Sorrento Research 195 Followers

Summary

Cathay General Bancorp is rated BUY, with shares up 25% YTD and trading at an attractive valuation relative to sector-leading ROE.

CATY's CET1 ratio of 13.5% and low non-performing assets underscore strong credit quality and capital strength.

42% of CATY's loan book will reprice over the next 12 months, supporting NIM and earnings in a higher-rate environment.

Dividend growth, active share repurchases, and above-sector profitability provide downside support and justify a premium valuation.

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Summary

Cathay General Bancorp (CATY) is rated as a BUY.…