- Valley National’s adjusted earnings per share (EPS) for Q1 dropped to 18 cents, missing the estimate and previous year’s performance of 19 cents.
- Net interest income rose by 6.7% year-over-year to $420.1 million, slightly below the estimate of $424.3 million.
- Non-interest expenses decreased by 1.3% year-over-year to $276.6 million, which was better than the estimated $286.7 million.
- Net charge-offs significantly increased by 78% year-over-year to $41.9 million, surpassing the estimate of $33.7 million.
- The Common Equity Tier 1 (CET1) ratio improved to 10.8%, up from 9.34% year-over-year.
- Valley National remains optimistic about core deposit growth providing support in a volatile operating environment.
- Analyst recommendations currently include 5 buy ratings, 6 hold ratings, and no sell ratings.
A look at Valley National Bancorp Smart Scores
| Factor | Score | Magnitude |
|---|---|---|
| Value | 5 | |
| Dividend | 5 | |
| Growth | 3 | |
| Resilience | 3 | |
| Momentum | 4 | |
| OVERALL SMART SCORE | 4.0 |
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
Valley National Bancorp, the holding company for Valley National Bank and The Merchants Bank of New York, has been given high scores in both Value and Dividend by Smartkarma. This indicates a positive long-term outlook for the company’s financial stability and return potential for investors. While the Growth and Resilience scores are slightly lower, at 3, Valley National Bancorp still shows promise for future expansion and the ability to weather economic uncertainties. With a Momentum score of 4, the company also demonstrates a strong upward trend that could attract further investor interest.
Valley National Bancorp provides personal and commercial banking services in northern New Jersey and Manhattan, New York through its branches. With additional subsidiaries in mortgage servicing and investments, the company has a diversified portfolio that could contribute to its overall resilience in the financial market. The high scores in Value and Dividend reflect positively on Valley National Bancorp‘s potential for delivering strong returns to its shareholders over 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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