Western Alliance Bancorporation (WAL) reported fourth-quarter net income of $293.2 million, or $2.59 per share, exceeding the consensus analyst estimate of $2.41. This represents a 13.6% increase from the $2.28 per share recorded in the third quarter of 2025 and a substantial rise from the $1.95 per share in the prior-year period. Full-year 2025 net income reached a record $990.6 million, a 25.8% increase year-over-year.
Net revenue for the fourth quarter totaled $980.9 million, up 4.6% sequentially. The growth was driven by a 2.1% increase in net interest income to $766.2 million and a surge in non-interest income to $214.7 million. The bank’s net interest margin (NIM) stood at 3.51%, a slight compression from 3.53% in the third quarter but an improvement over the 3.48% seen a year ago.
While the broader equity market has seen volatility in SaaS and software-heavy sectors due to high-interest-rate “seat-count” rationalization, Western Alliance Bancorporation (WAL) is navigating traditional banking macro pressures. Asset quality remained stable, with net charge-offs at 20 basis points of average loans. Today, analysts at Oppenheimer and KeyCorp maintained “Outperform” and “Overweight” ratings respectively, though no immediate price target changes were issued following the morning’s report.
