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Bank Stocks Set for Q4 Earnings on Jan 26: SIVB, WAL & More

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Most of the banks that have reported fourth-quarter results so far have shown a decent improvement, thanks to a favorable backdrop and the Trump effect. Looking at the performance of the banking sector so far, one could reasonably expect solid loan growth in the quarter. Moreover, trading revenues should be a major support due to strength in fixed income and currencies.

However, Q4 results are less likely to benefit from the Fed rate hike in Dec 16. Also, provisions for credit losses are estimated to increase due to rising credit card debt, while energy loans are less likely to lead to any significant adverse impact on the provisions.

Notably, per our latest Earnings Preview report, overall earnings for the finance sector in Q4 are expected to increase 20.1% year over year.

Let’s take a look at the four banks that are likely to announce their fourth-quarter and 2016 results tomorrow.

SVB Financial Group (SIVB - Free Report) is slated to report its results after the market closes. The company’s Zacks Consensus Estimate of $1.76 has increased 1.1% over the past 30 days. Also, the figure represents year-over-year growth of 4.5%.

However, the company is less likely to post an earnings beat this quarter because it doesn’t have the right combination – a positive Earnings ESP and a Zacks Rank #3 (Hold) or higher. It has an Earnings ESP of -0.57% and carries a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.

Nonetheless, the company has surpassed the Zacks Consensus Estimate in three of the trailing four quarters, with an average beat of 6.7%, as depicted in the chart below:

SVB Financial Group Price and EPS Surprise

The Zacks Consensus Estimate of Western Alliance Bancorporation (WAL - Free Report) , which will also report results after the market closes, remained stable over the past 30 days. Its estimate of 68 cents represents year-over-year growth of 18.9%.

However, despite it carrying a Zacks Rank #2, we cannot conclusively predict of an earnings beat in the to-be-reported quarter because it has an Earnings ESP of 0.00%.

Notably, the company witnessed an average positive surprise of 4.5% in the trailing four quarters as depicted in the chart below:

Western Alliance Bancorporation Price and EPS Surprise

Investors Bancorp, Inc. (ISBC - Free Report) currently carries a Zacks Rank #2 and is also slated to report results after the market closes. However, we cannot conclusively predict whether it will be able to beat the Zacks Consensus Estimate in the quarter because it has an Earnings ESP of 0.00%.

Notably, its Zacks Consensus Estimate of 16 cents remained stable over the past 30 days. Also, the figure represents year-over-year growth of 14.3%.

The company witnessed an average positive surprise of 3.7% in the trailing four quarters as depicted in the chart below:

Investors Bancorp, Inc. Price and EPS Surprise

United Bankshares, Inc. (UBSI - Free Report) currently carries a Zacks Rank #2 and has an Earnings ESP of 0.00%. Hence, it cannot be conclusively predicted whether the company will be able to beat the Zacks Consensus Estimate this quarter.

Its Zacks Consensus Estimate of 51 cents has remained stable over the past 30 days and represents year-over-year growth of 6.3%.

Notably, the company surpassed the Zacks Consensus Estimate in two of the trailing four quarters, as depicted in the chart below:

United Bankshares, Inc. Price and EPS Surprise
 

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