East West Bancorp (EWBC) AI Stock Analysis

• Market Cap: $15.06B
• Dividend Yield: 2.15%
• Average Volume (3M): 800.89K
• Price to Earnings (P/E): 12.6
• Beta (1Y): 1.11
• Revenue Growth: 5.87%
• EPS Growth: 9.84%
• Country: US
• Employees: 3,100
• Sector: Financial
• Sector Strength: 73
• Industry: Banks - Diversified
• EPS (TTM): 2.24
• Shares Outstanding: 137,821,760
• 10 Day Avg. Volume: 923,697
• 30 Day Avg. Volume: 800,887
• 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: 1.12
• Enterprise Value/Revenue: 3.73
• Enterprise Value/Gross Profit: 6.80
• Enterprise Value/Ebitda: 10.04
• 1Y Price Target: $122.18
• Price Target Upside: 11.70% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 12

• Rating: 80 Outperform
• Price Target: $126.00 ▲(15.19% Upside)

East West Bancorp's overall stock score reflects its strong financial performance and positive earnings call sentiment, which are the most significant factors. The stock's technical indicators suggest positive momentum, although caution is advised due to potential overbought conditions. The valuation is reasonable, and recent corporate events reinforce the bank's robust market position.

Positive Factors

Revenue Growth

Consistent revenue growth demonstrates expanding market reach and product adoption, supporting long-term financial stability.

Market Position

Being recognized as a top performer enhances the bank's reputation and competitive edge, attracting more customers and partnerships.

Asset Quality

Strong asset quality reduces risk and potential losses, ensuring financial health and stability over the long term.

Negative Factors

Debt Levels

Rising debt levels can strain cash flow and limit financial flexibility, impacting long-term stability and growth potential.

Gross Profit Margin

A declining gross profit margin suggests rising costs, which could pressure profitability if not managed effectively.

Provision for Credit Losses

Lower provisions may indicate potential underestimation of future credit risks, affecting financial resilience.

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 performance with robust profitability and efficient cash management. The company benefits from stable revenue growth and effective cost controls. However, rising debt levels warrant 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	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	1.69B	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: 109.38
• 50DMA: Positive
• 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 Positive. The current price of 109.38 is above the 20-day moving average (MA) of 105.63, above the 50-day MA of 104.43, and above the 200-day MA of 95.68, indicating a bullish trend. The MACD of 1.87 indicates Negative momentum. The RSI at 63.45 is Neutral, neither overbought nor oversold. The STOCH value of 76.12 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	$1.88B	8.96	21.21%	4.02%	2.65%	16.06%
NWG	82 Outperform	$57.38B	9.25	13.80%	4.46%	10.03%	29.51%
EWBC	80 Outperform	$15.06B	12.62	15.47%	2.15%	5.87%	9.84%
BCS	78 Outperform	$72.10B	9.41	9.83%	2.09%	16.06%	64.31%
BBVA	75 Outperform	$109.27B	9.58	18.32%	4.10%	7.86%	17.13%
ING	75 Outperform	$74.25B	11.43	12.08%	4.59%	1.13%	-1.14%
Sector *	68 Neutral	$18.10B	11.66	9.93%	3.76%	9.70%	1.14%

East West Bancorp Corporate Events

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.

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.