First Hawaiian (FHB) just reported another solid quarter for FY 2025, with Q3 revenue of US$221.9 million and basic EPS of US$0.59 setting the tone for its latest update. The bank has seen revenue move from US$188.9 million in Q4 2024 to US$221.9 million in Q3 2025, while quarterly EPS has shifted from US$0.41 to US$0.59 over the same period. This provides a clear view of how the top line and per share earnings are shaping up heading into year end. With net profit margins and net interest margin both at healthy levels, this set of results puts the focus squarely on how sustainable the current profitability profile appears.

See our full analysis for First Hawaiian.

With the latest numbers on the table, the next step is to see how they compare with widely followed narratives around First Hawaiian, and where those stories might need to be updated.

31.4% net margin points to stronger profitability

• On a trailing 12 month basis, net profit margin sits at 31.4%, compared with 27.8% a year earlier, while Q3 FY 2025 net income reached US$73.8 million on revenue of US$221.9 million.
• What stands out for a bullish view is that trailing earnings grew 15% year over year even though the five year profit compound is roughly flat at 0.06% per year. This suggests:
  • The latest run rate of US$258.8 million in trailing net income and Q3 EPS of about US$0.59 align with the idea that recent profitability looks stronger than the longer term average.
  • At the same time, the five year record keeps bulls honest, because it shows this higher 31.4% margin is a relatively recent feature rather than a long history of rapid expansion.

Have recent margin gains really reset what this bank can earn, or are we just seeing a short period that looks better than the last five years? 📊 Read the full First Hawaiian Consensus Narrative.

Cost to income ratio improves to 55.3%

• First Hawaiian reported a cost to income ratio of 55.29% in Q3 FY 2025, compared with 57.23% in Q2 FY 2025 and 59.77% in Q3 FY 2024, while the net interest margin printed at 3.19% versus 3.11% in Q2 FY 2025 and 2.95% in Q3 FY 2024.
• Bulls arguing that the bank is running a tighter operation get support from this pairing of a lower cost to income ratio and a higher net interest margin, yet the narrative still has to square that with only modest five year profit growth, because:
  • Q3 FY 2025 revenue of US$221.9 million against Q3 FY 2024 revenue of US$202.6 million comes alongside higher EPS, which fits the bullish claim that the income statement now converts more of every dollar of revenue into profit.
  • However, trailing EPS of about US$2.06 versus a five year average earnings growth rate of just 0.06% per year reminds investors that the bank has not consistently grown profits at this pace across a full cycle.

Valuation split between 12.7x P/E and DCF fair value

• The shares trade at US$26.55 with a trailing P/E of 12.7x, slightly above the US Banks industry average of 11.8x and roughly in line with a 12.8x peer average, while a DCF fair value of about US$50.39 sits materially higher than the current price.
• For investors taking a cautious or bearish stance, the mix of a P/E near peers and a DCF fair value that is about 47.3% above the share price raises questions about how much weight to give each signal, because:
  • Relative metrics imply the stock is priced similarly to comparable banks, even as trailing net income of US$258.8 million and a 31.4% margin look stronger than a year ago.
  • The large gap between the US$26.55 market price and the US$50.39 DCF fair value suggests model based estimates see much more value than the market currently credits, which a bearish reader might treat cautiously given the flat five year profit growth profile.

Next Steps

Don't just look at this quarter; the real story is in the long-term trend. We've done an in-depth analysis on First Hawaiian's growth and its valuation to see if today's price is a bargain. Add the company to your watchlist or portfolio now so you don't miss the next big move.

See What Else Is Out There

First Hawaiian’s higher recent margins and earnings contrast with roughly flat five year profit growth of about 0.06% per year, which may leave you wanting steadier progress.

If you prefer companies that already show consistent earnings momentum across cycles, check out stable growth stocks screener (2166 results) today and line up alternatives with a more proven growth record.

This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.