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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On the lending side, East West grew end-of-period loans by 6% year over year, with Del Moral-Niles saying average loans rose 4% for the year, led by commercial and industrial (C&I) growth. He described fourth-quarter C&I growth as driven primarily by new relationships and said the pipeline suggests C&I will continue to lead lending growth in 2026. Residential mortgage production was also described as strong in the fourth quarter, with pipelines “full” going into the first quarter.Del Moral-Niles said the ba ...

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 ...

Financial Data and Key Metrics Changes - In 2025, East West Bancorp achieved record levels in multiple categories including revenue, net interest income, fees, non-interest income, earnings per share, loans, and deposits, with a 6% year-over-year growth in both deposits and loans [4][5] - The tangible book value per share grew by 17%, and the return on tangible common equity was also 17% [5] - A quarterly dividend increase of 33% was announced, raising it to $0.80 per share [5][14] Business Line Data and Key Metrics Changes - The end-of-period loans grew by 6%, driven by growth in commercial and industrial (C&I) and residential mortgage lending [4][6] - Fee income increased by 12% in 2025, achieving record levels across various fee-based businesses [10][11] - The efficiency ratio for the fourth quarter was reported at 34.5%, with total operating non-interest expenses growing by 7.5% [11][12] Market Data and Key Metrics Changes - The bank's core deposit growth was prioritized, with a 1% improvement in demand deposit accounts (DDA) to 25% of total deposits [6] - The net interest income for the fourth quarter was $658 million, benefiting from balance sheet growth and favorable deposit mix shifts [9] - The bank expects total loan growth in 2026 to be in the range of 5%-7%, driven by continued strength in C&I and residential mortgage production [16] Company Strategy and Development Direction - The company remains committed to disciplined capital management and aims to deliver top-tier returns through prudent growth and robust risk management [5][14] - Investments in technology and hiring are expected to drive future growth, with a focus on wealth management and commercial banking [24][58] - The bank is exploring inorganic growth opportunities to bolster fee income, while maintaining a strong capital position [51][53] 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][21] - The bank is focused on maintaining high performance relative to peers, regardless of economic conditions [21] - Credit quality remains strong, with low levels of net charge-offs projected for 2026 [13][17] Other Important Information - The allowance for credit losses was increased from $791 million to $810 million, maintaining a ratio of 1.42% [14] - The bank's Common Equity Tier 1 capital ratio stands at 15.1%, well above regulatory requirements [14] Q&A Session Summary Question: Loan growth expectations for 2026 - Management acknowledged strong loan growth in Q4 but emphasized caution in projections due to seasonal patterns and economic uncertainties [19][20] Question: Expense growth areas - The bank is focusing on technology investments, hiring for wealth management, commercial banking, and risk management as key areas driving expense growth [24] Question: Fee income growth trends - Management aspires to continue double-digit growth in fee income, supported by investments in various business segments [26][27] Question: Commercial real estate (CRE) growth opportunities - There is an expectation for increased activity in CRE lending, but the bank will remain selective in partnerships [30][31] Question: Capital management and buyback strategy - The bank will continue to manage buybacks opportunistically, focusing on creating shareholder value without urgency [73] Question: Credit charge-off guidance for 2026 - The increase in charge-off guidance reflects potential individual credit migrations, despite overall strong credit quality [36][37] Question: Net interest margin outlook - The bank expects to offset declining rates with balance sheet growth, maintaining a focus on dollar net interest income [40][41] Question: Deposit costs and beta trends - Management is confident in maintaining a deposit beta exceeding 0.5, with a current beta of 0.6 [34][35]