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BOK Financial Predicts Solid Loan Growth, Increased Expenses Despite Q3 Earnings Falling Short of Expectations

Despite Q3 earnings below Wall Street expectations, BOK Financial forecasts an approximately 8% increase in total loans over the next 15 months, driven by robust economic conditions and business influx in its markets; bank also expects a "modest" rise in expenses as it plans strategic expansions and tech investments.

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Overview

  • BOK Financial, operator of Bank of Oklahoma, predicts about 8% increase in total loans over the next 15 months thanks to favorable economic conditions and business locomotion into its markets.
  • The company reported an 8% year-over-year increase in total loans and plans to capitalize on opportunities presented by other banks' retreat from loan growth.
  • BOK Financial plans to increase its expenses in strategic initiatives, including expansion of commercial and wealth management services into San Antonio, and the opening of a fixed income sales and trading office in Memphis, Tennessee.
  • Despite facing ongoing margin pressures and an increase in trading sales activity that cut into its margin last quarter, BOK's net interest margin is expected to start recovering after a few declines.
  • The bank reported a Q3 net interest income of $300.9 million, a drop from the previous quarter and last year, while fee income grew to $197.9 million from $192.6 million a year ago.