The following is a summary of the NewtekOne, Inc. (NEWT) Q3 2024 Earnings Call Transcript:

Financial Performance:

• NewtekOne reported earnings per share of $0.45 for Q3 2024, with an adjusted EPS of $0.47 after accounting for a deferred tax liability.

• Return on average assets was noted at 2.8%, nearly three times the peer median.

• Deposits grew by 12% and loans by 17% at the bank, with a net interest margin of 5.29%.

• The loan loss reserve coverage was substantial at 500 basis points, reflecting strong risk management.

Business Progress:

• NewtekOne highlighted significant deposit and loan growth at the bank.

• The company is focusing on increasing its commercial low-cost business deposits and integrating more services into the Newtek Advantage ecosystem, enhancing value for customers.

• Continued enhancement in Payment segments, predicting an increase in pre-tax income for the coming years.

• Plans for the divestiture of the technology unit into a standalone public company, anticipated to focus on outsourced IT and cyber security solutions.

Opportunities:

• NewtekOne is actively working to capitalize on its differentiated business model and unconventional approach to financial solutions, aiming to draw in more customers with its zero-fee banking and higher interest rates on business savings.

• The company's expansion in payment processing and insurance services directly through its banking platform is set to enhance customer value and stickiness.

Risks:

• The forecasted increase in loan loss provisions points to potential higher risk exposures in their lending portfolio.

• Economic volatility and competitive pressures in the banking sector could impact the company's growth trajectory.

Tips: This article is generated by AI. The accuracy of the content can not be fully guaranteed. For more comprehensive details, please refer to the IR website. The article is only for investors' reference without any guidance or recommendation suggestions.