Axos Financial (AX) Q4 2024 earnings summary

Executive summary

• Net income for Q4 FY2024 was $104.9M, up 20.1% year-over-year, and FY2024 net income reached $450.0M, a 46.5% increase; diluted EPS rose 23.3% to $1.80 for Q4 and 51.1% to $7.66 for FY2024.

• Book value per share increased 23.8% to $40.26; tangible book value per share rose to $37.26.

• Achieved double-digit year-over-year growth in EPS, book value per share, and loan balances for the ninth consecutive quarter.

• Total assets reached $22.9B, up 12.3% year-over-year.

• Return on average common shareholder equity was 21.6% for FY2024.

Financial highlights

• Net interest income for Q4 FY2024 was $260.1M, up 27.6% year-over-year; non-interest income was $30.9M, down 5.6% year-over-year.

• Net interest margin for Q4 FY2024 was 4.65%, up from 4.19% a year ago.

• Total deposits grew 13.1% year-over-year to $19.4B.

• Efficiency ratio improved to 43.6% for FY2024 from 49.5% in FY2023.

• Return on average assets rose to 2.08% for FY2024 from 1.64% in FY2023.

Outlook and guidance

• Management expects continued profitable growth, strong credit quality, and further business diversification.

• Expects organic loan growth in the high single digits to low teens year-over-year for the next few quarters.

• 62% of fixed and hybrid rate loan balances will reprice within 3 years, and 91% within 5 years.

• NIM guidance remains at 4.25%-4.35% for core margin, with some potential headwinds from yield compression.

• Anticipates building additional excess capital, prioritizing organic loan growth, investments, and opportunistic buybacks or acquisitions.