East West Bancorp reports Q1 EPS $2.08, consensus $2.06

“East West reported record loans, revenue, and fee income in the first quarter, generating a nearly 16% return on average tangible common equity1,” said Dominic Ng,CEO. “Net interest margin expanded 11 basis points quarter-over-quarter driven by our focus on deposit cost optimization, resulting in over $600 million of net interest income this quarter. This performance was complemented by 8% quarter-over-quarter growth in fee income, driven by strong customer activity across the board. Credit performance strengthened in the first quarter, with net charge-offs of $15 million or 12 basis points of total loans and both nonaccrual loans and nonperforming assets decreasing. Nonetheless, we bolstered our allowance for loan losses to a prudent level of 1.35% of loans. East West continues to operate from a position of strength. Our diversified balance sheet, strong capital levels, and industry-leading profitability position us to support our customers in any economic environment. These core business strengths provide us with the flexibility to capitalize on opportunities.”