Axos Financial has impressively surpassed analyst forecasts with its fourth-quarter results for fiscal year 2025. The California-based regional bank reported earnings of $1.94 per share, exceeding estimates by 16 cents or 9 percent. Net income reached $110.7 million, a notable improvement from $105.2 million in the previous quarter. The bank’s net interest margin climbed to an industry-leading 4.84 percent, rising 6 basis points quarter-over-quarter. This strong performance was driven by robust organic growth, with net lending increasing by $856 million during the quarter, representing an annualized growth rate of 16 percent. Looking ahead, the bank maintains a healthy loan pipeline of $2 billion and anticipates continued growth in the mid to high single digits for the coming fiscal year, bolstered by its newly formed vehicle financing team.
Technology and Tax Advantages Boost Future Outlook
Artificial intelligence initiatives are poised to significantly enhance Axos’s operational efficiency. The bank has already seen dramatic improvements in workflow processes, with user interface development now requiring just 10 percent of the original time. Additionally, Axos stands to benefit from recent changes to California’s tax legislation, which will reduce its effective tax rate to 26-27 percent beginning next quarter. Despite these positive developments, the stock reacted modestly after the earnings announcement, trading slightly down at $85.29, though remaining near its 52-week high of $88.46.
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