Latest news with #WBS
Yahoo
19-07-2025
- Business
- Yahoo
Webster Financial Second Quarter 2025 Earnings: EPS Beats Expectations
Webster Financial (NYSE:WBS) Second Quarter 2025 Results Key Financial Results Revenue: US$669.3m (up 21% from 2Q 2024). Net income: US$251.7m (up 43% from 2Q 2024). Profit margin: 38% (up from 32% in 2Q 2024). The increase in margin was driven by higher revenue. EPS: US$1.52 (up from US$1.03 in 2Q 2024). AI is about to change healthcare. These 20 stocks are working on everything from early diagnostics to drug discovery. The best part - they are all under $10bn in marketcap - there is still time to get in early. All figures shown in the chart above are for the trailing 12 month (TTM) period Webster Financial EPS Beats Expectations Revenue was in line with analyst estimates. Earnings per share (EPS) surpassed analyst estimates by 7.9%. Looking ahead, revenue is forecast to grow 9.1% p.a. on average during the next 3 years, compared to a 7.5% growth forecast for the Banks industry in the US. Performance of the American Banks industry. The company's shares are up 3.3% from a week ago. Risk Analysis You still need to take note of risks, for example - Webster Financial has 1 warning sign we think you should be aware of. Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Yahoo
18-07-2025
- Business
- Yahoo
Webster Financial Tops Q2 Earnings on Higher Fee Income, Stock Gains
Webster Financial WBS reported second-quarter 2025 earnings per share (EPS) of $1.52, which beat the Zacks Consensus Estimate of $1.41. Also, the reported figure compared favorably with the EPS of $1.26 reported a year ago. Following the better-than-expected results, the company's shares rose 2.8% during yesterday's trading session. Results benefited from a rise in net interest income (NII) and non-interest income. Higher loan and deposit balances and a decline in provision were encouraging too. However, an increase in non-interest expenses acted as a spoilsport. Net income applicable to common shareholders (GAAP basis) was $251.7 million, up 43.4% from the prior-year quarter. Webster Financial's Revenues & Expenses Increase Y/Y WBS' total revenues in the quarter increased 16.5% year over year to $715.8 million. The top line surpassed the Zacks Consensus Estimate by 0.6%. NII increased 8.5% year over year to $621.2 million. The net interest margin was 3.44%, up five basis points (bps). Non-interest income was $94.7 million, significantly up from the year-ago quarter reported figure of $42.3 million. In the second quarter of 2024, total non-interest income included losses on the sale of investment securities of $49.9 million. Excluding this item, total non-interest income increased $2.5 million. Non-interest expenses were $345.7 million, up 6% from the year-ago quarter. The increase was primarily driven by investments in risk management infrastructure and a rise in compensation and benefits expenses. The efficiency ratio was 45.40% compared with 46.22% in the prior-year quarter. A decline in the efficiency ratio indicates a rise in profitability. WBS' Loans & Deposit Balance Rise Sequentially As of June 30, 2025, total loans and leases increased 1.2% on a sequential basis to $53.7 billion. Further, total deposits increased 1% from the prior quarter to $66.3 billion. Webster Financial's Credit Quality Mixed Bag Total non-performing assets were $537.1 million as of June 30, 2025, up 43.3% from the year-ago quarter. Allowance for loan losses was 1.35% of the total loans, which increased from 1.30% in the second quarter of 2024. The ratio of net charge-offs to annualized average loans was 0.27%, up from 0.26% in the year-ago period. The provision for credit losses was $46.5 million, down 21.2% year over year. WBS' Capital Ratios Improve As of June 30, 2025, the Tier 1 risk-based capital ratio was 11.84%, which increased from 11.00% as of June 30, 2024. The total risk-based capital ratio was 14.03%, up from the prior-year quarter's 13.28%. Webster Financial's Profitability Ratios Improve Return on average assets was 1.29%, up from 0.96% in the prior-year quarter. At the end of the second quarter, the return on average common stockholders' equity was 11.31%, which rose from 8.40% in the prior-year quarter. Our Viewpoint on WBS Rising NII and non-interest income will boost Webster Financial's top line. Strategic buyouts in the past have fortified its balance sheet, while deposit and loan growth will continue aiding its financials. However, elevated expenses remain a near-term concern. Webster Financial Corporation Price, Consensus and EPS Surprise Webster Financial Corporation price-consensus-eps-surprise-chart | Webster Financial Corporation Quote Webster Financial currently carries a Zacks Rank 3 (Hold). You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here. An Upcoming Bank Release Bank of Hawaii BOH is scheduled to announce second-quarter 2025 numbers on July 28. Over the past seven days, the Zacks Consensus Estimate for BOH's quarterly earnings has been unchanged at $1.04 per share. (Find the latest EPS estimates and surprises on Zacks Earnings Calendar.) Performance of Other Bank Stock Hancock Whitney Corp.'s HWC second-quarter 2025 adjusted earnings per share of $1.37 exceeded the Zacks Consensus Estimate of $1.34. Further, the bottom line rose 4.6% from the prior year quarter. HWC's results benefited from an increase in non-interest income and NII. Also, higher loans were another positive. However, increased adjusted expenses and provisions, alongside lower deposit balances, were headwinds. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Bank of Hawaii Corporation (BOH) : Free Stock Analysis Report Webster Financial Corporation (WBS) : Free Stock Analysis Report Hancock Whitney Corporation (HWC) : Free Stock Analysis Report This article originally published on Zacks Investment Research ( Zacks Investment Research Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Yahoo
18-07-2025
- Business
- Yahoo
Webster Financial Corp (WBS) Q2 2025 Earnings Call Highlights: Strong Performance Amidst ...
Return on Tangible Common Equity: 18% Return on Assets (ROA): Nearly 1.3% Revenue Growth: 1.6% over the prior quarter Loan and Deposit Growth: Over 1% in the quarter Share Repurchases: Authorized an additional $700 million; repurchased 1.5 million shares Net Charge-Off Ratio: 27 basis points Total Assets: $82 billion, up $1.6 billion from last quarter Deposits: Increased by $739 million Loan Growth: $616 million or 1.2% link quarter Net Income to Common Shareholders: Up $31 million relative to the prior quarter Earnings Per Share (EPS): $1.52 versus $1.30 in the first quarter Net Interest Margin (NIM): 3.44%, down 4 basis points from the prior quarter Non-Interest Income: $95 million, up $3 million over the prior quarter Non-Interest Expense: $346 million, up $2.1 million link quarter Allowance for Loan Losses: $722 million or 1.35% of loans Tangible Book Value Per Share: $35.13, up over 3% from last quarter Warning! GuruFocus has detected 9 Warning Sign with WBS. Release Date: July 17, 2025 For the complete transcript of the earnings call, please refer to the full earnings call transcript. Positive Points Webster Financial Corp (NYSE:WBS) reported a solid return on tangible common equity of 18% and a return on assets of nearly 1.3% for the second quarter of 2025. The company achieved growth in both loans and deposits of over 1% in the quarter, with overall revenue increasing by 1.6% over the prior quarter. The Board authorized an additional $700 million in share repurchases, and 1.5 million shares were bought back in the quarter. Webster Financial Corp (NYSE:WBS) has a strong capital position, with an increase in the common equity Tier 1 ratio and a stable loan-to-deposit ratio. The healthcare financial services segment, including HSA Bank, is expected to benefit from favorable provisions in the reconciliation bill, potentially increasing deposits by $1 billion to $2.5 billion over the next five years. Negative Points The net interest margin (NIM) decreased by 4 basis points from the prior quarter to 3.44%, with expectations of further pressure in the second half of the year. Deposit costs increased by 3 basis points over the prior quarter, with significant competition in the deposit market. There is a potential impact from proposed tariffs, although Webster Financial Corp (NYSE:WBS) does not have disproportionate exposure to the most affected industries. The allowance for credit losses increased by $9 million, primarily due to balance sheet growth. The company anticipates a modest impact on net interest income from a new debt issuance in the second half of the year. Q & A Highlights Q: Given the current environment and outlook for potential deregulation, what is your willingness to reduce CET1, and what are your thoughts on the term pace of the buyback? A: John Ciulla, Chairman and CEO, stated that their medium-term goal is an 11% CET1 ratio, with a potential long-term target of 10.5% as markets stabilize. For the balance of 2025, the 11% target is appropriate. Regarding capital management and share buybacks, the priority is to grow the balance sheet with full relationship loans. If not feasible, they consider tuck-in acquisitions or returning capital to shareholders through dividends or buybacks. Q: Are you satisfied with current cash balances, and how will the anticipated long-term debt issue impact the NIM? A: Neal Holland, CFO, mentioned they are reaching desired cash levels, which had a 1-basis point impact on NIM this quarter, with an additional 1 basis point expected over the next two quarters. The anticipated debt issuance in the second half of the year will also impact NIM by 1 basis point. Q: How are you thinking about deposit costs for the second half of the year, given your expectation for two rate cuts and interSYNC's strong deposit growth? A: Neal Holland, CFO, explained that they are positioned neutrally regarding interest rate sensitivity. If rate cuts occur, deposit costs are expected to decrease. Without cuts, significant competition on the deposit side limits opportunities to reduce costs, but the team is actively monitoring the situation. Q: With the expansion of the HSA market, will there be any need for new investments in delivery channels or outreach? A: Luis Massiani, President and COO, stated that no significant changes in expenses are expected. They already have a direct-to-consumer channel, which will be leveraged for the new opportunity. Some marketing and education investments will be necessary, but they won't materially change the business's operating expense trajectory. Q: How should we think about the allowance build and provision with the improving credit backdrop? A: John Ciulla, Chairman and CEO, noted that the allowance for credit losses is tied to risk rating migration, loan growth, and portfolio risk ratings. They are comfortable with their current coverage ratio, and growth in coverage would come from balance sheet growth or credit deterioration. Q: How sustainable are the recent C&I and commercial real estate originations, and how are spreads holding up? A: John Ciulla, Chairman and CEO, and Luis Massiani, President and COO, indicated that originations were strong across all categories, with pipelines building for the second half of the year. They expect similar loan growth in the coming quarters, supported by a diversified mix of commercial and consumer opportunities. Q: With the Marathon joint venture, how will loan growth be impacted, and is there a two-way street for loan origination? A: John Ciulla, Chairman and CEO, explained that the joint venture allows them to compete for larger transactions without increasing on-balance-sheet hold sizes. While there is potential for a two-way street in origination, their capabilities will primarily drive the joint venture's originations. Q: What is the outlook for the net interest margin (NIM) given competitive pressures and spread tightening? A: Neal Holland, CFO, reiterated the full-year NIM guidance of approximately 3.4%, expecting to exit the year between 3.35% and 3.40%. Despite competitive deposit pressures and slight spread compression, they focus on net interest income, with NIM as an outcome. For the complete transcript of the earnings call, please refer to the full earnings call transcript. This article first appeared on GuruFocus.
Yahoo
17-07-2025
- Business
- Yahoo
Webster Financial (NYSE:WBS) Posts Q2 Sales In Line With Estimates
Regional banking company Webster Financial (NYSE:WBS) met Wall Street's revenue expectations in Q2 CY2025, with sales up 16.5% year on year to $715.8 million. Its GAAP profit of $1.52 per share was 7.9% above analysts' consensus estimates. Is now the time to buy Webster Financial? Find out in our full research report. Webster Financial (WBS) Q2 CY2025 Highlights: Net Interest Income: $621.2 million vs analyst estimates of $617.1 million (8.5% year-on-year growth, 0.7% beat) Net Interest Margin: 3.4% vs analyst estimates of 3.4% (12 basis point year-on-year increase, 2.4 bps beat) Revenue: $715.8 million vs analyst estimates of $714 million (16.5% year-on-year growth, in line) Efficiency Ratio: 45.4% vs analyst estimates of 48.3% (2.9 percentage point beat) EPS (GAAP): $1.52 vs analyst estimates of $1.41 (7.9% beat) Market Capitalization: $9.83 billion Company Overview Founded during the Great Depression in 1935 and evolving into a major Northeastern financial institution, Webster Financial (NYSE:WBS) is a bank holding company that provides commercial banking, consumer banking, and employee benefits solutions through its Webster Bank and HSA Bank division. Sales Growth In general, banks make money from two primary sources. The first is net interest income, which is interest earned on loans, mortgages, and investments in securities minus interest paid out on deposits. The second source is non-interest income, which can come from bank account, credit card, wealth management, investing banking, and trading fees. Over the last five years, Webster Financial grew its revenue at an incredible 17.8% compounded annual growth rate. Its growth beat the average bank company and shows its offerings resonate with customers. We at StockStory place the most emphasis on long-term growth, but within financials, a half-decade historical view may miss recent interest rate changes, market returns, and industry trends. Webster Financial's recent performance shows its demand has slowed significantly as its revenue was flat over the last two years. Note: Quarters not shown were determined to be outliers, impacted by outsized investment gains/losses that are not indicative of the recurring fundamentals of the business. This quarter, Webster Financial's year-on-year revenue growth was 16.5%, and its $715.8 million of revenue was in line with Wall Street's estimates. Net interest income made up 82.9% of the company's total revenue during the last five years, meaning Webster Financial barely relies on non-interest income to drive its overall growth. While banks generate revenue from multiple sources, investors view net interest income as the cornerstone - its predictable, recurring characteristics stand in sharp contrast to the volatility of non-interest income. Here at StockStory, we certainly understand the potential of thematic investing. Diverse winners from Microsoft (MSFT) to Alphabet (GOOG), Coca-Cola (KO) to Monster Beverage (MNST) could all have been identified as promising growth stories with a megatrend driving the growth. So, in that spirit, we've identified a relatively under-the-radar profitable growth stock benefiting from the rise of AI, available to you FREE via this link. Tangible Book Value Per Share (TBVPS) Banks profit by intermediating between depositors and borrowers, making them fundamentally balance sheet-driven enterprises. Market participants emphasize balance sheet quality and sustained book value growth when evaluating these institutions. Because of this, tangible book value per share (TBVPS) emerges as the critical performance benchmark. By excluding intangible assets with uncertain liquidation values, this metric captures real, liquid net worth per share. Other (and more commonly known) per-share metrics like EPS can sometimes be murky due to M&A or accounting rules allowing for loan losses to be spread out. Webster Financial's TBVPS grew at a decent 5.1% annual clip over the last five years. TBVPS growth has accelerated recently, growing by 8.8% annually over the last two years from $29.69 to $35.13 per share. Over the next 12 months, Consensus estimates call for Webster Financial's TBVPS to grow by 12.1% to $39.38, top-notch growth rate. Key Takeaways from Webster Financial's Q2 Results It was encouraging to see Webster Financial beat analysts' EPS expectations this quarter. We were also happy its tangible book value per share narrowly outperformed Wall Street's estimates. Overall, this print had some key positives. The stock remained flat at $58.80 immediately after reporting. Should you buy the stock or not? The latest quarter does matter, but not nearly as much as longer-term fundamentals and valuation, when deciding if the stock is a buy. We cover that in our actionable full research report which you can read here, it's free. Sign in to access your portfolio
Business Insider
16-07-2025
- Business
- Business Insider
Business Leader Dr. Mark Lamberti Appointed Honorary Adjunct Professor at Wits Business School
Career executive and philanthropist to strengthen WBS leadership education through three-year academic appointment Wits Business School (WBS) recently announced the appointment of Dr. Mark Lamberti as Honorary Adjunct Professor for a three-year term beginning July 1, 2025. The distinguished business leader, philanthropist, and WBS alumnus will contribute to the school's mission of developing ethical leaders capable of navigating complex African and global business challenges. Dr. Lamberti, founder and former CEO of Massmart Holdings and current Chairman of Lamberti Holdings, brings over four decades of executive leadership experience to his new academic role. His appointment reinforces WBS's commitment to bridging theoretical knowledge with real-world business expertise through engagement with industry titans who have shaped South Africa's economic landscape. In his honorary professorship, Dr. Lamberti will deliver guest lectures in MBA and other relevant academic programs, contribute to broader academic activities including seminars and leadership dialogues, serve as a WBS ambassador, and participate as an advisory board member in relevant centers within the school. The appointment leverages his extensive experience leading three public companies to market leadership positions and his deep commitment to education and leadership development. "Nothing is worth anything until it's written down," Dr. Lamberti shared with an eager audience of up-and-coming MBA students during a recent WBS Leadership Dialogue event, emphasizing his belief in the power of strategic thinking and written mission statements that has guided his remarkable career trajectory. Dr. Lamberti's academic credentials include a Master of Business Administration degree from the University of the Witwatersrand (1987) and a Doctor of Business Administration from the University of Pretoria's Gordon Institute of Business Science (2024). His doctoral thesis, "Exploring post-retirement role identity emergence in public company CEOs," reflects his ongoing commitment to understanding leadership transitions and development. Beyond his corporate achievements, Dr. Lamberti has demonstrated commitment to education through his family foundation, the Lamberti Tertiary Education Foundation Trust, which has assisted over 200 underprivileged students in completing their tertiary education. He currently serves as a governor of the WITS Foundation and has extensive experience as a director, adviser, and lecturer for various educational institutions. The appointment recognizes Dr. Lamberti's significant contributions to South African businesses, including his tenure as founder and CEO of Massmart Holdings, where he grew the company to exceed R20 billion in turnover, and his subsequent leadership roles as CEO and Chairman of Transaction Capital and Imperial Holdings. He has also served as an executive committee member and director of Business Leadership South Africa and chairman of both the Consumer Goods Council and Business Against Crime South Africa. His numerous accolades include the 2012 Wits Business School Management Excellence Award for demonstrating ethical leadership, managerial excellence, and societal relevance throughout his distinguished career. In 2001, he received the Ernst & Young South Africa's Best Entrepreneur Award . Dr. Lamberti's appointment as Honorary Adjunct Professor strengthens WBS's position as a leading institution for developing purpose-driven leaders who can effectively navigate the complexities of modern business while maintaining strong ethical foundations and commitment to societal impact. About Wits Business School Wits Business School is the graduate school of business administration of the University of the Witwatersrand, one of Africa's leading universities. Located in Johannesburg, the economic hub of South Africa, WBS is dedicated to producing leaders who can navigate the complex challenges of the African and global business environment. The school offers a range of postgraduate programs including MBA, Master's degrees, and executive education, with a focus on developing ethical, innovative leaders committed to sustainable business practices and societal transformation.
