- Total deposits for East West Bancorp reached $61.7 billion, exceeding the estimated $60.82 billion.
- Earnings per share (EPS) came in at $2.14, surpassing the expected $2.07.
- The net interest margin was reported at 3.24%, slightly above the forecasted 3.23%.
- The Common Equity Tier 1 ratio stood at 14.1%, outperforming the anticipated 13.8%.
- Provisions for credit losses were $42.0 million, higher than the projected $37.3 million.
- The efficiency ratio improved to 34.4%, compared to the estimated 36%.
- Net interest income totaled $572.7 million, exceeding the estimated $561.3 million.
- Non-interest income reported was $84.8 million, above the expected $81.4 million.
- Non-interest expenses amounted to $226.2 million, which is below the forecasted $234.4 million.
- Analyst recommendations include 16 buys, 1 hold, and 0 sells.
East West Bancorp on Smartkarma
Analysts on Smartkarma are closely monitoring East West Bancorp, with Value Investors Club recently publishing a report on the company. The report, titled “East West Bancorp Inc (EWBC) – Tuesday, Feb 6, 2024,” presents a bearish sentiment towards EWBC, a medium-sized regional bank catering to the Chinese/Asian expat community. Highlighting concerns such as trading at 1.5x price/TBV, compression in NIM, increased deposit costs, CRE exposure, uninsured deposits, investments in China/HK, and creditworthiness, the report offers valuable insights for investors.
A look at East West Bancorp Smart Scores
| Factor | Score | Magnitude |
|---|---|---|
| Value | 3 | |
| Dividend | 3 | |
| Growth | 4 | |
| Resilience | 3 | |
| Momentum | 5 | |
| 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, is positioned with a promising long-term outlook based on its Smartkarma Smart Scores. With a strong momentum score of 5, the company is showing significant positive movement in the market. This indicates positive investor sentiment and potential for continued growth. In addition, the high growth score of 4 suggests that East West Bancorp is well-positioned for future expansion and development within the industry.
Furthermore, East West Bancorp maintains solid scores in value, dividend, and resilience, each scoring a 3. This signifies that the company is viewed favorably across these important factors, indicating a balanced and stable financial position. With its focus on commercial, construction, and real estate lending, as well as international trade financing, East West Bancorp‘s operations in key counties like Los Angeles, Orange, San Francisco, and Santa Clara provide a solid foundation for sustained growth and profitability in the long term.
Summary:
East West Bancorp, Inc. is the holding company for East-West Bank, a commercial bank specializing in various lending services and international trade financing across strategic locations in California.
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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