BACPRN Latest Report

Performance Review

The operating revenue of BACPRN, the US Bank Preferred Stock, reached USD25.347 billion as of December 31, 2024, up 15.42% from USD21.959 billion in 2023. This significant growth reflects the company's competitiveness in the market and the sustainability of its business, mainly driven by increased market demand, growth in net interest income, and optimized product mix.

Key Data in the Financial Report

1. Operating revenue increased from USD21.959 billion in 2023 to USD25.347 billion in 2024, up 15.42%.

2. Net interest income increased from USD13.946 billion to USD14.359 billion, indicating the positive impact of increased interest income on operating revenue.

3. Commission expenses increased from USD3.909 billion to USD4.713 billion, reflecting the company's investment in market promotion and customer service.

4. Investment banking expenses grew by 18% year-on-year, particularly leveraged finance and investment-grade fees, driving revenue growth.

5. Sales and trading revenue grew by 12% year-on-year, with increased stock and fixed-income trading revenue supporting performance in a volatile market.

Peer Comparison

1. Industry-wide analysis: Banks faced interest rate hikes and economic recovery in 2024, with a general increase in operating revenue, reflecting the industry's ability to effectively capitalize on market opportunities during the economic recovery.

2. Peer evaluation analysis: Compared to its peers, BACPRN's operating revenue growth stood out, with a 15.42% growth rate that ranked high in the industry, demonstrating its success in business expansion and customer acquisition.

Summary

BACPRN's revenue growth in 2024 was mainly driven by increased demand for banking services, higher interest income, and reasonable increases in commission expenses. Overall, the company succeeded in achieving significant revenue growth in a competitive market through optimized product mix and improved service quality.

Opportunities

1. In the context of rising interest rates, banks can further boost net interest income through the growth of the net interest margin.

2. The continuous growth of investment banking, particularly the increased demand for debt capital markets and leveraged finance, may bring more revenue sources to the company.

3. The growth in wealth and investment management services reflects customer preferences for high-yield products, which can bring higher revenue to the company.

Risks

1. The increase in commission expenses may have a short-term impact on net profit, especially in the context of declining revenue from fixed-income trading.

2. While higher interest rates have boosted net interest income, they have also increased deposit costs, which may put pressure on future profit margins.

3. The rise in regulatory fees, such as FDIC's special assessment fees, may further increase operating costs and affect profitability.