UMB Financial Q2 revenue rises on loan growth, fee income

Overview

• US financial services firm's Q2 revenue rose 12.9% yr/yr, driven by loan and fee income growth

• Adjusted EPS for Q2 increased 21.1% from a year ago

• Company raised quarterly dividend by 16.3%

Outlook

• Company did not provide specific guidance or outlook for future quarters or full-year results

Result Drivers

• LOAN GROWTH - Co said Q2 results were driven by strong organic loan growth, especially in commercial and industrial lending

• FEE INCOME AND INVESTMENT GAINS - Higher noninterest income was led by gains on private investment holdings and increased fees from fund services, corporate trust, and brokerage

• ASSET QUALITY IMPROVEMENT - Net charge-offs declined and nonperforming loans fell 15.7% from the prior quarter

Company press release: ID:nBw8fVMrHa

Key Details

Analyst Coverage

• The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 11 "strong buy" or "buy", 2 "hold" and no "sell" or "strong sell"

• The average consensus recommendation for the banks peer group is "buy"

• Wall Street's median 12-month price target for UMB Financial Corp is $161.00, about 14.2% above its July 27 closing price of $140.97

• The stock recently traded at 10 times the next 12-month earnings vs. a P/E of 9 three months ago

Reuters Recommended Reads

• July 27 - Lakeland Financial Q2 profit rises on loan growth

• July 27 - Commercial BancGroup Q2 net income rises, driven by loan growth

• July 27 - Bladex Q2 revenue rises on higher commercial balances, record fees

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(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)