Puerto Rico's OFG Bancorp Q4 EPS up 16.4% yr/yr

Overview

• Puerto Rico financial firm's Q4 EPS rose 16.4% yr/yr, with core revenues up 1.9%

• Company repurchased $40.1 mln of common shares in Q4

• Company saw increased commercial loans and client base grew 4.26%

Outlook

• Company sees sustained economic activity in Puerto Rico due to infrastructure investments

• OFG Bancorp expects long-term growth across core businesses

Result Drivers

• DISCIPLINED OPERATIONS - CEO attributed EPS growth to disciplined core operations and favorable tax benefits

• COMMERCIAL LOANS & DEPOSITS - Increased commercial loans and acceptance of deposit accounts contributed to client base growth

• PUERTO RICO ECONOMY - Infrastructure investments and on-shoring projects supported economic performance

• Company reports increased commercial loans and acceptance of deposit accounts

Key Details

Analyst Coverage

• The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 3 "strong buy" or "buy", 2 "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 OFG Bancorp is $48.00, about 12.7% above its January 21 closing price of $42.58

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

Press Release: ID:nBw8PYL96a

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