NewStar Financial, Inc (NEWS) has reported 145.43 percent jump in profit for the quarter ended Dec. 31, 2016. The company has earned $10.33 million, or $0.23 a share in the quarter, compared with $4.21 million, or $0.09 a share for the same period last year. Revenue during the quarter surged 57.57 percent to $37.84 million from $24.01 million in the previous year period. Net interest income for the quarter dropped 15.11 percent over the prior year period to $20.69 million. Non-interest income for the quarter rose 497.67 percent over the last year period to $19.78 million.
Newstar Financial has made provision of $2.64 million for loan losses during the quarter, down 28.14 percent from $3.67 million in the same period last year.
Net interest margin contracted 49 basis points to 1.96 percent in the quarter from 2.45 percent in the last year period. Efficiency ratio for the quarter improved to 48.09 percent from 60.96 percent in the previous year period. A decline in efficiency ratio indicates a rise in profitability.
Tim Conway, NewStar’s Chairman and Chief Executive Officer, commented on the Company’s performance: “We made significant progress on our key priorities in 2016 as we took important steps to streamline operations, reduce costs and reposition NewStar as a credit-oriented asset manager, while also returning a meaningful amount of capital to our shareholders. We sold two non-core businesses at substantial premiums, increasing our liquidity and financial flexibility. We reduced baseline expenses by 33% on a run-rate basis as of the fourth quarter, improving profitability. And, we continued to expand our asset management activities with the launch of two new credit funds and a separate account with target investment portfolios of approximately $1 billion. More than 53% of our credit investments are now held in managed funds and we doubled our management fee income in 2016.”
Assets, liabilities fall
Total assets stood at $4,040.59 million as on Dec. 31, 2016, down 1.26 percent compared with $4,092.12 million on Dec. 31, 2015. On the other hand, total liabilities stood at $3,393.17 million as on Dec. 31, 2016, down 1.15 percent from $3,432.64 million on Dec. 31, 2015. Net loans stood at $3,239.19 million as on Dec. 31, 2016, up 3.35 percent compared with $3,134.07 million on Dec. 31, 2015.
Investments stood at $119.31 million as on Dec. 31, 2016, up 26.68 percent or $25.13 million from year-ago. Shareholders equity stood at $647.42 million as on Dec. 31, 2016, down 1.83 percent or $12.06 million from year-ago.
Return on average assets moved up 56 basis points to 0.98 percent in the quarter from 0.42 percent in the last year period. At the same time, return on average equity increased 374 basis points to 6.26 percent in the quarter from 2.52 percent in the last year period.
Equity to assets ratio was 16.02 percent for the quarter, down from 16.12 percent for the previous year quarter. Book value per share was $15.12 for the quarter, up 6.70 percent or $0.95 compared to $14.17 for the same period last year.
Disclaimer: Please note that this is an auto-generated article. IRIS does not guarantee the accuracy, adequacy or completeness of any information and is not responsible for any errors or omissions or for the results obtained from the use of such information. IRIS especially states that it has no financial liability whatsoever to any user on account of the use of information provided on its website. For queries contact: editor@irisindia.net
