- Total deposits reached $63.2 billion, slightly above the estimate of $62.65 billion.
- Earnings per share (EPS) came in at $2.10, just under the estimated $2.11.
- Net interest margin was reported at 3.24%, surpassing the estimate of 3.19%.
- The Common Equity Tier 1 ratio stood at 14.3%, higher than the estimated 14.1%.
- Provision for credit losses was significantly higher at $70.0 million, compared to an estimate of $43.7 million.
- The efficiency ratio was recorded at 36.9%, slightly higher than the estimated 35.9%.
- Net interest income amounted to $587.6 million, exceeding the estimated $574.1 million.
- Non-interest income was $88.2 million, which was above the estimate of $85.3 million.
- Non-interest expenses totaled $250.0 million, higher than the estimated $239 million.
- The effective tax rate was significantly lower at 17.6%, compared to an estimate of 22.6%.
- The company highlighted deposit growth of over $7 billion, showcasing strong customer relationships.
- An additional $300 million share repurchase authorization was announced, reflecting confidence in the company’s strong capital base and profitability.
- Analyst recommendations include 13 buys, 3 holds, and no sells.
A look at East West Bancorp Smart Scores
| Factor | Score | Magnitude |
|---|---|---|
| Value | 3 | |
| Dividend | 3 | |
| Growth | 4 | |
| Resilience | 3 | |
| Momentum | 5 | |
| OVERALL SMART SCORE | 3.6 |
Smart Score is a compound score for the Company indicating its overall outlook. It is derived by taking an equally weighted average of underlying Factor scores computed by Smartkarma
East West Bancorp, Inc. has received a mixed bag of Smart Scores, indicating a varied long-term outlook for the company. With a strong Momentum score of 5, East West Bancorp seems to be exhibiting positive market trends and investor sentiment. Additionally, a Growth score of 4 suggests promising future prospects in terms of expansion and development. However, the Value, Dividend, and Resilience scores all fall in the mid-range, indicating a somewhat average performance in these areas. This suggests that while the company is showing positive signs of growth and market momentum, investors may need to consider additional factors before making investment decisions.
East West Bancorp, Inc., the holding company for East-West Bank, operates primarily in commercial banking, with a focus on commercial, construction, and real estate lending, as well as international trade financing. The bank’s presence in key counties such as Los Angeles, Orange, San Francisco, and Santa Clara positions it well in key economic hubs. The varied Smart Scores, with a prominent Momentum score, indicate a positive outlook for the company’s future growth and market performance. However, investors may want to delve deeper into the company’s value, dividend payouts, and resilience factors before making significant investment decisions.
Disclaimer: This article by Smartkarma is general in nature and based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. Note that our articles may not factor in the latest price-sensitive company announcements or qualitative material.
While all reasonable care has been taken in the preparation, Smartkarma makes no assurance about the accuracy of any generated data or content. All content is indicative only and should be independently checked for accuracy and confirmed before use. Smartkarma accepts no responsibility for any loss or damage caused as a result of any inaccuracy or error within the Lab online tools or generated data.
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