Loan growth at regional banks points to improving economy
Jan 25 (Reuters) – New York Community Bancorp
and BankUnited Inc followed larger regional banks in
showing signs of growing loan demand in their quarterly results,
pointing to an improving U.S. economy.
New York Community Bancorp managed to grow its loan book,
but across the Hudson river, Paramus, New Jersey-based peer
Hudson City Bancorp, which mostly relies on mortgages,
struggled to grow lending.
While consumer and industrial lending have been bright spots
for U.S. regional banks, demand for new mortgages has
remained relatively lackluster.
Last week, larger U.S. regional banks like SunTrust Banks
, PNC Financial and US Bancorp showed
loan growth and improving credit quality in their quarterly
earnings reports.
Credit quality improved at Hudson City and Puerto Rico’s
largest lender Popular Inc, which slashed its quarterly
provision for loan losses on non-covered loans by 65 percent.
However, New York Community set aside more money to cover
defaults, wiping the gloss off a stronger loan book in the
quarter.
On Tuesday, Georgia-based Synovus, Midwestern bank
KeyCorp and Regions Financial posted
better-than-expected results, indicating that regional banks are
moving closer to overcoming the credit problems that have dogged
them since the housing crisis began in 2007.
MIXED RESULTS
BankUnited posted a higher quarterly profit that beat
analyst estimates helped by improved loan demand and said it
expects growth in its loan portfolio to continue.
New loans at the Florida-based bank led by John Kanas more
than tripled to $1.7 billion as of Dec 31, from $548.9 million a
year ago.
Meanwhile, Popular reported net income of $3 million, or
breakeven earnings, compared with a net loss of $227.1 million,
or loss of 22 cents a share, last year.
New York Community reported net income of $117.7 million, or
27 cents a share, against $149.8 million or 34 cents a share for
the year-ago period.
Hudson City Bancorp reported a net loss of $360.5 million,
or a loss of 73 cents a share, compared with net income of
$121.2 million, or 25 cents a share, a year ago.
Hudson City was pushed into the red by an after-tax charge
of $416.8 million from paying off debt.
BankUnited shares were marginally down at $23.18, while
those of New York Bancorp were down 2 percent at $12.86 on the
New York Stock Exchange.
Popular Inc shares were up 4 percent at $1.68 and those of
Hudson City Bancorp were up 2 percent at $7.24 on the Nasdaq.
Article source: http://www.reuters.com/article/2012/01/25/regionalbanks-idUSL4E8CP89H20120125
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