Western Alliance Bancorp Q3 revenue slightly beats estimates, profit rises on wider interest margin
Overview
US commercial bank's Q3 revenue saw a slight beat versus analyst expectations
Diluted EPS for Q3 rose 7.5% yr/yr to $2.45
Company repurchased $92 mln of shares in Q3
Outlook
Company did not provide specific financial guidance for future quarters or the full year in its press release
Result Drivers
HIGHER YIELDS AND LOAN BALANCES - Co said net interest income growth was driven by higher yields on interest earning assets and increased average loan balances
DEPOSIT OPTIMIZATION - Co said deposit optimization actions lowered deposit costs, while commercial banking deposit growth kept total deposits stable
IMPROVED ASSET QUALITY - Co said asset quality improved with lower nonaccrual loans and increased reserve coverage
Company press release: Full Story
Key Details
Metric | Beat/Miss | Actual | Consensus Estimate |
Q3 Revenue | Slight Beat* | $1 bln | $991.11 mln (11 Analysts) |
Q3 EPS | $2.45 | ||
Q3 Net Income | $277.20 mln | ||
Q3 Net Interest Income | $807.60 mln | ||
Q3 Credit Loss Provision | $80 mln | ||
Q3 Net Interest Margin | 3.57% |
*Applies to a deviation of less than 1%; not applicable for per-share numbers.
Analyst Coverage
The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 11 "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 Western Alliance Bancorporation is $93.00, about 24.8% above its October 16 closing price of $74.51
The stock recently traded at 7 times the next 12-month earnings vs. a P/E of 8 three months ago
Reuters Recommended Reads
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Oct 19 - Fifth Third Bancorp Q3 net interest income jumps on Comerica acquisition
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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.)