East West Bancorp (EWBC) AI Stock Analysis

• Market Cap: $12.90B
• Dividend Yield: 2.56%
• Average Volume (3M): 736.53K
• Price to Earnings (P/E): 11.2
• Beta (1Y): 1.18
• Revenue Growth: 8.74%
• EPS Growth: 5.81%
• Country: US
• Employees: 3,100
• Sector: Financial
• Sector Strength: 74
• Industry: Banks - Diversified
• EPS (TTM): 2.08
• Shares Outstanding: 137,825,200
• 10 Day Avg. Volume: 747,810
• 30 Day Avg. Volume: 736,532
• PEG Ratio: -2.22
• Price to Book (P/B): 1.41
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 9.76
• Enterprise Value/Market Cap: 0.36
• Enterprise Value/Revenue: 0.27
• Enterprise Value/Gross Profit: 1.95
• Enterprise Value/Ebitda: 0.73
• 1Y Price Target: $101.38
• Price Target Upside: 8.30% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 9

• Rating: 80 Outperform
• Price Target: $108.00 ▲(15.37%Upside)

East West Bancorp's robust financial performance, coupled with positive momentum and fair valuation, supports a strong overall stock score. The positive sentiment from recent earnings calls and corporate events further enhance its outlook, despite economic uncertainties.

Positive Factors

Growth Opportunities

Management highlighted expansion investments made in several major cities, indicating growth opportunities.

Revenue and NII Guidance

Management could no longer justify the low-end of their NII and revenue guidance, citing both are now trending above previous ranges.

Negative Factors

Expense Guidance

Expense guide (ex amortization) of +7-9% y/y was higher than MS/consensus estimates, especially given the higher base after the 4Q24 miss.

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, 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 makes money through a variety of financial services and products. Its primary revenue streams include net interest income, which is earned from the difference between interest income generated from loans and interest expense on deposits. Additionally, the company generates non-interest income from service charges, fees on deposit accounts, wealth management services, and international banking transactions. The bank also benefits from significant partnerships and a strong presence in both the U.S. and Greater China markets, allowing it to facilitate cross-border business transactions and serve a diverse client base. These factors contribute to its earnings by expanding its customer reach and enhancing its service offerings.

East West Bancorp Financial Statement Overview

Summary

East West Bancorp demonstrates strong profitability and financial stability, with effective cost management and prudent leverage. However, recent operational and cash flow fluctuations pose potential risks.

Income Statement

East West Bancorp's income statement reveals mixed results. The gross profit margin remains high consistently with strong net income figures, reflecting effective cost control and profitability. However, the EBIT margin for 2024 is negative due to a significant drop in EBIT, indicating potential operational challenges. Revenue growth has been volatile, with a decline observed in 2024. Overall, profitability is strong, but operational issues are a concern.

Balance Sheet

The balance sheet exhibits a solid equity base with a healthy return on equity. The debt-to-equity ratio is favorable, reflecting prudent leverage management. The equity ratio shows a stable position, though slight fluctuations are noted. Strong stockholders' equity and manageable debt levels highlight financial stability, though attention should be paid to recent asset trends.

Cash Flow

East West Bancorp's cash flow statements show robustness in operating cash flow relative to net income, indicating strong cash generation capabilities. However, free cash flow growth has been inconsistent, with a notable decline in 2024. The company's ability to convert earnings into cash flows is generally positive, but recent fluctuations suggest potential cash management concerns.

Breakdown
Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement		Total Revenue
4.48B	2.36B	2.59B	1.89B	1.82B
	Gross Profit
2.39B	2.36B	2.16B	1.84B	1.39B
	EBIT
1.48B	1.46B	1.41B	1.06B	685.76M
	EBITDA
1.68B	1.62B	1.57B	1.21B	805.67M
	Net Income Common Stockholders
1.17B	1.16B	1.13B	872.98M	567.80M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
5.90B	11.60B	10.45B	16.97B	11.83B
	Total Assets
75.98B	69.61B	64.11B	60.87B	52.16B
	Total Debt
3.63B	4.76B	564.33M	806.86M	1.23B
	Net Debt
-1.67B	129.88M	-3.06B	-3.84B	-3.60B
	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
1.44B	1.42B	2.07B	1.17B	693.33M
	Investing Cash Flow
-6.30B	-4.25B	-4.58B	-9.12B	-6.85B
	Financing Cash Flow
5.53B	3.96B	2.11B	7.84B	6.91B

East West Bancorp Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 93.61
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• 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 93.61 is above the 20-day moving average (MA) of 92.32, above the 50-day MA of 87.91, and above the 200-day MA of 92.12, indicating a bullish trend. The MACD of 0.90 indicates Positive momentum. The RSI at 55.23 is Neutral, neither overbought nor oversold. The STOCH value of 37.11 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for EWBC.

East West Bancorp Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
NTB	83 Outperform	$1.76B	8.60	21.11%	4.16%	5.36%	9.07%
EWBC	80 Outperform	$12.90B	11.17	15.66%	2.56%	8.74%	5.81%
BCS	77 Outperform	$61.11B	8.87	9.36%	3.10%	11.33%	47.74%
NWG	77 Outperform	$56.08B	9.38	13.70%	3.78%	18.85%	14.85%
ING	76 Outperform	$63.74B	9.66	11.92%	13.12%	-0.63%	-6.01%
NU	75 Outperform	$58.98B	27.33	27.91%	―	33.20%	68.09%
Sector *	64 Neutral	$12.77B	9.78	7.84%	78.83%	12.06%	-7.99%

East West Bancorp Corporate Events

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.

The most recent analyst rating on (EWBC) stock is a Buy with a $100.00 price target. To see the full list of analyst forecasts on East West Bancorp stock, see the EWBC Stock Forecast page.

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.

The most recent analyst rating on (EWBC) stock is a Buy with a $100.00 price target. To see the full list of analyst forecasts on East West Bancorp stock, see the EWBC Stock Forecast page.

East West Bancorp Reports Strong Q1 2025 Results

On April 22, 2025, East West Bancorp, Inc. announced its financial results for the first quarter of 2025, reporting a net income of $290 million and diluted earnings per share of $2.08. The company achieved record levels in loans, revenue, and fee income, with a notable 16% return on average tangible common equity. The net interest margin expanded by 11 basis points due to a focus on deposit cost optimization, resulting in over $600 million of net interest income. Credit performance improved with decreased nonaccrual loans and nonperforming assets, and the allowance for loan losses was increased to 1.35% of loans. East West Bancorp continues to leverage its strong financial position to capitalize on opportunities and support its customers.