Improved Loan Quality Boost’s Cathay’s ProfitWednesday, October 17, 2012
Shares of Cathay General Bancorp rose more than 11 percent on Wednesday after the bank holding company reported a nearly 20 percent increase in third-quarter profit.
The Los Angeles the holding company for Cathay Bank late Tuesday reported net income of $30.4 million compared with $26.1 million in the same period a year ago. Adjusted net income, minus dividends on preferred stock, was $26.2 million (33 cents a share), up from $22 million (28 cents) a year earlier. That beat the Wall Street consensus of 32 cents a share.
Net-interest income fell 0.7 percent to $80.4 million, with non-interest income down 7 percent to $15.6 million. The bank’s provision for loan losses was breakeven, compared to a provision of $9 million taken last year. Nonperforming assets fell 48 percent to less than $156 million.
Shares closed up $1.95, or more than 11 percent, to $18.87 on the Nasdaq.