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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