Company says Puerto Rico economy remains stable with federal funds and strong labor market
Company expects operational strength and customer focus to support long-term growth opportunities
Overview
Puerto Rico financial holding firm's Q2 core revenue rose 4.5% yr/yr
Diluted EPS for Q2 increased 20.9% yr/yr
Company cites loan growth, deposit strength, and stable credit trends as key drivers
Result drivers
Loan growth and higher rates - Co said higher average loan balances at increased rates and payoffs of several commercial loans boosted interest income
Deposit growth - Sequential deposit growth from government, commercial and retail customers contributed to liquidity and cash balances
Higher banking and wealth management fees - Increase in banking service and wealth management revenues, including insurance and annuity fees, offset lower mortgage banking revenues
The current average analyst rating on the shares is "hold" and the breakdown of recommendations is 1 "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 OFG Bancorp is $50.50, about 1% above its July 20 closing price of $50.00
The stock recently traded at 10 times the next 12-month earnings vs. a P/E of 9 three months ago
OFG•
