M&T Bank CFO says can return capital and grow capital ratios at same time

Asked about stock buybacks going forward, M&T Bank CFO Darren King responded in part: "When we look through the quarter and what we see with the pace of risk-weighted asset growth, we see the potential actually for kind of a trifecta and that we should see a little bit of risk-weighted asset growth. As rates are rising and liquidity is constrained we think that we’ll start to see some increased margin and profitability of new lending activity, which usually happens at this point in the cycle. So we’ll deploy capital to those opportunities first. We will — and we do anticipate closing the sale of the CIT business in this quarter, which will create a gain, which will help with our capital ratios, which should allow us to be in the market and repurchase some shares. And at the same time, maintain this kind of capital level that gives us a really nice cushion given the uncertainty in the market and while we wait for the SCB. Now from our perspective, if we run a little light for a quarter, it doesn’t mean that the capital is gone. It just means it comes back a little bit later in the year. But we think we’re in a position here which is nice where we can actually do all 3. We can grow risk-weighted assets. We can return capital and we can grow the capital ratios all at the same time."