TFS Financial's Q4 net income falls from prior quarter

Overview

• US thrift lender's fiscal Q4 net income fell from prior quarter

• Full-year net income rose 11% to record $100.7 mln

• Quarterly profit decline driven by higher credit loss provision and non-interest expense

Outlook

• Company expects remaining pension plan obligation to settle in quarter ending Dec 31, 2026

Result Drivers

• HIGHER LOAN YIELDS - Co said net interest income rose due to higher yields on loans, partially offset by increased funding costs

• CREDIT LOSS PROVISION - Co said increased provision for credit losses reflected higher reserve requirements due to loan portfolio growth

• HIGHER OPERATING COSTS - Co attributed increased non-interest expense to higher staffing costs, pension termination expense and other operating 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", 2 "hold" and no "sell" or "strong sell"

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

• Wall Street's median 12-month price target for TFS Financial Corp is $18.25, about 8.9% above its October 29 closing price of $16.76

Reuters Recommended Reads

• Oct 29 - Medallion Financial Q3 profit drops on higher credit loss provisions

• Oct 29 - Columbia Financial Q3 net income drops

• Oct 29 - MVB Financial Q3 net income drops on higher credit loss provision

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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.)