Axos Financial beats Q2 estimates, shares rise

Published 28/01/2025, 22:22
Axos Financial beats Q2 estimates, shares rise

NEW YORK - Axos Financial, Inc. (NYSE: NYSE:AX) reported better-than-expected earnings and revenue for its fiscal second quarter, sending shares up 1.9% in after-hours trading Tuesday.

The online banking and financial services company posted adjusted earnings per share of $1.82, surpassing the analyst consensus estimate of $1.75. Revenue came in at $307.9 million, also beating expectations of $303.63 million.

Net interest income rose 22.5% YoY to $280.1 million, driven by higher interest income on loans and deposits at other financial institutions. This was partially offset by increased interest expense on deposits.

"We generated loan growth across certain commercial and industrial lending categories, single family warehouse and auto," said Greg Garrabrants, President and CEO of Axos. "Net interest margin of 4.83% in the quarter ended December 31, 2024 was well above our target."

The company reduced interest-bearing deposit costs by 51 basis points from the previous quarter while maintaining flat deposit balances. Total (EPA:TTEF) deposits increased 5.9% annualized from June 30, 2024 to $19.9 billion.

Axos’ provision for credit losses was $12.2 million, down from $13.5 million in the same quarter last year. Non-interest income decreased significantly to $27.8 million from $124.1 million, primarily due to the absence of a one-time gain in the prior year period.

The company’s book value per share increased 20.9% YoY to $44.17. Axos maintained strong capital ratios, with total capital to risk-weighted assets at 15.23% for the parent company.

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