Western Alliance Bancorporation (WAL) has reported 19.26 percent rise in profit for the quarter ended Dec. 31, 2016. The company has earned $69.80 million, or $0.67 a share in the quarter, compared with $58.53 million, or $0.57 a share for the same period last year.
Revenue during the quarter grew 22.94 percent to $184.81 million from $150.32 million in the previous year period. Net interest income for the quarter rose 22.27 percent over the prior year period to $175.27 million. Non-interest income for the quarter rose 11.19 percent over the last year period to $10.54 million.
Western Alliance Bancorporation has made provision of $1 million for loan losses during the quarter, down 60 percent from $2.50 million in the same period last year.
Net interest margin contracted 10 basis points to 4.57 percent in the quarter from 4.67 percent in the last year period. Efficiency ratio for the quarter improved to 42.41 percent from 45.19 percent in the previous year period. A decline in efficiency ratio indicates a rise in profitability.
"Western Alliance achieved another year of record performance with earnings per share of $2.50, up 23% from 2015," said Robert Sarver, chairman and chief executive officer of Western Alliance Bancorporation. "For the fourth quarter 2016, operating EPS was 70 cents, also up 23% from 57 cents in the prior year period. Loans and deposits each climbed over $2 billion during the year, while the interest margin remained steady and operating efficiency again improved. For the year, net loan losses were only 0.02% of total loans while non-performing assets declined." Sarver continued, "Putting it all together, our exceptional team delivered for shareholders with a nearly 18% return on tangible equity1 and a 21% increase in tangible book value per share1 in 2016. With our solid level of capital and earnings momentum, Western Alliance is well positioned to continue its strong growth and high returns in 2017."
Liabilities outpace assets growthTotal assets stood at $17,200.80 million as on Dec. 31, 2016, up 20.50 percent compared with $14,275.09 million on Dec. 31, 2015. On the other hand, total liabilities stood at $15,309.30 million as on Dec. 31, 2016, up 20.70 percent from $12,683.59 million on Dec. 31, 2015.
Loans outpace deposit growthNet loans stood at $13,064.90 million as on Dec. 31, 2016, up 18.84 percent compared with $10,993.79 million on Dec. 31, 2015. Deposits stood at $14,549.80 million as on Dec. 31, 2016, up 20.94 percent compared with $12,030.60 million on Dec. 31, 2015. Noninterest-bearing deposit liabilities were $5,632.90 million or 38.71 percent of total deposits on Dec. 31, 2016, compared with $4,094 million or 34.03 percent of total deposits on Dec. 31, 2015.
Investments stood at $2,767.80 million as on Dec. 31, 2016, up 35.53 percent or $725.60 million from year-ago. Shareholders equity stood at $1,891.50 million as on Dec. 31, 2016, up 18.85 percent or $300 million from year-ago.
Return on average assets moved down 4 basis points to 1.63 percent in the quarter from 1.67 percent in the last year period. At the same time, return on average equity decreased 105 basis points to 17.59 percent in the quarter from 18.64 percent in the last year period.
Tier-1 leverage ratio stood at 9.90 percent for the quarter, up from 9.80 percent for the previous year quarter. Book value per share was $18 for the quarter, up 16.58 percent or $2.56 compared to $15.44 for the same period last year.
Disclaimer: Please note that this is an auto-generated article. IRIS does not guarantee the accuracy, adequacy or completeness of any information and is not responsible for any errors or omissions or for the results obtained from the use of such information. IRIS especially states that it has no financial liability whatsoever to any user on account of the use of information provided on its website. For queries contact: editor@irisindia.net
