- Summary
- Valley National Bancorp is the rare regional bank which has posted extraordinarily robust results in Q3 2020, its highest ever quarterly earnings, amid COVID-19 and near-zero interest rates in the US.
The bank has been ticking the right boxes for the last few years; its NII doubled from $541 million in FY15 to over $1100 million in FY20.
2020 has presented a good opportunity for buying regional bank stocks; Valley National is still cheap, and has solid fundamentals, which seem only partly built into its stock price.
Valley National Bancorp is the rare regional bank which has posted extraordinarily robust results in Q3 2020, its highest-ever quarterly earnings, in the middle of a health pandemic and near-zero interest rates in the US. The NJ-based bank has demonstrated an ability to maintain earnings despite the challenging macroeconomic scenario; its Q3 FY20 net interest income increased ~27% YOY, which speaks for VLY’s quality of income and its management of funding costs. This ability to maintain financial strength through crises is reason enough to own the stock. And VLY’s still-attractive valuation, despite the upswing in the stock since the US election results, makes it a longer-term bet.
