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Jun 30, 2022
BOK Financial Q2 2022 Earnings Report
Reported strong earnings performance driven by diversity and breadth, with loan growth exceeding expectations and net interest margin improvement.
Key Takeaways
BOK Financial Corporation reported a strong second quarter with net income of $132.8 million, or $1.96 per diluted share. The company saw significant increases in net interest revenue and fees and commissions revenue, driven by loan growth and improved trading performance, while operating expenses decreased.
Net income was $132.8 million or $1.96 per diluted share.
Net interest revenue totaled $274.0 million, an increase of $5.6 million.
Fees and commissions revenue increased $75.7 million to $173.4 million.
Period-end loans increased $617 million to $21.3 billion.
BOK Financial
BOK Financial
BOK Financial Revenue by Segment
Revenue by Segment
Commercial Banking Revenue
CapyFin.comConsumer Banking Revenue
CapyFin.comWealth Management Revenue
CapyFin.com Forward Guidance
The company expects to continue to benefit from rising interest rates and loan growth, but is also mindful of potential economic slowdown.
Positive Outlook
- Loans are on a pace to exceed a 10 percent growth rate for the year, excluding the PPP program.
- New loan commitments for the quarter grew at an even faster pace and broadly across our business region.
- Net interest margin improved from the mix of earning assets and a balance sheet structure that is currently positioned to benefit from rising rates.
- Trading businesses rebounded from the volatile first quarter.
- Fiduciary fees increased.
Challenges Ahead
- Market volatility and the resulting decrease in the value of assets under management and administration.
- Mortgage banking revenue decreased $5.3 million.
- Rapidly rising mortgage interest rates and continued inventory shortages have adversely affected both loan production volume and margins.
- Competitive pricing pressure and a significant decrease in refinancing opportunities have reduced margins.
- Other gains and losses, net decreased $6.0 million, primarily related to a write-down of a repossessed equity interest in a midstream entity.