NYCB forecasts estimate-topping profit for next 2 years, shares jump

New York Community Bancorp (NYCB) has provided an optimistic profit forecast for the next two years, predicting earnings per share significantly above market estimates for 2025 and 2026. This news boosted NYCB's shares by nearly 27%, despite a recent 70% drop since January due to a dividend cut and unexpected losses linked to commercial real estate loans.

The bank announced plans to sell $5 billion in assets and reduce its exposure to the troubled commercial real estate sector. It aims to diversify its loan portfolio and focus more on commercial and industrial lending. These strategic shifts are part of a broader effort to stabilize the bank, which has also maintained a strong liquidity position and a low percentage of uninsured deposits compared to its peers.