SMBC · SMBC Q4 FY2026 earnings call record财报电话会记录

“For full year fiscal 2026, we earned $6.43 compared to $5.18 in fiscal 2025.”

“The 24% increase year-over-year was predominantly driven by stronger net interest income, which stemmed from net interest margin expansion as funding costs declined, coupled with almost 5% average earning asset growth.”

“Net interest margin for the quarter was 3.67%, remaining unchanged from the third quarter of fiscal 2026, the linked quarter, but up from 3.47% reported for the year-ago period.”

“Our expected pipeline for the next 90 days remains healthy, increasing approximately $4 million from the prior quarter to $182 million.”

“Looking ahead to fiscal 2027, we continue to expect mid-single-digit loan growth reflecting strong customer demand.”

“During the fourth quarter of fiscal 2026, we've repurchased 4,000 shares of common stock at an average price of just over $69 per share, representing a total investment of approximately $291,000.”

“For the full fiscal year, we repurchased 317,000 shares, or almost 3% of the average common shares outstanding at the beginning of the fiscal year, at an average price of $58.59, utilizing about $19 million in capital.”

“Those shares were repurchased at an average price equal to 124% of our June 30, 2026, tangible book value per share.”

“Although we generated 22 basis points of net interest margin expansion during fiscal 2026, primarily driven by lower cost deposits from the declining rate environment, we could see some pressure on our core margin in the coming quarters as short-term rates have recently increased and deposit competition is elevated.”

“Within our footprint alone, there are approximately 75 banks with $500 million-$2 billion in assets, along with additional institutions in adjacent markets, providing a broad pipeline of potential opportunities.”

“It sounds like maybe a little bit of pressure from the kind of 371 adjusted margin, ex the reversals in this quarter, and then it's kind of maybe a stable outlook thereafter, just given some of the factors on both loans and deposits that you described.”

“The next quarter just alone likely see some pressure and then sort of on the outlook, just from the fixed rate loan repricings, we could see a small net benefit, maybe a basis point or so just on that front if you sort of do the math there.”