CATY - Cathay General Bancorp: In Distress Until Rates Are Cut
2024-04-24 08:50:00 ET
Summary
- Concerns about declining net interest income/margin and the impact of interest rate cuts on Cathay General's cost of deposits.
- The loan portfolio has seen slight growth, particularly in the commercial real estate loans segment, raising concerns about exposure to this market.
- Deposits have performed poorly, with a decline in overall deposits and a deterioration in composition, leading to a decline in net interest margin.
In my previous article on Cathay General ( CATY ), I highlighted my concern about the continuously declining net interest income/margin. It has been several months since then, and I expected the bottom to have been touched in Q3 2023, but that has not happened....
Cathay General Bancorp: In Distress Until Rates Are Cut