The market turned relatively more bullish on Fulton Financial (FULT)
as 2018 wore on, but this Mid-Atlantic bank remains somewhat hamstrung
by sluggish growth trends and intermittent credit issues, including a
provisioning for a sizable ag credit in the fourth quarter after a
fraud-related loss earlier in 2018. On a more positive note, though,
cost leverage should improve more markedly over the next couple of years
and that should help drive mid-single-digit pre-provision earnings
growth.
I like Fulton’s expansion efforts in Philly
and Baltimore, and I believe the bank will likely return to M&A in
2020 after the expected resolution of its remaining consent orders and
the consolidation of its banking charters. I remain concerned about the
bank’s loan growth prospects, though, and I think there are better
bargains in the banking sector, including the Mid-Atlantic region.
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Lackluster Growth And Intermittent Credit Issues Still A Challenge For Fulton Financial
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