Finance

NYCB shares jump after new CEO gives two-year plan for ‘clear path to profitability’

Products You May Like

In this article

A New York Community Bank stands in Brooklyn, New York City, on Feb. 8, 2024.
Spencer Platt | Getty Images

New York Community Bank on Wednesday posted a quarterly loss of $335 million on a rising tide of soured commercial loans and higher expenses, but the lender’s stock surged on its new performance targets.

The first-quarter loss, equal to 45 cents per share, compared to net income of $2.0 billion, or $2.87 per share a year earlier. When adjusted for charges included merger-related items, the loss was $182 million, or 25 cents per share, deeper than the 15 cents per share loss estimate from LSEG.

“Since taking on the CEO role, my focus has been on transforming New York Community Bank into a high-performing, well-diversified regional bank,” CEO Joseph Otting said in the release. “While this year will be a transitional year for the company, we have a clear path to profitability over the following two years.”

The bank will have higher profitability and capital levels by the end of 2026, Otting said. That includes a return on average earning assets of 1% and a targeted common equity tier 1 capital level of 11% to 12%.

Otting took over at the beleaguered regional bank at the start of April after an investor group led by former Treasury Secretary Steven Mnuchin injected more than $1 billion into the lender.

Shares of the bank jumped 15% in premarket trading.

This story is developing. Please check back for updates.

Products You May Like

Articles You May Like

Home sales slipped unexpectedly in April, despite big gains in supply
DocuSign chief says company focused on growing as a public entity after reports of private equity interest
This up-and-coming cancer treatment could be a $25 billion market opportunity — it’s already a hotbed for M&A
TJX jumps 4% to a new high after earnings — here’s what investors love about the report
Kansas Lawmakers Should Prioritize Pro-Growth, Structurally Sound Tax Reforms in Special Session

Leave a Reply

Your email address will not be published. Required fields are marked *