Provident Financial Holdings Q1 profit falls on higher provisions

Overview

• U.S. regional bank's fiscal Q1 net income fell 28% sequentially, down 6% yr/yr

• EPS for fiscal Q1 was $0.25, unchanged from a year ago

• Higher provision for credit losses drove profit decline; net interest income increased 9% yr/yr

Outlook

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

Result Drivers

• CREDIT LOSS PROVISION - Co said higher provision for credit losses was driven by increased expected life of loan portfolio due to higher interest rates

• NET INTEREST INCOME - Co said net interest income rose due to higher average yield on interest-earning assets and lower funding costs

• NON-INTEREST INCOME - Co said non-interest income declined due to lower loan servicing, deposit account, and card fees

Company press release:

Key Details

Analyst Coverage

• The current average analyst rating on the shares is "hold" and the breakdown of recommendations is no "strong buy" or "buy", 2 "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 Provident Financial Holdings Inc is $18.50, about 1.9% above its October 26 closing price of $18.16

• The stock recently traded at 14 times the next 12-month earnings vs. a P/E of 15 three months ago

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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.)