Valley National Bancorp Q2 adjusted profit beats expectations

Overview

• Valley National Bancorp Q2 adjusted profit beats analyst expectations, driven by higher loan yields

• Co reports significant reduction in provision for loan losses, indicating improved credit quality

Outlook

• Company to remain focussed on growing low-cost deposits

• Company expects profitability metrics to improve throughout the year

Result Drivers

• COMMERCIAL LOAN GROWTH - CEO Ira Robbins attributes positive results to strong commercial loan growth

• HIGHER LOAN YIELDS - Increased yields on new loan originations boosted net interest income

• CREDIT QUALITY IMPROVEMENT - Significant reduction in provision for loan losses indicates improved credit quality

Key Details

Analyst Coverage

• The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 5 "strong buy" or "buy", 5 "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 Valley National Bancorp is $11.00, about 11.8% above its July 23 closing price of $9.70

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

Press Release: ID:nGNX8Z7Rj0