- East West Bancorp‘s net interest margin for Q2 is 3.27%, slightly above the estimate of 3.26%.
- Earnings per share (EPS) reached $2.06.
- The Common Equity Tier 1 ratio is 13.7%, slightly higher than the estimate of 13.6%.
- Provision for credit losses stands at $37.0 million, lower than the estimated $37.6 million.
- Net interest income totaled $553.2 million, just below the estimate of $555.2 million.
- Non-interest income was $84.7 million, exceeding the forecast of $78.5 million.
- Non-interest expenses amounted to $236.4 million, almost in line with the estimate of $237.1 million.
- The effective tax rate is 20.9%, significantly lower than the expected 23.4%.
- The stock has 17 buy recommendations, 1 hold, and 0 sell recommendations.
East West Bancorp on Smartkarma
Analysts on Smartkarma, including Value Investors Club, are closely following East West Bancorp Inc (EWBC). In a recent report dated Tuesday, Feb 6, 2024, Value Investors Club expressed a bearish sentiment on EWBC, recommending short shares of the medium-sized regional bank catering to the Chinese/Asian expat community. They highlighted concerns such as trading at 1.5x price/TBV, compression in NIM, and increased deposit costs. The report also mentioned worries about CRE exposure, uninsured deposits, investments in China/HK, and creditworthiness, citing a uniquely correlated customer base and soft guidance from management.
A look at East West Bancorp Smart Scores
| Factor | Score | Magnitude |
|---|---|---|
| Value | 4 | |
| Dividend | 3 | |
| Growth | 4 | |
| Resilience | 3 | |
| Momentum | 4 | |
| 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., the holding company for East-West Bank, seems to have a promising long-term outlook according to Smartkarma Smart Scores. With a strong Value score of 4, the company is perceived as having favorable fundamentals relative to its current stock price. Additionally, scoring a 4 in Growth and Momentum indicates a positive trajectory for future expansion and market performance.
While the Dividend and Resilience scores are slightly lower at 3, East West Bancorp still demonstrates stability in terms of dividend payments and resilience in the face of economic challenges. Overall, the company’s overall outlook appears optimistic, supported by its focus on commercial, construction, and real estate lending, as well as international trade financing across key Californian counties, including Los Angeles, Orange, San Francisco, and Santa Clara.
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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