TFS Financial Q1 net income falls

Overview

• Savings and mortgage provider's Q1 net income decreased compared to the previous quarter

• Net interest income increased year-over-year, driven by higher balances and yields

• Company maintained a strong Tier 1 capital ratio of 10.75%

Outlook

• Company did not provide specific guidance for future financial metrics

Result Drivers

• INTEREST RATE IMPACT - Decrease in net interest income due to lower yields on home equity lines of credit after recent rate cuts

• EXPENSE INCREASE - Rise in non-interest expenses driven by higher salaries, marketing, and office costs

Key Details

Analyst Coverage

• The current average analyst rating on the shares is "hold" and the breakdown of recommendations is no "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 TFS Financial Corp is $14.50, about 2.5% above its January 28 closing price of $14.14

• The stock recently traded at 39 times the next 12-month earnings vs. a P/E of 40 three months ago

For questions concerning the data in this report, contact Estimates.Support@lseg.com. For any other questions or feedback, contact reuters.support@thomsonreuters.com.