Cathay General (CATY) stock surged 5.18% in Tuesday's pre-market trading following the release of its better-than-expected first-quarter 2025 financial results. The regional bank's strong performance and improved outlook have boosted investor confidence despite ongoing economic uncertainties.
The company reported a net interest margin increase to 3.25% for Q1 2025, up from 3.07% in the previous quarter. This improvement, coupled with robust deposit growth of $131 million (2.7% annualized), has strengthened Cathay General's financial position. The bank also completed its $125 million stock repurchase program, demonstrating confidence in its long-term prospects.
While net income decreased compared to the previous quarter, Cathay General's management provided an optimistic outlook for 2025. The bank raised its net interest margin guidance to 3.25%-3.35% for the year, up from the previous 3.10%-3.20%. This positive forecast, along with the bank's strong liquidity position and improved capital ratios, has resonated well with investors, driving the stock's significant pre-market gain.
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