East West Bancorp Stock Earnings Reports

Deposit Growth

The bank saw a significant deposit growth of over $7 billion, resulting in a 13% increase in year-end deposits to a record of $63.2 billion.

Loan Growth

Average loans grew by 6%, and end-of-period loans increased by 3%, driven by C&I (Commercial and Industrial) and residential lending.

Asset Quality

• Stable asset quality with full-year net charge-offs at 26 basis points and non-performing assets at 26 basis points.
• Provisions for credit losses increased to $70 million due to two problem credits in the tech sector, but management expects this to remain an isolated incident.

Shareholder Returns

• Dividend Increase: The Board approved a 9% increase in the quarterly dividend to $0.60 per share.
• Share Repurchase Program: An incremental share repurchase authorization of $300 million was approved, with 200,000 shares repurchased in Q4.

Guidance for 2025

• Expect loan growth of 4% to 6%, particularly in C&I and residential segments.
• Total revenue growth is anticipated in the range of 5% to 7%.
• Net interest income growth is also projected between 4% to 6%, supported by balance sheet growth and improving deposit costs.
• Operating expenses expected to increase by 7% to 9% year-over-year due to investments in personnel and technology.

Risk Management

• The bank maintains a robust capital position, with a common equity Tier 1 ratio of 14.3%, well above regulatory requirements.
• Minimal direct credit impact expected from recent wildfires in Southern California, with heightened vigilance regarding credit risks and proactive management strategies.

Market Positioning

• Ongoing investments in fee-generating segments such as wealth management and foreign exchange, which saw a year-over-year fee income growth of 20%.
• Management’s strategic commitment to organic growth and strong operational efficiencies, despite potential for cost pressures.

Economic Outlook

• Guidance assumes modest economic growth alongside expected Fed rate cuts (225 basis points). Management sees positive sentiment building in the C&I space.
• Focused on maintaining a strong balance sheet, with actions adjusted based on market conditions.

Overall, East West Bancorp remains confident in its strategic growth plans and ability to deliver strong returns while continuing to navigate external challenges effectively.