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East West Bancorp

DB:EW2
Snowflake Description

Flawless balance sheet established dividend payer.

The Snowflake is generated from 30 checks in 5 different areas, read more below.
EW2
DB
$7B
Market Cap
  1. Home
  2. DE
  3. Banks
Company description

East West Bancorp, Inc. operates as the bank holding company for East West Bank that provides a range of personal and commercial banking services to businesses and individuals in the United States and Greater China. The last earnings update was 16 days ago. More info.


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EW2 Share Price and Events
7 Day Returns
-4.7%
DB:EW2
-8.9%
DE Banks
-3.2%
DE Market
1 Year Returns
-33.2%
DB:EW2
-26.8%
DE Banks
-11.6%
DE Market
EW2 Shareholder Return
  7 Day 30 Day 90 Day 1 Year 3 Year 5 Year
East West Bancorp (EW2) -4.7% -10.5% -16.2% -33.2% 19.2% 66.7%
DE Banks -8.9% -10.9% -0.6% -26.8% -6% -28.3%
DE Market -3.2% -5.1% 0.3% -11.6% 5.3% 5.9%
1 Year Return vs Industry and Market
  • EW2 underperformed the Banks industry which returned -26.8% over the past year.
  • EW2 underperformed the Market in Germany which returned -11.6% over the past year.
Price Volatility
EW2
Industry
5yr Volatility vs Market

Value

 Is East West Bancorp undervalued based on future cash flows and its price relative to the stock market?

Value is all about what a company is worth versus what price it is available for. If you went into a grocery store and all the bananas were on sale at half price, they could be considered undervalued.
INTRINSIC VALUE BASED ON FUTURE CASH FLOWS
Here we compare the current share price of East West Bancorp to its discounted cash flow analysis.value.

The discounted cash flow value is simply looking at what the company is worth today, based on estimates of how much money it is expected to make in the future.
Raw Data

Below are the data sources, inputs and calculation used to determine the intrinsic value for East West Bancorp.

DB:EW2 Discounted Cash Flow Data Sources
Data Point Source Value
Valuation Model Excess Returns Model
Stable EPS Weighted future Return on Equity estimates from 11 analysts.
= Stable Book Value * Return on Equity
= $37.07 * 15.1%
$5.59
Book Value of Equity per Share Weighted future Book Value estimates from 10 analysts. $37.07
Discount Rate (Cost of Equity) See below 5%
Perpetual Growth Rate 10-Year DE Government Bond Rate 0.2%

An important part of a discounted cash flow is the discount rate, below we explain how it has been calculated.

Calculation of Discount Rate/ Cost of Equity for DB:EW2
Data Point Calculation/ Source Result
Risk-Free Rate 10-Year DE Govt Bond Rate 0.2%
Equity Risk Premium S&P Global 6%
Banks Unlevered Beta Simply Wall St/ S&P Global 0.58
Re-levered Beta = Unlevered beta (1 + (1- tax rate) (Debt/Equity))
= 0.581 (1 + (1- 21%) (11.43%))
0.754
Levered Beta Levered Beta limited to 0.8 to 2.0
(practical range for a stable firm)
0.8
Discount Rate/ Cost of Equity = Cost of Equity = Risk Free Rate + (Levered Beta * Equity Risk Premium)
= 0.23% + (0.8 * 5.96%)
5%

Discounted Cash Flow Calculation for DB:EW2 using Excess Returns Model Model

The calculations below outline how an intrinsic value for East West Bancorp is arrived at using the Excess Return Model. This approach is used for finance firms where free cash flow is difficult to estimate.

In the Excess Return Model the value of a firm can be written as the sum of capital invested currently in the firm and the present value of excess returns that the firm expects to make in the future.

The model is sensitive to the Return on Equity of the company versus the Cost of Equity, how these are calculated is detailed below the main calculation.

Note the calculations below are per share.

See our documentation to learn about this calculation.

DB:EW2 Value of Excess Returns
Calculation Result
Excess Returns = (Stable Return on equity – Cost of equity) (Book Value of Equity per share)
= (15.1% – 5%) * $37.07)
$3.74
Terminal Value of Excess Returns = Excess Returns / (Cost of Equity - Expected Growth Rate)
= $3.74 / (5% - 0.23%)
$78.46
Value of Equity = Book Value per share + Terminal Value of Excess Returns
= $37.07 + $78.46
$115.52
DB:EW2 Discount to Share Price
Calculation Result
Non-primary Listing Adjustment Factor 1 share in DB:EW2 represents 0.88681x of NasdaqGS:EWBC
(This could be a different class, a depositary receipt, a different currency, or all of these things.)
0.88681x
Value per Share
(Listing Adjusted, EUR)
= Value per Share (USD) x Listing Adjustment Factor
= $ 115.52 x 0.88681
€102.45
Value per share (EUR) From above. €102.45
Current discount Discount to share price of €40.55
= -1 x (€40.55 - €102.45) / €102.45
60.4%

Learn more about our DCF calculations in Simply Wall St’s analysis model .

Current Discount
Amount off the current price East West Bancorp is available for.
Intrinsic value
>50%
Share price is €40.55 vs Future cash flow value of €102.45
Current Discount Checks
For East West Bancorp to be considered undervalued it must be available for at least 20% below the current price. Less than 40% is even better.
  • East West Bancorp's share price is below the future cash flow value, and at a moderate discount (> 20%).
  • East West Bancorp's share price is below the future cash flow value, and at a substantial discount (> 40%).
PRICE RELATIVE TO MARKET
We can also value a company based on what the stock market is willing to pay for it. This is similar to the price of fruit (e.g. Mangoes or Avocados) increasing when they are out of season, or how much your home is worth.

The amount the stock market is willing to pay for East West Bancorp's earnings, growth and assets is considered below, and whether this is a fair price.
Price based on past earnings
Are East West Bancorp's earnings available for a low price, and how does this compare to other companies in the same industry?
Raw Data
DB:EW2 PE (Price to Earnings) Ratio Data Sources
Data Point Source Value
Earnings Per Share * Company Filings (2019-03-31) in USD $4.69
NasdaqGS:EWBC Share Price ** NasdaqGS (2019-05-24) in USD $45.72
Germany Banks Industry PE Ratio Median Figure of 6 Publicly-Listed Banks Companies 15.61x
Germany Market PE Ratio Median Figure of 422 Publicly-Listed Companies 20.22x

* Trailing twelve months (TTM) annual GAAP earnings per share excluding extraordinary items.

** Primary Listing of East West Bancorp.

DB:EW2 PE (Price to Earnings) Ratio Calculation
Calculation Outcome
PE Ratio

= NasdaqGS:EWBC Share Price ÷ EPS (both in USD)

= 45.72 ÷ 4.69

9.74x

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • East West Bancorp is good value based on earnings compared to the DE Banks industry average.
  • East West Bancorp is good value based on earnings compared to the Germany market.
Price based on expected Growth
Does East West Bancorp's expected growth come at a high price?
Raw Data
DB:EW2 PEG (Price to Earnings to Growth) Ratio Data Sources
Data Point Source Value
PE Ratio See PE Ratio Section 9.74x
Net Income Annual Growth Rate See Future Growth Section.
Line of Best Fit* through Consensus Estimate Earnings of 11 Analysts
6.6%per year
Europe Banks Industry PEG Ratio Median Figure of 114 Publicly-Listed Banks Companies 0.75x
Germany Market PEG Ratio Median Figure of 272 Publicly-Listed Companies 1.48x

*Line of best fit is calculated by linear regression .

DB:EW2 PEG (Price to Earnings to Growth) Ratio Calculation
Calculation Outcome
PEG Ratio

= PE Ratio ÷ Net Income Annual Growth Rate

= 9.74x ÷ 6.6%

1.49x

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • East West Bancorp is poor value based on expected growth next year.
Price based on value of assets
What value do investors place on East West Bancorp's assets?
Raw Data
DB:EW2 PB (Price to Book) Ratio Data Sources
Data Point Source Value
Book Value per Share Company Filings (2019-03-31) in USD $31.56
NasdaqGS:EWBC Share Price * NasdaqGS (2019-05-24) in USD $45.72
Germany Banks Industry PB Ratio Median Figure of 6 Publicly-Listed Banks Companies 0.91x
Germany Market PB Ratio Median Figure of 576 Publicly-Listed Companies 1.76x
DB:EW2 PB (Price to Book) Ratio Calculation
Calculation Outcome
PB Ratio

= NasdaqGS:EWBC Share Price ÷ Book Value per Share (both in USD)

= 45.72 ÷ 31.56

1.45x

* Primary Listing of East West Bancorp.

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • East West Bancorp is overvalued based on assets compared to the DE Banks industry average.
X
Value checks
We assess East West Bancorp's value by looking at:
  1. Is the discounted cash flow value less than 20%, or 40% of the share price? (2 checks) ( Click here or on bar chart for details of DCF calculation. )
  2. Is the PE ratio less than the market average, and/ or less than the Banks industry average (and greater than 0)? (2 checks)
  3. Is the PEG ratio within a reasonable range (0 to 1)? (1 check)
  4. Is the PB ratio less than the Banks industry average (and greater than 0)? (1 check)
  5. East West Bancorp has a total score of 4/6, see the detailed checks below.

    Note: We use GAAP Earnings per Share in all our calculations including PE and PEG Ratio.

    Full details on the Value part of the Simply Wall St company analysis model.

Future Performance

 How is East West Bancorp expected to perform in the next 1 to 3 years based on estimates from 11 analysts?

The future performance of a company is measured in the same way as past performance, by looking at estimated growth and how much profit it is expected to make.

Future estimates come from professional analysts. Just like forecasting the weather, they don’t always get it right!
Annual Growth Rate
6.6%
Expected annual growth in earnings.
Earnings growth vs Low Risk Savings
Is East West Bancorp expected to grow at an attractive rate?
  • East West Bancorp's earnings growth is expected to exceed the low risk savings rate of 0.2%.
Growth vs Market Checks
  • East West Bancorp's earnings growth is positive but not above the Germany market average.
  • East West Bancorp's revenue growth is expected to exceed the Germany market average.
Annual Growth Rates Comparison
Raw Data
DB:EW2 Future Growth Rates Data Sources
Data Point Source Value (per year)
DB:EW2 Future Earnings Growth Rate Line of Best Fit* through Consensus Estimate Earnings of 11 Analysts 6.6%
DB:EW2 Future Revenue Growth Rate Line of Best Fit* through Consensus Estimate Revenue of 11 Analysts 8%
Germany Banks Industry Earnings Growth Rate Market Cap Weighted Average 13.1%
Europe Banks Industry Revenue Growth Rate Market Cap Weighted Average 4.1%
Germany Market Earnings Growth Rate Market Cap Weighted Average 13%
Germany Market Revenue Growth Rate Market Cap Weighted Average 5%

*Line of best fit is calculated by linear regression .

Industry and Market average data is calculated daily.

Learn more about our growth rate calculations in Simply Wall St’s analysis model.

Analysts growth expectations
Raw Data
DB:EW2 Analysts Growth Expectations Data Sources
Data Point Source Value
Past Financials Company Filings (1 month ago) See Below
Future Estimates Average of up to 11 Analyst Estimates (S&P Global) See Below
All numbers in USD Millions and using Trailing twelve months (TTM) annual period rather than quarterly.
DB:EW2 Future Estimates Data
Date (Data in USD Millions) Revenue Cash Flow Net Income * Avg. No. Analysts
2021-12-31 1,920 816 2
2020-12-31 1,803 772 11
2019-12-31 1,690 722 11
DB:EW2 Past Financials Data
Date (Data in USD Millions) Revenue Cash Flow Net Income *
2019-03-31 1,406 805 681
2018-12-31 1,412 883 704
2018-09-30 1,409 727 616
2018-06-30 1,357 755 577
2018-03-31 1,302 735 523
2017-12-31 1,305 703 506
2017-09-30 1,266 894 531
2017-06-30 1,215 754 509
2017-03-31 1,194 645 494
2016-12-31 1,104 650 432
2016-09-30 1,095 466 413
2016-06-30 1,108 451 397

*GAAP earnings excluding extraordinary items.

Super high growth metrics
High Growth Checks
  • East West Bancorp's earnings are expected to grow by 6.6% yearly, however this is not considered high growth (20% yearly).
  • East West Bancorp's revenue is expected to grow by 8% yearly, however this is not considered high growth (20% yearly).
Past and Future Earnings per Share
The accuracy of the analysts who estimate the future performance data can be gauged below. We look back 3 years and see if they were any good at predicting what actually occurred. We also show the highest and lowest estimates looking forward to see if there is a wide range.
Raw Data
DB:EW2 Past and Future Earnings per Share
Data Point Source Value
Past Financials Company Filings (1 month ago) See Below
Future Estimates Average of up to 11 Analyst Estimates (S&P Global) See Below

All data from East West Bancorp Company Filings, last reported 1 month ago, and in Trailing twelve months (TTM) annual period rather than quarterly.

DB:EW2 Future Estimates Data
Date (Data in USD Millions) EPS * EPS High Estimate EPS Low Estimate Avg. No. Analysts
2021-12-31 5.69 5.69 5.69 1.00
2020-12-31 5.33 5.50 5.10 13.00
2019-12-31 4.95 5.01 4.89 13.00
DB:EW2 Past Financials Data
Date (Data in USD Millions) EPS *
2019-03-31 4.69
2018-12-31 4.86
2018-09-30 4.25
2018-06-30 3.99
2018-03-31 3.62
2017-12-31 3.50
2017-09-30 3.68
2017-06-30 3.53
2017-03-31 3.43
2016-12-31 3.00
2016-09-30 2.87
2016-06-30 2.76

*GAAP earnings excluding extraordinary items.

Performance in 3 years
In the same way as past performance we look at the future estimated return (profit) compared to the available funds. We do this looking forward 3 years.
  • East West Bancorp is not expected to efficiently use shareholders’ funds in the future (Return on Equity less than 20%).
X
Future performance checks
We assess East West Bancorp's future performance by looking at:
  1. Is the annual earnings growth rate expected to beat the low risk savings rate, plus a premium to keep pace with inflation?
  2. Is the annual earnings growth rate expected to beat the average growth rate in earnings of the Germany market? (1 check)
  3. Is the annual revenue growth rate expected to beat the average growth rate in revenue of the Europe market? (1 check)
  4. Is the annual earnings growth rate expected to be above 20%? (1 check)
  5. Is the annual revenue growth rate expected to be above 20%? (1 check)
  6. Is the Return on Equity in 3 years expected to be over 20%? (1 check)
Some of the above checks will fail if the company is expected to be loss making in the relevant year.
East West Bancorp has a total score of 2/6, see the detailed checks below.

Note 1: We use GAAP Net Income Excluding Exceptional Items for our Earnings in all our calculations.

Full details on the Future part of the Simply Wall St company analysis model.

Past Performance

  How has East West Bancorp performed over the past 5 years?

The past performance of a company can be measured by how much growth it has experienced and how much profit it makes relative to the funds and assets it has available.
Past earnings growth
Below we compare East West Bancorp's growth in the last year to its industry (Banks).
Past Earnings growth analysis
We also check if the company has grown in the past 5 years, and whether it has maintained that growth in the year.
  • East West Bancorp's year on year earnings growth rate has been positive over the past 5 years.
  • East West Bancorp's 1-year earnings growth exceeds its 5-year average (30.2% vs 16%)
  • East West Bancorp's earnings growth has exceeded the DE Banks industry average in the past year (30.2% vs 5.4%).
Earnings and Revenue History
East West Bancorp's revenue and profit over the past 5 years is shown below, any years where they have experienced a loss will show up in red.
Raw Data

All data from East West Bancorp Company Filings, last reported 1 month ago, and in Trailing twelve months (TTM) annual period rather than quarterly.

DB:EW2 Past Revenue, Cash Flow and Net Income Data
Date (Data in USD Millions) Revenue Net Income * G+A Expenses R&D Expenses
2019-03-31 1,405.65 680.69 512.30
2018-12-31 1,412.06 703.70 504.34
2018-09-30 1,408.84 615.58 501.16
2018-06-30 1,356.94 576.94 485.16
2018-03-31 1,301.79 522.92 469.89
2017-12-31 1,304.79 505.62 456.85
2017-09-30 1,265.67 531.46 444.94
2017-06-30 1,215.02 508.94 440.43
2017-03-31 1,194.22 493.90 434.15
2016-12-31 1,103.99 431.68 425.15
2016-09-30 1,095.13 412.75 415.46
2016-06-30 1,108.25 396.70 406.58
2016-03-31 1,091.86 392.17 387.46
2015-12-31 1,083.49 384.67 375.94
2015-09-30 1,042.55 388.27 331.65
2015-06-30 993.43 385.95 345.66
2015-03-31 969.85 371.39 345.96
2014-12-31 935.91 345.37 348.96
2014-09-30 907.70 325.42 359.29
2014-06-30 886.93 306.43 316.25
2014-03-31 850.14 294.14 293.61
2013-12-31 835.39 288.21 279.81
2013-09-30 811.99 283.90 266.63
2013-06-30 810.21 279.71 265.92
2013-03-31 810.56 274.94 265.35
2012-12-31 830.07 271.51 261.52
2012-09-30 829.55 266.58 264.08
2012-06-30 823.72 258.70 258.61

*GAAP earnings excluding extraordinary items.

Performance last year
We want to ensure a company is making the most of what it has available. This is done by comparing the return (profit) to a company's available funds, assets and capital.
  • East West Bancorp has not efficiently used shareholders’ funds last year (Return on Equity less than 20%).
  • East West Bancorp used its assets more efficiently than the DE Banks industry average last year based on Return on Assets.
  • Unable to establish if East West Bancorp improved its use of capital last year versus 3 years ago (Return on Capital Employed) due to insufficient past data.
X
Past performance checks
We assess East West Bancorp's performance over the past 5 years by checking for:
  1. Has earnings increased in past 5 years? (1 check)
  2. Has the earnings growth in the last year exceeded that of the Banks industry? (1 check)
  3. Is the recent earnings growth over the last year higher than the average annual growth over the past 5 years? (1 check)
  4. Is the Return on Equity (ROE) higher than 20%? (1 check)
  5. Is the Return on Assets (ROA) above industry average? (1 check)
  6. Has the Return on Capital Employed (ROCE) increased from 3 years ago? (1 check)
The above checks will fail if the company has reported a loss in the most recent earnings report. Some checks require at least 3 or 5 years worth of data.
East West Bancorp has a total score of 4/6, see the detailed checks below.

Note: We use GAAP Net Income excluding extraordinary items in all our calculations.

Full details on the Past part of the Simply Wall St company analysis model.

Health

 How is East West Bancorp's financial position? (This company is analysed differently as a bank or financial institution)

This company is a bank or financial institution.

Fundamentally a bank's business is based upon borrowing and lending money, for this reason they typically have high levels of debt and we analyse them differently.
Net Worth
Balance sheet
This treemap shows a more detailed breakdown of East West Bancorp's finances. If any of them are yellow this indicates they may be out of proportion and red means they relate to one of the checks below.
Assets
Liabilities and shares
The 'shares' portion represents any funds contributed by the owners (shareholders) and any profits.
Historical Debt
Nearly all companies have debt. Debt in itself isn’t bad, however if the debt is too high, or the company can’t afford to pay the interest on its debts this may have impacts in the future.

The graphic below shows equity (available funds) and debt, we ideally want to see the red area (debt) decreasing.

If there is any debt we look at the companies capability to repay it, and whether the level has increased over the past 5 years.
Raw Data

All data from East West Bancorp Company Filings, last reported 1 month ago.

DB:EW2 Past Debt and Equity Data
Date (Data in USD Millions) Total Equity Total Debt Cash & Short Term Investments
2019-03-31 4,591.93 752.97 4,425.47
2018-12-31 4,423.97 660.55 3,762.75
2018-09-30 4,244.85 722.48 3,123.23
2018-06-30 4,114.28 709.79 3,094.11
2018-03-31 3,978.76 658.04 3,248.14
2017-12-31 3,841.95 589.96 2,962.01
2017-09-30 3,781.90 665.56 3,482.61
2017-06-30 3,670.26 657.03 4,428.92
2017-03-31 3,565.95 819.96 4,404.30
2016-12-31 3,427.74 1,000.34 3,781.63
2016-09-30 3,378.05 901.52 3,317.19
2016-06-30 3,296.91 915.46 3,611.64
2016-03-31 3,216.78 869.26 4,203.77
2015-12-31 3,122.95 1,307.40 2,945.04
2015-09-30 3,071.12 683.04 3,372.40
2015-06-30 3,004.95 937.56 3,033.38
2015-03-31 2,938.76 1,233.68 3,519.28
2014-12-31 2,856.11 1,402.35 1,994.97
2014-09-30 2,768.09 1,352.60 2,635.28
2014-06-30 2,701.02 1,557.10 2,561.83
2014-03-31 2,624.22 1,561.61 3,121.44
2013-12-31 2,364.23 1,587.22 2,017.87
2013-09-30 2,311.88 1,496.74 2,658.34
2013-06-30 2,257.95 1,446.20 2,530.92
2013-03-31 2,343.12 1,445.67 3,177.70
2012-12-31 2,382.12 1,465.15 2,587.26
2012-09-30 2,318.21 1,495.30 2,976.13
2012-06-30 2,294.94 1,570.06 3,168.54
BANK ANALYSIS

This company is a bank or financial institution, which is analysed accordingly below.

Below we check the amount of loans the bank has, how many of those are bad, and its ability to cover any bad loans.
  • East West Bancorp has an acceptable proportion of non-loan assets held.
  • East West Bancorp's liabilities are made up of primarily low risk sources of funding.
  • Loans at East West Bancorp are broadly funded by customer deposits.
  • East West Bancorp's level of assets compared to its equity is low (i.e. an appropriate level of borrowing to fund lending).
  • East West Bancorp has a sufficient allowance for bad loans.
  • East West Bancorp has an acceptable level of bad loans (less than 2%).
X
Financial health checks
We assess East West Bancorp's financial health by checking for:
  1. Are short term assets greater than short term liabilities? (1 check)
  2. Are short term assets greater than long term liabilities? (1 check)
  3. Has the debt to equity ratio increased in the past 5 years? (1 check)
  4. Is the debt to equity ratio over 40%? (1 check)
  5. Is the debt covered by operating cash flow? (1 check)
  6. Are earnings greater than 5x the interest on debt (if company pays interest at all)? (1 check)
  7. East West Bancorp has a total score of 6/6, see the detailed checks below.
For companies that are loss making and have been so on average in the past we replace the last 2 checks with:
  1. Does cash and short term investments cover stable operating expenses (recurring G&A and R&D) for more than 3 years? (1 check)
  2. Does cash and short term investments cover growing operating expenses (recurring G&A and R&D) for more than 3 years? (1 check)


Full details on the Health part of the Simply Wall St company analysis model.

Dividends

 What is East West Bancorp's current dividend yield, its reliability and sustainability?

Dividends are regular cash payments to you from the company, similar to a bank paying you interest on a savings account.
Annual Dividend Income
Dividend payments
2.41%
Current annual income from East West Bancorp dividends. Estimated to be 2.41% next year.
If you bought €2,000 of East West Bancorp shares you are expected to receive €48 in your first year as a dividend.
Dividend Amount
Here we look how much dividend is being paid, if any. Is it above what you can get in a savings account? It is up there with the best dividend paying companies?
  • East West Bancorp's pays a higher dividend yield than the bottom 25% of dividend payers in Germany (1.45%).
  • East West Bancorp's dividend is below the markets top 25% of dividend payers in Germany (3.93%).
Annualized Historical and Future Dividends
It is important to see if the dividend for a company is stable, and not wildly increasing/decreasing each year. This graph shows you the historical rate to count toward your assessment of the stock.

We also check to see if the dividend has increased in the past 10 years.
Raw Data
DB:EW2 Annualized Past and Future Dividends
Data Point Source Value
Past Annualized Dividend Yield S&P Global Market Data See Below
Past Dividends per Share Company Filings/ Annualized Dividend Payments See Below
Future Dividends per Share Estimates Average of up to 11 Analyst Estimates (S&P Global) See Below
Germany Banks Industry Average Dividend Yield Market Cap Weighted Average of 6 Stocks 3.2%
Germany Market Average Dividend Yield Market Cap Weighted Average of 326 Stocks 3.2%
Germany Minimum Threshold Dividend Yield 10th Percentile 0.8%
Germany Bottom 25% Dividend Yield 25th Percentile 1.4%
Germany Top 25% Dividend Yield 75th Percentile 3.9%

Industry and Market average data is calculated daily.

Note all dividend per share amounts are annualized and not quarterly or other period.

DB:EW2 Future Dividends Estimate Data
Date (Data in $) Dividend per Share (annual) Avg. No. Analysts
2021-12-31 1.32 2.00
2020-12-31 1.13 11.00
2019-12-31 1.04 11.00
DB:EW2 Past Annualized Dividends Data
Date (Data in $) Dividend per share (annual) Avg. Yield (%)
2019-05-08 1.100 2.298
2019-04-18 1.100 2.149
2019-02-27 0.920 1.799
2019-01-24 0.920 1.732
2018-11-07 0.920 1.910
2018-10-18 0.920 1.739
2018-08-07 0.920 1.485
2018-07-19 0.920 1.404
2018-05-08 0.800 1.161
2018-04-19 0.800 1.197
2018-02-27 0.800 1.252
2018-01-25 0.800 1.214
2017-07-20 0.800 1.357
2017-05-09 0.800 1.410
2017-04-19 0.800 1.454
2016-10-24 0.800 1.617
2016-10-19 0.800 2.016
2016-08-05 0.800 2.202
2016-07-20 0.800 2.326
2016-05-06 0.800 2.226
2016-04-20 0.800 2.145
2016-02-26 0.800 2.456
2016-01-27 0.800 2.641
2015-11-09 0.800 1.996
2015-10-21 0.800 1.957
2015-08-07 0.800 2.004
2015-07-15 0.800 1.788
2015-01-22 0.800 1.922
2015-01-21 0.800 2.163
2014-10-20 0.720 1.946
2014-04-16 0.720 2.092
2014-03-03 0.720 1.991
2014-01-22 0.720 2.091
2013-07-17 0.600 1.843
2013-04-17 0.600 2.312
2013-02-28 0.600 2.381
2013-01-23 0.600 2.498
2012-10-17 0.400 1.857
2012-07-18 0.400 1.839
2012-04-17 0.400 1.786
2012-02-29 0.400 1.748
2012-01-19 0.400 1.804
2011-10-19 0.200 1.031
2011-07-20 0.200 1.220
2011-04-26 0.200 1.007
2011-01-25 0.040 0.178
2010-10-25 0.040 0.213
2010-07-27 0.040 0.248
2010-04-27 0.040 0.236
2010-01-26 0.040 0.229
2009-10-19 0.040 0.302
2009-07-17 0.040 0.450

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Dividends per share have been stable in the past 10 years.
  • Dividends per share have increased over the past 10 years.
Current Payout to shareholders
What portion of East West Bancorp's earnings are paid to the shareholders as a dividend.
  • Dividends paid are well covered by earnings (5.3x coverage).
Future Payout to shareholders
  • Dividends after 3 years are expected to be well covered by earnings (4.6x coverage).
X
Income/ dividend checks
We assess East West Bancorp's dividend by checking for:
  1. Firstly is the company paying a notable dividend (greater than 0.8%) - if not then the rest of the checks are ignored.
  2. Is current dividend yield above the bottom 25% of dividend payers? (1 check)
  3. Is current dividend yield above the top 25% of dividend payers? (1 check)
  4. Have they paid a dividend for 10 years, and during this period has the dividend been volatile (drop of more than 25%)? (1 check)
  5. If they have paid a dividend for 10 years has it increased in this time? (1 check)
  6. How sustainable is the dividend, can East West Bancorp afford to pay it from its earnings today and in 3 years (Payout ratio less than 90%)? (2 checks)
  7. East West Bancorp has a total score of 5/6, see the detailed checks below.


Full details on the Dividends part of the Simply Wall St company analysis model.

Management

 What is the CEO of East West Bancorp's salary, the management and board of directors tenure and is there insider trading?

Management is one of the most important areas of a company. We look at unreasonable CEO compensation, how long the team and board of directors have been around for and insider trading.
CEO
Dominic Ng
COMPENSATION $7,587,684
AGE 59
TENURE AS CEO 27.3 years
CEO Bio

Mr. Dominic Ng has been the Chairman and Chief Executive Officer of East West Bancorp, Inc. since 1992 and serves as its President since August 24, 2018. Mr. Ng has also been Chairman and Chief Executive Officer of East West Bank, subsidiary of East West Bancorp, Inc. since 1992 and serves as its President since August 24, 2018. He served as the President of East West Bancorp, Inc. since 1998 and served as President of East West Bank since 1992. He served as Chief Executive Officer and President of Seyen Investment, Inc. Since 1992, he has focused on building East West Bancorp. into one of the premier U.S.A banking franchises. He also served for over a decade as a Certified Public Accountant at Deloitte & Touche LLP. He has been the Chairman of East West BanCorp. Inc., since 1992. He has been an Independent Director of Mattel, Inc. since March 16, 2006. He has been a Director of PacifiCare Health Systems, LLC since February 2003; East West Bancorp, Inc. and East West Bank since 1991. He serves as Director of STX Productions, LLC. He also serves on the boards of the Anderson School at UCLA. He serves as a Director of Town Hall - Los Angeles and United Way of Greater Los Angeles. He serves on the Board of Trustees of Bowers Museum. He serves as Member of Advisory Board of PGP Capital Advisors, LLC. He served as a Director of Los Angeles Branch at Federal Reserve Bank of San Francisco. He served as a Director of ESS Technology Inc. from May 1998 to November 2004, California Bankers' Association (previously 2002 – 2011, 2016 – 2017), The United Way of Greater Los Angeles (2006 – 2014); Pacific Council on International Policy (2010 – 2013) and Los Angeles’ Mayor’s Trade Advisory Council as Co-Chair (2009 – 2011). He served on the Board of Trustees of Asia Society and serves as a Trustee of University of Southern California. He serves as Member of Keck School of Medicine Board of Overseers since 2016. Mr. Ng holds BBA at the University of Houston an honorary doctor of law degree from Occidental College and an honorary fellowship from Lingnan University in Hong Kong. He is a Certified Public Accountant from AICPA.

CEO Compensation
  • Dominic's compensation has been consistent with company performance over the past year, both up more than 20%.
  • Dominic's remuneration is higher than average for companies of similar size in Germany.
Management Team Tenure

Average tenure and age of the East West Bancorp management team in years:

8.7
Average Tenure
56
Average Age
  • The average tenure for the East West Bancorp management team is over 5 years, this suggests they are a seasoned and experienced team.
Management Team

Dominic Ng

TITLE
Chairman
COMPENSATION
$8M
AGE
59
TENURE
27.3 yrs

Irene Oh

TITLE
Executive VP & CFO
COMPENSATION
$2M
AGE
40
TENURE
9.3 yrs

Doug Krause

TITLE
Executive VP
COMPENSATION
$1M
AGE
61
TENURE
23.3 yrs

Andy Yen

TITLE
Executive VP and Head of International & Commercial Banking
COMPENSATION
$911K
AGE
60
TENURE
14.3 yrs

Catherine Zhou

TITLE
Executive VP
COMPENSATION
$2M
TENURE
1.6 yrs

Emily Wang

TITLE
Director of Marketing

Julianna Balicka

TITLE
Director of Strategy & Corporate Development

Gary Teo

TITLE
Head of HR
AGE
45
TENURE
4.3 yrs

Bennett Pozil

TITLE
Head of Corporate Banking - East West Bank and Executive Vice President of East West Bank
AGE
56
TENURE
8.1 yrs

Robert Lo

TITLE
Head of Commercial Real Estate Banking - East West Bank and Executive VP of East West Bank
AGE
53
TENURE
5.3 yrs
Board of Directors Tenure

Average tenure and age of the East West Bancorp board of directors in years:

9.1
Average Tenure
64
Average Age
  • The tenure for the East West Bancorp board of directors is about average.
Board of Directors

Dominic Ng

TITLE
Chairman
COMPENSATION
$8M
AGE
59
TENURE
27.3 yrs

Herman Li

TITLE
Director
COMPENSATION
$212K
AGE
65
TENURE
21.3 yrs

Jack Liu

TITLE
Director
COMPENSATION
$215K
AGE
59
TENURE
21.3 yrs

Rudolph Estrada

TITLE
Lead Director
COMPENSATION
$381K
AGE
70
TENURE
5.8 yrs

Iris Chan

TITLE
Director
COMPENSATION
$200K
AGE
72
TENURE
9.1 yrs

Les Sussman

TITLE
Director
COMPENSATION
$214K
AGE
63
TENURE
3.6 yrs

Paul Irving

TITLE
Director
COMPENSATION
$200K
AGE
66
TENURE
9.1 yrs

Molly Campbell

TITLE
Director
COMPENSATION
$192K
AGE
57
TENURE
4.8 yrs
Who owns this company?
Recent Insider Trading
  • East West Bancorp insiders have only sold shares in the past 3 months.
Recent Insider Transactions
Announced Type Name Entity Role Start End Shares Max Price (€) Value (€)
04. Mar 19 Sell Chi Husan Liu Individual 04. Mar 19 04. Mar 19 -2,108 €48.76 €-102,782
29. Jan 19 Sell Rudolph Estrada Individual 28. Jan 19 28. Jan 19 -1,902 €46.02 €-87,530
15. Jun 18 Sell Molly Campbell Individual 14. Jun 18 14. Jun 18 -356 €60.40 €-21,504
07. Jun 18 Sell Irene Oh Individual 06. Jun 18 06. Jun 18 -5,000 €62.03 €-310,133
01. Jun 18 Sell Douglas Krause Individual 31. May 18 31. May 18 -5,000 €59.74 €-298,704
X
Management checks
We assess East West Bancorp's management by checking for:
  1. Is the CEO's compensation unreasonable compared to market cap? (1 check)
  2. Has the CEO's compensation increased more than 20% whilst the EPS is down more then 20%? (1 check)
  3. Is the average tenure of the management team less than 2 years? (1 check)
  4. Is the average tenure of the board of directors team less than 3 years? (1 check)
  5. East West Bancorp has a total score of 0/6, this is not included on the snowflake, see the detailed checks below.


Note: We use the top 6 management executives and board members in our calculations.

Note 2: Insider trading include any internal stakeholders and these transactions .

Full details on the Management part of the Simply Wall St company analysis model.

News

Simply Wall St News

Company Info

Description

East West Bancorp, Inc. operates as the bank holding company for East West Bank that provides a range of personal and commercial banking services to businesses and individuals in the United States and Greater China. It operates in three segments: Consumer and Business Banking, Commercial Banking, and Other. The company accepts various deposit products, such as personal and business checking and savings accounts, money market, time deposits, and individual retirement accounts. Its loan products include commercial and residential real estate, lines of credit, construction, trade finance, letters of credit, commercial business, housing loans, asset-based lending, and equipment financing, as well as financing to clients needing a financial bridge to facilitate their business transactions between the United States and Greater China. The company also provides various wealth management, treasury management, foreign exchange, and interest rate and commodity hedging risk management services; and Internet-based services comprising online banking services. As of January 24, 2019, it operated approximately 130 locations in California, Georgia, Massachusetts, Nevada, New York, Texas, and Washington; full service branches in Hong Kong, Shanghai, Shantou, and Shenzhen; and representative offices in Beijing, Chongqing, Guangzhou, Taipei, and Xiamen. East West Bancorp, Inc. was founded in 1998 and is headquartered in Pasadena, California.

Details
Name: East West Bancorp, Inc.
EW2
Exchange: DB
Founded: 1998
$5,878,567,720
145,545,510
Website: http://www.eastwestbank.com
Address: East West Bancorp, Inc.
135 North Los Robles Avenue,
7th Floor,
Pasadena,
California, 91101,
United States
Listings
Exchange Symbol Ticker Symbol Security Exchange Country Currency Listed on
NasdaqGS EWBC Common Stock Nasdaq Global Select US USD 08. Feb 1999
DB EW2 Common Stock Deutsche Boerse AG DE EUR 08. Feb 1999
Number of employees
Current staff
Staff numbers
3,200
East West Bancorp employees.
Industry
Regional Banks
Banks
Company Analysis and Financial Data Status
Area Date (UTC time)
Company Analysis updated: 2019/05/24 21:28
End of day share price update: 2019/05/24 00:00
Last estimates confirmation: 2019/05/17
Last earnings filing: 2019/05/08
Last earnings reported: 2019/03/31
Last annual earnings reported: 2018/12/31


All dates and times in UTC. All financial data provided by Standard & Poor’s Capital IQ.

Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.