Cathay General Bancorp Q2 net income rises on higher net interest margin
CATY•Drivers of the quarter
- Net interest income increased, driven by higher interest income from loans and securities and lower deposit interest expense.
- Loan and deposit growth was led by commercial and commercial real estate loans, while deposit growth came from non-interest-bearing and NOW deposits.
- Non-interest income rose, mainly due to a reduction in losses from investment securities repositioning and higher wealth management fees, partially offset by lower unrealized gains from equity securities.
Capital actions and outlook
The board approved an increase in the share repurchase authorization and a partial redemption of trust preferred securities.
The company did not provide specific financial guidance for the current or future periods.
The current average analyst rating on the shares is buy, with 2 strong buy or buy ratings, 3 hold ratings and no sell or strong sell ratings. The average consensus recommendation for the banks peer group is buy.
Wall Street's median 12-month price target for Cathay General Bancorp is $56.00, about its July 21 closing price of . The stock recently traded at the next 12-month earnings versus a P/E of three months ago.
