MT Bank Corporation (MTB-PH) Q2 2024 Earnings Report

MT Bank Corporation reported solid quarterly earnings in QQ2 2024 with net income of $655 million and diluted GAAP EPS of $3.73, up 23% sequentially from QQ1 2024. Revenue of $3.373 billion supported an improved net interest income (NII) of $1.73 billion and a net interest margin (NIM) of 3.59%, aided by fixed-rate asset repricing and non-accrual interest dynamics. Management highlighted ongoing loan growth, a deliberate reduction in CRE exposure, and stable to improving deposit pricing as the backbone of earnings resilience in a slower-growth environment. CET1 rose to 11.44% at quarter-end, underscoring ample capital and a disciplined approach to capital returns, including a planned start to share repurchases at $200 million per quarter beginning in Q3 2024. The firm remains cognizant of elevated criticized loans and CRE concentration (reported at 151% of Tier 1 capital), but staff continues to de-risk the CRE book through restructurings, workouts, and potential agency placements. Management framed the outlook around a “soft landing” macro scenario with NII guidance of $6.85–$6.9 billion for the year and a continued focus on balance-sheet normalization, with asset growth modest and a smaller balance sheet in 2H 2024. While the results reflect meaningful progress on asset quality and capital strength, the key overhangs remain elevated criticized CRE loans, sensitivity to rate path, and regulatory finalization of Basel III/IV frameworks. Investors should monitor credit quality (criticized/non-accruals), CRE concentration normalization, deposit-cost dynamics, and the timing/pace of capital return given macroeconomic uncertainty.