Published on 28 Dec 2023 on Zacks via Yahoo Finance

BOK Financial (BOKF) Aided by Loan Growth Despite Higher Costs

BOK Financial Corporation BOKF is poised to benefit from loan growth and high rates in the near term. Its capital distribution initiatives seem sustainable. Improving asset quality is another tailwind.However, the persistently escalating cost base is affecting the bank’s bottom-line growth. Lower transaction volumes affecting brokerage and trading revenues, and limited liquidity are other concerns.

BOK Financial has been witnessing continuous loan growth on a diverse business model and increased loans to individuals. The company has been focused on diversifying its loan portfolio to energy, healthcare and service lending. Given the strong loan pipeline, BOKF will be well-poised for organic growth. Management expects loan growth in the high-single digits for 2023, while deposits are expected to be stable or grow modestly.

Given the high interest rates and decent loan growth, BOK Financial’s net interest income and net interest margin are expected to witness moderate growth due to increased funding costs.