East West Bancorp (EWBC) Q3 Earnings call transcript Oct 22, 2024

In the recent earnings call, East West Bancorp showcased its impressive financial performance for the third quarter of 2024, highlighting balanced growth in loans and deposits, strategic liquidity management, and robust fee income. The call was led by Adrienne Atkinson, Director of Investor Relations, with contributions from Dominic Ng, Chairman and CEO; Christopher Del Moral-Niles, CFO; and Irene Oh, Chief Risk Officer.

Balanced Growth and Diversification

East West Bancorp reported net income of $299 million or $2.14 per diluted share, marking another strong quarter of balanced growth. The company grew average loans by 1% quarter-over-quarter and diversified its loan portfolio, emphasizing residential and C&I lending. Average deposits increased by 3% quarter-over-quarter, underscoring the success of the bank's efforts to attract and retain customers. The growth in loans and deposits was complemented by a consecutive quarter of record fee income, driven by notable strength in lending, wealth management, and deposit fees.

Liquidity and Financial Performance

The call also highlighted the bank's proactive liquidity management, with the addition of $1.2 billion of securities in Q3 and a near $1 billion increase in average cash and equivalents. This strategic move enhanced the bank's liquidity profile and supported earnings, positioning it well for future challenges. The balance sheet growth was complemented by a decrease in the cost of average interest-bearing deposits, contributing to the bank's net interest income growth.

Credit and Capital

Irene Oh, Chief Risk Officer, provided updates on credit and capital, reporting stable credit trends and a strong asset quality portfolio. Despite a slight increase in provision for credit losses, the asset quality of the portfolio remains strong. The bank's regulatory capital ratios remain well in excess of regulatory requirements, demonstrating its robust capital position.

Looking Ahead

Looking ahead, East West Bancorp expects to continue its growth trajectory, with loan growth projected to remain in the 2% to 4% range for the full year. The bank's focus on disciplined credit management and proactive risk management positions it well to navigate any potential challenges. Despite uncertainties in the economic environment, East West Bancorp's strong performance and strategic initiatives bode well for its future growth and financial health.

In conclusion, East West Bancorp's third-quarter earnings call underscored its balanced growth, strategic liquidity management, and robust fee income. The bank's focus on diversification, risk management, and investor relations positions it well for future challenges and opportunities in the dynamic financial landscape. Investors and stakeholders can look forward to East West Bancorp's continued growth and resilience in the quarters ahead.