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East West Bancorp
(NASDAQ:EWBC)
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Rating:76Outperform
Price Target:
$151.00
â–²(27.94% Upside)
Action:Reiterated
Date:07/22/26
EWBC scores well on the combination of solid underlying financial profitability/returns and a constructive technical trend, supported further by a favorable earnings update with upgraded growth guidance and strong capital levels. The score is moderated by variability in cash-flow/growth consistency and the earnings-call risks around deposit competition (including the large CD roll-off) and modestly higher credit costs.
Positive Factors
Strong profitability and returns
Sustained high profitability (TTM net margin ~29% and ROE ~16%) generates recurring internal capital that supports reinvestment, dividends, and loss absorption. Over the next several months this durable earnings power underpins underwriting capacity and funds growth without overreliance on volatile external financing.
Negative Factors
Large CD roll-off and funding competition
A sizable $13 billion CD roll‑off and aggressive market promo pricing force active repricing or replacement. Over a multi‑month horizon this can structurally raise funding costs, compress NIM, and require higher promotional rates to retain balances, reducing net interest margin resiliency.
Read all positive and negative factors
Positive Factors
Negative Factors
Strong profitability and returns
Sustained high profitability (TTM net margin ~29% and ROE ~16%) generates recurring internal capital that supports reinvestment, dividends, and loss absorption. Over the next several months this durable earnings power underpins underwriting capacity and funds growth without overreliance on volatile external financing.
Read all positive factors
East West Bancorp (EWBC) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$18.28B
Dividend Yield2.13%
Average Volume (3M)1.01M
Price to Earnings (P/E)12.5
Beta (1Y)1.10
Revenue Growth3.88%
EPS Growth21.62%
CountryUS
Employees3,400
SectorFinancial
Sector Strength70
IndustryBanks - Diversified
Share Statistics
EPS (TTM)10.10
Shares Outstanding136,996,260
10 Day Avg. Volume901,286
30 Day Avg. Volume1,014,106
Financial Highlights & Ratios
PEG Ratio0.80
Price to Book (P/B)1.75
Price to Sales (P/S)3.32
P/FCF Ratio10.35
Enterprise Value/Market Cap<0.01
Enterprise Value/Revenue<0.01
Enterprise Value/Gross Profit<0.01
Enterprise Value/Ebitda<0.01
Forecast
1Y Price Target
$140.57Price Target Upside19.11% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering8
EPS Forecast (FY)10.6
Revenue Forecast (FY)$3.18B
East West Bancorp Business Overview & Revenue Model
Company Description
East West Bancorp, Inc. functions as the parent entity for East West Bank, which delivers a comprehensive suite of personal and commercial banking solutions to both businesses and individual clients. The organization segments its operations into t...
How the Company Makes Money
East West Bancorp primarily makes money through its banking subsidiary by earning interest income and generating fee-based (noninterest) income. The largest driver is typically net interest income: the bank pays interest (or provides other value) ...
East West Bancorp Earnings Call Summary
Earnings Call Date:Jul 21, 2026
(Q2-2026)
| % Change Since: |
Next Earnings Date:Oct 20, 2026
Earnings Call Sentiment Positive
The call emphasized multiple record operating metrics (revenue, NII, non-interest income), upgraded guidance, strong deposit and loan growth, robust capital ratios and efficiency. Headwinds discussed were manageable: modest upticks in net charge-offs and NPAs, deposit competition with a material CD roll-off in Q3, and one-time/temporary expense items. Management indicated these issues are monitored and expected to be contained, while core growth and profitability trends remain strong.Positive Updates
Record Revenue and Income
Company reported record total revenue, record net interest income (NII) of $685 million in Q2 and record non-interest income, driving stronger overall earnings.
Negative Updates
Higher Net Charge-Offs in Q2
Net charge-offs rose to 19 basis points in Q2 ($27 million) from 9 basis points in Q1 ($12 million); company reaffirmed full-year loss guidance of 15-25 basis points.
Read all updates
Q2-2026 Updates
Positive
Negative
Record Revenue and Income
Company reported record total revenue, record net interest income (NII) of $685 million in Q2 and record non-interest income, driving stronger overall earnings.
Read all positive updates
Company Guidance
Management updated guidance assuming flat Fed funds through year, raising full‑year loan growth to 6–8% and net interest income growth to +7–9% (from 6–8%), while narrowing full‑year operating expense growth to 8–9% YoY; they reaffirmed full‑year net charge‑offs of 15–25 bps (Q2 NCOs 19 bps, $27m), reported a Q2 provision of $33m (Q1 $36m) and an allowance of $842m (1.43% of loans). Key metrics cited: Q2 NII $685m and NIM 3.43%, end‑period deposits +8% YoY (+$1.2bn) with DDA mix 26% and average DDA +15% YoY, loans +7% YoY, fee income +19% YoY to $96m (targeting double‑digit fee growth), Q2 operating non‑interest expense $268m, efficiency ratio 36.7% and expense/avg assets 1.29%. Capital/liquidity highlights: CET1 15.4%, tangible common equity 10.4% (generating ~17% ROTCE), $117m repurchase capacity, ~$111m returned via dividends YTD (Q3 dividend payable Aug 17); management also noted ~ $2m/month impact per 25 bp rate move (≈45‑day lag) and a Q3 CD roll‑off of $13bn (current promo pricing ~3.60%/3.75%).East West Bancorp Financial Statement Overview
Summary
Income Statement
78
Positive
Balance Sheet
71
Positive
Cash Flow
62
Positive
| Breakdown | TTM | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 4.73B | 4.69B | 4.48B | 3.95B | 2.59B | 1.89B |
| Gross Profit | 2.92B | 2.82B | 2.39B | 2.44B | 2.25B | 1.84B |
| EBITDA | 2.11B | 2.03B | 1.68B | 1.62B | 1.57B | 1.21B |
| Net Income | 1.39B | 1.33B | 1.17B | 1.16B | 1.13B | 872.98M |
Balance Sheet | ||||||
| Total Assets | 82.89B | 80.43B | 75.98B | 69.61B | 64.11B | 60.87B |
| Cash, Cash Equivalents and Short-Term Investments | 657.08M | 656.13M | 5.48B | 10.81B | 9.66B | 14.61B |
| Total Debt | 3.68B | 3.17B | 3.75B | 4.76B | 564.33M | 806.86M |
| Total Liabilities | 73.89B | 71.54B | 68.25B | 62.66B | 58.13B | 55.03B |
| Stockholders Equity | 9.00B | 8.90B | 7.72B | 6.95B | 5.98B | 5.84B |
Cash Flow | ||||||
| Free Cash Flow | 1.55B | 1.50B | 1.41B | 1.42B | 2.07B | 1.16B |
| Operating Cash Flow | 1.65B | 1.50B | 1.41B | 1.42B | 2.07B | 1.17B |
| Investing Cash Flow | -5.70B | -5.48B | -6.30B | -4.25B | -4.58B | -9.12B |
| Financing Cash Flow | 5.02B | 2.90B | 5.53B | 3.96B | 2.11B | 7.84B |
East West Bancorp Technical Analysis
Positive
118.02
Price Trends
127.38
Positive
120.11
Positive
114.39
Positive
Market Momentum
1.66
Positive
52.99
Neutral
54.11
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 118.02 is below the 20-day moving average (MA) of 131.27, below the 50-day MA of 127.38, and above the 200-day MA of 114.39, indicating a bullish trend. The MACD of 1.66 indicates Positive momentum. The RSI at 52.99 is Neutral, neither overbought nor oversold. The STOCH value of 54.11 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive 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 |
|---|---|---|---|---|---|---|---|
80 Outperform | $2.44B | 10.22 | 21.63% | 3.70% | -2.40% | 20.47% | |
76 Outperform | $18.28B | 12.52 | 16.06% | 2.08% | 3.88% | 21.62% | |
72 Outperform | $143.46B | 12.40 | 18.94% | 3.27% | -10.12% | 13.24% | |
71 Outperform | $92.49B | 13.40 | 12.71% | 4.14% | 10.57% | 19.15% | |
68 Neutral | $18.00B | 11.42 | 9.92% | 3.81% | 9.73% | 1.22% | |
64 Neutral | $72.28B | 7.61 | 14.97% | 3.67% | 7.21% | 26.24% | |
62 Neutral | $94.30B | 11.89 | 9.46% | 1.71% | 12.95% | 21.64% |
* Financial Sector Average
EWBC
East West Bancorp
131.60
27.89
26.89%
BBVA
Banco Bilbao
26.23
11.43
77.21%
BCS
Barclays
28.13
9.05
47.42%
ING
ING Groep
33.33
10.60
46.66%
NWG
NatWest Group
18.29
5.29
40.67%
NTB
Bank of NT Butterfield & Son
60.67
17.20
39.57%
East West Bancorp Corporate Events
Business Operations and StrategyFinancial Disclosures
East West Bancorp Posts Strong Second-Quarter 2026 Results
Positive
Jul 21, 2026
On July 21, 2026, East West Bancorp reported second quarter 2026 net income of $364 million, or $2.63 per diluted share, with earnings per share up 18% year-over-year on record total revenue of $791 million. Total loans reached $59.0 billion and d...
Business Operations and StrategyExecutive/Board ChangesShareholder Meetings
East West Bancorp Shareholders Approve 2026 Governance Proposals
Positive
May 19, 2026
On May 18, 2026, East West Bancorp, Inc. held its 2026 Annual Meeting of Stockholders, with about 90.95% of eligible shares represented, and shareholders elected eleven directors to one-year terms, ensuring continuity of the board’s leadersh...
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.