East West Bancorp (EWBC)
NASDAQ:EWBC
Want to see EWBC full AI Analyst Report?
Top Page
East West Bancorp
(NASDAQ:EWBC)
Select Model
Select Model
Rating:79Outperform
Price Target:
$138.00
â–²(16.93% Upside)
Action:ReiteratedDate:04/22/26
EWBC scores well overall due to strong operating performance and a very positive earnings-call outlook (raised NII guidance, solid growth, strong capital), supported by attractive valuation (low P/E) and favorable technical trend. The main constraint is cash flow volatility and weaker 2025 cash generation despite strong earnings.
Positive Factors
Deposit and loan franchise growth
Consistent deposit and loan growth reflects a durable commercial banking franchise and relationship-led funding. A rising base of noninterest-bearing and low-cost deposits supports loan origination, funds long-term NII, and reduces reliance on wholesale funding, strengthening funding stability and growth capacity.
Negative Factors
Volatile and weakening cash generation
Large year-over-year swings in operating cash flow and a sharp FCF decline signal inconsistent cash conversion of earnings. This reduces long-term flexibility for dividends, buybacks, organic investment, and loss absorption, and makes capital planning and stress resilience more uncertain over multi-quarter horizons.
Read all positive and negative factors
Positive Factors
Negative Factors
Deposit and loan franchise growth
Consistent deposit and loan growth reflects a durable commercial banking franchise and relationship-led funding. A rising base of noninterest-bearing and low-cost deposits supports loan origination, funds long-term NII, and reduces reliance on wholesale funding, strengthening funding stability and growth capacity.
Read all positive factors
East West Bancorp (EWBC) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$16.80B
Dividend Yield2.08%
Average Volume (3M)1.11M
Price to Earnings (P/E)10.3
Beta (1Y)1.13
Revenue Growth3.79%
EPS Growth19.50%
CountryUS
Employees3,100
SectorFinancial
Sector Strength70
IndustryBanks - Diversified
Share Statistics
EPS (TTM)2.57
Shares Outstanding136,978,730
10 Day Avg. Volume769,240
30 Day Avg. Volume1,114,501
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 Cap0.97
Enterprise Value/Revenue3.49
Enterprise Value/Gross Profit5.80
Enterprise Value/Ebitda8.04
Forecast
1Y Price Target
$134.38Price Target Upside13.87% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering13
EPS Forecast (FY)10.57
Revenue Forecast (FY)$3.18B
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 primarily earns money through (1) net interest income and (2) noninterest income. Net interest income is generated from the spread between interest earned on interest-earning assets—most importantly loans (e.g., commercial loans,...
East West Bancorp Earnings Call Summary
Earnings Call Date:Apr 21, 2026
(Q1-2026)
| % Change Since: |
Next Earnings Date:Jul 28, 2026
Earnings Call Sentiment Positive
The call reflected a strongly positive operating quarter: record deposit, loan and fee growth, improved NII and a very strong capital position. Asset quality remained stable with conservative reserve builds. Offsetting risks discussed included deposit pricing pressure and concentration/timing risk from capital-call-driven NBFI growth, modestly higher provisions and potential near-term variability in loan balances as some capital-call lines pay down. Overall, positives (growth, capital, fee momentum and stable credit metrics) substantially outweighed the headwinds.Positive Updates
Record Deposits, Loans and Fee Income
Total deposits grew 9% year-over-year with end-of-period deposits up $1.8 billion quarter-over-quarter; noninterest-bearing deposits increased nearly $800 million. Total loan growth was 7% year-over-year with C&I driving growth (C&I now 34% of total loans) and a quarter-over-quarter C&I increase of more than $900 million. Fee income reached a record $99 million, up 12% year-over-year.
Negative Updates
Deposit Pricing Pressure and Competitive Funding Environment
Management flagged ongoing deposit pricing pressure and a competitive market. While deposit mix improved, the bank noted it has likely 'flattened out' the benefit from rolling down CD costs; $10+ billion of CDs rolled over in Q1 and the current CD special (3.60%) is unlikely to materially lower overall CD pricing further.
Read all updates
Q1-2026 Updates
Positive
Negative
Record Deposits, Loans and Fee Income
Total deposits grew 9% year-over-year with end-of-period deposits up $1.8 billion quarter-over-quarter; noninterest-bearing deposits increased nearly $800 million. Total loan growth was 7% year-over-year with C&I driving growth (C&I now 34% of total loans) and a quarter-over-quarter C&I increase of more than $900 million. Fee income reached a record $99 million, up 12% year-over-year.
Read all positive updates
Company Guidance
Management reiterated full‑year loan growth of 5–7% (after 7% YoY loan growth in Q1 and >$900M sequential C&I growth) and raised net interest income guidance to +6–8% (Q1 NII $671M), while updating credit and capital outlooks: net charge‑offs now forecast 15–25 bps for 2026 (Q1 NCOs 9 bps, $12M), nonperforming assets 26 bps, Q1 provision $36M, ACL up $26M to $836M (1.44% of loans), CET1 15.1% and tangible common equity 10.3%. They also highlighted strong deposit metrics and efficiency — total deposits +9% YoY, end‑period deposits +$1.8B QoQ, average DDA +12% YoY (≈+$0.5B), noninterest‑bearing deposits up ≈$800M, >$10B of CD rollovers with net CD growth $127M, period‑end deposit costs down 6 bps QoQ (interest‑bearing deposit costs down 111 bps since the start of the cut cycle), record fee income $99M (+12% YoY, targeting double‑digit fee growth in 2026), efficiency ratio 36.2%, operating noninterest expense $258M, repurchases of ~938k shares ($98M) with $117M authorization remaining, and ~$111M returned to shareholders in dividends.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
Positive
118.02
Price Trends
112.09
Positive
112.26
Positive
107.50
Positive
Market Momentum
2.33
Negative
65.28
Neutral
80.35
Negative
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 above the 20-day moving average (MA) of 110.70, above the 50-day MA of 112.09, and above the 200-day MA of 107.50, indicating a bullish trend. The MACD of 2.33 indicates Negative momentum. The RSI at 65.28 is Neutral, neither overbought nor oversold. The STOCH value of 80.35 is Negative, 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 |
|---|---|---|---|---|---|---|---|
79 Outperform | $16.80B | 10.30 | 16.06% | 2.08% | 3.79% | 19.50% | |
79 Outperform | $2.23B | 8.94 | 21.21% | 3.70% | -1.97% | 16.89% | |
72 Outperform | $122.43B | 11.69 | 18.53% | 3.27% | -0.07% | 10.78% | |
71 Outperform | $79.26B | 12.31 | 12.46% | 4.14% | 6.38% | 11.97% | |
68 Neutral | $18.00B | 11.42 | 9.92% | 3.81% | 9.73% | 1.22% | |
60 Neutral | $78.43B | 11.28 | 9.41% | 1.71% | 12.12% | 24.74% | |
58 Neutral | $62.45B | 4.48 | 14.33% | 3.67% | 6.27% | 30.96% |
* Financial Sector Average
EWBC
East West Bancorp
124.98
40.96
48.75%
BBVA
Banco Bilbao
22.01
8.20
59.35%
BCS
Barclays
23.09
7.43
47.46%
ING
ING Groep
28.07
9.56
51.61%
NWG
NatWest Group
15.67
3.44
28.14%
NTB
Bank of NT Butterfield & Son
55.83
17.03
43.89%
East West Bancorp Corporate Events
Business Operations and StrategyFinancial Disclosures
East West Bancorp Posts Strong First-Quarter 2026 Results
Positive
Apr 21, 2026
East West Bancorp reported that for the first quarter ended March 31, 2026, net income rose 23% year over year to $358 million, or $2.57 per diluted share, driven by record levels of loans, deposits and fee income, with returns on average assets a...
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.