Pathward Monetary beats Q1 estimates on robust mortgage development

SIOUX FALLS, S.D. – On Tuesday, Pathward Monetary, Inc. (NASDAQ: CASH (TSX:CASH)) reported fiscal first quarter earnings that topped analyst expectations, pushed by robust mortgage development and better web curiosity revenue.

The monetary companies firm posted web revenue of $31.4 million, or $1.29 per share, for the quarter ended December 31, 2024. That compares to web revenue of $27.7 million, or $1.06 per share, in the identical quarter final yr. Analysts have been anticipating earnings of $1.24 per share.

Income rose 7% YoY to $173.5 million, exceeding the consensus estimate of $171.35 million. The rise was attributed to development in each web curiosity revenue and noninterest revenue.

Internet curiosity revenue elevated 6% YoY to $116.1 million, pushed by increased yields and balances within the mortgage and lease portfolio. Whole (EPA:TTEF) gross loans and leases grew 22% YoY to $4.56 billion when excluding the sale of the insurance coverage premium finance enterprise.

“Fiscal 2025 began out properly as we made good progress in opposition to the technique we laid out final yr,” mentioned CEO Brett Pharr. He famous the corporate accomplished the sale of its insurance coverage premium finance enterprise and prolonged two contracts with giant companions.

Pathward’s web curiosity margin expanded to six.84% from 6.23% a yr in the past, reflecting an improved incomes asset combine. The corporate maintained a powerful capital place, with a standard fairness tier 1 ratio of 12.53%.

Trying forward, Pathward mentioned it began the tax season with 12% extra enrolled tax places of work in comparison with final yr, positioning it for development in that phase.

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