Published on 9 May 2024 on Zacks via Yahoo Finance
Here's Why You Should Hold on to New York Community (NYCB) Now
New York Community Bancorp, Inc. NYCB is aiming to diversify its loan portfolio. Loan portfolio repricing will drive net interest income (NII) growth, while cross-selling opportunities will aid fee income. Yet, commercial real estate (CRE) loan exposure is concerning, and unexpected losses on its New York office and multi-family property could create headwinds.
The bank has a strong balance sheet. Deposits saw a four-year (2019-2023) compound annual growth rate (CAGR) of 26%, while net loans witnessed a CAGR of 18.2% during the same period. Both metrics declined in first-quarter 2024. Nonetheless, the company’s deposits have been resilient post its capital raise in March.