StockStory Flags Growth and Profitability Concerns at Three Banks

StockStory highlighted concerns about Simmons First National, Cathay General Bancorp and Bank of Hawaii, citing measures of income growth and profitability. The publisher noted that the banking industry gained 10.3% over six months, trailing the S&P 500’s 21.4% rise.

For Simmons First, StockStory pointed to annual net interest income growth of 5.4% over five years. It also cited a projected 17.8 percentage-point increase in the efficiency ratio over the next year, and annual earnings-per-share declines of 4.5% even as revenue grew.

Cathay General’s net interest income grew 6.6% annually over five years, below banking peers, according to the analysis. StockStory also said earnings per share rose 7.5% annually over the past two years, while estimated tangible book value per share growth for the next 12 months was 9.5%.

For Bank of Hawaii, the publisher cited 3.8% annual net interest income growth over five years and a 2.5% net interest margin. It also said earnings per share were flat over five years despite revenue growth.