Getting big returns from financial portfolios, whether through stocks, bonds, ETFs, other securities, or a combination of all, is an investor's dream. However, when you're an income investor, your primary focus is generating consistent cash flow from each of your liquid investments.Cash flow can come from bond interest, interest from other types of investments, and, of course, dividends. A dividend is the distribution of a company's earnings paid out to shareholders; it's often viewed by its dividend yield, ...

Truist Financial sets a new price target for NASDAQ:EWBC at $121, indicating a potential upside of 8.67%.Record net income of $1.3 billion for 2025, with a net income of $356 million in Q4 alone.Significant increases in returns on average assets (1.70%), returns on average common equity (16.0%), and dividend by 33%.East West Bancorp, Inc. (NASDAQ:EWBC), the parent company of East West Bank, a leading financial institution, has recently been in the spotlight after Truist Financial set a new price target for ...

Key Takeaways EWBC posted Q4 adjusted EPS of $2.52, which topped estimates and rose over 21% y/y.EWBC's net revenues jumped 12.2% in Q4, driven by higher NII and non-interest income.EWBC saw higher expenses, which offset gains and sent shares down in after-hour trading.East West Bancorp, Inc.’s (EWBC)  fourth-quarter 2025 adjusted earnings per share (EPS) of $2.52 beat the Zacks Consensus Estimate of $2.48. Moreover, the bottom line increased 21.2% from the prior-year quarter’s level.The results were primar ...

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Core Insights - East West Bancorp reported a record-breaking year in 2025, achieving new highs in revenue, net interest income, fees, non-interest income, earnings per share, loans, and deposits, with expectations for continued growth in 2026 despite economic uncertainties [5][4][7] Lending and Deposit Growth - End-of-period loans grew by 6% year over year, with average loans increasing by 4%, primarily driven by commercial and industrial (C&I) growth, which is expected to continue leading lending growth into 2026 [1][7] - The bank's deposit growth was prioritized through a business checking campaign, resulting in a 6% year-over-year increase in end-of-period deposits, with non-interest-bearing deposits and time deposits showing traction [2][7] Dividend and Shareholder Metrics - The board approved a quarterly dividend increase of $0.20 to $0.80 per share, representing a 33% increase, payable on February 17 to stockholders of record on February 2 [3][4] Financial Performance and Projections - The bank's core deposit growth supported loan growth and improved liquidity, with management guiding for loan growth of 5-7% in 2026, led by C&I and residential mortgages, alongside net interest income growth of 5-7% [2][11][7] - Fourth-quarter net interest income was reported at $658 million, benefiting from balance sheet growth and favorable deposit mix shifts, with a reduction in deposit costs [9][10] Fee Income and Expense Management - Fee income grew by 12% in 2025, driven by strong performance in wealth management, derivatives, foreign exchange, and lending fees, with aspirations to grow fee income faster than balance sheet growth in 2026 [12][13] - Total operating non-interest expense rose by 7.5% in 2025, with expectations for a 7-9% increase in 2026 due to headcount additions and IT-related expenditures [13] Asset Quality and Capital Position - The bank maintained strong asset quality, with net charge-offs of 8 basis points in Q4 and a provision for credit losses of $30 million, while projecting net charge-offs of 20-30 basis points for 2026 [6][15] - Regulatory capital ratios remain robust, with a Common Equity Tier 1 ratio of 15.1%, supporting the bank's client service model and resilience amid potential volatility [16] Hedging and Securities Strategy - Cash hedge headwinds narrowed significantly, with expectations for hedges to become tailwinds in 2026 as rate cuts continue, and a shift towards fixed-rate purchases in securities based on relative value [17]

Christopher Del Moral-Niles: Thank you, Dominic. Let me start with deposits on Slide four. East West Bancorp, Inc. continued to differentiate itself via core deposit growth in 2025. This deposit growth allowed us to fund our full-year loan growth while also bolstering our balance sheet liquidity. In 2025, we prioritized deposit growth through a dedicated business checking campaign that delivered strong results. We plan to maintain this focused strategy in 2026 to further expand our deposit base. During the ...

East West Bancorp (EWBC) came out with quarterly earnings of $2.52 per share, beating the Zacks Consensus Estimate of $2.48 per share. This compares to earnings of $2.08 per share a year ago. These figures are adjusted for non-recurring items.This quarterly report represents an earnings surprise of +1.61%. A quarter ago, it was expected that this bank holding company would post earnings of $2.35 per share when it actually produced earnings of $2.62, delivering a surprise of +11.49%.Over the last four quarte ...

Financial Data and Key Metrics Changes - 2025 was a record-breaking year for the company, achieving new full-year record levels in revenue, net interest income, fees, non-interest income, earnings per share, loans, and deposits [5] - End-of-period deposits grew by 6% year-over-year, with significant traction in both non-interest-bearing and time deposits [5] - End-of-period loans also increased by 6%, driven by growth in commercial and industrial (C&I) and residential mortgage lending [5] - Tangible book value per share grew by 17%, and the company generated a 17% return on tangible common equity [6] Business Line Data and Key Metrics Changes - Fee income grew by 12% in 2025, achieving record levels driven by strong performance in wealth management, derivatives, foreign exchange, deposit fees, and lending fees [11] - C&I loan growth in Q4 was primarily driven by new relationships, with expectations for continued strength in 2026 [9] - Residential mortgage lending also performed well, with a strong pipeline expected to contribute consistently to growth [9] Market Data and Key Metrics Changes - The company reported a fourth-quarter net interest income of $658 million, benefiting from short-term liability sensitivity and favorable deposit mix shifts [10] - The cost of deposits decreased by 23 basis points quarter-over-quarter, with a total reduction of 105 basis points since the start of the cutting cycle [10] Company Strategy and Development Direction - The company remains committed to disciplined capital management and delivering top-tier returns for shareholders through prudent growth and robust risk management [7] - A focus on deposit growth through dedicated business checking campaigns is planned to continue into 2026 [8] - The company aims to maintain a balanced growth strategy across multiple loan categories, including C&I, CRE, and residential mortgages [36] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about the economic outlook for 2026, anticipating stronger loan growth compared to 2025 [20] - The company is focused on maintaining high performance relative to peers, regardless of economic conditions [22] - Management expects net interest income growth to be in the range of 5%-7% for 2026, driven by balance sheet growth [11] Other Important Information - The board declared a $0.20 increase to the quarterly dividend, raising it to $0.80 per share, a 33% increase [7] - The company’s regulatory capital ratios remain well above regulatory requirements, with a Common Equity Tier 1 capital ratio of 15.1% [16] Q&A Session Summary Question: Loan growth expectations for 2026 - Management acknowledged strong loan growth in Q4 but emphasized caution in projecting future growth due to potential economic volatility [21] Question: Areas of expense growth - The company is investing in technology, hiring for wealth management, commercial banking, and risk management, with a focus on supporting future growth [25][26] Question: Fee income growth trends - Management aims to continue double-digit growth in fee income, supported by investments in various business areas [33] Question: Commercial real estate (CRE) growth opportunities - Management expects to see increased activity in CRE lending, focusing on long-term relationships with experienced operators [34][36] Question: Capital management and buyback strategy - The company will continue to be opportunistic with buybacks, focusing on creating value for shareholders [100] Question: Credit charge-off guidance for 2026 - The increase in charge-off guidance reflects potential individual credit issues, despite overall strong credit metrics [46][48] Question: Net interest margin outlook - Management expects to offset declining rates with balance sheet growth, maintaining a focus on dollar net interest income [52] Question: Deposit costs and trends - The company has been disciplined in managing deposit costs and expects to maintain a beta exceeding 0.5 [45] Question: Blockchain and cryptocurrency integration - Management is monitoring developments in blockchain technology but sees it as still early for significant integration into their services [70]

East West Bancorp (NasdaqGS:EWBC) Q4 2025 Earnings call January 22, 2026 05:00 PM ET Company ParticipantsEbrahim Poonawala - Managing DirectorIrene Oh - Chief Risk OfficerAhmad Hasan - Equity Research AssociateDavid Smith - VP of Banks Equity ResearchChris O'Connell - DirectorDominic Ng - Chairman and CEOAdrienne Atkinson - Director of Investor RelationsChristopher Del Moral-Niles - CFOConference Call ParticipantsCasey Haire - Senior AnalystBernard Von Gizycki - Equity Research AnalystDave Rochester - Manag ...