- Cullen/Frost’s earnings per share (EPS) for the second quarter were $2.39, surpassing both last year’s $2.21 EPS and the $2.32 estimate.
- The company’s return on average assets increased to 1.22% from 1.18% the previous year.
- Return on average equity fell to 15.6% from 17.1% last year, though it exceeded the estimated 14.7%.
- Net interest income reached $429.6 million, marking an 8.3% increase year-over-year, and exceeded the $428.7 million estimate.
- The net interest margin improved to 3.67%, above last year’s 3.54% and the projected 3.65%.
- Net charge-offs were $11.2 million, which is a 15% increase from the previous year, yet below the $12.4 million estimate.
- The common equity Tier 1 ratio stood at 14%, slightly below the estimate of 14.1%.
- Cullen/Frost saw solid loan growth and a slight increase in average total deposits, despite the second quarter usually being weak for deposits, as noted by Chairman and CEO Phil Green.
- Analyst ratings comprise 4 buys, 7 holds, and 5 sells.
A look at Cullen/Frost Bankers Smart Scores
| Factor | Score | Magnitude |
|---|---|---|
| Value | 3 | |
| Dividend | 4 | |
| Growth | 4 | |
| Resilience | 3 | |
| Momentum | 4 | |
| OVERALL SMART SCORE | 3.6 |
Smart Score is a compound score for the Company indicating its overall outlook. It is derived by taking an equally weighted average of underlying Factor scores computed by Smartkarma
With a solid overall outlook, Cullen/Frost Bankers, Inc. seems poised for long-term success according to the Smartkarma Smart Scores. The company scores well in Dividend, Growth, and Momentum, indicating strong performance in these areas. Cullen/Frost Bankers is known for its stable Value score, reflecting its fundamental attractiveness. Additionally, its Resilience score highlights its ability to weather market fluctuations.
Cullen/Frost Bankers, Inc. stands out as a well-rounded financial institution, offering a range of services through its subsidiary, The Frost National Bank. Operating primarily in Texas, the company provides commercial banking, investment banking, trust services, and more. With promising scores in dividend yield, growth potential, and market momentum, Cullen/Frost Bankers appears to be positioned for growth and stability in the long term.
Disclaimer: This article by Smartkarma is general in nature and based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. Note that our articles may not factor in the latest price-sensitive company announcements or qualitative material.
While all reasonable care has been taken in the preparation, Smartkarma makes no assurance about the accuracy of any generated data or content. All content is indicative only and should be independently checked for accuracy and confirmed before use. Smartkarma accepts no responsibility for any loss or damage caused as a result of any inaccuracy or error within the Lab online tools or generated data.
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