WaFd FY EPS rises 22% on higher NII, improved asset quality

Overview

• US regional bank's fiscal Q4 net income and EPS declined sequentially

• Fiscal 2026 EPS rose 22% yr/yr, with improved asset quality metrics

• Net interest income and margin were stable compared to previous quarter

Outlook

• Company expects to benefit from rising rates as assets reprice faster than liabilities

• WaFd anticipates a net gain of about $7 mln from multifamily loan sale in Q1 fiscal 2027

Result Drivers

• LOAN SALES - WaFd said Q4 non-interest income rose due to gains from sale of single-family residential loans

• ASSET QUALITY IMPROVEMENT - Co said asset quality metrics improved, citing resolution of a large classified loan and decreases in non-performing assets and delinquencies

• MERGER COSTS - WaFd said Q4 non-interest expense increased due to strategic investments and merger-related costs

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", 4 "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 WaFd Inc is $35.50, about 20.5% above its October 15 closing price of $29.45

• The stock recently traded at 9 times the next 12-month earnings vs. a P/E of 11 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.)