Provident Financial Q2 profit up on margin expansion

Overview

• California bank's fiscal Q2 net income rises 65% yr/yr

• Net interest margin increased to 3.03% in fiscal Q2

• Non-performing assets ratio decreased to 0.08%

Outlook

• Provident Financial Holdings sees stable economic environment as positive for future performance

• Company maintains strong underwriting standards amid competitive loan and deposit environment

Result Drivers

• CREDIT LOSS RECOVERY - Sequential decline in net income primarily due to lower recovery of credit losses

• NON-INTEREST EXPENSES - Increase in non-interest expenses due to a non-recurring mediation settlement

• NET INTEREST MARGIN - Improved net interest margin due to higher yields on assets and lower funding costs

Key Details

Analyst Coverage

• The one available analyst rating on the shares is "hold"

• The average consensus recommendation for the banks peer group is "hold"

• Wall Street's median 12-month price target for Provident Financial Holdings Inc is $16.00, about 0.8% below its January 26 closing price of $16.13

• The stock recently traded at 13 times the next 12-month earnings vs. a P/E of 11 three months ago

Press Release: ID:nGNX12LzHB

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