East West Bancorp (EWBC) AI Stock Analysis

• Market Cap: $13.95B
• Dividend Yield: 2.32%
• Average Volume (3M): 856.24K
• Price to Earnings (P/E): 11.8
• Beta (1Y): 1.15
• Revenue Growth: 5.87%
• EPS Growth: 9.84%
• Country: US
• Employees: 3,100
• Sector: Financial
• Sector Strength: 71
• Industry: Banks - Diversified
• EPS (TTM): 2.24
• Shares Outstanding: 137,821,760
• 10 Day Avg. Volume: 665,933
• 30 Day Avg. Volume: 856,242
• PEG Ratio: N/A
• Price to Book (P/B): 0.00
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 0.00
• Enterprise Value/Market Cap: 1.21
• Enterprise Value/Revenue: 3.76
• Enterprise Value/Gross Profit: 6.99
• Enterprise Value/Ebitda: 9.97
• 1Y Price Target: $118.60
• Price Target Upside: 17.76% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 11

• Rating: 80 Outperform
• Price Target: $117.00 ▲(16.18% Upside)

East West Bancorp's strong financial performance and positive earnings call are the most significant factors driving the stock score. The company's robust profitability, effective cost management, and solid asset quality contribute to a favorable outlook. Technical indicators suggest a cautious approach due to potential overbought conditions, while the valuation remains attractive with a reasonable P/E ratio and a solid dividend yield.

Positive Factors

Balance Sheet

Deposit growth highlighted with total deposits increasing, reflecting growth in all segments.

Earnings

A strong result helps justify the stock run-up into the quarter.

Financial Performance

Accelerating loan growth drives net interest income higher, with both net interest income and total revenue guidance increased.

Negative Factors

Expenses

Expenses pose a risk heading into the second half, with unchanged guidance implying a meaningful ramp higher.

Tariff Risks

The July expiration of the 90-day tariff pause creates the next headline risk for EWBC.

East West Bancorp Business Overview & Revenue Model

Company Description

East West Bancorp (EWBC) is a publicly traded bank holding company headquartered in Pasadena, California. It operates through its wholly-owned subsidiary, East West Bank, which is one of the largest independent banks in the United States. The bank primarily serves the Chinese-American community and focuses on providing a range of financial services including commercial and personal banking, wealth management, and international banking. EWBC offers products such as loans, deposits, treasury management, and foreign exchange services, primarily targeting businesses and individuals engaged in cross-border trade between the U.S. and Asia.

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 robust financial performance with strong profitability and efficient cash management. Stable revenue growth and effective cost controls are evident, but rising debt levels require monitoring.

Income Statement

East West Bancorp shows strong financial performance with a consistent increase in total revenue over recent years, particularly a notable growth from 2022 to 2023. The gross profit margin remains robust, indicating effective cost management. The net profit margin is stable, reflecting efficient operations. The company also maintains solid EBIT and EBITDA margins, showcasing profitability. However, the rate of revenue growth has decelerated slightly, which could be a future concern.

Balance Sheet

The balance sheet of East West Bancorp is solid with a strong equity base and a favorable debt-to-equity ratio, indicating manageable leverage. The equity ratio demonstrates a healthy proportion of equity financing relative to total assets. Return on Equity (ROE) is strong, illustrating effective utilization of shareholder funds. However, there is a modest increase in total debt over the period, which warrants monitoring for potential leverage risks.

Cash Flow

East West Bancorp's cash flow is strong, with a consistent free cash flow generation. The operating cash flow to net income ratio is healthy, indicating good cash-generating efficiency. The company demonstrates stable free cash flow to net income ratio, reflecting its ability to generate cash relative to profits. However, the free cash flow growth rate is modest, suggesting limited expansion in cash flow generation.

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

East West Bancorp Technical Analysis

• Technical Analysis Sentiment: Neutral
• Last Price: 100.71
• 50DMA: Negative
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

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 100.71 is below the 20-day moving average (MA) of 100.78, below the 50-day MA of 101.41, and above the 200-day MA of 95.23, indicating a neutral trend. The MACD of -0.14 indicates Negative momentum. The RSI at 47.81 is Neutral, neither overbought nor oversold. The STOCH value of 59.79 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral 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	$1.82B	8.65	21.21%	4.10%	2.65%	16.06%
EWBC	80 Outperform	$13.95B	11.83	15.47%	2.32%	5.87%	9.84%
BCS	78 Outperform	$70.40B	9.24	9.83%	2.12%	16.06%	64.31%
NWG	77 Outperform	$59.37B	9.50	13.80%	4.20%	10.03%	29.51%
NU	76 Outperform	$63.22B	28.49	27.88%	―	28.56%	49.10%
ING	75 Outperform	$74.09B	11.39	12.08%	4.70%	1.13%	-1.14%
Sector *	68 Neutral	$17.49B	11.70	10.34%	3.85%	9.75%	0.63%

East West Bancorp Corporate Events

East West Bancorp Reports Strong Q2 2025 Financial Results

On July 22, 2025, East West Bancorp announced its financial results for the second quarter of 2025, reporting a net income of $310 million and record levels of loans and deposits. The company achieved a return on average common equity of 15.4% and noted a decline in criticized loans and nonperforming assets, indicating strong credit trends. East West Bancorp’s tangible common equity ratio increased to 10%, positioning the company to capitalize on market opportunities and support customers effectively. The company was also ranked as the best-performing bank above $50 billion in assets by Bank Director for the third consecutive year.

East West Bancorp Reports Strong Q1 2025 Financials

East West Bancorp, Inc. reported strong financial performance for the first quarter of 2025, with a net income of $290 million and a record quarterly revenue. The company achieved a 2% increase in net interest income and an 11 basis point expansion in net interest margin, alongside a reduction in nonaccrual loans and nonperforming assets. These results reflect steady growth in loans, optimized deposit costs, and increased customer activity, positioning the company for continued efficiency and top-quartile returns.

East West Bancorp Holds 2025 Annual Stockholders Meeting

On May 20, 2025, East West Bancorp, Inc. held its 2025 Annual Meeting of Stockholders where three proposals were considered. The stockholders elected ten directors for a one-year term, approved the executive compensation for 2024, and ratified KPMG LLP as the independent auditor for the fiscal year ending December 31, 2025.