Cathay General: 3 Key Takeaways for Long-Term Investors

On its third-quarter 2026 earnings call, held on Oct. 21, 2026, Cathay General (CATY -0.05%) announced record net interest income, the profit earned from interest on loans minus interest paid on deposits, of $211.9 million. Steady commercial loan growth and asset repricing continue expanding returns. Higher asset yields defend earnings as deposit costs remain high.

Three things management said stand out.

1. Higher Loan and Deposit Expectations Signal Growth

Management boosted its full-year guidance for both loan expansion and deposit balance growth. Strong commercial borrower activity and active branch outreach supported the revision.

Based on our strong year-to-date loan growth, we are raising our full-year outlook to 5%-6% from 3.5%-4.5% previously. We are also increasing our deposit growth outlook to 4%-5%, compared with the prior expectation of 3%-4%.
— Al Wang, Executive Vice President and Chief Financial Officer

2. Net Interest Margin Has Room for Further Expansion

Net interest margin, net interest income expressed as a percentage of total earning assets, expanded to 3.52%. Upcoming loan repricing and anticipated rate hikes support further profitability gains.

I am not ready to call a peak on NIM. I still think there is room for expansion. We do have in the guide a 25 basis point increase in December, which will help us from the asset side.
— Al Wang, Executive Vice President and Chief Financial Officer

3. Commercial Borrowers Drive Demand Despite Higher Interest Rates

Commercial and industrial lending led balance sheet growth during the third quarter. Business clients continue taking out credit lines to fund ongoing operations regardless of borrowing costs.

If they need the loan and they need the lines, they’re going to continue to use it regardless of the rate environment.
— Chang Liu, President and Chief Executive Officer

Looking Ahead

Commercial lending activity continues accelerating across manufacturing and distribution clients. Strategic investments in artificial intelligence and client technology platforms aim to drive operational efficiency and support future growth.

Additionally, sort of the technology front and any tech that’s kind of client facing, including anything that’s operationally with AI and efficiencies we can gain out of AI.
— Chang Liu, President and Chief Executive Officer

Low commercial real estate concentration and strong deposit relationships bolster the franchise against funding competition. Leadership remains focused on deposit pricing discipline, asset quality, and strategic capital allocation.

Looking ahead, our priorities remain straightforward: disciplined relationship growth, sound credit quality, and prudent capital management.
— Chang Liu, President and Chief Executive Officer

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