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BankUnited's Q3 adjusted EPS misses estimates, non-interest income declines

BankUnited's Q3 adjusted EPS misses estimates, non-interest income declines


Overview

  • U.S. commercial bank's Q3 net income rose slightly yr/yr, diluted EPS up from prior quarter

  • Adjusted EPS for Q3 missed analyst expectations

  • Company repurchased 2.1 mln shares for $97 mln in Q3


Outlook

  • Company says it remains focused on increasing profitability amid strong economic conditions

  • BankUnited says strong capital levels support growth initiatives and shareholder returns


Result Drivers

  • NIM EXPANSION - Higher net interest margin driven by improved deposit pricing, sale of lower-yielding securities, and favorable loan repricing

  • NON-INTEREST INCOME DECLINE - Lower non-interest income due to losses on securities sales, reduced BOLI returns, and lower lease financing and capital markets income

  • CREDIT QUALITY - Credit metrics improved yr/yr with fewer criticized and classified loans, though non-performing loans rose from prior quarter


Company press release: ID:nBwbWKN6Za


Key Details

Metric

Beat/Miss

Actual

Consensus Estimate

Q3 Adjusted EPS

Miss

$1.03

$1.05 (9 Analysts)

Q3 EPS

$1.01

Q3 Net Income

$72.2 mln

Q3 CET1 Capital Ratio

12.1%


Analyst Coverage

  • The current average analyst rating on the shares is "hold" and the breakdown of recommendations is 4 "strong buy" or "buy", 5 "hold" and 2 "sell" or "strong sell"

  • The average consensus recommendation for the banks peer group is "buy."

  • Wall Street's median 12-month price target for BankUnited, Inc. is $48.00, about 13.4% above its October 20 closing price of $42.32

  • The stock recently traded at 10 times the next 12-month earnings vs. a P/E of 11 three months ago


Reuters Recommended Reads

  • Oct 20 - KeyCorp Q3 revenue rises 8% to record, profit up 24%

  • Oct 20 - East West Bancorp Q3 revenue beats estimates on loan and deposit growth

  • Oct 19 - Zions Bancorp Q3 EPS rises 20% on improved credit quality


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


(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.)

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