Provident Financial Services Q2 profit rises on record interest income

Provident Financial Services

29/07/2026 21:54

Overview
US regional bank's Q2 net income rose yr/yr, driven by higher net interest income
Record pre-provision net revenue supported by strong commercial loan growth and non-interest income
Non-performing loans declined from prior quarter, asset quality remained stable

Outlook
Company did not provide specific financial guidance for the current qtr or full yr

Result Drivers
NET INTEREST INCOME - Co said record net interest income was driven by growth in earning assets and an expanded net interest margin
NON-INTEREST INCOME - Higher non-interest income was attributed to increases in loan-related fee income, wealth management, and insurance agency income
COMMERCIAL LOAN GROWTH - Strong commercial loan production contributed to higher average loans and a larger loan pipeline

Company press release: ID:nGNXccwjb8

Key Details
Metric
Beat/Miss
Actual
Consensus Estimate
Q2 EPS
 
$0.60
 
Q2 Net Income
 
$78.10 mln
 
Q2 Net Interest Income
 
$202.70 mln
 
Q2 Credit Loss Provision
 
$9.3 mln
 

Analyst Coverage
The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 4 "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 Provident Financial Services Inc is $25.50, about 5.5% above its July 28 closing price of $24.17
The stock recently traded at 10 times the next 12-month earnings vs. a P/E of 9 three months ago

Reuters Recommended Reads
July 28 - Provident Financial Q4 net interest income rises on lower funding costs, higher loan yields
July 29 - Stock Yards Bancorp Q2 net income rises on loan, margin growth
July 29 - StanChart lifts income target after wealth boom powers earnings beat

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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.)