Fulton Financial Q2 pretax profit beats expectations

Overview

• Fulton Financial Q2 net income rises to $96.6 mln, driven by higher net interest income

• The holding company which provides various financial services reports operating net income for Q2 of $100.6 mln, a new company record

• Pretax profit for Q2 beats analyst expectations, per LSEG data

Result Drivers

• NET INTEREST INCOME - Increase driven by higher interest income on investment securities and net loans, partially offset by reduced interest income on other assets

• NON-INTEREST INCOME - Growth attributed to higher mortgage banking and fee incomes, despite a decrease in equity method investment income

• EXPENSE INCREASE - Rise in non-interest expenses due to higher salaries and professional fees

Key Details

Analyst Coverage

• The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 2 "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 Fulton Financial Corp is $20.00, about 2.1% above its July 14 closing price of $19.57

• The stock recently traded at 10 times the next 12-month earnings vs. a P/E of 9 three months ago

Press Release: ID:nPn7MGfxPa