CUBI Earnings Prediction
The chart below shows how CUBI performed 10 days before and after its earnings report, based on data from the past quarters. Typically, CUBI sees a -4.58% change in stock price 10 days leading up to the earnings, and a +0.20% change 10 days following the report. On the earnings day itself, the stock moves by +1.05%. This data can give you a slight idea of what to expect for the next quarter's release.
CUBI Key Earning Data
2024/Q4
Year Over Year
Quarter Over Quarter
Total Revenue
145.77M
-16.86%
-2.37%
Gross Margin
--
--
--
Operating Margin
24.33%
-49.14%
-21.06%
Net Margin
18.46%
-47.87%
-41.02%
EPS
0.71
-60.34%
-45.80%
No Data Available
CUBI Earnings Analysis
Customers Bancorp Inc Corporation (CUBI.N) Earnings Conference Call
Positive
Net Deposit Growth Surge: Customers Bancorp achieved a remarkable 17% annual net deposit growth, totaling $10 billion, while significantly increasing its capital ratio with a 400 basis point rise in CET1.
Earnings Power and Profitability: Net interest income grew by 19% annually, with core EPS increasing over 2.5 times in the last five years, showcasing strong earnings power and profitability.
Strong Financial Performance: The bank reported a 15% annual growth in revenue, 20% in EPS, and 16% in book value, outperforming the top quartile of banks in its asset class.
Deposit Growth and Transformation: Total deposits increased by over $775 million or 4%, with non-interest bearing deposits rising to $5.6 billion, representing 30% of total deposits, indicating a strong deposit franchise transformation.
Tangible Book Value Growth: The tangible book value increased to $54 per share, reflecting a 14% growth for the year, consistent with the bank's long-term performance metrics.
Negative
Decline in Profitability: Core earnings per share for Q4 was $1.36, with net income of $44 million, indicating a decline in profitability due to significant investments made during the year.
Core Non-Interest Expense Increase: Core non-interest expense increased to $108.6 million for the quarter, up $2.2 million from Q3, primarily driven by higher professional services expenses related to risk management enhancements.
Loan Portfolio Struggles: Despite a 4% increase in total deposits, the loan balances are still below the levels seen at the end of 2022, indicating a struggle to maintain growth in the loan portfolio.
Loan Growth Challenges: The bank experienced $1 billion in payoffs and paydowns in Q4, which significantly impacted net growth, highlighting challenges in sustaining loan growth amidst high payoffs.
Reserve Build for Credit Risk: The reserve build of $6.6 million was necessary due to increased loan volume, indicating potential future credit risk as the loan book expands.
CUBI FAQs
How does CUBI typically perform around its earnings report dates?
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CUBI Earning Call Sentiment
Earnings call transcript: Customers Bancorp Q4 2024 earnings beat forecasts
CUBI.N
2.37%Positive
The earnings call highlights strong financial performance with significant loan and deposit growth, increased tangible book value, and a positive outlook for EPS growth. The decision by the management board to take bonuses in stock indicates confidence. Despite some concerns about professional services costs and uncertain deposit timing, the overall sentiment remains positive, supported by robust Q&A responses on loan growth and deposit cost reduction. Given the market cap, the reaction is likely to be positive, within the 2% to 8% range, reflecting optimism around strategic initiatives and financial metrics.
