PHOENIX - Western Alliance (NYSE:WAL) Bancorporation (NYSE:WAL) reported a modest gain of 1.2% in its stock price following a second-quarter earnings and revenue beat.
The company's earnings per share (EPS) came in at $1.75, slightly above the analyst consensus of $1.71. Revenue for the quarter was also higher than expected, reaching $771.8 million against the consensus estimate of $738.01 million, reflecting a positive market response to the financial results.
The bank's net income of $193.6 million and EPS of $1.75 for the second quarter of 2024 represent a decrease from the previous year's figures of $215.7 million and $1.96, respectively. However, compared to the first quarter of 2024, net income and EPS showed an increase from $177.4 million and $1.60. Net revenue saw a significant year-over-year (YoY) increase of 15.3%, or $102.5 million, compared to the second quarter of 2023.
Kenneth A. Vecchione, President and Chief Executive Officer of Western Alliance, commented on the results, stating, "Western Alliance delivered strong second quarter results featuring robust net interest income growth, gathering loan momentum, and sustained deposit generation." He highlighted the company's focus on generating safe, sound risk-adjusted growth supported by an enhanced liquidity profile and sturdy capital base.
The bank's net interest margin improved to 3.63%, up from 3.42% in the second quarter of the previous year. The improvement was attributed to growth in average earning asset balances outpacing interest-bearing deposits. Additionally, the adjusted efficiency ratio for the second quarter was 51.5%, compared to 50.5% for the same period last year.
This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.