Hudson City Bancorp Inc.'s 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.
