M&T Bank cuts annual interest income forecast amid growing economic uncertainty

April 14 (Reuters) - M&T Bank MTB.N lowered its annual net interest income forecast on Monday, signaling pressure from economic volatilities amid U.S. President Donald Trump's erratic tariff announcements.

Shares of the bank fell 2.5% before the bell. They have lost nearly 16% so far this year.

Trump's back-and-forth tariff moves against major trading partners have ignited fears of accelerating inflation and pushing the economy into recession, denting consumer confidence, which could potentially curb loan demand and spending.

M&T Bank forecast net interest income — the difference between what banks pay customers on deposits and earn as interest on loans — to be between $7.05 billion and $7.15 billion for 2025. That compares with its previous forecast range of $7.1 billion to $7.2 billion.

Analysts on average were expecting annual NII at $7.08 billion, according to data compiled by LSEG.

The bank, however, reported a $15 million increase in NII for the first quarter, as rate cuts by the U.S. Federal Reserve at the end of 2024 and a pro-business stance by Trump supported loan demand.

Net income available to common shareholders rose to $547 million, or $3.32 per share, during the three months ended March 31, from $505 million, or $3.02 per share, a year earlier.

The jump in profit was also helped by the bank setting aside less in its rainy-day funds.

Provisions for credit losses came in at $130 million in the first quarter, compared to $140 million in the preceding three months and $200 million a year earlier.