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StocksMediumUpdated×5•Originally published 16 April 2026•Updated 18 April 2026•

1 min read

US Banks Beat Q1 2026 Estimates Driven by Net Interest Income and Fee Growth

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Key Facts

1M&T Bank (MTB) beat Q1 estimates driven by growth in Net Interest Income (NII) and fee income.

about 2 months ago

Version History

Version 5about 2 months ago

What changed: Updated the story to include DA Davidson's price target hike for M&T Bank, highlighting improved credit quality and expectations for aggressive share buybacks.

Version 4about 2 months ago

What changed: The story was updated to include State Street's strong Q1 results, featuring an earnings beat and record-breaking levels of assets under management and custody.

Version 3about 2 months ago

What changed: The story was updated to include Bank of New York Mellon's (BK) strong performance, highlighting significant margin expansion and AI-driven efficiency gains.

Version 2about 2 months ago

What changed: Added Citizens Financial (CFG) earnings beat and the subsequent stock pressure due to rising operating expenses.

Version 1about 2 months ago

What changed: Updated the story to include specific financial metrics for M&T Bank (MTB), including EPS of $4.13, a 6% revenue increase, and a net interest margin expansion to 3.71%, alongside positive 2026 guidance.

Major US banks reported strong Q1 2026 earnings, with State Street (STT) posting an EPS of $2.84, beating estimates on record asset levels and FX trading fees. Following these results, DA Davidson raised its price target for M&T Bank (MTB) to $235 from $233, citing improved credit trends and a decline in criticized loans. M&T Bank is expected to maintain aggressive share repurchases, further supported by a lowered CET1 capital target which enhances its capacity for shareholder returns. Meanwhile, Bank of New York Mellon (BK) saw a 78% surge in pre-tax profit driven by AI-enabled cost controls, and Bank of America benefited from robust trading activity. Despite operational cost pressures, the broader banking sector continues to leverage high interest rates to drive significant profitability.