Western Alliance Bancorp Q3 revenue slightly beats estimates, profit rises on wider interest margin

By Reuters News


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

  • Oct 19 - Washington Trust Bancorp Q3 net income rises sequentially on higher net interest income

  • Oct 19 - ServisFirst Bancshares Q3 profit jumps on loan growth, wider interest margin

  • Oct 19 - Fifth Third Bancorp Q3 net interest income jumps on Comerica acquisition


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


Press Release https://www.sec.gov/Archives/edgar/data/1212545/000162828026066286/pressrelease-9302026.htm

(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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