AX

Axos Financial is a branchless digital bank holding company that pairs the cost advantage of an online model with disciplined, high-margin lending. The MD&A figures show an exceptional bank: net interest income grew to $1,127.8M (from $961.4M), net interest margin expanded to 4.90% from 4.62% — well above industry norms — and the banking-segment efficiency ratio was a lean 40.80% (46.84% companywide), reflecting the structural cost edge of having no branches. Return on average common equity was 17.30% and return on average assets 1.82%, both top-tier for a bank.

The FY2025 net income of $432.9M (diluted EPS $7.43) was modestly below the prior year's $450M, but that dip was driven by lower non-interest income and a higher $55.7M credit-loss provision, not by the core spread business, which strengthened. The franchise is still growing — net loans held for investment rose $1.8B and total deposits grew to $20.8B — and book value per share climbed to $47.46 from $40.26. Capital is solid (CET1 12.52%, total capital 15.28%; equity/assets 10.82%) and credit remains contained (non-performing assets just 0.71% of assets, allowance/loans 1.36%). The 8.25x liabilities/equity ratio is normal leverage for a deposit-funded bank.