5 Revealing Analyst Questions From East West Bank’s Q4 Earnings Call

Cross-border banking company East West Bancorp beat Wall Street’s revenue expectations in Q4 CY2025, with sales up 11.7% year on year to $754.9 million. Its non-GAAP profit of $2.52 per share was 0.8% above analysts’ consensus estimates.

East West Bank (EWBC) Q4 CY2025 Highlights:

• Revenue: $754.9 million vs analyst estimates of $746.1 million (11.7% year-on-year growth, 1.2% beat)
• Adjusted EPS: $2.52 vs analyst estimates of $2.50 (0.8% beat)
• Adjusted Operating Income: $459.4 million vs analyst estimates of $489 million (60.9% margin, 6.1% miss)
• Market Capitalization: $15.86 billion

StockStory’s Take

East West Bank’s fourth quarter results came in above Wall Street’s revenue and non-GAAP profit expectations, as management credited strong deposit inflows and fee income expansion for the company’s performance. CEO Dominic Ng emphasized the importance of disciplined loan and deposit growth, highlighting growth in both C&I and residential mortgage lending. Fee income growth was supported by increased wealth management activity and investments in the global treasury group. Management noted, “We grew end-of-period deposits by 6% year-over-year with significant traction in both non-interest-bearing and time deposits,” underscoring the bank’s ability to attract core customers even as the broader industry faces volatility.

Looking ahead, management’s guidance is shaped by expectations for continued loan and fee income growth, supported by investments in technology, hiring, and expanding service offerings. CFO Christopher Del Moral-Niles stated that East West Bank is focused on balancing asset growth with proactive risk management, and expects “net interest income growth to be in the range of 5% to 7% aligned with and driven by our expected balance sheet growth.” The company plans to maintain its deposit growth strategy and sees ongoing hiring and technology upgrades as key to supporting both core banking and fee-based businesses.

Key Insights from Management’s Remarks

Management attributed the quarter’s results to core deposit growth, fee income gains, and ongoing investments in talent and technology, while also emphasizing a cautious approach to loan growth as economic uncertainty persists.

• Core deposit momentum: Deposit inflows were driven by a dedicated business checking campaign and increased focus on commercial and retail relationships. Management pointed to a 1% quarterly improvement in non-interest-bearing deposits, with further growth expected as a priority in 2026.
• Balanced loan portfolio: Growth in commercial & industrial (C&I) and residential mortgage lending led overall loan expansion. Management highlighted that C&I growth was supported by new client relationships, while residential mortgage pipelines remain strong, positioning the bank well for continued lending activity.
• Fee income expansion: Fee-based revenue was propelled by wealth management, derivatives, foreign exchange, and treasury services. Ongoing hires of financial consultants and investment in treasury management drove double-digit growth in this area, with management aiming for continued double-digit fee income growth.
• Efficiency and expense discipline: The efficiency ratio remained strong at 34.5% due to cost controls and targeted investment. Operating expenses grew 7.5%, mainly from hiring in key business lines and technology upgrades, but were offset by gains in productivity and balance sheet scale.
• Credit quality and capital strength: Asset quality metrics outperformed industry averages, with low net charge-offs and stable non-performing assets. Management underscored the bank’s robust capital ratios—well above regulatory minimums—and a 33% dividend increase as evidence of strong capital management.

Drivers of Future Performance

Management’s outlook for 2026 centers on sustaining balance sheet growth, expanding fee-based businesses, and managing risk amid changing interest rates and economic uncertainty.

• Loan and deposit growth focus: The company expects to achieve 5% to 7% loan and deposit growth, led by ongoing strength in C&I and residential mortgages. This is supported by targeted hiring, branch expansion in select markets, and a continued push to deepen commercial relationships.
• Fee income acceleration: Management aims to outpace balance sheet growth in fee income, leveraging investments in wealth management, treasury, and foreign exchange services. The aspiration is to maintain double-digit fee growth, with inorganic opportunities considered if they provide clear value.
• Expense and risk management: Operating expenses are expected to rise 7% to 9% as the company invests in technology, compliance, and talent. Management is also closely monitoring credit quality, projecting net charge-offs to remain low even as overall lending expands, and maintaining capital buffers to absorb potential volatility.

Catalysts in Upcoming Quarters

Going forward, the StockStory team will monitor (1) sustained momentum in commercial deposit and loan growth, (2) the trajectory of fee income as new hires and digital platforms ramp, and (3) the impact of rising operating expenses on efficiency ratios. We will also watch for signs of credit quality trends and whether management’s disciplined approach to expansion continues to differentiate East West Bank from peers.

East West Bank currently trades at $114.55, in line with $115.30 just before the earnings. In the wake of this quarter, is it a buy or sell? Find out in our full research report (it’s free).

Cross-border banking company East West Bancorp reported Q4 CY2025 results beating Wall Street’s revenue expectations, with sales up 12.2% year on year to $758.3 million. Its non-GAAP profit of $2.52 per share was 0.8% above analysts’ consensus estimates.

East West Bank (EWBC) Q4 CY2025 Highlights:

• Net Interest Income: $657.8 million vs analyst estimates of $653.5 million (11.9% year-on-year growth, 0.7% beat)
• Net Interest Margin: 3.4% vs analyst estimates of 3.4% (3.9 basis point beat)
• Revenue: $758.3 million vs analyst estimates of $746.1 million (12.2% year-on-year growth, 1.6% beat)
• Efficiency Ratio: 34.5% vs analyst estimates of 35.3% (83.2 basis point beat)
• Adjusted EPS: $2.52 vs analyst estimates of $2.50 (0.8% beat)
• Tangible Book Value per Share: $61.27 vs analyst estimates of $60.90 (16.9% year-on-year growth, 0.6% beat)
• Market Capitalization: $15.89 billion

Company Overview

As the largest independent bank in the U.S. focused on bridging financial services between America and Asia, East West Bancorp operates a commercial bank that provides personal and business banking services with a unique focus on facilitating U.S.-Asia cross-border transactions.

Sales Growth

Two primary revenue streams drive bank earnings. While net interest income, which is earned by charging higher rates on loans than paid on deposits, forms the foundation, fee-based services across banking, credit, wealth management, and trading operations provide additional income. Thankfully, East West Bank’s 12.4% annualized revenue growth over the last five years was solid. Its growth beat the average banking company and shows its offerings resonate with customers.

Long-term growth is the most important, but within financials, a half-decade historical view may miss recent interest rate changes and market returns. East West Bank’s recent performance shows its demand has slowed as its annualized revenue growth of 5.5% over the last two years was below its five-year trend.

This quarter, East West Bank reported year-on-year revenue growth of 12.2%, and its $758.3 million of revenue exceeded Wall Street’s estimates by 1.6%.

Net interest income made up 86.6% of the company’s total revenue during the last five years, meaning East West Bank barely relies on non-interest income to drive its overall growth.

While banks generate revenue from multiple sources, investors view net interest income as the cornerstone - its predictable, recurring characteristics stand in sharp contrast to the volatility of non-interest income.

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Tangible Book Value Per Share (TBVPS)

Banks operate as balance sheet businesses, with profits generated through borrowing and lending activities. Valuations reflect this reality, emphasizing balance sheet strength and long-term book value compounding ability.

When analyzing banks, tangible book value per share (TBVPS) takes precedence over many other metrics. This measure isolates genuine per-share value by removing intangible assets of debatable liquidation worth. Traditional metrics like EPS are helpful but face distortion from M&A activity and loan loss accounting rules.

East West Bank’s TBVPS grew at an incredible 12.6% annual clip over the last five years. TBVPS growth has also accelerated recently, growing by 15% annually over the last two years from $46.31 to $61.27 per share.

Over the next 12 months, Consensus estimates call for East West Bank’s TBVPS to grow by 12% to $68.65, mediocre growth rate.

Key Takeaways from East West Bank’s Q4 Results

It was encouraging to see East West Bank beat analysts’ revenue expectations this quarter. We were also happy its net interest income narrowly outperformed Wall Street’s estimates. On the other hand, its EPS slightly beat. Zooming out, we think this was a mixed quarter. The stock remained flat at $115.88 immediately following the results.

So should you invest in East West Bank right now? When making that decision, it’s important to consider its valuation, business qualities, as well as what has happened in the latest quarter. We cover that in our actionable full research report which you can read here (it’s free).

Cross-border banking company East West Bancorp will be announcing earnings results this Thursday after the bell. Here’s what to look for.

East West Bank beat analysts’ revenue expectations by 2.9% last quarter, reporting revenues of $745.8 million, up 13.5% year on year. It was a very strong quarter for the company, with a solid beat of analysts’ net interest income estimates and an impressive beat of analysts’ revenue estimates.

Is East West Bank a buy or sell going into earnings? Read our full analysis here, it’s free for active Edge members.

This quarter, analysts are expecting East West Bank’s revenue to grow 10.4% year on year to $746.1 million, improving from the 3.2% increase it recorded in the same quarter last year. Adjusted earnings are expected to come in at $2.50 per share.

Analysts covering the company have generally reconfirmed their estimates over the last 30 days, suggesting they anticipate the business to stay the course heading into earnings. East West Bank has a history of exceeding Wall Street’s expectations, beating revenue estimates every single time over the past two years by 2.1% on average.

Looking at East West Bank’s peers in the regional banks segment, some have already reported their Q4 results, giving us a hint as to what we can expect. ServisFirst Bancshares delivered year-on-year revenue growth of 22.9%, beating analysts’ expectations by 6.8%, and Simmons First National reported revenues up 15.9%, topping estimates by 4.1%.

Read our full analysis of ServisFirst Bancshares’s results here and Simmons First National’s results here.

Investors in the regional banks segment have had steady hands going into earnings, with share prices flat over the last month. East West Bank is down 3.1% during the same time and is heading into earnings with an average analyst price target of $130.69 (compared to the current share price of $112).

Quarterly earnings results are a good time to check in on a company’s progress, especially compared to its peers in the same sector. Today we are looking at East West Bank and the best and worst performers in the regional banks industry.

Regional banks, financial institutions operating within specific geographic areas, serve as intermediaries between local depositors and borrowers. They benefit from rising interest rates that improve net interest margins (the difference between loan yields and deposit costs), digital transformation reducing operational expenses, and local economic growth driving loan demand. However, these banks face headwinds from fintech competition, deposit outflows to higher-yielding alternatives, credit deterioration (increasing loan defaults) during economic slowdowns, and regulatory compliance costs. Recent concerns about regional bank stability following high-profile failures and significant commercial real estate exposure present additional challenges.

The 101 regional banks stocks we track reported a satisfactory Q3. As a group, revenues beat analysts’ consensus estimates by 1.3%.

Thankfully, share prices of the companies have been resilient as they are up 8.4% on average since the latest earnings results.

East West Bank

As the largest independent bank in the U.S. focused on bridging financial services between America and Asia, East West Bancorp operates a commercial bank that provides personal and business banking services with a unique focus on facilitating U.S.-Asia cross-border transactions.

East West Bank reported revenues of $745.8 million, up 13.5% year on year. This print exceeded analysts’ expectations by 2.9%. Overall, it was a very strong quarter for the company with a solid beat of analysts’ net interest income estimates and an impressive beat of analysts’ revenue estimates.

Interestingly, the stock is up 17.9% since reporting and currently trades at $116.47.

Best Q3: Customers Bancorp

Originally founded with a "high-tech, high-touch" branch-light banking strategy, Customers Bancorp is a bank holding company that provides commercial and consumer banking services through its Customers Bank subsidiary, with a focus on business lending and digital banking.

Customers Bancorp reported revenues of $231.8 million, up 38.3% year on year, outperforming analysts’ expectations by 6.9%. The business had a stunning quarter with a solid beat of analysts’ net interest income estimates and an impressive beat of analysts’ revenue estimates.

The market seems happy with the results as the stock is up 19.3% since reporting. It currently trades at $78.19.

Weakest Q3: The Bancorp

Operating behind the scenes of many popular fintech apps and prepaid cards you might use daily, The Bancorp is a bank holding company that specializes in providing banking services to fintech companies and offering specialty lending products.

The Bancorp reported revenues of $174.7 million, up 38.8% year on year, falling short of analysts’ expectations by 9.9%. It was a disappointing quarter as it posted a significant miss of analysts’ revenue estimates and a significant miss of analysts’ net interest income estimates.

The Bancorp delivered the weakest performance against analyst estimates in the group. As expected, the stock is down 9.4% since the results and currently trades at $69.96.

Read our full analysis of The Bancorp’s results here.

S&T Bancorp

Tracing its roots back to 1902 in western Pennsylvania's industrial heartland, S&T Bancorp is a Pennsylvania-based bank holding company that provides retail and commercial banking services, cash management, trust services, and investment advisory solutions.

S&T Bancorp reported revenues of $103.6 million, up 6.8% year on year. This result surpassed analysts’ expectations by 0.6%. However, it was a mixed quarter as its performance in some other areas of the business was disappointing.

The stock is up 8% since reporting and currently trades at $38.55.

Read our full, actionable report on S&T Bancorp here, it’s free for active Edge members.

KeyCorp

Tracing its roots back to 1849 during the California Gold Rush era, KeyCorp operates KeyBank, a full-service regional bank providing retail and commercial banking, wealth management, and investment services across 15 states.

KeyCorp reported revenues of $1.90 billion, up 17.5% year on year. This number was in line with analysts’ expectations. It was a strong quarter as it also put up an impressive beat of analysts’ tangible book value per share estimates and a narrow beat of analysts’ net interest income estimates.

The stock is up 18.8% since reporting and currently trades at $21.06.

Read our full, actionable report on KeyCorp here, it’s free for active Edge members.