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The Bancorp Q3 net income rises on fintech fee growth

By Reuters News


Overview

  • U.S. fintech-focused bank's Q3 diluted EPS rose yr/yr, driven by fintech fee growth

  • Net income for Q3 of $62.8 mln

  • Company repurchased $50 mln in shares, representing 2% of outstanding stock


Outlook

  • The Bancorp maintains 2026 Core EPS guidance at $5.95-$6.05

  • Company provides 2027 Core EPS baseline range of $7.00-$7.20

  • The Bancorp initiates preliminary 2028 Core EPS guidance of $8.00-$8.20


Result Drivers

  • FINTECH FEE GROWTH - Co said higher fintech fees were driven by increased volume with existing partners and products, and expansion of its fintech business

  • FINTECH LOAN GROWTH - Growth in fintech loans contributed to overall loan portfolio expansion, reflecting a strategic shift toward sponsored lending

  • EFFICIENCY INITIATIVES - Co cited productivity gains from restructuring and AI adoption as supporting future results


Company press release:


Key Details

Metric

Beat/Miss

Actual

Consensus Estimate

Q3 EPS

$1.53

Q3 Net Income

$62.78 mln

Q3 Net Interest Income

$90.07 mln


Analyst Coverage

  • The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 3 "strong buy" or "buy", no "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 Bancorp Inc is $75.00, about 48.8% above its October 28 closing price of $50.42

  • The stock recently traded at 7 times the next 12-month earnings vs. a P/E of 9 three months ago


Reuters Recommended Reads

  • Oct 27 - SoFi Technologies Q3 adjusted revenue beats on member, product growth

  • Oct 28 - Alkami Technology Q3 revenue beats estimates on digital banking user growth

  • Oct 27 - SoFi's shares jump after fintech beats estimates, raises revenue forecast


For questions concerning the data in this report, contact Estimates.Support@lseg.com. For any other questions or feedback, contact reuters.support@thomsonreuters.com.


(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.)

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