On February 8, 2024, a New York community bank stood in Brooklyn, New York City.
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New York Community Bank Wednesday release The bank posted a quarterly loss of $335 million due to a rise in bad business loans and higher expenses, but its shares soared on new performance targets.
The first-quarter loss was equivalent to 45 cents per share, compared with net profit of $2 billion, or $2.87 per share, in the same period last year. When adjusted for charges including merger-related items, the loss was $182 million, or 25 cents per share.
It’s unclear whether that’s comparable to LSEG’s estimate of a loss of 15 cents per share.
“Since taking on the role of CEO, my focus has been to transform New York Community Bank into a high-performing, diversified regional bank,” CEO Joseph Otting Said in release. “While this will be a transition year for the company, we have a clear path to profitability over the next two years.”
Otting said the bank will have higher profitability and capital levels by the end of 2026. These include a return on average earnings assets of 1% and a target common equity Tier 1 capital level of 11% to 12%.
Otting took over the troubled regional bank in early April after an investment group led by former Treasury Secretary Steven Mnuchin injected more than $1 billion into the bank.
The bank’s shares rose 15% in premarket trading.
This story is developing. Please check back for updates.
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