What is the market's earnings forecast for East West Bancorp next quarter?

What guidance did East West Bancorp's management provide for the next earnings period?

Did East West Bancorp beat or miss consensus estimates last quarter?

What were the key takeaways from East West Bancorp's earnings call?

What is East West Bancorp's gross profit margin?

What does East West Bancorp do and what are its main business segments?

What were the key takeaways from East West Bancorp’s earnings call?

What is the revenue and EPS growth rate for East West Bancorp year over year?

- **Record Financials**: Q3 2025 saw $645M NII, $92M fees (36% YoY wealth growth), and 10.2% TCE ratio.
- **Deposit Dominance**: $1.5B+ deposit growth, 77bps cost reduction, and 0.62 beta to Fed cuts.
- **Credit Resilience**: 13bps NCOs, stable criticized loans, and $791M ACL reflecting economic caution.
- **Strategic Growth**: Wealth management and fee-based businesses driving 10%+ revenue growth.
- **Capital Flexibility**: 10%+ TCE ratio supports buybacks and dividend expansion.


**【CEO Summary Section】**
- **Record Financial Performance**: Q3 2025 revenue, net income, and EPS all hit new highs, driven by deposit growth and fee income expansion.
- **Deposit Growth**: $1.5B+ quarterly increase, with noninterest-bearing deposits outpacing time deposits, reflecting customer preference for low-cost funding.
- **Fee Income Strength**: Wealth management fees grew 36% YoY, leading to record $92M in total fees.
- **Credit Resilience**: Net charge-offs remained low at 13 basis points, with stable criticized loan levels.

**【CFO Financial Commentary】**
- **Net Interest Income (NII)**: $645M (excluding $32M interest recoveries), up 10% YoY, benefiting from 77bps deposit cost reduction.
- **Efficiency Ratio**: 35.6%, industry-leading, reflecting disciplined expense management.
- **Balance Sheet Growth**: Loans up $800M QoQ, deposits +$1.5B, with focus on low-cost DDA growth.
- **Capital Position**: 10.2% TCE ratio, well above regulatory requirements, supporting buybacks and dividend growth.

**【Credit Discussion】**
- **Asset Quality**: Nonperforming assets at 0.25% of loans, with no material migration from multifamily to NPAs.
- **Allowance for Credit Losses**: Increased to $791M, reflecting economic uncertainty and prudent risk management.
- **NDFI Portfolio**: 13% of total loans, with minimal credit risk and historical performance.

**【Q&A Highlights】**
- **Deposit Repricing Strategy**: Immediate repricing of 90%+ of interest-bearing deposits on Fed cuts, driving NII growth.
- **2026 Outlook**: Expecting 10-20bps net charge-offs, stable credit quality, and cautious loan growth.
- **Wealth Management Expansion**: Hiring and product development driving fee growth, targeting 10%+ annual revenue growth.
- **Tariff Impact**: Customers showing resilience, with no material impact on loan demand.
- **Share Repurchases**: $216M remaining under buyback authorization, targeting 10%+ TCE ratio.


East West Bancorp, Inc. (EWBC) Q3 2025 Earnings Call Transcript

Consumer and Business Banking

Commercial Banking

Other

EWBC

EWBC fundamentals

You can ask Aime