- A strong pipeline and economic growth bode well for loan growth this year.
- The net interest income is moderately sensitive to rate changes thanks to a low deposit beta.
- The portfolio’s credit performance was better than expected in the last quarter of 2021. Therefore, I have revised downward my net provision expense estimate for 2022.
- The December 2022 target price suggests a moderately-high upside from the current market price. Further, PFS is offering a decent dividend yield.
For further details see:
Provident Financial: Earnings Riding On Economic Factors