Western Alliance Bancorp Q2 revenue rises, beating estimates on robust loan growth

Overview

• U.S. commercial bank's Q2 revenue rose 17.7% yr/yr, beating analyst expectations

• Adjusted EPS for Q2 rose 14% yr/yr

• Company cites robust loan growth and stable asset quality; deposits fell 1% on optimization strategy

Outlook

• Company did not provide specific guidance for the current quarter or full year

Result Drivers

• LOAN GROWTH - Quarterly HFI loan growth of $1.8 bln, led by commercial and industrial lending, drove higher net interest income

• ASSET QUALITY - Asset quality trends improved, with declines in special mention and criticized loans and lower net charge-offs

• DEPOSIT OPTIMIZATION - Deposits fell 1% as the company reduced higher-cost balances as part of its deposit optimization strategy

Key Details

Analyst Coverage

• The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 11 "strong buy" or "buy", 4 "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 Western Alliance Bancorp is $90.50, about 11.8% above its July 20 closing price of $80.97

• The stock recently traded at 8 times the next 12-month earnings vs. a P/E of 7 three months ago

Reuters Recommended Reads

• July 20 - ServisFirst Bancshares Q2 EPS rises 40% on loan growth, higher net interest margin

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

• July 21 - Atlantic Union Bankshares beats Q2 EPS estimates on loan growth

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(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)