Central Bancompany Q3 net income rises 20% on higher net interest income
Overview
U.S. regional bank's preliminary Q3 net income and adjusted EPS rose yr/yr and sequentially
Net interest income up 10% yr/yr, driven by loan and deposit growth, margin expansion
Noninterest income rose, but mortgage banking revenues fell on lower origination volumes
Outlook
Central Bancompany did not provide specific financial guidance for the current or future periods in the press release
Result Drivers
NET INTEREST MARGIN EXPANSION - Co said higher loan and securities yields, continued loan growth, favorable earning asset mix and lower interest-earning cash balances drove margin improvement
WEALTH MANAGEMENT GROWTH - Co said wealth management services revenues rose 16.7% yr/yr, supported by 13.8% growth in assets under advice
EXPENSE DISCIPLINE - Co said expense growth remained below revenue growth rate, with lower non-personnel expenses and improved efficiency ratio
Company press release:
Key Details
Metric | Beat/Miss | Actual | Consensus Estimate |
Q3 Adjusted EPS | $0.48 | ||
Q3 EPS | $0.48 | ||
Q3 Adjusted Net Income | $116.07 mln | ||
Q3 Net Income | $116.24 mln | ||
Q3 Net Interest Income | $218.86 mln | ||
Q3 Pretax Profit | $150.64 mln |
Analyst Coverage
The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 2 "strong buy" or "buy", 3 "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 Central Bancompany, Inc. is $35.00, about 0.5% above its October 26 closing price of $34.83
The stock recently traded at 17 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.)