Webster Financial (WBS) Reports 10% EPS Growth and 8% Loan Growth in Q4 2025
Written by Emily J. Thompson, Senior Investment Analyst
Updated: 6d ago
0mins
Source: seekingalpha
- Strong Financial Performance: Webster Financial achieved a 17% ROATCE and 1.2% ROAA in Q4 2025, with a 10% EPS growth and 8% and 6% increases in loans and deposits respectively, indicating robust performance in the financial sector.
- Loan Growth Momentum: Loans increased by $1.5 billion or 2.8% in Q4, with a total annual growth of 7.8%, while nonperforming loans decreased by 8%, reflecting significant progress in credit quality and risk management.
- Ongoing Strategic Investments: The company continues to invest in nontraditional banking sectors like HSA Bank and Ametros, with expectations of $1 billion to $2.5 billion in incremental deposit growth at HSA Bank over the next five years, further solidifying its market position.
- Optimistic 2026 Outlook: Management anticipates loan growth of 5% to 7% and revenue of $3 billion for 2026, demonstrating confidence in future growth while emphasizing the importance of risk management and capital discipline.
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Analyst Views on WBS
Wall Street analysts forecast WBS stock price to rise over the next 12 months. According to Wall Street analysts, the average 1-year price target for WBS is 75.00 USD with a low forecast of 70.00 USD and a high forecast of 80.00 USD. However, analyst price targets are subjective and often lag stock prices, so investors should focus on the objective reasons behind analyst rating changes, which better reflect the company's fundamentals.
13 Analyst Rating
11 Buy
2 Hold
0 Sell
Strong Buy
Current: 64.530
Low
70.00
Averages
75.00
High
80.00
Current: 64.530
Low
70.00
Averages
75.00
High
80.00
About WBS
Webster Financial Corporation is the holding company for Webster Bank, N.A. The Company's segments include Commercial Banking, Healthcare Financial Services and Consumer Banking. The Commercial Banking segment delivers financial solutions both nationally and regionally, which helps its clients to achieve their business and financial goals with expertise in commercial and institutional lending, commercial real estate, capital markets, capital finance, and treasury management. The Healthcare Financial Services segment includes HSA Bank and Ametros. HSA Bank is a provider of employee benefits solutions. Ametros is a professional administrator of medical insurance claim settlements, helping individuals to manage their ongoing medical care through their CareGuard service and technology platform. The Consumer Banking segment delivers customized financial solutions for individuals and families, private clients, and small business owners across 196 banking centers throughout the Northeast.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
Webster Financial Reports Mixed Q4 Results with Record EPS
- Earnings Beat: Webster Financial reported Q4 earnings of $1.59 per share, surpassing the analyst consensus of $1.54, indicating strong fundamental performance despite mixed results.
- Sales Miss: The company’s quarterly sales reached $632.853 million, falling short of the $643.044 million expected by analysts, highlighting challenges in revenue growth.
- Stock Reaction: Following the earnings announcement, Webster Financial's shares fell 0.3% to $63.83, reflecting market caution regarding the mixed results.
- Analyst Rating Changes: Analysts adjusted their price targets, with Keefe, Bruyette & Woods raising theirs from $75 to $77, indicating confidence in the company's future performance despite the mixed earnings report.
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