First BanCorp: Revising The Earnings Estimate Upwards Thanks To Better Provisioning Outlook

May 26, 2022 3:20 PM ETFirst BanCorp. (FBP)
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Sheen Bay Research
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Summary

  • The existing loan pipelines and strength in the Puerto Rican economy signal an acceleration in loan growth.
  • There are good chances of further reserve releases partly because of the continued strengthening of the regional economy.
  • The year-end target price suggests a small upside from the current market price. Further, FBP is offering a decent dividend yield.

Oceanside view of the town San Juan

Cavan Images/iStock via Getty Images

Earnings of First BanCorp (NYSE:FBP) will continue to grow this year mostly because of the anticipated bottoming out of the loan portfolio size. Additionally, the moderately rate-sensitive topline will benefit from the rising interest-rate environment. Further, the provisioning

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Puerto Rico Bankruptcies

Economic Development Bank for Puerto Rico

Economic Development Bank Economic Activity Index Puerto Rico

Economic Development Bank for Puerto Rico

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This article was written by

Sheen Bay Research profile picture
2.97K Followers
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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