Puerto Rico's First BanCorp Q2 profit rises on loan growth

First Bancorp
First Bancorp

First Bancorp

FBNC

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First Bancorp

FBP

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Overview

  • Puerto Rico bank holding company reported Q2 net income and EPS up both yr/yr and sequentially

  • Net interest income rose, driven by commercial loan growth in Puerto Rico

  • Company returned 84% of earnings to shareholders via dividends and buybacks in Q2


Outlook

  • Company says loan growth and healthy pipeline support full-year growth objectives

  • First BanCorp says it is monitoring consumer market conditions and seasonal delinquency trends

  • Company says strong capital position enables continued strategic investment despite evolving economic environment


Result Drivers

  • COMMERCIAL LOAN GROWTH - Q2 loan growth was driven primarily by commercial activity in Puerto Rico, with total loan originations up 21% yr/yr

  • HIGHER NET INTEREST INCOME - Net interest income rose due to increased commercial and construction loan activity, redeployment into higher-yielding assets, and refinancing-related fee acceleration

  • LOWER NET CHARGE-OFFS - Net charge-offs fell, mainly due to a $4.7 mln reduction in consumer loans and finance leases, especially in the auto loan portfolio


Company press release: ID:nBw41M5Bla


Key Details

Metric

Beat/Miss

Actual

Consensus Estimate

Q2 EPS

$0.62

Q2 Net Income

$96.15 mln

Q2 Net Interest Income

$229.13 mln


Analyst Coverage

  • The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 6 "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 First BanCorp is $28.50, about 3.1% above its July 21 closing price of $27.64

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


Reuters Recommended Reads

  • July 21 - OFG Bancorp Q2 EPS rises on loan growth, deposit strength

  • July 21 - KeyCorp quarterly profit rises on interest income strength

  • July 21 - Western Alliance Bancorp Q2 net income rises on loan growth


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