Torsten Asmus
New York Community Bancorp (NYSE: NYCB) made headlines in the financial sector this week, posting a massive provision for credit losses on two troubled loans and its preparation to meet tighter capital rules.
During the week, financial stocks remained mostly afloat. THE Selected Financial Sector SPDR ETF (NYSEARCA:XLF) bordered up 0.9%while the S&P 500 index crept up up 1.4%.
Four of the five biggest losers were regional banks, while the three biggest gainers were South Korea-based banks, helped by an improved outlook for the country’s exports.
New York Community Bancorp (NYCB) stock. sunk by 42% during the week ending Friday, February 2, among financial stocks with market capitalizations greater than $2 billion. After a surprise fourth-quarter loss due to loan loss provisions, at least four companies downgraded the stock.
Assedimercato (NASDAQ:MKTX) action fallen 19% despite better fourth quarter earnings.
OZK Bank (NASDAQ:OZK) dropped by 12%while NYCB concerns spilled over to the Little Rock, Arkansas-based bank due to its heavy exposure to commercial real estate in its loan portfolio.
Cadence Bank based in Tupelo, Mississippi (NYSE:CADE) saw his actions slide 11%.
Valley National Bancorp (NASDAQ:VLY) also shares withered 11%as more than half of its loans are for commercial real estate.
The week’s biggest gainers were South Korea-based banks.
KB Financial Group (NYSE:KB) action jumped by 23%Shinhan Financial Group (NYSE:SHG) rose by 13% and Woori Financial Group (NYSE:WF) increased by 11%. In mid-January, Bank of America upgraded Shinhan and Woori to Buy as export growth attracted more investor interest in Korea. Last week, the South Korean won (KRW:USD) weakened by almost 0.1% against the US dollar.
Banco Bilbao Vizcaya Argentaria (NYSE: BBVA) rose 9.9% after reporting Q4 2023 adjusted EPS of EUR 0.34, up from EUR 0.25 in the year-ago quarter. Net interest margin of 5.25 billion euros fell from 5.33 billion euros a year ago.
Piper Sandler (NYSE:PIPR) advanced 8.2% as it reported better-than-expected fourth-quarter earnings and revenue.