Peers 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
Slide 15: Cumulative Capital Retained, Dividends and Share Repurchases
Cumulative Capital Retained, Dividends and Share Repurchases Deploying Capital Where and When it Makes Sense Note: Calculated using Net Operating Income, less preferred dividends and discount amortization – see appendix Source: Federal Reserve 20% 104% 87% 71% 112% 52% 78% 48% 43% 35% 33% 37% 35% 85
Slide 16: Today's Discussion Topics
Today’s Discussion Topics M&T’s Operating Model Results Leading deposit share in primary markets Lending discipline guided by focus on returns Superior capital generation Stable, low-cost core deposit funding advantage Maintaining profitability in competitive environment Flexible capital allocation
Slide 17: Appendix and GAAP Reconciliations
Appendix and GAAP Reconciliations
Slide 18: Earnings & Dividend Growth: 1983 – Q3 2018
Earnings & Dividend Growth: 1983 – Q3 2018 14% Net Operating EPS CAGR 13% Dividend CAGR 3Q ‘18 YTD
Slide 19: 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 20: 18.4% Annual rate of return since 1980
18.4% 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 $1,199 invested in M&T in 1980 would be worth $1 million as of today CAGR calculated assuming reinvestment of dividends through Septem
Slide 21: Reconciliation of GAAP and Non-GAAP Measures
Reconciliation of GAAP and Non-GAAP Measures
Slide 22: Reconciliation of GAAP and Non-GAAP Measures
Reconciliation of GAAP and Non-GAAP Measures
Slide 23: 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, N.A. KeyCorp M&T Peer Group U.S. Bancorp M&T Bank Corporation Citizens Financial Group, Inc.
M&T Bank — BancAnalysts Association of Boston Conference 2018 on 6ix