MCB Earnings Prediction
The chart below shows how MCB performed 10 days before and after its earnings report, based on data from the past quarters. Typically, MCB sees a -5.20% change in stock price 10 days leading up to the earnings, and a -0.96% change 10 days following the report. On the earnings day itself, the stock moves by -1.20%. This data can give you a slight idea of what to expect for the next quarter's release.
MCB Key Earning Data
2024/Q4
Year Over Year
Quarter Over Quarter
Total Revenue
68.89M
11.35%
1.46%
Gross Margin
--
--
--
Operating Margin
45.50%
41.70%
75.81%
Net Margin
31.09%
32.02%
72.05%
EPS
1.88
44.62%
74.07%
No Data Available
MCB Earnings Analysis
Metropolitan Bank Holding Corp Corporation (MCB.N) Earnings Conference Call
Positive
Strong Q4 Profitability: Net income for Q4 reached $21.4 million, translating to $1.88 per share, showcasing strong profitability.
Net Interest Income Growth: Quarterly net interest income increased by 16.9% compared to Q4 2023, while annual net interest income rose by 13.6% versus full year 2023, indicating robust revenue growth.
Deposit Growth Strategies: Total deposits increased by over $245 million in 2024 and by $705 million since the end of 2022, demonstrating effective deposit growth strategies despite exiting the BaaS business.
Projected ROTCE Growth: Adjusted Return on Tangible Common Equity (ROTCE) for Q4 was 12.3%, with expectations to achieve mid-teens ROTCE supported by a robust core net interest margin projected to approach 3.75% to 3.8% in the coming year.
Cost Management Success: Non-interest expenses decreased by approximately 6.2% from the previous quarter, reflecting effective cost management strategies.
Negative
Deposit Decline Analysis: Total deposits decreased by approximately $285,000,000 in the 4th quarter, primarily due to the offloading of low-cost GPG deposits.
Non-Interest Income Decline: Non-interest income for Q4 was $4,400,000, reflecting a linked quarter decline of $1,900,000, primarily related to the decline in GPG income, which is expected to be zero going forward.
Non-Interest Expense Increase: Non-interest expenses totaled $38,200,000 in Q4, with an increase of about $4,200,000 from Q4 of 2023, excluding the impact of a settlement reserve established in the previous quarter.
Effective Tax Rate Impact: The effective tax rate for the quarter was approximately 31.7%, indicating a significant tax burden that could impact net income.
Projected Operating Expense Increase: Operating expenses are projected to increase to $175,000,000 to $177,000,000 for 2025, including $11,000,000 in one-time costs related to technology investments, suggesting ongoing financial strain.
MCB FAQs
How does MCB typically perform around its earnings report dates?
Is Earnings call transcript: Metropolitan Bank beats Q4 2024 expectations positive or negative?
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MCB Earning Call Sentiment
Earnings call transcript: Metropolitan Bank beats Q4 2024 expectations
MCB.N
-1.87%Positive
The earnings call summary presents a mixed outlook. While there's positive momentum in net income and NIM, concerns arise from operational challenges like the BaaS exit and potential cost increases. The lack of a clear shareholder return plan and declining non-interest income further tempers optimism. The Q&A session doesn't reveal significant negative trends but lacks clarity on some details, maintaining a neutral stance. Without market cap data, assuming a moderate reaction is prudent.
