East West Bank (EWBC, Financial) delivered an outstanding financial performance in the first quarter, marked by record levels of loans, revenue, and fee income. The bank reported a remarkable return on average tangible common equity of nearly 16%, reflecting its strong operational strategy and financial health.
The net interest margin showed significant improvement, rising by 11 basis points compared to the previous quarter, driven by effective deposit cost optimization. This contributed to generating over $600 million in net interest income for the quarter. Fee income also saw robust growth, increasing by 8% quarter-over-quarter due to heightened customer activity.
Credit performance improved with net charge-offs totaling $15 million, equivalent to 12 basis points of total loans. Moreover, both nonaccrual loans and nonperforming assets decreased, indicating a strengthening credit profile. Despite this positive trend, the bank prudently increased its allowance for loan losses to 1.35% of total loans, ensuring preparedness for any potential future challenges.
East West's diversified balance sheet, solid capital base, and leading profitability continue to position the bank as a resilient player capable of supporting customers in various economic conditions. These foundational strengths provide East West with the necessary flexibility to seize emerging opportunities, reinforcing its commitment to sustainable growth and stability.
Wall Street Analysts Forecast
Based on the one-year price targets offered by 12 analysts, the average target price for East West Bancorp Inc (EWBC, Financial) is $105.75 with a high estimate of $128.00 and a low estimate of $90.00. The average target implies an upside of 33.51% from the current price of $79.21. More detailed estimate data can be found on the East West Bancorp Inc (EWBC) Forecast page.
Based on the consensus recommendation from 13 brokerage firms, East West Bancorp Inc's (EWBC, Financial) average brokerage recommendation is currently 1.9, indicating "Outperform" status. The rating scale ranges from 1 to 5, where 1 signifies Strong Buy, and 5 denotes Sell.
Based on GuruFocus estimates, the estimated GF Value for East West Bancorp Inc (EWBC, Financial) in one year is $79.49, suggesting a upside of 0.35% from the current price of $79.21. GF Value is GuruFocus' estimate of the fair value that the stock should be traded at. It is calculated based on the historical multiples the stock has traded at previously, as well as past business growth and the future estimates of the business' performance. More detailed data can be found on the East West Bancorp Inc (EWBC) Summary page.
