Valley National Bancorp (VLY) has reported 972.13 percent jump in profit for the quarter ended Dec. 31, 2016. The company has earned $50.09 million, or $0.19 a share in the quarter, compared with $4.67 million, or $0.01 a share for the same period last year. Revenue during the quarter grew 14.64 percent to $193.26 million from $168.58 million in the previous year period. Net interest income for the quarter rose 11.04 percent over the prior year period to $164.40 million. Non-interest income for the quarter rose 35.86 percent over the last year period to $32.66 million.
Valley National Bancorp has made provision of $3.80 million for loan losses during the quarter, up 8.35 percent from $3.51 million in the same period last year.
Net interest margin contracted 2 basis points to 3.23 percent in the quarter from 3.25 percent in the last year period. Efficiency ratio for the quarter improved to 63.35 percent from 101.63 percent in the previous year period. A decline in efficiency ratio indicates a rise in profitability.
Gerald H. Lipkin, Chairman and Chief executive officer commented that, "We are pleased with our earnings performance in the fourth quarter of 2016 which reflected a 17.7 percent increase in net income available to common shareholders as compared to the third quarter of 2016. Our net income for the fourth quarter continued to benefit from the strong loan growth in 2016 and our continued efforts to reduce our overall cost of funds. The 2016 loan growth totaled 7.4 percent despite a large number of residential mortgage loans and originations sold, in part, to manage the overall interest rate risk of our balance sheet."
Assets outpace liabilities growth
Total assets stood at $22,864.44 million as on Dec. 31, 2016, up 5.79 percent compared with $21,612.62 million on Dec. 31, 2015. On the other hand, total liabilities stood at $20,487.28 million as on Dec. 31, 2016, up 5.57 percent from $19,405.52 million on Dec. 31, 2015.
Loans outpace deposit growthNet loans stood at $17,121.68 million as on Dec. 31, 2016, up 7.43 percent compared with $15,936.93 million on Dec. 31, 2015. Deposits stood at $17,730.71 million as on Dec. 31, 2016, up 9.09 percent compared with $16,253.55 million on Dec. 31, 2015. Noninterest-bearing deposit liabilities were $5,252.82 million or 29.63 percent of total deposits on Dec. 31, 2016, compared with $4,914.28 million or 30.24 percent of total deposits on Dec. 31, 2015.
Investments stood at $3,222.94 million as on Dec. 31, 2016, up 3.86 percent or $119.70 million from year-ago. Shareholders equity stood at $2,377.16 million as on Dec. 31, 2016, up 7.71 percent or $170.07 million from year-ago.
Return on average assets moved up 79 basis points to 0.88 percent in the quarter from 0.09 percent in the last year period. At the same time, return on average equity increased 780 basis points to 8.70 percent in the quarter from 0.90 percent in the last year period.
Nonperforming assets moved down 36.81 percent or $28.80 million to $49.44 million on Dec. 31, 2016 from $78.24 million on Dec. 31, 2015.
Tier-1 leverage ratio stood at 7.74 percent for the quarter, down from 7.90 percent for the previous year quarter. Book value per share was $8.59 for the quarter, up 4 percent or $0.33 compared to $8.26 for the same period last year.
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