EWBC Earnings Prediction
The chart below shows how EWBC performed 10 days before and after its earnings report, based on data from the past quarters. Typically, EWBC sees a -4.30% change in stock price 10 days leading up to the earnings, and a -0.96% change 10 days following the report. On the earnings day itself, the stock moves by +0.90%. This data can give you a slight idea of what to expect for the next quarter's release.
EWBC Key Earning Data
2024/Q4
Year Over Year
Quarter Over Quarter
Total Revenue
657.48M
1.53%
3.07%
Gross Margin
--
--
--
Operating Margin
59.21%
8.44%
3.10%
Net Margin
45.50%
2.41%
0.71%
EPS
2.14
5.94%
3.88%
No Data Available
EWBC Earnings Analysis
East West Bancorp Inc Corporation (EWBC.O) Earnings Conference Call
Positive
Strong Q3 Net Income: 3rd quarter 2024 net income was $299 million or $2.14 per diluted share, reflecting strong financial performance.
Deposit Growth Achievement: Average deposits grew by 3% quarter over quarter, reaching a record $61.7 billion, indicating robust customer relationships.
Net Interest Income Increase: Net interest income increased by $20 million or 4% from the second quarter, driven primarily by greater income from loans.
Record Fee Income Growth: Achieved record fee income of $81 million this quarter, up 6% quarter over quarter, showcasing strong performance in lending and wealth management.
Shareholder Returns Growth: Tangible book value per share grew by 7%, and return on average tangible common equity was over 17%, demonstrating substantial returns for shareholders.
Negative
Net Interest Margin Decline: Net interest margin declined by 3 basis points to 3.24% from the prior quarter, reflecting the impact of Fed rate cuts.
Credit Loss Provision Increase: Provision for credit losses increased by $5 million from the second quarter to $42 million, indicating rising concerns over credit quality.
Asset Quality Deterioration: Net charge-offs rose to $29 million or 22 basis points annualized, compared to 18 basis points in the second quarter, signaling a deterioration in asset quality.
Loan Demand Decline: Loan utilization rate dropped to 67%, down 300 basis points from the historical norm of over 70%, suggesting weaker demand for loans from existing customers.
Net Interest Income Decline: Full year net interest income is expected to decline in the range of 2% to 4%, with year-to-date net interest income already down 3%.
EWBC FAQs
How does EWBC typically perform around its earnings report dates?
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EWBC Earning Call Sentiment
Earnings call transcript: East West Bancorp Q3 2024 misses EPS forecast
EWBC.O
-0.09%Positive
The earnings call presents a mixed picture: strong financial metrics, increased deposits, and a robust capital position are offset by concerns about declining net interest margins and unclear guidance on loan growth post-elections. The Q&A reveals management's cautious approach and lack of clear guidance on key issues like loan growth and NII impact, which may dampen investor enthusiasm. While fee income and shareholder returns are positive, the overall sentiment is neutral due to uncertainties and potential market condition impacts.
