Central Bancompany Q3 net income rises 20% on higher net interest income

Overview

• U.S. regional bank's preliminary Q3 net income and adjusted EPS rose yr/yr and sequentially

• Net interest income up 10% yr/yr, driven by loan and deposit growth, margin expansion

• Noninterest income rose, but mortgage banking revenues fell on lower origination volumes

Outlook

• Central Bancompany did not provide specific financial guidance for the current or future periods in the press release

Result Drivers

• NET INTEREST MARGIN EXPANSION - Co said higher loan and securities yields, continued loan growth, favorable earning asset mix and lower interest-earning cash balances drove margin improvement

• WEALTH MANAGEMENT GROWTH - Co said wealth management services revenues rose 16.7% yr/yr, supported by 13.8% growth in assets under advice

• EXPENSE DISCIPLINE - Co said expense growth remained below revenue growth rate, with lower non-personnel expenses and improved efficiency ratio

Company press release:

Key Details

Analyst Coverage

• The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 2 "strong buy" or "buy", 3 "hold" and no "sell" or "strong sell"

• The average consensus recommendation for the banks peer group is "buy"

• Wall Street's median 12-month price target for Central Bancompany, Inc. is $35.00, about 0.5% above its October 26 closing price of $34.83

• The stock recently traded at 17 times the next 12-month earnings vs. a P/E of 15 three months ago

Reuters Recommended Reads

• Oct 26 - Lakeland Financial Q3 net income rises on commercial loan growth

• Oct 26 - German American Bancorp Q3 net income rises on higher yields and margin expansion

• Oct 26 - Northwest Bancshares Q3 adjusted EPS beats estimates on C&I loan growth

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(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)