A Business at a Glance
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EAST WEST BANCORP INC
EWBC
$18.2B
Mkt Cap
$131.00
+0.28%
EAST WEST BANCORP INC (EWBC) has a current P/E ratio of 13.8, compared to its historical median P/E of 11.3. The stock is currently considered Expensive based on its historical valuation range.
EAST WEST BANCORP INC (EWBC) has a 5-year average return on invested capital (ROIC) of 16.6%. This indicates strong capital allocation and a potential competitive advantage.
EAST WEST BANCORP INC (EWBC) has a market capitalization of $22.4B. It is classified as a large-cap stock.
Yes, EAST WEST BANCORP INC (EWBC) pays a dividend with a trailing twelve-month yield of 1.62%. The company also returns capital through share buybacks, with a buyback yield of 0.57%.
Based on historical P/E analysis, EAST WEST BANCORP INC (EWBC) appears expensive. The current P/E of 13.8 is 22% above its historical median of 11.3. The estimated fair value CAGR (P/E method) is 13.6%.
EAST WEST BANCORP INC (EWBC) operates in the State Commercial Banks industry, within the Financials sector.
EAST WEST BANCORP INC (EWBC) reported annual revenue of $4.7 billion in its most recent fiscal year, based on SEC EDGAR filings.
East West Bancorp is a bank holding company headquartered in Southern California that operates as the largest independent commercial bank in the region and the largest independent U.S. bank focused on serving individuals and businesses operating in both the U.S. and Asia. The company operates over 110 banking locations across the U.S. (96 branches in California, Texas, New York, Washington, Georgia, Massachusetts, and Nevada) and Asia (branches in China and Hong Kong, representative offices in China and Singapore), with a unique commercial banking license in China through its subsidiary East West Bank (China) Limited that differentiates it among U.S. regional banks. The Bank generates revenue through three operating segments—Consumer and Business Banking, Commercial Banking, and Treasury and Other—offering a comprehensive suite of personal and commercial banking services including deposits, lending (commercial and residential real estate, construction finance, C&I, trade finance, asset-based lending), treasury management, wealth management, and foreign exchange services delivered through integrated digital and brick-and-mortar channels. The company's competitive moat derives from its deep understanding of Asian markets supported by physical presence, strong corporate and organizational ties in the region, multilingual service capabilities (English, Spanish, and various Asian languages), and senior management and board ties to Asian business opportunities and Asian American communities, which enables it to facilitate cross-border transactions and relationships between U.S. and Asian clients. As of December 31, 2025, the company held $80.4 billion in total assets, $56.1 billion in total net loans, $67.1 billion in total deposits, and $8.9 billion in stockholders' equity.
【Deposit-led balance sheet growth】 Management expects continued strong core customer deposit growth in 2026, with a dedicated business checking campaign to further expand the deposit base and improve funding mix and liquidity. The company anticipates loan growth in the range of 5%-7% for the full year, driven by continued strength in C&I and residential mortgage production, with residential mortgage expected to be a consistent contributor at its current pace. Net interest income is projected to grow 5%-7% in 2026, aligned with and driven by expected balance sheet growth, with the outlook assuming modest economic growth and rate cuts; management notes that higher-for-longer rate environment is net beneficial for the company's asset-sensitive position. Total operating expenses are expected to increase 7%-9% year-over-year, driven primarily by headcount additions and IT-related expenditures, while the company remains focused on delivering top-quartile returns and maintaining best-in-class efficiency alongside strong capital levels.
| Metric | Target | Period |
|---|---|---|
| Net interest income growth | 5%-7% | FY2026 |
| Operating noninterest expense growth | 7%-9% | FY2026 |
| Net charge-offs | 20-30 basis points | FY2026 |
| Effective tax rate | 22%-23% | FY2026 |
| Managed net income growth | 6%-8% | FY2026 |
Net interest income growth (FY2026): “Looking ahead to 2026, we expect the net interest income growth to be in the range of 5%-7%, aligned with and driven by our expected balance sheet growth, outweighing our modestly otherwise asset-sensitive position.”
Operating noninterest expense growth (FY2026): “As we look forward to 2026, total operating noninterest expense is expected to grow in the range of 7%-9% as we continue to further our investments in the strategic priorities, which continue to develop at a pace.”
Net charge-offs (FY2026): “Currently, we are projecting that full year 2026 net charge-offs will be in the range of 20 to 30 basis points.”
Effective tax rate (FY2026): “We expect full-year net charge-offs, as Irene mentioned, in the range of 20-30 basis points and our effective tax rate to land between 22% and 23%.”
Managed net income growth (FY2026): “Therefore, we're updating our full year 2026 managed income guidance to grow between 6%-8%, up from our prior expectations of growth between 5% and 7%.”
Generated solely from the company's own reports listed below — not from third-party data. Hallucination risk is low. · Sources: 10-K, Q4 FY2025 Earnings Call, Q3 FY2025 Earnings Call, Q2 FY2025 Earnings Call, Q1 FY2025 Earnings Call
| Metric | TTM | FY2025 | FY2024 | FY2023 | FY2022 | FY2021 |
|---|---|---|---|---|---|---|
| Revenue | 3.0B | 4.7B | 4.5B | 4.0B | 2.6B | 1.9B |
| Net Income | 1.4B | 1.3B | 1.2B | 1.2B | 1.1B | 873M |
| EPS | $8.16 | $9.52 | $8.33 | $8.18 | $7.92 | $6.10 |
| Free Cash Flow | 0 | 1.5B | 1.4B | 1.4B | 2.1B | 1.2B |
| ROIC | 15.4% | 15.9% | 15.7% | 17.5% | 18.6% | 15.3% |
| Gross Margin | - | - | - | - | - | - |
| Debt/Equity | 0.00 | 0.00 | 0.01 | 0.04 | 0.03 | 0.03 |
| Dividends/Share | $2.12 | $2.40 | $2.20 | $1.92 | $1.60 | $1.32 |
| Operating Income | 18M | 1.7B | 1.5B | 1.5B | 1.4B | 1.1B |
| Operating Margin | 0.6% | 36.9% | 32.7% | 36.6% | 53.9% | 55.5% |
| ROE | 15.5% | 15.9% | 15.9% | 18.0% | 19.1% | 15.7% |
| Shares Outstanding | 171M | 139M | 140M | 142M | 142M | 143M |
EAST WEST BANCORP INC passes 5 of 9 quality checks, suggesting mixed fundamentals.
EAST WEST BANCORP INC trades at 13.8x trailing earnings, compared to its 15-year median P/E of 11.3x, suggesting it is currently Expensive relative to its historical range. On a free-cash-flow basis, the stock trades at 12.1x vs a median of 9.0x. The company's 5-year average ROIC is 16.6%. Total shareholder yield (dividends + buybacks) is 2.2%. At current prices, the estimated annualized return to fair value is +14.7%.
EAST WEST BANCORP INC (EWBC) has a net profit margin of 28.4%. This is a strong margin indicating high profitability.
EAST WEST BANCORP INC (EWBC) generated $1.5 billion in free cash flow in its most recent fiscal year. Positive free cash flow supports dividends, buybacks, and debt reduction.
EAST WEST BANCORP INC (EWBC) has a debt-to-equity ratio of 0.00. This indicates a conservatively financed balance sheet.
EAST WEST BANCORP INC (EWBC) reported earnings per share (EPS) of $9.52 in its most recent fiscal year.
EAST WEST BANCORP INC (EWBC) has a return on equity (ROE) of 15.9%. This indicates the company generates strong returns for shareholders.
The Ledger Terminal provides 16 years of financial data for EAST WEST BANCORP INC (EWBC), sourced directly from SEC EDGAR filings. This includes income statements, balance sheets, cash flow statements, and key financial ratios.
EAST WEST BANCORP INC (EWBC) has a book value per share of $63.93, based on its most recent annual SEC filing.
Based on recent SEC filings and earnings disclosures, Management expects continued strong core customer deposit growth in 2026, with a dedicated business checking campaign to further expand the deposit base and improve funding mix and liquidity. The company anticipates loan growth in the range of 5%-7% for the full year, driven by continued strength in C&I and residential mortgage production, with residential mortgage expected to be a consistent contributor at its current pace. Net interest income is projected to grow 5%-7% in 2026, aligned with and driven by expected balance sheet growth, with the outlook assuming modest economic growth and rate cuts; management notes that higher-for-longer rate environment is net beneficial for the company's asset-sensitive position. Total operating expenses are expected to increase 7%-9% year-over-year, driven primarily by headcount additions and IT-related expenditures, while the company remains focused on delivering top-quartile returns and maintaining best-in-class efficiency alongside strong capital levels.
Based on recent SEC filings and earnings calls, EAST WEST BANCORP INC (EWBC) has provided the following forward guidance: Net interest income growth: 5%-7% (FY2026); Operating noninterest expense growth: 7%-9% (FY2026); Net charge-offs: 20-30 basis points (FY2026); Effective tax rate: 22%-23% (FY2026); Managed net income growth: 6%-8% (FY2026).