Bofi Holding 3Q Profit Jumps 70.7%

BofI Holding, Inc.

reported that its net income jumped 70.4% to $35.9 million in the third quarter from $21.1 million in the year-ago quarter. Similarly, earnings attributable to its stockholders also climbed 70.7% to $35.8 million or $0.56 per share from $21.0 million or $0.34 per share in the previous year quarter. Its adjusted earnings grew 66.9% to $36.0 million from $21.6 million in the comparable period. Street analysts predicted the company to earn $0.56 a share. Bofi Holding said that its net interest income increased 37.3% to $69.56 million from $50.67 million while non-interest income jumped 178.7% to $23.32 million from $8.37 million in the corresponding quarter of the last year. Street estimated $90.80 million revenue. The company's President and CEO, Greg Garrabrants, said that "We achieved record quarterly earnings and earnings per share as a result of robust fee income growth, balanced loan growth and solid net interest margins,. Strong growth in fee income from our H&R Block partnership was a catalyst for our best in class return on assets and return on equity. We continue to generate healthy growth in our single family, C&I and warehouse lending businesses while maintaining a strong core net interest margin and sound credit quality." He added further that "We closed the acquisition of certain assets and operations of Pacific Western Equipment Finance at the end of the third quarter. The addition of an experienced equipment leasing team with a nationwide footprint further diversifies our commercial lending capabilities. With a strong balance sheet, excellent credit quality and capital flexibility, we will continue to invest in new growth initiatives and ongoing infrastructure enhancements that will further improve our customer service and user experience." Following the news, the stock traded 4.48% higher in the pre-market trading.