Provident Financial Q2 profit up on margin expansion

Provident Financial Holdings

27/01/2026 11:08

Overview

California bank's fiscal Q2 net income rises 65% yr/yr

Net interest margin increased to 3.03% in fiscal Q2

Non-performing assets ratio decreased to 0.08%

Outlook

Provident Financial Holdings sees stable economic environment as positive for future performance

Company maintains strong underwriting standards amid competitive loan and deposit environment

Result Drivers

CREDIT LOSS RECOVERY - Sequential decline in net income primarily due to lower recovery of credit losses

NON-INTEREST EXPENSES - Increase in non-interest expenses due to a non-recurring mediation settlement

NET INTEREST MARGIN - Improved net interest margin due to higher yields on assets and lower funding costs

Key Details

Metric
Beat/Miss
Actual
Consensus Estimate
Q2 EPS
$0.22
Q2 Net Income
$1.44 mln
Q2 Net Interest Income
$8.92 mln
Q2 Dividend
$0.14


Analyst Coverage

The one available analyst rating on the shares is "hold"

The average consensus recommendation for the banks peer group is "hold"

Wall Street's median 12-month price target for Provident Financial Holdings Inc is $16.00, about 0.8% below its January 26 closing price of $16.13

The stock recently traded at 13 times the next 12-month earnings vs. a P/E of 11 three months ago

Press Release: ID:nGNX12LzHB

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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.)