Bank of Hawaii Corp. powered past analysts’ earnings estimates in the third quarter on the strength of a significantly improved credit portfolio, even as net income slipped 1.7 percent from the year-earlier period.
The state’s second-largest bank posted earnings today of $43.3 million, or 92 cents a share, to top analysts’ consensus by 9 cents. Bankoh’s shares jumped $1.52, or 3.8 percent, to close at $41.88. The results were announced before the market opened.
Bankoh benefited from an 83.7 percent drop in its provision for credit losses and a 72 percent decline in net charge-offs.
“Credit was a big driver of bottom-line profitability in the quarter,” said Peter Ho, Bankoh’s chairman, president and CEO. “Hawaii has been characterized to have a slowly improving economy and we see some stability for sure. We’re increasingly seeing activity in the commercial market, so we feel pretty good.”
In the third quarter of 2010, Bankoh had earnings of $44.1 million, or 91 cents a share.
Revenue fell 8.7 percent last quarter to $147.6 million from $161.8 million in the year-ago period.