May 1 (Reuters) – New York Community Bancorp (NYCB.N), opens new tab forecast far better-than-expected profit for the next two years and said on Wednesday it was close to selling $5 billion of assets, sending its beaten-down stock up nearly 27% despite posting a first-quarter loss.
The upbeat forecast boosted confidence in the bank, whose shares have plummeted 70% since January when it cut its dividend and reported a surprise loss due to its loan exposure to commercial real estate.
“We have a clear path to profitability over the following two years,” newly appointed CEO Joseph Otting said, charting out the bank’s plans for the coming years.
Diversification of its loan portfolio is one of the targets for the medium-term, he said, adding that the bank could announce asset sale in the coming days.
NYCB said it will aim to cut loans to the commercial real estate sector, which has been roiled by high borrowing costs and lower occupancy, to around $30 billion from nearly $47 billion at the end of March.
Source: REUTER
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