East West Bancorp(US:EWBC) ZACKS·2025-04-16 14:20Core Viewpoint - Analysts forecast East West Bancorp (EWBC) will report quarterly earnings of $2.05 per share, reflecting a year-over-year decline of 1.4%, while revenues are expected to increase by 4.2% to $671.3 million [1] Earnings Projections - The consensus EPS estimate has been revised downward by 1.4% in the past 30 days, indicating a reassessment by covering analysts [2] - Changes in earnings projections are crucial for predicting investor reactions, with empirical studies showing a strong correlation between earnings estimate trends and short-term stock price movements [3] Key Financial Metrics - Analysts project a 'Net interest margin' of 3.3%, unchanged from the same quarter last year [5] - The 'Efficiency ratio' is expected to improve to 37.3% from 38.3% year-over-year [5] - The 'Tier 1 capital ratio' is forecasted to reach 14.5%, up from 13.5% in the previous year [5] - The 'Total capital ratio' is estimated at 15.7%, compared to 14.8% in the same quarter last year [6] - The 'Leverage ratio' is expected to be 10.6%, an increase from 10.1% year-over-year [6] Asset and Income Estimates - The 'Average Balance - Total interest-earning assets' is projected to be $72.32 billion, up from $68.12 billion a year ago [7] - The 'Adjusted efficiency ratio' is estimated at 35.2%, compared to 34.7% in the same quarter last year [7] - 'Total nonperforming assets' are expected to reach $206.36 million, up from $164.87 million year-over-year [8] - 'Total nonaccrual loans' are projected at $169.06 million, compared to $148.18 million in the same quarter last year [8] - 'Net Interest Income' is expected to be $585.08 million, an increase from $565.14 million year-over-year [9] - 'Total Noninterest Income' is forecasted to reach $86.22 million, compared to $78.99 million in the previous year [9] - 'Deposit account fees' are estimated at $26.52 million, up from $24.14 million year-over-year [10] Market Performance - Shares of East West Bancorp have decreased by 14% in the past month, compared to a decline of 4.2% in the Zacks S&P 500 composite [10] - The company holds a Zacks Rank of 3 (Hold), indicating it is expected to mirror overall market performance in the near future [11]