Cullen/Frost (CFR) Rides On Organic Growth Amid Cost Woes

Cullen/Frost Bankers, Inc.’s (CFR) strong loan book, solid net interest income (NII) and steady capital distribution activities are positives. Also, efforts to expand its presence in Texas bode well for CFR's long-term growth. However, the company is affected by mounting costs and an undiversified loan portfolio.CFR’s deposits witnessed a five-year compound annual growth rate (CAGR) of 9.1% (2018-2023), while loans, net of unearned discounts, recorded a CAGR of 6%. Moreover, branch openings in 2024 will lik ...