However, Fitch believes the company's varying segments produce a good mix of earnings from service and asset-based fee income, mortality experience and
spread income. This diversity has and will continue to serve to dampen earnings volatility at the consolidated level.
DA Davidson analyst Jeff Rulis initiated Equity Bancshares with a Buy rating and a price target of $46, saying the company "operates a highly acquisitive bank posting unmatched
spread income growth and better-than-peer core efficiency with a pristine loan loss history." The analyst notes that Equity Bancshares enjoys a "competitive advantage in securing, integrating, and seamlessly closing on M&A opportunities" which the analyst believes appear to be "boundless".
When trying to
spread income within the family, however, the person holding the winning ticket must be able to show there was an agreement or arrangement in place to share the prize before the winning number was picked; otherwise, it is only an attempt by the winner to shift some of the tax burden to others.
While
spread income has declined during 1H16, and pressures are likely to persist in the face of rising market rates, the bank's profitability has remained satisfactory, aided also by sizeable non-recurring gains on real estate asset sales in 2015 and HY 2016.
"We are not saying consumption-driven growth is bad but the widely
spread income distribution should encourage local production.
Steinbrueck, who argues that Merkel has
spread income inequality, wants higher taxes on the rich and a minimum wage of 8.50 euros an hour.
Although true for all banks, Fitch believes community banks will be disproportionately affected owing to the lack of revenue diversity and their reliance on
spread income.
The Philippines aims to chalk up an average of 7-8 percent annual growth from 2010 to 2016 in order to curb poverty and
spread income growth opportunities to the countryside as part of its thrust for "inclusive growth."
"We believe some of the fee growth actually represents cannibalization of
spread income," UBS analyst Sarah Wu wrote in a note before the earnings.