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BankUnited: Reversing Loan Loss Provisions Results In A Profit Boost

May 04, 2021 11:00 AM ETBankUnited, Inc. (BKU)


  • BankUnited reported excellent Q1 results.
  • This was caused by reversing a portion of previous loan loss provisions.
  • The amount of non-performing loans remains manageable and the LTV ratios low.
  • I don't think we'll see additional substantial reversals, but that's fine: BankUnited seems to have a good grip on the situation.
  • Looking for a helping hand in the market? Members of European Small-Cap Ideas get exclusive ideas and guidance to navigate any climate. Learn More »
BankUnited Closed By Federal Gov"t, Largest Bank Failure This Year
Photo by Joe Raedle/Getty Images News via Getty Images


When the COVID pandemic hit last year, most banks had to aggressively increase their loan loss provisions, which weighed on financial results. Some bank were so cautious they now have to reverse some of those provisions. BankUnited (NYSE:

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We zoom in on capital gains and dividend income in European small-caps
As I'm a long-term investor, I'll highlight some stockpicks which will have a 5-7 year investment horizon. As I strongly believe a portfolio should consist of a mixture of dividend-paying stocks and growth stocks, my articles will reflect my thoughts on this mixture.

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