Axos Financial Inc (AX) Q4 2024 Earnings Call Highlights: Strong EPS Growth and Strategic ...

In This Article:

  • Net Income: Approximately $105 million for the quarter ended June 30, 2024, up 20% year-over-year.

  • Earnings Per Share (EPS): $1.80 for the quarter and $7.66 for the fiscal year, representing year-over-year growth of 23% and 51%, respectively.

  • Net Interest Margin: 4.65% for the quarter ended June 30, 2024, up from 4.19% a year ago.

  • Loan Balances: Ending loan balances increased 2.7% linked quarter and 16.9% year-over-year to $19.2 billion.

  • Deposit Growth: Deposits grew by approximately $256 million linked quarter, primarily from non-interest bearing deposits.

  • Return on Average Common Shareholder Equity: 18.8% for the quarter and 21.6% for the fiscal year.

  • Tangible Book Value Per Share: Increased by 26% year-over-year.

  • Loan Originations: $2.5 billion for the quarter, up approximately 11% year-over-year.

  • Non-Performing Loans: Total non-performing loans dropped by $9 million linked quarter.

  • Allowance for Credit Losses: 1.34% of total loans held for investment.

  • Non-Interest Income: Approximately $31 million for the quarter, down from $32.7 million a year ago.

  • Share Repurchases: $13.2 million of common stock repurchased in the fourth quarter at an average price of $48 per share.

Release Date: July 30, 2024

For the complete transcript of the earnings call, please refer to the full earnings call transcript.

Positive Points

  • Axos Financial Inc (NYSE:AX) reported double-digit year-over-year growth in earnings per share, book value per share, and ending loan balances for the ninth consecutive quarter.

  • The company achieved a 26% year-over-year growth in tangible book value per share, driven by strong returns.

  • Net interest margin was 4.65% for the quarter, showing an improvement from the previous year.

  • Axos Financial Inc (NYSE:AX) increased deposits by $256 million in the fourth quarter, with significant growth in non-interest-bearing deposits.

  • The company maintained strong credit quality, with net annualized charge-offs to average loans at only 5 basis points.

Negative Points

  • Net interest margin decreased from 4.87% in the previous quarter to 4.65% due to higher excess liquidity.

  • Ending balances for multifamily term loans and commercial real estate specialty loans declined by $122 million and $31 million, respectively.

  • Non-interest income decreased slightly compared to the previous year, impacted by lower broker dealer fee income and prepayment penalty fees.

  • Non-interest expense increased by $7 million due to higher salary, benefits, and professional service expenses.

  • The company faced challenges in loan growth due to tighter spreads and fewer projects, impacting overall growth potential.