First Citizens BancShares Q2 adjusted EPS beats estimates, $4 bln buyback announced

Overview

• First Citizens BancShares Q2 adjusted EPS beats analyst expectations, per LSEG data

• Co announces $4 bln share repurchase plan following $3.5 bln plan

• Diane Morais appointed to Board of Directors

Outlook

• Company announces $4 bln share repurchase plan, which will start upon completion of ongoing $3.5 billion share repurchase plan

Result Drivers

• NET INTEREST INCOME - Increased by $32 mln to $1.70 bln due to higher interest income from loans and deposits

• NONINTEREST INCOME - Rose by $43 mln, driven by positive changes in customer derivative positions and investments

• CREDIT LOSSES - Provision decreased by $39 mln due to lower net charge-offs and a reserve release

Key Details

Analyst Coverage

• The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 10 "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 First Citizens BancShares Inc (Delaware) is $2,175.00, about 2.8% above its July 24 closing price of $2,113.83

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

Press Release: ID:nPn3nkqNQa