Is Improved Profitability Shifting the Investment Case for Cathay General Bancorp (CATY)?

• Cathay General Bancorp recently released its third quarter 2025 Form 10-Q, reporting increased net interest income and net income compared to the year prior.
• The company’s operational progress is closely tied to its focus on high-density Asian-populated areas and expansion in core urban markets.
• We'll examine how the improved profitability and operational momentum reflected in these results may influence Cathay General Bancorp's investment narrative.

Find companies with promising cash flow potential yet trading below their fair value.

Cathay General Bancorp Investment Narrative Recap

For someone considering Cathay General Bancorp, the investment story centers on steady growth among Asian-American communities and core urban markets, paired with disciplined capital management and a reliable dividend. The company’s recent uptick in profitability, as reported in the third quarter Form 10-Q, supports near-term confidence, but the dominant short-term catalyst, continued loan and revenue growth, remains tempered by ongoing risks in commercial real estate exposure. Based on these results, the impact on the business’s major risks, notably its CRE loan book, appears limited for now.

Among recent announcements, the consistent share buyback activity stands out. The board’s decision to complete the repurchase of 1,874,179 shares for US$85.66 million since June 2025 aligns with the narrative of disciplined capital allocation, reinforcing investor returns even as loan portfolio risks and market conditions evolve.

However, investors should also keep a close eye on the rising net charge-offs and their connection to asset quality...

Read the full narrative on Cathay General Bancorp (it's free!)

Cathay General Bancorp is projected to reach $964.1 million in revenue and $393.8 million in earnings by 2028. This outlook relies on an annual revenue growth rate of 11.0% and reflects a $99.1 million increase in earnings from the current level of $294.7 million.

Uncover how Cathay General Bancorp's forecasts yield a $52.40 fair value, a 11% upside to its current price.

Exploring Other Perspectives

Only one Community member at Simply Wall St estimated fair value for Cathay General Bancorp, setting it at US$52.40. While you consider this, remember the company’s CRE loan concentration remains a key factor that could influence future earnings in a shifting market, explore how others are interpreting the risks and opportunities here.

Explore another fair value estimate on Cathay General Bancorp - why the stock might be worth as much as 11% more than the current price!

Build Your Own Cathay General Bancorp Narrative

Disagree with existing narratives? Create your own in under 3 minutes - extraordinary investment returns rarely come from following the herd.

• A great starting point for your Cathay General Bancorp research is our analysis highlighting 5 key rewards that could impact your investment decision.
• Our free Cathay General Bancorp research report provides a comprehensive fundamental analysis summarized in a single visual - the Snowflake - making it easy to evaluate Cathay General Bancorp's overall financial health at a glance.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.

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