East West Bancorp (EWBC)
NASDAQ:EWBC
Top Page
East West Bancorp
(NASDAQ:EWBC)
Select Model
Select Model
Rating:70Outperform
Price Target:
$120.00
â–²(10.10% Upside)
Action:ReiteratedDate:02/28/26
The score is driven primarily by solid financial performance (strong revenue/earnings and a sound balance sheet), supported by attractive valuation and a constructive earnings-call outlook (record results and higher dividend). These positives are tempered by weaker technical momentum and cash flow volatility in 2025.
Positive Factors
Revenue and earnings momentum
Sustained revenue and earnings expansion creates a larger, more diversified earnings base that supports investment, dividends, and loss absorption. The 2025 acceleration reflects durable growth across loans, NII and fees, strengthening the franchise's ability to generate earnings over the next several quarters.
Negative Factors
Weaker, volatile cash generation
A sudden drop and volatility in operating and free cash flow weakens cash conversion of reported earnings, constraining discretionary capital uses and raising questions about earnings quality. If cash generation remains uneven, it could limit sustainable buybacks and dividend flexibility.
Read all positive and negative factors
Positive Factors
Negative Factors
Revenue and earnings momentum
Sustained revenue and earnings expansion creates a larger, more diversified earnings base that supports investment, dividends, and loss absorption. The 2025 acceleration reflects durable growth across loans, NII and fees, strengthening the franchise's ability to generate earnings over the next several quarters.
Read all positive factors
East West Bancorp (EWBC) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$15.00B
Dividend Yield2.08%
Average Volume (3M)1.22M
Price to Earnings (P/E)11.7
Beta (1Y)1.13
Revenue Growth3.87%
EPS Growth14.61%
CountryUS
Employees3,100
SectorFinancial
Sector Strength70
IndustryBanks - Diversified
Share Statistics
EPS (TTM)2.55
Shares Outstanding137,622,680
10 Day Avg. Volume1,460,391
30 Day Avg. Volume1,221,551
Financial Highlights & Ratios
PEG Ratio0.81
Price to Book (P/B)1.75
Price to Sales (P/S)3.32
P/FCF Ratio10.35
Enterprise Value/Market Cap1.18
Enterprise Value/Revenue3.76
Enterprise Value/Gross Profit6.26
Enterprise Value/Ebitda8.68
Forecast
1Y Price Target
$131.25Price Target Upside20.42% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering12
EPS Forecast (FY)10.26
Revenue Forecast (FY)$3.11B
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, Com...
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 offers various loan products, including commercial real estate loan...
East West Bancorp Earnings Call Summary
Earnings Call Date:Jan 22, 2026
(Q4-2025)
| % Change Since: |
Next Earnings Date:Apr 21, 2026
Earnings Call Sentiment Positive
The earnings call conveyed a largely positive operational and financial performance: the company reported record results across revenue, NII, fees, loans, and deposits, maintained strong capital ratios, raised the dividend by 33%, and emphasized disciplined growth and investment. Offsetting items include a conservative outlook on loan growth, an elevated allowance and higher net charge-off guidance for 2026 (20–30 bps versus 11 bps in 2025), expense growth of 7%–9% next year, and some compression in lending spreads. Overall, the strong record results, capital position, and fee momentum materially outweigh the manageable near-term headwinds and conservative guidance.Positive Updates
Record Financial Results for 2025
East West Bancorp reported record levels in multiple categories for full-year 2025 including revenue, net interest income, fees, non-interest income, earnings per share, loans, and deposits. Tangible book value per share grew 17% and return on tangible common equity was 17% for 2025.
Negative Updates
Higher Net Charge-Off Guidance for 2026
Management raised its full-year 2026 net charge-off guidance to 20–30 basis points (versus 11 basis points for full-year 2025), signaling an expected increase in credit losses compared with 2025's very low levels.
Read all updates
Q4-2025 Updates
Positive
Negative
Record Financial Results for 2025
East West Bancorp reported record levels in multiple categories for full-year 2025 including revenue, net interest income, fees, non-interest income, earnings per share, loans, and deposits. Tangible book value per share grew 17% and return on tangible common equity was 17% for 2025.
Read all positive updates
Company Guidance
Management guided 2026 assuming modest economic growth and rate moves implied by the year‑end curve (they referenced about ~50 bps of cuts and also discussed a scenario of three 75‑bp cuts), and gave numeric targets: end‑of‑period loan growth of 5–7% (led by C&I and residential mortgage), net interest income growth of 5–7%, fee income to grow faster than the balance sheet (aspiring to continue double‑digit growth), total operating non‑interest expense up 7–9%, full‑year net charge‑offs of 20–30 bps (Q4 NCOs 8 bps / $12M; FY 2025 NCOs 11 bps / $60M), and an effective tax rate of 22–23%; they also declared a $0.80 quarterly dividend (33% increase). Management reiterated strong capital and balance‑sheet metrics (CET1 15.1%, tangible common equity 10.5%, TBVPS +17%, ROTCE 17%), and noted recent momentum: end‑period deposits +6% YoY, end‑period loans +6% YoY (average loans +4%), DDA 25% of deposits, period‑end cost of deposits down 23 bps QoQ, interest‑bearing deposit costs down 105 bps since the start of the cut cycle, and a down‑cycle deposit beta of ~0.6.East West Bancorp Financial Statement Overview
Summary
Income Statement
86
Very Positive
Balance Sheet
74
Positive
Cash Flow
48
Neutral
| Breakdown | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|
Income Statement | |||||
| Total Revenue | 4.69B | 4.48B | 3.95B | 2.59B | 1.89B |
| Gross Profit | 2.82B | 2.39B | 2.44B | 2.25B | 1.84B |
| EBITDA | 2.03B | 1.68B | 1.62B | 1.57B | 1.21B |
| Net Income | 1.33B | 1.17B | 1.16B | 1.13B | 872.98M |
Balance Sheet | |||||
| Total Assets | 80.43B | 75.98B | 69.61B | 64.11B | 60.87B |
| Cash, Cash Equivalents and Short-Term Investments | 656.13M | 5.48B | 10.81B | 9.66B | 14.61B |
| Total Debt | 3.17B | 3.75B | 4.76B | 564.33M | 806.86M |
| Total Liabilities | 71.54B | 68.25B | 62.66B | 58.13B | 55.03B |
| Stockholders Equity | 8.90B | 7.72B | 6.95B | 5.98B | 5.84B |
Cash Flow | |||||
| Free Cash Flow | 1.50B | 1.41B | 1.42B | 2.07B | 1.16B |
| Operating Cash Flow | 1.50B | 1.41B | 1.42B | 2.07B | 1.17B |
| Investing Cash Flow | -5.48B | -6.30B | -4.25B | -4.58B | -9.12B |
| Financing Cash Flow | 2.90B | 5.53B | 3.96B | 2.11B | 7.84B |
East West Bancorp Technical Analysis
Neutral
108.99
Price Trends
111.77
Negative
110.94
Negative
106.55
Positive
Market Momentum
-1.22
Negative
52.64
Neutral
83.57
Negative
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For EWBC, the sentiment is Neutral. The current price of 108.99 is above the 20-day moving average (MA) of 105.73, below the 50-day MA of 111.77, and above the 200-day MA of 106.55, indicating a neutral trend. The MACD of -1.22 indicates Negative momentum. The RSI at 52.64 is Neutral, neither overbought nor oversold. The STOCH value of 83.57 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for EWBC.
East West Bancorp Risk Analysis
East West Bancorp disclosed 36 risk factors in its most recent earnings report. East West Bancorp reported the most risks in the "Finance & Corporate" category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks
East West Bancorp Peers Comparison
UnderperformOutperform
Sector (68)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
79 Outperform | $2.14B | 8.94 | 21.21% | 3.70% | -0.09% | 18.47% | |
72 Outperform | $123.02B | 11.69 | 18.53% | 3.27% | 7.52% | 10.40% | |
71 Outperform | $74.86B | 11.24 | 12.46% | 4.14% | 2.20% | -0.17% | |
70 Outperform | $15.00B | 11.73 | 15.77% | 2.08% | 3.87% | 14.61% | |
68 Neutral | $18.00B | 11.42 | 9.92% | 3.81% | 9.73% | 1.22% | |
60 Neutral | $73.93B | 9.29 | 9.41% | 1.71% | 17.50% | 49.25% | |
58 Neutral | $60.53B | 4.48 | 14.33% | 3.67% | 7.43% | 30.31% |
* Financial Sector Average
EWBC
East West Bancorp
108.99
38.52
54.67%
BBVA
Banco Bilbao
21.92
10.53
92.52%
BCS
Barclays
21.80
9.27
73.97%
ING
ING Groep
26.56
10.57
66.13%
NWG
NatWest Group
15.29
5.16
51.00%
NTB
Bank of NT Butterfield & Son
53.47
18.97
55.00%
East West Bancorp Corporate Events
DividendsFinancial Disclosures
East West Bancorp Posts Record 2025 Results, Hikes Dividend
Positive
Jan 22, 2026
On January 22, 2026, East West Bancorp reported record results for the full year and fourth quarter of 2025, with full-year net income rising to $1.3 billion, or $9.52 per diluted share, and fourth-quarter net income reaching $356 million, or $2.5...
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.