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NYCB NYSE· New York Community Bancorp Inc
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NYCB NYSE· New York Community Bancorp Inc
Earnings report Q3 2023

NYCB Reports Strong Revenue Growth in Latest Quarter

Segments of revenue

NYCB reported total interest income of $1.51 billion for the quarter ended September 30, 2023, compared to $509 million in the same quarter last year. This increase was primarily driven by higher interest income from loans and leases, which amounted to $1.25 billion, compared to $442 million in the previous year. Additionally, interest income from securities and money market investments increased to $261 million from $67 million in the same period last year.

Strengths

NYCB demonstrated strong revenue growth in the latest quarter, with total interest income increasing by 196% compared to the previous year. This growth was primarily attributed to higher interest income from loans and leases, which can be attributed to an increase in loan demand or higher interest rates. The management commented that the company's diversified loan portfolio and focus on relationship-based lending contributed to the strong performance.

Challenges

Despite the strong revenue growth, NYCB faced challenges in managing its interest expense. The company reported total interest expense of $630 million for the quarter, compared to $183 million in the same quarter last year. This increase was primarily driven by higher interest expense on interest-bearing checking and money market accounts, as well as borrowed funds. The management acknowledged the competitive interest rate environment as a challenge in managing interest expenses.

Noteworthy

NYCB reported a provision for credit losses of $62 million for the quarter, compared to $2 million in the same quarter last year. This increase in provision reflects the company's cautious approach to credit risk management amid the ongoing economic uncertainties. Additionally, the company reported non-interest income of $58 million, primarily driven by fee income.

Summary

NYCB delivered strong revenue growth in the latest quarter, primarily driven by higher interest income from loans and leases. The company's diversified loan portfolio and focus on relationship-based lending were key strengths contributing to the positive performance. However, the company faced challenges in managing its interest expenses, primarily due to the competitive interest rate environment. NYCB also maintained a cautious approach to credit risk management, as reflected in the provision for credit losses. Overall, NYCB's strong revenue growth indicates a positive outlook for the company's financial performance.

Source documents

Form 10-Q  filed on Nov 09, 2023
85 pages scanned

Reference data

Company financials Q3 revenue 326M
Analyst estimates Q3 EPS missed by -193.61%
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