Washington Federal Q3 EPS rises; net interest income up quarter-over-quarter
WAFD•Q3 results and main drivers
- U.S. regional bank's fiscal Q3 diluted EPS rose 15% yr/yr to $0.84
- Net interest income for Q3 grew 2% from the prior quarter; margin steady at 2.81%
- Efficiency ratio improved to 53.7% on higher income and expense discipline
Result drivers
- Net interest income - Growth in net interest income was driven by a higher rate earned on interest-earning assets and a lower rate paid to interest-bearing liabilities
- Non-interest income - Higher non-interest income resulted from gains on sale of bank real estate and lower losses on equity method investments
- Expense discipline - Efficiency ratio improved due to disciplined expense management and higher income
Outlook, capital and analyst coverage
- Company expects capital ratios to remain in line with the prior quarter and above regulatory minimums
- Company continues to closely monitor credit quality amid shifting economic and monetary conditions
- Company is evaluating potential capital relief from proposed Basel III Endgame revisions once finalized
