East West Bancorp vykázala za čtvrtletí EPS ve výši 2,76 USD, čímž překonala odhad 2,69 USD. Tržby dosáhly 822,75 milionu USD a rovněž překonaly očekávání.
East West Bancorp (EWBC - Free Report) came out with quarterly earnings of $2.76 per share, beating the Zacks Consensus Estimate of $2.69 per share. This compares to earnings of $2.62 per share a year ago. These figures are adjusted for non-recurring items.
This quarterly report represents an earnings surprise of +2.60%. A quarter ago, it was expected that this bank holding company would post earnings of $2.61 per share when it actually produced earnings of $2.63, delivering a surprise of +0.77%.
Over the last four quarters, the company has surpassed consensus EPS estimates four times.
East West Bancorp, which belongs to the Zacks Banks - West industry, posted revenues of $822.75 million for the quarter ended September 2026, surpassing the Zacks Consensus Estimate by 1.53%. This compares to year-ago revenues of $778.05 million. The company has topped consensus revenue estimates four times over the last four quarters.
The sustainability of the stock's immediate price movement based on the recently-released numbers and future earnings expectations will mostly depend on management's commentary on the earnings call.
East West Bancorp shares have added about 11.7% since the beginning of the year versus the S&P 500's gain of 12.4%.
What's Next for East West Bancorp?While East West Bancorp has underperformed the market so far this year, the question that comes to investors' minds is: what's next for the stock?
There are no easy answers to this key question, but one reliable measure that can help investors address this is the company's earnings outlook. Not only does this include current consensus earnings expectations for the coming quarter(s), but also how these expectations have changed lately.
Empirical research shows a strong correlation between near-term stock movements and trends in earnings estimate revisions. Investors can track such revisions by themselves or rely on a tried-and-tested rating tool like the Zacks Rank, which has an impressive track record of harnessing the power of earnings estimate revisions.
Ahead of this earnings release, the estimate revisions trend for East West Bancorp was favorable. While the magnitude and direction of estimate revisions could change following the company's just-released earnings report, the current status translates into a Zacks Rank #2 (Buy) for the stock. So, the shares are expected to outperform the market in the near future. You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here.
It will be interesting to see how estimates for the coming quarters and the current fiscal year change in the days ahead. The current consensus EPS estimate is $2.75 on $823.09 million in revenues for the coming quarter and $10.64 on $3.2 billion in revenues for the current fiscal year.
Investors should be mindful of the fact that the outlook for the industry can have a material impact on the performance of the stock as well. In terms of the Zacks Industry Rank, Banks - West is currently in the top 24% of the 250 plus Zacks industries. Our research shows that the top 50% of the Zacks-ranked industries outperform the bottom 50% by a factor of more than 2 to 1.
One other stock from the same industry, Columbia Banking (COLB - Free Report) , is yet to report results for the quarter ended September 2026. The results are expected to be released on October 22.
This bank holding company is expected to post quarterly earnings of $0.77 per share in its upcoming report, which represents a year-over-year change of -9.4%. The consensus EPS estimate for the quarter has been revised 0.4% higher over the last 30 days to the current level.
Columbia Banking's revenues are expected to be $687.95 million, up 18.2% from the year-ago quarter.
Očekává se, že East West Bancorp za čtvrtletí končící v září 2026 vykáže EPS ve výši 2,69 USD, což představuje meziroční nárůst o 2,7 %, při výnosech 810,89 milionu USD.
The market expects East West Bancorp (EWBC - Free Report) to deliver a year-over-year increase in earnings on higher revenues when it reports results for the quarter ended September 2026. This widely-known consensus outlook is important in assessing the company's earnings picture, but a powerful factor that might influence its near-term stock price is how the actual results compare to these estimates.
The stock might move higher if these key numbers top expectations in the upcoming earnings report, which is expected to be released on October 20. On the other hand, if they miss, the stock may move lower.
While the sustainability of the immediate price change and future earnings expectations will mostly depend on management's discussion of business conditions on the earnings call, it's worth handicapping the probability of a positive EPS surprise.
Zacks Consensus EstimateThis bank holding company is expected to post quarterly earnings of $2.69 per share in its upcoming report, which represents a year-over-year change of +2.7%.
Revenues are expected to be $810.89 million, up 4.2% from the year-ago quarter.
Estimate Revisions TrendThe consensus EPS estimate for the quarter has been revised 0.94% higher over the last 30 days to the current level. This is essentially a reflection of how the covering analysts have collectively reassessed their initial estimates over this period.
Investors should keep in mind that the direction of estimate revisions by each of the covering analysts may not always get reflected in the aggregate change.
Price, Consensus and EPS Surprise
Earnings WhisperEstimate revisions ahead of a company's earnings release offer clues to the business conditions for the period whose results are coming out. Our proprietary surprise prediction model -- the Zacks Earnings ESP (Expected Surprise Prediction) -- has this insight at its core.
The Zacks Earnings ESP compares the Most Accurate Estimate to the Zacks Consensus Estimate for the quarter; the Most Accurate Estimate is a more recent version of the Zacks Consensus EPS estimate. The idea here is that analysts revising their estimates right before an earnings release have the latest information, which could potentially be more accurate than what they and others contributing to the consensus had predicted earlier.
Thus, a positive or negative Earnings ESP reading theoretically indicates the likely deviation of the actual earnings from the consensus estimate. However, the model's predictive power is significant for positive ESP readings only.
A positive Earnings ESP is a strong predictor of an earnings beat, particularly when combined with a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold). Our research shows that stocks with this combination produce a positive surprise nearly 70% of the time, and a solid Zacks Rank actually increases the predictive power of Earnings ESP.
Please note that a negative Earnings ESP reading is not indicative of an earnings miss. Our research shows that it is difficult to predict an earnings beat with any degree of confidence for stocks with negative Earnings ESP readings and/or Zacks Rank of 4 (Sell) or 5 (Strong Sell).
How Have the Numbers Shaped Up for East West Bancorp?For East West Bancorp, the Most Accurate Estimate is lower than the Zacks Consensus Estimate, suggesting that analysts have recently become bearish on the company's earnings prospects. This has resulted in an Earnings ESP of -0.26%.
On the other hand, the stock currently carries a Zacks Rank of #2.
So, this combination makes it difficult to conclusively predict that East West Bancorp will beat the consensus EPS estimate.
Does Earnings Surprise History Hold Any Clue?While calculating estimates for a company's future earnings, analysts often consider to what extent it has been able to match past consensus estimates. So, it's worth taking a look at the surprise history for gauging its influence on the upcoming number.
For the last reported quarter, it was expected that East West Bancorp would post earnings of $2.61 per share when it actually produced earnings of $2.63, delivering a surprise of +0.77%.
Over the last four quarters, the company has beaten consensus EPS estimates four times.
Bottom LineAn earnings beat or miss may not be the sole basis for a stock moving higher or lower. Many stocks end up losing ground despite an earnings beat due to other factors that disappoint investors. Similarly, unforeseen catalysts help a number of stocks gain despite an earnings miss.
That said, betting on stocks that are expected to beat earnings expectations does increase the odds of success. This is why it's worth checking a company's Earnings ESP and Zacks Rank ahead of its quarterly release. Make sure to utilize our Earnings ESP Filter to uncover the best stocks to buy or sell before they've reported.
East West Bancorp doesn't appear a compelling earnings-beat candidate. However, investors should pay attention to other factors too for betting on this stock or staying away from it ahead of its earnings release.
Expected Results of an Industry PlayerAmong the stocks in the Zacks Banks - West industry, Zions (ZION - Free Report) , is soon expected to post earnings of $1.64 per share for the quarter ended September 2026. This estimate indicates a year-over-year change of +6.5%. This quarter's revenue is expected to be $894.32 million, up 2.6% from the year-ago quarter.
The consensus EPS estimate for Zions has been revised 0.9% higher over the last 30 days to the current level. However, a higher Most Accurate Estimate has resulted in an Earnings ESP of +1.18%.
This Earnings ESP, combined with its Zacks Rank #3 (Hold), suggests that Zions will most likely beat the consensus EPS estimate. The company beat consensus EPS estimates in each of the trailing four quarters.
Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar.
East West Bancorp zvýšil čtvrtletní dividendu o 33,3 % na 80 centů na akcii a k 30. červnu 2026 měl CET1 ratio 15,44 %. Na odkupy akcií mu zbývalo 117 milionů USD.
Key Takeaways EWBC's CET1 ratio reached 15.44%, supporting growth while leaving room for higher capital returns.East West Bancorp raised its quarterly dividend 33.3% to 80 cents per share in January 2026.EWBC had $117M left for buybacks as of June 30, 2026, while prioritizing disciplined organic growth. East West Bancorp’s (EWBC - Free Report) strong balance sheet is giving it room to pursue growth while returning more capital to shareholders. As of June 30, 2026, the company had $5.09 billion in cash and cash equivalents against $3.04 billion in total debt. East West Bancorp’s common equity tier 1 (CET1) ratio stood at 15.44% and the tangible common equity ratio was at 10.41%, both rising year over year and comfortably above regulatory requirements.
The bank has increasingly used this flexibility to enhance shareholder returns. In January 2026, EWBC raised its quarterly dividend 33.3% to 80 cents per share. The company has increased its dividend five times over the past five years, resulting in annualized dividend growth of 17.5%. The pace of these increases suggests that management remains confident in the bank’s earnings capacity and capital position.
Buybacks provide another avenue for capital distribution. East West Bancorp added $300 million to its repurchase authorization in 2025, with $117 million still available as of June 30, 2026. At the same time, management continues to prioritize organic growth and disciplined M&A, alongside dividends and repurchases. This diversified approach helps the bank return excess capital without relying heavily on any one method of distribution.
EWBC’s capital return strategy also stands out when compared with peers such as Zions Bancorporation (ZION - Free Report) and Wintrust Financial (WTFC - Free Report) . Zions continues to emphasize dividends and buybacks, with its board authorizing up to $225 million of additional share repurchases for the remainder of 2026. ZION also maintained a quarterly common dividend of 45 cents per share. Wintrust, meanwhile, has leaned more toward gradually increasing its dividend as earnings expand. WTFC raised its quarterly dividend 10% to 55 cents per share in January 2026 and maintained that payout through the second quarter.
Against these peers, EWBC’s 33.3% dividend increase is notably stronger and points to management’s confidence in its capital-generation capacity. The key question is whether East West Bancorp can sustain growth while raising capital distributions. So far, its strong capital ratios, liquidity and earnings base suggest that higher distributions are not materially constraining growth. If profitability remains resilient and credit trends stay stable, EWBC appears well-positioned to continue funding expansion while maintaining competitive dividends and opportunistic buybacks.
EWBC’s Price Performance & Zacks RankOver the past six months, EWBC shares have gained 22.6% compared with the industry’s 10.3% growth.
Image Source: Zacks Investment Research
Currently, East West Bancorp carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
The trick to finding great dividend companies is to actually just find great companies.
Companies can pay strong dividends and raise them every year when they have strong operating businesses that generate strong free cash flow or earnings to fund those dividends.
Often, a high dividend yield will draw investors in, but it could signal that a company is experiencing underlying issues that have sent its share price down and its dividend yield higher. That's why understanding a company's financials is key.
Banks are often a great sector to look for strong dividend stocks. In fact, one bank stock increased its dividend by 33% this year, and it's well-positioned to keep raising it for years to come.
Image source: Getty Images.
A strong regional bank generating strong returns East West Bancorp (EWBC +1.28%) is a large regional bank based in Pasadena, California. The bank ended the second quarter with nearly $85 billion in total assets.
That makes it much smaller than a large, money-center bank like Bank of America, but still fairly large compared to most banks in the country. Most of the bank's loans are commercial real estate and commercial and industrial, but East West also has a large mortgage portfolio.
East West has largely succeeded by finding a niche within the Asian-American community. Interestingly, the bank also holds a banking license in China, which is unique among U.S.-based regional banks.
The company's strategy has worked well, with the bank generating strong returns.
At the end of the second quarter, the bank generated a 1.75% return on average assets and a 16.88% return on average tangible common equity (ROTCE), both of which were quite strong by industry standards, while credit trends remained largely stable.
As such, the bank has been rewarded with a premium valuation, about 75% more than the average for regional banks.
EWBC Price to Tangible Book Value data by YCharts
Assessing the dividend East West raised its quarterly dividend from $0.60 per share to $0.80 per share earlier this year, due to strong financial performance. Diluted earnings per share rose 14% year over year in 2025. In the second quarter of 2026, they rose 18%.
The annualized yield is now almost 2.6%, which is solid and more than double the average for the S&P 500. Banks are also known for maintaining fairly modest payout ratios, which measure how much of a company's earnings are paid out in dividends.
EWBC Payout Ratio (TTM) data by YCharts
The payout ratio is more relevant for banks than free cash flow because bank balance sheets differ from those of most other companies, and there are really minimal capital expenditures at most banks. Banks also must maintain regulatory capital to be prepared for unexpected loan losses.
East West is well capitalized from a regulatory perspective. At the end of the second quarter, the bank had a 15.44% common equity tier 1 (CET1) capital ratio, which looks at a bank's core capital as a percentage of its risk-weighted assets, most of which are loans.
East West has a minimum regulatory CET1 requirement of 7%, meaning it has more than double the required amount.
When assessing bank dividends, the difference between a bank's CET1 ratio and its required minimum ultimately determines how much excess capital banks have to return to shareholders and use to increase lending.
So, I suspect East West will be able to continue raising its dividend for many years to come if it chooses to. The bank is generating strong earnings, maintains a low payout ratio, and has ample excess capital. Dividend investors should check this one out.
East West Bancorp za šest měsíců vzrostl o 17,7 % a překonal sektor, který přidal 5,7 %, i S&P 500 s růstem 16,6 %. Firma v roce 2026 vyhlíží růst NII o 7–9 % a úvěrů o 6–8 %.
Key Takeaways EWBC gained 17.7% in six months, outpacing its industry, the broader market and close peers.East West Bancorp expects 2026 NII growth of 7-9% and loan growth of 6-8%.EWBC faces rising expenses and weaker asset quality, even as earnings estimates move higher. Shares of East West Bancorp (EWBC - Free Report) have gained 17.7% in the past six months, outperforming the industry’s 5.7% growth and the S&P 500 Index’s 16.6% rally.
If we compare the company’s price performance with its close peers like Zions Bancorporation (ZION - Free Report) and Old National Bancorp (ONB - Free Report) , it appears that the EWBC stock has outperformed both. In the past six months, ZION and ONB shares have rallied 9.7% and 15.3%, respectively.
6-Month Price Performance
Image Source: Zacks Investment Research
Does the EWBC stock have more upside left despite recent strength in price? Let us find out by looking at its fundamentals and growth prospects.
Key Positives of East West BancorpSolid Net Interest Income (NII) Growth: East West Bancorp’s NII, which is the primary revenue source, declined in 2020 and 2024 (due to a challenging operating backdrop), but the metric has witnessed a compound annual growth rate (CAGR) of 9.7% in the last six years (2019-2025), supported by higher loan balances. The upward trend continued in the first half of 2026.
Supported by continued loan growth and deposit repricing, the company’s NII is expected to keep improving. Down-rate protection hedge programs, rising interest-earning assets and a continued focus on acquiring low-cost deposits are expected to offer additional support.
Management expects NII in 2026 to grow 7-9% and loans to rise 6-8%. We project NII to grow 8.4%, 6.5% and 6.8% in 2026, 2027 and 2028, respectively.
Expanding Net Interest Margin (NIM): Supported by higher rates, EWBC’s NIM rose to 3.41% in 2025 from 3.27% in 2024. The upward trend continued in the first six months of 2026 as period-end cost of deposits fell.
The company’s non-interest-bearing deposits increased 19% year over year and represented 26% of total deposits as of June 30, 2026. Recently, the Federal Reserve hiked interest rates by 25 bps, suggesting a higher-for-longer rate backdrop. Thus, supported by a favorable rate environment, EWBC’s NIM is expected to continue to expand in the near term. We estimate NIM to expand to 3.44% in 2026, 3.45% in 2027 and 3.51% in 2028.
Robust Fee Revenue Growth: East West Bancorp’s non-interest income has been consistently improving over the past few years. The metric witnessed a CAGR of 10.4% in the last six years (2019-2025), with the momentum continuing in the first six months of 2026. Deposit account fees and lending fees were the key contributors, comprising 29.8% and 25.8% of total non-interest income, respectively, in the first half of 2026.
As management expects steady growth in deposits and loans through sustained client acquisition, the company’s fee income is likely to get a further boost. We expect total non-interest income to witness a CAGR of 4.4% by 2028. This year, we expect deposit account fees and lending fees to grow 11.6% and 3.5%, respectively.
Balance Sheet Strength: East West Bancorp has a solid balance sheet position. As of June 30, 2026, the company had total debt (comprising Federal Home Loan Bank advances and long-term debt and finance lease liabilities) of $3.04 billion, while cash and cash equivalents were $5.09 billion.
It has investment-grade credit ratings of BBB and BBB+ and a stable outlook from Standard & Poor’s and Fitch Ratings, respectively. This liquidity and credit profile support continued balance sheet growth and the ability to meet funding needs through changing economic conditions.
East West Bancorp’s capital distribution activities seem impressive. In January 2026, the company hiked its quarterly dividend 33.3%. Also, it has a share repurchase authorization in place. In 2025, it announced an additional repurchase plan of $300 million. As of June 30, 2026, $117 million of authorization remained available for repurchase.
Management lists organic growth, a competitive dividend, disciplined M&A and share buybacks as its capital priorities, indicating continued capacity for shareholder distributions alongside business investment.
What’s Hurting EWBC’s Growth?Rising Expenses: East West Bancorp’s non-interest expenses have been trending higher. Though the metric declined in 2020 and 2024, it saw a CAGR of 6.1% in the last six years (2019-2025), with the uptrend continuing in the first six months of 2026. The increase has mainly been due to a rise in compensation and employee benefit costs.
Expense Trend
Image Source: Zacks Investment Research
Management expects operating expense growth of 8-9% in 2026. Compensation is expected to moderate in the second half as deferred compensation and vacation-pay effects ease, but continued investments in people and platforms are expected. If revenue growth softens, the higher expense base could weigh on operating leverage and earnings growth. We project total non-interest expenses to witness a CAGR of 6.5% by 2028.
Weak Asset Quality: East West Bancorp’s asset quality has been deteriorating over the past few years. While the company recorded negative provisions in 2021, a substantial jump in provisions was recorded thereafter as it continued to build reserves to combat the tough economic backdrop.
The provision for credit losses witnessed a CAGR of 8.4% in the six years ended 2025. Net charge-offs (NCOs) have witnessed a volatile trend in the past few years. Though NCOs increased and provisions declined in the first half of 2026, both are expected to remain elevated in the near term, given the challenging macroeconomic backdrop. We expect provisions to increase 4.2% in the third quarter of 2026, while NCOs are likely to soar 55.3%.
Analyst Sentiments for EWBCOver the past 30 days, the Zacks Consensus Estimate for EWBC’s 2026 and 2027 earnings has been revised higher. This indicates that analysts are optimistic regarding the company’s earnings growth prospects.
Earnings Estimate Revision
Image Source: Zacks Investment Research
Final Verdict on EWBC StockEast West Bancorp’s outlook remains supported by expanding NII and NIM, steady fee-income growth, and a strong funding profile. Continued loan growth, deposit repricing and a higher mix of non-interest-bearing deposits are expected to keep aiding revenues. Upward revisions to near-term earnings estimates further strengthen the company’s growth outlook.
However, rising operating expenses and weakening asset quality remain key concerns, which make us apprehensive about its prospects. Thus, it does not seem a wise idea to invest in the stock immediately, taking into consideration its headwinds. However, those who already own the stock, should hold on to it, because EWBC is less likely to disappoint in the long run.
Currently, East West Bancorp carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Cetera Investment Advisers ve 1. čtvrtletí snížila podíl ve společnosti East West Bancorp o 21,4 % na 39 632 akcií. Firma zároveň oznámila čtvrtletní dividendu ve výši 0,80 USD na akcii.
Cetera Investment Advisers lessened its position in shares of East West Bancorp, Inc. (NASDAQ:EWBC – Free Report) by 21.4% in the 1st quarter, according to the company in its most recent 13F filing with the Securities & Exchange Commission. The institutional investor owned 39,632 shares of the financial services provider’s stock after selling 10,796 shares during the quarter. Cetera Investment Advisers’ holdings in East West Bancorp were worth $4,231,000 as of its most recent SEC filing.
A number of other hedge funds and other institutional investors also recently added to or reduced their stakes in EWBC. Northwestern Mutual Wealth Management Co. lifted its position in East West Bancorp by 84,090.3% during the 4th quarter. Northwestern Mutual Wealth Management Co. now owns 5,311,566 shares of the financial services provider’s stock worth $596,967,000 after acquiring an additional 5,305,257 shares during the period. Norges Bank purchased a new position in East West Bancorp in the fourth quarter valued at $199,529,000. Price T Rowe Associates Inc. MD increased its stake in shares of East West Bancorp by 281.3% in the 4th quarter. Price T Rowe Associates Inc. MD now owns 1,607,314 shares of the financial services provider’s stock valued at $180,647,000 after purchasing an additional 1,185,781 shares in the last quarter. Boston Partners raised its stake in shares of East West Bancorp by 19.6% during the 3rd quarter. Boston Partners now owns 3,874,737 shares of the financial services provider’s stock worth $412,464,000 after buying an additional 633,649 shares during the period. Finally, AQR Capital Management LLC lifted its holdings in East West Bancorp by 61.9% during the second quarter. AQR Capital Management LLC now owns 1,418,174 shares of the financial services provider’s stock valued at $143,207,000 after purchasing an additional 542,149 shares in the last quarter. 89.53% of the stock is currently owned by hedge funds and other institutional investors.
Analysts Set New Price Targets A number of research firms have recently issued reports on EWBC. Cantor Fitzgerald reaffirmed an “overweight” rating and set a $150.00 target price on shares of East West Bancorp in a report on Wednesday, July 22nd. Barclays upped their target price on shares of East West Bancorp from $150.00 to $155.00 and gave the company an “overweight” rating in a research report on Monday. DA Davidson lifted their price objective on East West Bancorp from $150.00 to $155.00 and gave the company a “buy” rating in a research note on Thursday, July 23rd. Weiss Ratings reiterated a “buy (b)” rating on shares of East West Bancorp in a report on Friday, July 10th. Finally, Stephens upped their target price on shares of East West Bancorp from $129.00 to $135.00 and gave the stock an “equal weight” rating in a research note on Wednesday, July 22nd. Ten equities research analysts have rated the stock with a Buy rating and five have assigned a Hold rating to the company. According to MarketBeat, the stock presently has a consensus rating of “Moderate Buy” and a consensus price target of $140.62.
View Our Latest Stock Analysis on East West Bancorp
Insiders Place Their Bets In other East West Bancorp news, Vice Chairman Douglas Paul Krause sold 10,000 shares of East West Bancorp stock in a transaction that occurred on Wednesday, May 27th. The stock was sold at an average price of $123.50, for a total transaction of $1,235,000.00. Following the sale, the insider directly owned 46,974 shares in the company, valued at $5,801,289. The trade was a 17.55% decrease in their position. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is available through the SEC website. Also, insider Irene H. Oh sold 11,211 shares of the company’s stock in a transaction dated Thursday, June 11th. The shares were sold at an average price of $129.00, for a total transaction of $1,446,219.00. Following the completion of the sale, the insider owned 85,998 shares in the company, valued at approximately $11,093,742. This trade represents a 11.53% decrease in their position. Additional details regarding this sale are available in the official SEC disclosure. In the last three months, insiders sold 22,511 shares of company stock worth $2,854,021. Insiders own 0.94% of the company’s stock.
East West Bancorp Price Performance Shares of NASDAQ:EWBC opened at $133.40 on Wednesday. The company has a 50-day moving average price of $129.37 and a 200 day moving average price of $120.29. East West Bancorp, Inc. has a 52 week low of $92.67 and a 52 week high of $136.24. The company has a market cap of $18.28 billion, a P/E ratio of 12.83, a PEG ratio of 1.53 and a beta of 0.94. The company has a quick ratio of 0.88, a current ratio of 0.88 and a debt-to-equity ratio of 0.33.
East West Bancorp (NASDAQ:EWBC – Get Free Report) last released its quarterly earnings results on Tuesday, July 21st. The financial services provider reported $2.63 earnings per share (EPS) for the quarter, topping the consensus estimate of $2.61 by $0.02. The business had revenue of $791.14 million during the quarter, compared to the consensus estimate of $784.47 million. East West Bancorp had a return on equity of 16.07% and a net margin of 30.45%.The business’s revenue was up 12.5% on a year-over-year basis. During the same quarter in the previous year, the company posted $2.24 EPS. Research analysts predict that East West Bancorp, Inc. will post 10.59 earnings per share for the current year.
East West Bancorp Announces Dividend The firm also recently declared a quarterly dividend, which will be paid on Monday, August 17th. Investors of record on Monday, August 3rd will be issued a $0.80 dividend. The ex-dividend date is Monday, August 3rd. This represents a $3.20 annualized dividend and a yield of 2.4%. East West Bancorp’s dividend payout ratio (DPR) is presently 30.77%.
East West Bancorp Profile (Free Report)
East West Bancorp, Inc is a bank holding company and the parent of East West Bank, one of the largest independent banks headquartered in Southern California. As a full-service commercial bank, it provides a broad range of financial products and services to business and individual customers, including commercial and residential real estate lending, working capital lines of credit, trade finance, and deposit and treasury management services. The company caters to both large and middle-market businesses, leveraging its expertise to serve clients engaged in cross-border trade and investment between the United States and Greater China.
Founded in Los Angeles in the early 1970s, East West Bank has grown steadily through organic expansion and strategic branch openings.
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East West Bancorp zveřejnila výsledky za 2. čtvrtletí 2026. Na konferenčním hovoru k nim vystoupili CEO Dominic Ng, CFO Christopher Del Moral-Niles a šéfka risku Irene Oh.
East West Bancorp, Inc. (EWBC) Q2 2026 Earnings Call July 21, 2026 5:00 PM EDT
Company Participants
Adrienne Atkinson - Director of Investor Relations
Dominic Ng - Chairman, President & CEO
Christopher Del Moral-Niles - Executive VP & CFO
Irene Oh - Executive VP & Chief Risk Officer
Conference Call Participants
Jared David Shaw - Barclays Bank PLC, Research Division
David Rochester - Cantor Fitzgerald & Co., Research Division
David Smith - Truist Securities, Inc., Research Division
Manan Gosalia - Morgan Stanley, Research Division
David Chiaverini - Jefferies LLC, Research Division
Timur Braziler - UBS Investment Bank, Research Division
Ebrahim Poonawala - BofA Securities, Research Division
Christopher McGratty - Keefe, Bruyette, & Woods, Inc., Research Division
Matthew Clark - Piper Sandler & Co., Research Division
Sun Young Lee - TD Cowen, Research Division
Bernard Von Gizycki - Deutsche Bank AG, Research Division
Presentation
Operator
Good day, and welcome to East West Bancorp's Second Quarter 2026 Earnings Call. [Operator Instructions] Please note this event is being recorded. I would now like to turn the conference over to Adrienne Atkinson, Director of Investor Relations. Please go ahead.
Adrienne Atkinson
Director of Investor Relations
Thank you, operator. Good afternoon, and thank you, everyone, for joining us to review East West Bancorp's Second Quarter 2026 Financial Results. With me are Dominic Ng, Chairman and Chief Executive Officer; Chris Del Moral-Niles, Chief Financial Officer; and Irene Oh, Chief Risk Officer. This call is being recorded and will be available for replay on our Investor Relations website. The slide deck referenced during this call is available on our Investor Relations site.
Management may make projections or other forward-looking statements, which may differ materially from the actual results due to a number of risks and uncertainties. Management may discuss non-GAAP financial measures. For a more detailed description of the risk factors and a reconciliation of GAAP to non-GAAP financial measures, please refer
East West Bancorp za 2. čtvrtletí vykázala tržby 791,14 mil. USD a zisk na akcii (EPS) 2,63 USD, obojí nad odhady Wall Street. Tržby meziročně vzrostly o 12,5 %.
For the quarter ended June 2026, East West Bancorp (EWBC - Free Report) reported revenue of $791.14 million, up 12.5% over the same period last year. EPS came in at $2.63, compared to $2.28 in the year-ago quarter.
The reported revenue compares to the Zacks Consensus Estimate of $785.94 million, representing a surprise of +0.66%. The company delivered an EPS surprise of +0.77%, with the consensus EPS estimate being $2.61.
While investors scrutinize revenue and earnings changes year-over-year and how they compare with Wall Street expectations to determine their next move, some key metrics always offer a more accurate picture of a company's financial health.
As these metrics influence top- and bottom-line performance, comparing them to the year-ago numbers and what analysts estimated helps investors project a stock's price performance more accurately.
Here is how East West Bancorp performed in the just reported quarter in terms of the metrics most widely monitored and projected by Wall Street analysts:
Net interest margin: 3.4% compared to the 3.5% average estimate based on four analysts.Efficiency ratio: 36.7% versus the four-analyst average estimate of 35.4%.Average Balance - Total interest-earning assets: $80.09 billion compared to the $79.83 billion average estimate based on three analysts.Annualized quarterly net charge-offs to average loans HFI: 0.2% compared to the 0.2% average estimate based on three analysts.Total nonperforming assets: $246.96 million compared to the $221.84 million average estimate based on two analysts.Leverage ratio: 11% versus the two-analyst average estimate of 11%.Tier 1 capital ratio: 15.4% versus the two-analyst average estimate of 15.2%.Total capital ratio: 16.8% compared to the 16.5% average estimate based on two analysts.Total nonaccrual loans: $204.96 million compared to the $186.16 million average estimate based on two analysts.Total Noninterest Income: $106.49 million versus the four-analyst average estimate of $98.34 million.Net Interest Income: $684.65 million versus the four-analyst average estimate of $687.82 million.Commercial and consumer deposit-related fees: $31.62 million compared to the $30.01 million average estimate based on three analysts.View all Key Company Metrics for East West Bancorp here>>>
Shares of East West Bancorp have returned +3.7% over the past month versus the Zacks S&P 500 composite's -0.6% change. The stock currently has a Zacks Rank #3 (Hold), indicating that it could perform in line with the broader market in the near term.
East West Bancorp oznámila rekordní čtvrtletní výnosy, čistý úrokový výnos i neúrokové příjmy díky růstu úvěrů a vkladů. Zároveň zvýšila celoroční výhled čistého úrokového výnosu na 7 % až 9 %.
MarketBeat Week in Review – 04/06 - 04/10 East West Bancorp NASDAQ: EWBC reported record second-quarter 2026 revenue, net interest income and non-interest income, supported by new highs in loans and deposits, executives said on the company’s earnings call.
Chairman and Chief Executive Officer Dominic Ng said end-of-period deposits grew 8% year over year, with strength across all deposit product categories. He said demand deposits accounted for more than two-thirds of the quarter’s total increase, while non-interest-bearing deposits rose 19% from a year earlier.
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East West Bancorp: Confronting the Risks With Record Results “A continued focus on providing solutions to our customers helped drive” the growth in non-interest-bearing deposits, Ng said.
End-of-period loans increased 7% year over year, with growth in residential mortgage and commercial-and-industrial lending helping further diversify the loan portfolio, Ng said. He added that credit quality remained strong, with non-performing assets, criticized loans and net charge-off levels “broadly stable.”
Deposits Shift Toward Core Demand Accounts Chief Financial Officer Chris Del Moral-Niles said end-of-period deposits rose by $1.2 billion across more than 700,000 customer accounts during the quarter. Demand deposits increased $875 million, representing most of the growth. Average demand deposit accounts were up 15% year over year.
Del Moral-Niles attributed the increase to small business checking campaigns and positive flows from tariff refunds across hundreds of accounts. He said East West’s demand deposit mix rose to 26% of total deposits as the company emphasized core relationship growth and moved away from certificates of deposit, wholesale deposits and public funds deposits.
That shift helped support the net interest margin and control deposit costs, he said. Period-end deposit costs declined by six basis points in the quarter. Over the past year, interest-bearing deposit costs fell 49 basis points against a backdrop of 75 basis points of cuts in the federal funds target rate.
During the question-and-answer session, Del Moral-Niles estimated that roughly $200 million to $250 million of period-end balances reflected net excess tariff-related inflows. He said most of that amount had already moved out after quarter-end, though additional tariff deposits were still expected under refund programs into August.
Asked about upcoming CD maturities, Del Moral-Niles said $13 billion of CDs would roll off in the third quarter. He said the bank was proactively pricing at 3.60% for six-month CDs and 3.75% for 12-month CDs, while continuing to evaluate pricing as the quarter progresses.
Loan Growth Led by Residential Mortgage and C&I East West reported more than $300 million of net growth in residential mortgage loans during the quarter. Del Moral-Niles said the company maintained a conservative underwriting approach, with an average portfolio loan-to-value ratio of 52% in its residential mortgage book.
C&I loan balances also increased by more than $300 million in the second quarter. Del Moral-Niles cited growth in lending to financial services, equipment finance and lessors, and manufacturers and wholesalers. Non-depository financial institution balances rose by only $24 million, reflecting expected paydowns in private equity loans and consumer credit portfolios.
Overall, C&I loans were up 11% year over year, representing more than $2 billion of net growth over that period. Given 7% loan growth in the first half of 2026 and the pipeline heading into the third quarter, East West raised its full-year end-of-period loan growth guidance to a range of 6% to 8%.
In response to an analyst question, Del Moral-Niles said the bank remains focused on moving toward a portfolio mix of roughly one-third C&I, one-third residential mortgage and one-third commercial real estate over time. He said C&I represented 34% of total loans, while commercial real estate stood at 37%, above the company’s long-term vision but still a portfolio with which management is “very comfortable.”
Net Interest Income Guidance Raised Quarterly net interest income rose to a record $685 million. East West’s net interest margin was 3.43%, down in line with the effect of one fewer day in the quarter but up eight basis points from a year earlier.
Del Moral-Niles said the company now expects full-year net interest income growth of 7% to 9%, up from its prior guidance of 6% to 8%. The updated outlook assumes a flat federal funds rate through the end of the year.
Asked about margin trends in a flat rate environment, Del Moral-Niles said management expects the margin to remain “relatively stable.” He acknowledged some pressure on loan yields from mix and prior-quarter one-time items but said the company expects to drive stronger net interest income through balance sheet growth.
On rate sensitivity, Del Moral-Niles said East West is “modestly asset sensitive.” He said a 25-basis-point rate hike or cut would likely affect net interest income by about $2 million per month, with roughly a 45-day lag.
Fee Income and Expenses Quarterly fee income increased 19% year over year to $96 million. Del Moral-Niles said total fee income declined by $3 million from the first quarter, largely reflecting record wealth management results in the prior period and a slight decline in some derivatives activity.
Loan- and deposit-related fees rose 14% year over year. Del Moral-Niles said East West remains on track to deliver double-digit year-over-year fee income growth in 2026. He also highlighted wealth management as a growth area, noting during the Q&A that wealth management fees were up 71% year over year for the first six months of the year, according to the company’s press release tables.
Total operating non-interest expenses were $268 million in the second quarter. Compensation and benefits costs were flat sequentially, and Del Moral-Niles said those costs are expected to moderate in the second half of the year. He cited deferred compensation expenses and changes related to vacation pay as factors affecting the quarter’s compensation line.
East West reported a second-quarter efficiency ratio of 36.7%, consistent with prior periods, and an operating non-interest expense to average asset ratio of 1.29%. The company narrowed its full-year expense growth guidance to 8% to 9% versus last year.
Credit and Capital Remain Strong Chief Risk Officer Irene Oh said asset quality metrics remained broadly stable. Non-performing assets rose slightly by three basis points quarter over quarter to 29 basis points as of June 30, 2026. Net charge-offs were 19 basis points, or $27 million, compared with nine basis points, or $12 million, in the first quarter.
East West reaffirmed its full-year net charge-off guidance of 15 to 25 basis points. The company recorded a provision for credit losses of $33 million, compared with $36 million in the first quarter. The allowance for credit losses increased $6 million to $842 million, or 1.43% of total loans, reflecting loan growth and portfolio mix shift.
Oh said all regulatory capital ratios remained well above requirements for well-capitalized institutions. East West’s common equity Tier 1 capital ratio was 15.4%, and its tangible common equity ratio was 10.4%. The company had $117 million of repurchase authorization remaining and distributed about $111 million to shareholders through quarterly dividends.
Ng closed the call by thanking employees and said the company remains focused on creating long-term value.
About East West Bancorp (NASDAQ:EWBC)East West Bancorp, Inc is a bank holding company and the parent of East West Bank, one of the largest independent banks headquartered in Southern California. As a full-service commercial bank, it provides a broad range of financial products and services to business and individual customers, including commercial and residential real estate lending, working capital lines of credit, trade finance, and deposit and treasury management services. The company caters to both large and middle-market businesses, leveraging its expertise to serve clients engaged in cross-border trade and investment between the United States and Greater China.
Founded in Los Angeles in the early 1970s, East West Bank has grown steadily through organic expansion and strategic branch openings.
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East West Bancorp má za čtvrtletí vykázat zisk 2,61 USD na akcii, tedy o 14,5 % více než před rokem. Výnosy mají dosáhnout 785,94 milionu USD, což je meziročně o 11,8 % více.
The upcoming report from East West Bancorp (EWBC - Free Report) is expected to reveal quarterly earnings of $2.61 per share, indicating an increase of 14.5% compared to the year-ago period. Analysts forecast revenues of $785.94 million, representing an increase of 11.8% year over year.
Over the past 30 days, the consensus EPS estimate for the quarter has been adjusted downward by 1.1% to its current level. This demonstrates the covering analysts' collective reassessment of their initial projections during this period.
Prior to a company's earnings announcement, it is crucial to consider revisions to earnings estimates. This serves as a significant indicator for predicting potential investor actions regarding the stock. Empirical research has consistently demonstrated a robust correlation between trends in earnings estimate revision and the short-term price performance of a stock.
While investors typically rely on consensus earnings and revenue estimates to gauge how the business may have fared during the quarter, examining analysts' projections for some of the company's key metrics often helps gain a deeper insight.
In light of this perspective, let's dive into the average estimates of certain East West Bancorp metrics that are commonly tracked and forecasted by Wall Street analysts.
The collective assessment of analysts points to an estimated 'Net interest margin' of 3.5%. Compared to the present estimate, the company reported 3.4% in the same quarter last year.
Analysts predict that the 'Efficiency ratio' will reach 35.4%. The estimate is in contrast to the year-ago figure of 36.4%.
It is projected by analysts that the 'Average Balance - Total interest-earning assets' will reach $79.83 billion. The estimate is in contrast to the year-ago figure of $73.90 billion.
The combined assessment of analysts suggests that 'Total nonperforming assets' will likely reach $221.84 million. Compared to the current estimate, the company reported $171.68 million in the same quarter of the previous year.
The consensus among analysts is that 'Leverage ratio' will reach 11.0%. Compared to the current estimate, the company reported 10.6% in the same quarter of the previous year.
Analysts expect 'Tier 1 capital ratio' to come in at 15.2%. The estimate is in contrast to the year-ago figure of 14.5%.
Analysts' assessment points toward 'Total capital ratio' reaching 16.5%. Compared to the current estimate, the company reported 15.8% in the same quarter of the previous year.
Analysts forecast 'Total nonaccrual loans' to reach $186.16 million. Compared to the current estimate, the company reported $139.45 million in the same quarter of the previous year.
The consensus estimate for 'Total Noninterest Income' stands at $98.34 million. Compared to the present estimate, the company reported $86.18 million in the same quarter last year.
According to the collective judgment of analysts, 'Net Interest Income' should come in at $687.82 million. The estimate compares to the year-ago value of $617.07 million.
The average prediction of analysts places 'Commercial and consumer deposit-related fees' at $30.01 million. The estimate is in contrast to the year-ago figure of $26.87 million.
Based on the collective assessment of analysts, 'Lending fees' should arrive at $26.23 million. Compared to the current estimate, the company reported $25.59 million in the same quarter of the previous year.
View all Key Company Metrics for East West Bancorp here>>>
Over the past month, East West Bancorp shares have recorded returns of +4.1% versus the Zacks S&P 500 composite's +0.5% change. Based on its Zacks Rank #3 (Hold), EWBC will likely exhibit a performance that aligns with the overall market in the upcoming period. You can see the complete list of today's Zacks Rank #1 (Strong Buy) stocks here >>>> .
