Western Alliance Bancorp Draws Attention On Significant Jump In Q4 Profit: Retail’s Jubilant
The lender’s net interest income (NII) declined 4.4% sequentially, hurt by decreased yields on interest-earning assets.
FollowWestern Alliance Bancorp (WAL) stock gained retail attention on Tuesday after posting a 47.7% rise in quarterly profit.
On Monday, the Phoenix-based company reported a net income of $213.7 million, or $1.95 per share, for the fourth quarter, compared with $144.7 million, or $1.33 per share, in the year-ago quarter.
According to Koyfin data, the company’s net revenue of $838.4 million topped a Wall Street estimate of $803.9 million.
Its net interest income (NII) rose 12.6% to $666.5 million, backed by a rise in average interest-earning asset balances and a decrease in average short-term borrowings.
However, NII declined 4.4% sequentially, hurt by decreased yields on interest-earning assets.
The company’s provision for net losses during the fourth quarter jumped to $60 million from $9.3 million in the year-ago quarter due to an incremental qualitative adjustment to the commercial real estate portfolio.
Its net interest margin fell to 3.48% from 3.65% in the fourth quarter of 2023.
Western Alliance shares fell 5.5% on Tuesday.
Its loans held for investment (HFI) rose 0.6%, sequentially, while deposits fell 2.5%.
The company forecasted a 6% to 8% rise in NII in 2025.
Retail sentiment on Stocktwits jumped to ‘extremely bullish’ (89/100) territory from ‘neutral’(48/100) a day ago, while retail sentiment remained ‘extremely high,’ albeit with a higher score.
WAL’s Sentiment Meter and Message Volume as of 12:36 p.m. ET on Jan. 28, 2025 | Source: Stocktwits
Over the past year, the stock has gained 26.7%.
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