East West Bancorp (EWBC) AI Stock Analysis

• Market Cap: $13.62B
• Dividend Yield: 2.3%
• Average Volume (3M): 1.01M
• Price to Earnings (P/E): 10.9
• Beta (1Y): 1.12
• Revenue Growth: 4.18%
• EPS Growth: 14.61%
• Country: US
• Employees: 3,100
• Sector: Financial
• Sector Strength: 70
• Industry: Banks - Diversified
• EPS (TTM): 2.65
• Shares Outstanding: 137,821,760
• 10 Day Avg. Volume: 1,124,101
• 30 Day Avg. Volume: 1,014,514
• PEG Ratio: 5.87
• Price to Book (P/B): 1.72
• Price to Sales (P/S): 2.97
• P/FCF Ratio: 9.42
• Enterprise Value/Market Cap: 0.97
• Enterprise Value/Revenue: 2.91
• Enterprise Value/Gross Profit: 5.31
• Enterprise Value/Ebitda: 7.47
• 1Y Price Target: $128.78
• Price Target Upside: 26.29% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 10

• Rating: 79 Outperform
• Price Target: $117.00 ▲(14.74% Upside)

East West Bancorp's strong financial performance and positive earnings call are the primary drivers of its high score. The company's robust revenue growth, solid profitability, and strategic initiatives position it well for future growth. While technical analysis indicates some short-term weakness, the stock's reasonable valuation and attractive dividend yield enhance its overall appeal.

Positive Factors

Revenue Growth

Record revenue growth indicates a robust business expansion, driven by strategic initiatives and strong market demand, enhancing long-term financial stability.

Strong Deposit and Loan Growth

Significant deposit and loan growth reflects effective customer acquisition and retention strategies, supporting sustainable revenue streams and financial health.

Fee Income Growth

Strong fee income growth, particularly in wealth management, suggests successful diversification of revenue sources, enhancing resilience against interest rate fluctuations.

Negative Factors

Economic and Geopolitical Uncertainty

Economic and geopolitical uncertainties pose risks to future performance, potentially impacting strategic planning and financial forecasts.

Increased Allowance for Credit Losses

Rising credit loss allowances indicate caution in credit quality, which could affect profitability if economic conditions worsen.

Slight Decline in Gross Profit Margin

A decline in gross profit margin may signal increasing operational costs, which could pressure profitability if not managed effectively.

East West Bancorp Business Overview & Revenue Model

Company Description

East West Bancorp, Inc. operates as the bank holding company for East West Bank that provides a range of personal and commercial banking services to businesses and individuals. It operates through three segments: Consumer and Business Banking, Commercial Banking, and Other. The company accepts various deposit products, such as personal and business checking and savings accounts, money market, and time deposits. Its loan products include mortgage and home equity, commercial and residential real estate, working capital lines of credit, construction, trade finance, letters of credit, commercial business, affordable housing loans, asset-based lending, asset-backed finance, project finance, and equipment financing, as well as financing services to clients needing a financial bridge to facilitate their business transactions between the United States and China. The company also provides various wealth management, treasury management, foreign exchange, and interest rate and commodity risk hedging services; and mobile and online banking services. As of January 27, 2022, it operated approximately 120 locations in the United States and China; full-service branches in Hong Kong, Shanghai, Shantou, and Shenzhen; and representative offices in Beijing, Chongqing, Guangzhou, Taipei, and Xiamen. East West Bancorp, Inc. was incorporated in 1998 and is headquartered in Pasadena, California.

How the Company Makes Money

East West Bancorp generates revenue primarily through net interest income, which is the difference between the interest earned on loans and the interest paid on deposits. The bank's key revenue streams include commercial loans, residential loans, and various deposit products. Additionally, it earns non-interest income from service fees, wealth management services, and foreign exchange transactions. Significant partnerships with businesses and institutions across the U.S. and Asia facilitate cross-border transactions, thereby enhancing its revenue potential. The bank's focus on the growing Chinese-American market and its strategic expansion into Asian markets also contribute positively to its earnings.

East West Bancorp Financial Statement Overview

Summary

East West Bancorp exhibits strong financial health with robust revenue growth, solid profitability, and effective cash management. The company's prudent leverage and efficient use of equity capital contribute to a stable financial position. While the increase in debt and slight decline in gross profit margin require monitoring, the overall financial trajectory is positive, positioning the company well for future growth.

Income Statement

East West Bancorp demonstrates strong profitability with consistent gross and net profit margins. The TTM data shows a gross profit margin of 54.79% and a net profit margin of 26.25%, indicating efficient cost management. Revenue growth is robust, with a significant increase of 84.7% in the TTM period, reflecting strong business expansion. EBIT and EBITDA margins are healthy, supporting operational efficiency. However, the slight decline in gross profit margin over the years suggests rising costs that need monitoring.

Balance Sheet

The company's balance sheet is stable with a manageable debt-to-equity ratio of 0.44 in the TTM period, indicating prudent leverage. Return on equity is strong at 15.14%, showcasing effective use of equity capital. The equity ratio is healthy, reflecting a solid capital structure. However, the increase in total debt over the years warrants attention to ensure it remains within sustainable levels.

Cash Flow

East West Bancorp's cash flow performance is commendable, with a significant free cash flow growth rate of 137% in the TTM period, indicating strong cash generation capabilities. The operating cash flow to net income ratio is low, suggesting potential for improvement in cash conversion efficiency. The free cash flow to net income ratio is consistently at 1.0, highlighting effective cash management.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	4.54B	4.48B	3.95B	2.59B	1.89B	1.82B
Gross Profit	2.49B	2.39B	2.44B	2.25B	1.84B	1.39B
EBITDA	1.77B	1.68B	1.62B	1.57B	1.21B	805.67M
Net Income	1.19B	1.17B	1.16B	1.13B	872.98M	567.80M
Balance Sheet
Total Assets	78.16B	75.98B	69.61B	64.11B	60.87B	52.16B
Cash, Cash Equivalents and Short-Term Investments	4.86B	5.48B	10.81B	9.66B	14.61B	10.37B
Total Debt	3.62B	3.63B	4.76B	564.33M	806.86M	1.23B
Total Liabilities	69.96B	68.25B	62.66B	58.13B	55.03B	46.89B
Stockholders Equity	8.20B	7.72B	6.95B	5.98B	5.84B	5.27B
Cash Flow
Free Cash Flow	1.44B	1.41B	1.42B	2.07B	1.16B	690.67M
Operating Cash Flow	1.44B	1.41B	1.42B	2.07B	1.17B	693.33M
Investing Cash Flow	-5.98B	-6.30B	-4.25B	-4.58B	-9.12B	-6.87B
Financing Cash Flow	4.58B	5.53B	3.96B	2.11B	7.84B	6.91B

East West Bancorp Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 101.97
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For EWBC, the sentiment is Positive. The current price of 101.97 is below the 20-day moving average (MA) of 103.06, below the 50-day MA of 104.89, and above the 200-day MA of 96.33, indicating a neutral trend. The MACD of -1.73 indicates Positive momentum. The RSI at 48.03 is Neutral, neither overbought nor oversold. The STOCH value of 65.09 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for EWBC.

East West Bancorp Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
NTB	83 Outperform	$1.74B	8.20	21.21%	4.36%	2.65%	16.06%
EWBC	79 Outperform	$13.62B	10.90	15.54%	2.30%	4.18%	14.61%
BCS	77 Outperform	$67.67B	8.95	9.44%	2.11%	16.06%	64.31%
NWG	74 Outperform	$58.19B	9.31	13.80%	4.44%	10.03%	29.51%
ING	73 Outperform	$71.16B	11.01	12.08%	4.89%	1.13%	-1.14%
Sector *	68 Neutral	$18.00B	11.42	9.92%	3.81%	9.73%	1.22%
BBVA	64 Neutral	$113.46B	9.98	18.32%	3.98%	7.86%	17.13%

East West Bancorp Corporate Events

East West Bancorp Q3 2025: Record Earnings Amid Caution

East West Bancorp’s recent earnings call for the third quarter of 2025 was marked by a predominantly positive sentiment, underscored by record-breaking financial results. The company reported significant achievements in revenue, net income, and fee income, reflecting robust financial health and strategic growth. However, management expressed caution due to economic and geopolitical uncertainties, leading to an increased allowance for credit losses. Despite these concerns, the overall outlook remains optimistic, with the positive results significantly outweighing the lowlights.

East West Bancorp Achieves Record Quarterly Earnings

East West Bancorp, Inc., a public company and the largest independent bank headquartered in Southern California, provides financial services across the United States and Asia, with a focus on connecting customers to new opportunities. The company recently announced a record quarterly net income of $368 million for the third quarter of 2025, with diluted earnings per share reaching $2.65. This performance was driven by strong growth in deposits, loans, and fee income, particularly in wealth management and lending services.

East West Bancorp Reports Record Q3 2025 Results

On October 21, 2025, East West Bancorp reported record financial results for the third quarter of 2025, with a net income of $368 million and earnings per share of $2.65. The company achieved record levels of revenue, driven by deposit-led growth and strong performance in wealth management, lending, and deposit account fees. Despite the uncertain outlook for 2026, East West Bancorp has strengthened its allowance for loan losses and maintains a robust capital position, enabling it to capitalize on market opportunities.

The most recent analyst rating on (EWBC) stock is a Buy with a $111.00 price target. To see the full list of analyst forecasts on East West Bancorp stock, see the EWBC Stock Forecast page.

East West Bancorp Reports Strong Q2 2025 Financial Results

In September 2025, East West Bancorp, Inc. presented its investor update, highlighting a strong financial performance in the second quarter of 2025. The company reported a net income of $310 million and record quarterly revenue of $703 million, driven by growth in commercial and residential mortgage loans. The bank also achieved a 2% quarter-over-quarter increase in both average loans and deposits, reflecting robust growth from commercial and consumer customers. East West Bancorp’s strategic focus on diversified loan growth and cost-effective deposit management has bolstered its market position, earning accolades as a top-performing bank for the third consecutive year.

The most recent analyst rating on (EWBC) stock is a Buy with a $117.00 price target. To see the full list of analyst forecasts on East West Bancorp stock, see the EWBC Stock Forecast page.

East West Bancorp’s Earnings Call Highlights Robust Growth

East West Bancorp’s recent earnings call highlighted a robust financial performance, showcasing record revenue and growth in loans and deposits. The bank’s asset quality and capital position remain strong, earning it recognition as a top-performing bank. Despite facing challenges such as a slight decline in noninterest income compared to the previous quarter, legislative impacts on tax credits, and uncertainties related to tariffs, the overall sentiment during the call was positive due to the bank’s continued growth and strong financial metrics.

East West Bancorp Reports Record Q2 2025 Earnings

East West Bancorp, Inc. is a financial services company operating primarily in the banking sector, known for being the largest independent bank headquartered in Southern California with operations in the United States and Asia. In its latest earnings report for the second quarter of 2025, East West Bancorp announced record quarterly revenue and net interest income, with net income reaching $310 million, or $2.24 per diluted share. The company also reported record levels in total loans and deposits, which stood at $55 billion and $65 billion, respectively, as of June 30, 2025.