First BanCorp: Flattish Earnings Outlook

Nov. 27, 2021 8:21 AM ETFirst BanCorp. (FBP)
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Sheen Bay Research


  • Although Puerto Rico's unemployment rate is still stubbornly high, there is hope for credit demand partly due to the region’s good handling of the pandemic.
  • Further provision reversals are unlikely. However, the provisioning will likely remain below normal because of the substantial improvement in credit metrics.
  • The December 2022 target price suggests a small downside from the current market price. Further, FBP is offering a low dividend yield.

Oceanside view of the town San Juan

Cavan Images/iStock via Getty Images

Earnings of First BanCorp. (NYSE: NYSE:FBP) will likely remain flattish next year as subdued loan growth will likely counter an increase in the provision expense. After declining for the last four consecutive quarters, there is hope

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Around 10 years of experience covering Banks and Macroeconomics. Passionate about discovering lucrative investments and generating alpha.

Disclosure: I/we have no stock, option or similar derivative position in any of the companies mentioned, and no plans to initiate any such positions within the next 72 hours. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.

Additional disclosure: Disclaimer: This article is not financial advice. Investors are expected to consider their investment objectives and constraints before investing in the stock(s) mentioned in the article.

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