Provident Financial Q1 profit down 12% on lower non-interest income

Reuters
Oct 28
Provident Financial Q1 profit down 12% on lower non-interest income

Overview

  • Provident Financial Q1 net income rises 3% sequentially, down 12% yr/yr

  • Net interest margin improves to 3.00%, up from 2.84% last year

  • Company repurchased 66,707 shares at $15.75 each in Q1

Outlook

  • Company anticipates improving fundamentals due to favorable yield curve and stable economic conditions

  • Company notes balance sheet growth may remain a challenge

Result Drivers

  • CREDIT LOSS RECOVERY - Significant recovery from allowance for credit losses due to shorter expected average life of loan portfolio

  • NET INTEREST MARGIN - Improvement to 3.00% due to higher yields on interest-earning assets and lower funding costs

  • NON-INTEREST INCOME DECLINE - Decreased 10% due to declines in other non-interest income and deposit account fees

Key Details

Metric

Beat/Miss

Actual

Consensus Estimate

Q1 EPS

$0.25

Q1 Net Income

$1.68 mln

Q1 Net Interest Income

$8.93 mln

Q1 Dividend

$0.14

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"

  • Wall Street's median 12-month price target for Provident Financial Holdings Inc is $16.25, about 3.4% above its October 27 closing price of $15.70

  • The stock recently traded at 11 times the next 12-month earnings vs. a P/E of 11 three months ago

Press Release: ID:nGNX47QVD

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