Webster Financial Full Year 2024 Earnings: Misses Expectations

Webster Financial (NYSE:WBS) Full Year 2024 Results

Key Financial Results

• Revenue: US$2.37b (down 5.6% from FY 2023).
• Net income: US$744.1m (down 12% from FY 2023).
• Profit margin: 31% (down from 34% in FY 2023). The decrease in margin was driven by lower revenue.
• EPS: US$4.38 (down from US$4.91 in FY 2023).

WBS Banking Performance Indicators

• Net interest margin (NIM): 3.42% (down from 3.52% in FY 2023).
• Cost-to-income ratio: 45.4% (up from 42.2% in FY 2023).
• Non-performing loans: 0.88% (up from 0.41% in FY 2023).

All figures shown in the chart above are for the trailing 12 month (TTM) period

Webster Financial Revenues and Earnings Miss Expectations

Revenue missed analyst estimates by 3.6%. Earnings per share (EPS) also missed analyst estimates by 7.7%.

The primary driver behind last 12 months revenue was the Commercial Banking (Incl. Private Banking) segment contributing a total revenue of US$1.49b (63% of total revenue). The largest operating expense was General & Administrative costs, amounting to US$1.09b (67% of total expenses). Explore how WBS's revenue and expenses shape its earnings.

Looking ahead, revenue is forecast to grow 11% p.a. on average during the next 3 years, compared to a 7.2% growth forecast for the Banks industry in the US.

Performance of the American Banks industry.

The company's shares are down 4.5% from a week ago.

Risk Analysis

What about risks? Every company has them, and we've spotted 1 warning sign for Webster Financial you should know about.

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