DOW JONES NEWSWIRES
Hudson City Bancorp Inc.'s (HCBK) second-quarter profit slid 33%
as the company saw its top line hit by continued low interest
rates.
Like many others in the industry, the New Jersey bank holding
company has recently seen its net interest income weighed down
heavily by persistently low interest rates. Wednesday, Hudson City
said net interest income in the second quarter dropped 14% to
$272.9 million.
"With the economy recovering at a very slow pace, our balance
sheet and future earnings growth continue to face headwinds," Chief
Executive Ronald E. Hermance said. "The continued low interest rate
environment does not allow for profitable growth and, while our
credit metrics are stable, the housing markets and employment
outlook are weak."
Hudson City reported a profit of $96 million, or 19 cents a
share, compared with a year-earlier profit of $142.6 million, or 29
cents a share. Revenue dropped 21% to $275.6 million.
Analysts polled by Thomson Reuters recently estimated earnings
of 18 cents a share on $264 million in revenue.
Loan-loss provisions were $30 million, compared with $50 million
a year earlier and $40 million in the prior quarter. Net
charge-offs, or loans banks don't expect to collect, were 0.30%
from 0.29% a year ago.
Shares closed Tuesday at $8.20 and were inactive in recent
premarket trade. Through the latest close, the stock is down 36%
since the start of the year.
-By Mia Lamar, Dow Jones Newswires; 212-416-3207;
mia.lamar@dowjones.com