Axos Financial to Grow Loans in Fiscal 2027

The bank projects low-to-mid-teens organic loan growth as it manages liquidity following recent deposit shifts.

Updated on Oct. 30, 2026 in Corporate Finance

Isometric editorial illustration showing a polished steel vault door embedded in a stone wall, representing banking growth. — Axos Financial anticipates low-to-mid-teens organic loan growth in fiscal 2027 while aiming to deploy $700 million in excess liquidity. AI Illustration. Upload story photo >

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Axos Financial expects organic lending to expand at a low-to-mid-teens rate in fiscal 2027. The company also plans to deploy $700 million in excess liquidity by the end of calendar 2026.

Why it matters

The positive outlook reflects strong market demand despite isolated loan losses tied to previously reserved syndicated cash-flow loans. Maintaining flat net interest margins remains a key focus for the institution in the coming quarters.

Net charge-offs reached 109 basis points, rising significantly from 25 basis points in the prior quarter. Six key financial measures, including deposits and earnings per share, saw double-digit year-over-year growth.

The players

Axos Financial

This bank provides consumer and business banking services through its digital-first platform.

Capital One

This financial institution provides a broad range of financial products and recently served as a source for deposit assets.

The details

Axos Financial is currently working to integrate $700 million in excess deposits sourced from Capital One into its broader cash assets. The firm maintains that recent loan losses are confined to specific syndicated cash-flow loans that were already covered by existing reserves.

Excess liquidity will be deployed by the end of calendar 2026.
Organic loan growth is projected for fiscal 2027.

Market Dynamics

Axos Financial's efforts to keep net interest margins flat follow patterns seen across the sector as banks adjust to broader Federal Reserve interest rate policy changes. The company's loan growth projections reflect a strategic move to optimize balance sheets amid evolving industry capital requirements.

Shareholders should monitor how the company executes its plan to deploy excess liquidity by the end of 2026. Consistent double-digit growth across key metrics like earnings per share suggests continued focus on operational expansion for retail investors.

The takeaway

Axos Financial is prioritizing the conversion of its current liquidity surplus into active loan growth over the next two years. Investors should keep a close watch on charge-off levels to ensure current loan losses remain isolated rather than systemic.