Tuesday, January 30, 2018

Asset Sensitivity Not Getting It Done For Fulton Financial

Despite above-average asset sensitivity, Fulton Financial (FULT) doesn’t seem to be making as much progress as some of its peer/rival banks. Double-digit revenue and pre-provision net revenue (or PPNR) growth in the fourth quarter certainly weren’t bad, but expectations were already high and it looks as though Fulton’s loan growth prospects have slowed.

There are still avenues by which Fulton can outperform – getting out from under its consent decrees (whenever that happens) will be a help on both the M&A and cost front, and there is more room to leverage hires made in its commercial lending group. Still, with expectations setting such a high mark, it would seem that not even double-digit earnings growth is enough to drive an exciting fair value at this point.

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Asset Sensitivity Not Getting It Done For Fulton Financial

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