East West Bancorp
Market Cap
US$6.7b
Last Updated
2019/12/11 23:34 UTC
Data Sources
Company Financials +
Executive Summary
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.
Rewards
Risk Analysis
Snowflake Analysis
Flawless balance sheet, good value and pays a dividend.
Similar Companies
Share Price & News
How has East West Bancorp's share price performed over time and what events caused price changes?
Latest Share Price and Events
Stable Share Price: EWBC has not had significant price volatility in the past 3 months.
Market Performance
7 Day Return
1.0%
EWBC
2.7%
US Banks
1.1%
US Market
1 Year Return
-1.3%
EWBC
22.7%
US Banks
17.8%
US Market
Return vs Industry: EWBC underperformed the US Banks industry which returned 22.7% over the past year.
Return vs Market: EWBC underperformed the US Market which returned 17.8% over the past year.
Shareholder returns
| EWBC | Industry | Market | |
|---|---|---|---|
| 7 Day | 1.0% | 2.7% | 1.1% |
| 30 Day | 1.2% | 0.9% | 1.4% |
| 90 Day | 0.5% | 10.0% | 3.9% |
| 1 Year | 0.9%-1.3% | 26.3%22.7% | 20.3%17.8% |
| 3 Year | -1.1%-5.9% | 31.8%22.6% | 44.8%35.4% |
| 5 Year | 33.3%21.6% | 80.2%60.2% | 71.3%52.4% |
Price Volatility Vs. Market
How volatile is East West Bancorp's share price compared to the market and industry in the last 5 years?
Simply Wall St News
1 week ago | Simply Wall St
East West Bancorp, Inc. (NASDAQ:EWBC) Insiders Increased Their Holdings1 month ago | Simply Wall St
Here's What We Like About East West Bancorp, Inc. (NASDAQ:EWBC)'s Upcoming Dividend1 month ago | Simply Wall St
If You Had Bought East West Bancorp (NASDAQ:EWBC) Stock A Year Ago, You'd Be Sitting On A 23% Loss, TodayValuation
Is East West Bancorp undervalued compared to its fair value and its price relative to the market?
>50%
Undervalued compared to fair value
Share Price vs. Fair Value
Below Fair Value: EWBC ($46.01) is trading below our estimate of fair value ($100.78)
Significantly Below Fair Value: EWBC is trading below fair value by more than 20%.
Price To Earnings Ratio
PE vs Industry: EWBC is good value based on its PE Ratio (10.1x) compared to the Banks industry average (12.7x).
PE vs Market: EWBC is good value based on its PE Ratio (10.1x) compared to the US market (18.4x).
Price to Earnings Growth Ratio
PEG Ratio: EWBC is poor value based on its PEG Ratio (2.2x)
Price to Book Ratio
PB vs Industry: EWBC is overvalued based on its PB Ratio (1.4x) compared to the US Banks industry average (1.2x).
Next Steps
Future Growth
How is East West Bancorp forecast to perform in the next 1 to 3 years based on estimates from 10 analysts?
4.6%
Forecasted annual earnings growth
Earnings and Revenue Growth Forecasts
Analyst Future Growth Forecasts
Earnings vs Savings Rate: EWBC's forecast earnings growth (4.6% per year) is above the savings rate (1.7%).
Earnings vs Market: EWBC's earnings (4.6% per year) are forecast to grow slower than the US market (14.2% per year).
High Growth Earnings: EWBC's earnings are forecast to grow, but not significantly.
Revenue vs Market: EWBC's revenue (3.5% per year) is forecast to grow slower than the US market (7.4% per year).
High Growth Revenue: EWBC's revenue (3.5% per year) is forecast to grow slower than 20% per year.
Earnings per Share Growth Forecasts
Future Return on Equity
Future ROE: EWBC's Return on Equity is forecast to be low in 3 years time (12.9%).
Next Steps
Past Performance
How has East West Bancorp performed over the past 5 years?
15.2%
Historical annual earnings growth
Earnings and Revenue History
Quality Earnings: EWBC has high quality earnings.
Growing Profit Margin: EWBC's current net profit margins (44.8%) are higher than last year (44.7%).
Past Earnings Growth Analysis
Earnings Trend: EWBC's earnings have grown by 15.2% per year over the past 5 years.
Accelerating Growth: EWBC's earnings growth over the past year (7%) is below its 5-year average (15.2% per year).
Earnings vs Industry: EWBC earnings growth over the past year (7%) underperformed the Banks industry 27.1%.
Return on Equity
High ROE: EWBC's Return on Equity (13.5%) is considered low.
Return on Assets
Return on Capital Employed
Next Steps
Financial Health
How is East West Bancorp's financial position? (This company is analysed differently as a bank or financial institution)
Financial Position Analysis
Debt to Equity History and Analysis
Balance Sheet
Inventory Level: EWBC has a low level of unsold assets or inventory.
Debt Coverage by Assets: EWBC's debt is covered by short term assets (assets are 3.9x debt).
Financial Institutions Analysis
Asset Level: EWBC's level of assets compared to its equity is low.
Allowance for Bad Loans: EWBC has a sufficient allowance for bad loans.
Low Risk Liabilities: EWBC's liabilities are made up of primarily low risk sources of funding.
Loan Level: EWBC has an acceptable proportion of non-loan assets held.
Low Risk Deposits: EWBC's loans are broadly funded by customer deposits.
Level of Bad Loans: EWBC has an appropriate level of bad loans (0.39%)
Next Steps
Dividend
What is East West Bancorp's current dividend yield, its reliability and sustainability?
2.39%
Current Dividend Yield
Dividend Yield vs Market
Current dividend yield vs market & industry
Notable Dividend: EWBC's dividend (2.39%) is higher than the bottom 25% of dividend payers in the US market (1.44%).
High Dividend: EWBC's dividend (2.39%) is low compared to the top 25% of dividend payers in the US market (3.67%).
Stability and Growth of Payments
Stable Dividend: EWBC's dividend payments have been volatile in the past 10 years.
Growing Dividend: EWBC's dividend payments have increased over the past 10 years.
Current Payout to Shareholders
Dividend Coverage: With its low payout ratio (22.3%), EWBC's dividend payments are well covered by earnings.
Future Payout to Shareholders
Future Dividend Coverage: EWBC's dividends in 3 years are forecast to be well covered by earnings (24.7% payout ratio).
Next Steps
Management
What is the CEO of East West Bancorp's salary, the management and board of directors tenure and is there insider trading?
9.3yrs
Average management tenure
CEO
Dominic Ng (60yo)
27.9yrs
Tenure
US$7,587,684
Compensation
Mr. Dominic Ng has been the Chairman and Chief Executive Officer of East West Bancorp, Inc. since 1992 and serves as its President since August 24, 2018. Mr. Ng has also been Chairman and Chief Executive O ...
CEO Compensation Analysis
Compensation vs Market: Dominic's total compensation ($USD7.59M) is about average for companies of similar size in the US market ($USD6.70M).
Compensation vs Earnings: Dominic's compensation has been consistent with company performance over the past year.
Management Age and Tenure
9.3yrs
Average Tenure
57yo
Average Age
Experienced Management: EWBC's management team is seasoned and experienced (9.3 years average tenure).
Board Age and Tenure
9.7yrs
Average Tenure
64yo
Average Age
Experienced Board: EWBC's board of directors are considered experienced (9.7 years average tenure).
Insider Trading
Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.
Recent Insider Transactions
| Entity | Individual |
| Role | Senior Key Executive Executive VP |
| Shares | 2,512 |
| Max Price | US$39.82 |
| Entity | Individual |
| Role | Chief Legal Officer Executive VP |
| Shares | 6,400 |
| Max Price | US$39.19 |
| Entity | Individual |
| Role | Chief Financial Officer Executive VP & CFO |
| Shares | 6,400 |
| Max Price | US$39.10 |
| Entity | Individual |
| Role | Lead Director Lead Director |
| Shares | 1,000 |
| Max Price | US$38.51 |
| Entity | Individual |
| Role | Member of the Board of Directors Independent Director |
| Shares | 2,500 |
| Max Price | US$39.19 |
| Entity | Individual |
| Role | Member of the Board of Directors Independent Director |
| Shares | 1,000 |
| Max Price | US$38.11 |
| Entity | Individual |
| Role | Chief Executive Officer Chairman |
| Shares | 25,840 |
| Max Price | US$40.40 |
| Entity | Individual |
| Role | Senior Key Executive Executive VP and Head of International & Commercial Banking |
| Shares | 1,300 |
| Max Price | US$38.92 |
| Entity | Individual |
| Role | Member of the Board of Directors Independent Director |
| Shares | 1,000 |
| Max Price | US$38.69 |
| Entity | Individual |
| Role | Member of the Board of Directors Independent Director |
| Shares | 2,108 |
| Max Price | US$55.20 |
| Entity | Individual |
| Role | Lead Director Lead Director |
| Shares | 1,902 |
| Max Price | US$52.64 |
Ownership Breakdown
Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.
Management Team
Dominic Ng (60yo)
Chairman
- Tenure: 27.9yrs
- Compensation: US$7.59m
Doug Krause (62yo)
Executive VP
- Tenure: 23.9yrs
- Compensation: US$1.45m
Andy Yen (61yo)
Executive VP and Head of International & Commercial Banking
- Tenure: 14.9yrs
- Compensation: US$911.03k
Julianna Balicka
Director of Strategy & Corporate Development
- Tenure: 0yrs
Irene Oh (41yo)
Executive VP & CFO
- Tenure: 9.9yrs
- Compensation: US$2.00m
Catherine Zhou
Executive VP
- Tenure: 2.2yrs
- Compensation: US$1.89m
Bennett Pozil (57yo)
Head of Corporate Banking - East West Bank and Executive Vice President of East West Bank
- Tenure: 8.7yrs
Robert Lo (54yo)
Head of Commercial Real Estate Banking - East West Bank and Executive VP of East West Bank
- Tenure: 5.9yrs
Emily Wang
Director of Marketing
- Tenure: 0yrs
Gary Teo (46yo)
Head of HR
- Tenure: 4.9yrs
Board Members
Dominic Ng (60yo)
Chairman
- Tenure: 27.9yrs
- Compensation: US$7.59m
Rudolph Estrada (71yo)
Lead Director
- Tenure: 6.4yrs
- Compensation: US$380.50k
Herman Li (66yo)
Independent Director
- Tenure: 21.9yrs
- Compensation: US$211.50k
Jack Liu (60yo)
Independent Director
- Tenure: 21.9yrs
- Compensation: US$215.00k
Paul Irving (67yo)
Independent Director
- Tenure: 9.7yrs
- Compensation: US$199.50k
Iris Chan (73yo)
Independent Director
- Tenure: 9.7yrs
- Compensation: US$199.50k
Archie Deskus (53yo)
Independent Director
- Tenure: 0.2yrs
Les Sussman (64yo)
Independent Director
- Tenure: 4.2yrs
- Compensation: US$213.50k
Molly Campbell (58yo)
Independent Director
- Tenure: 5.3yrs
- Compensation: US$192.00k
Company Information
East West Bancorp, Inc.'s company bio, employee growth, exchange listings and data sources
Key Information
- Name: East West Bancorp, Inc.
- Ticker: EWBC
- Exchange: NasdaqGS
- Founded: 1998
- Industry: Regional Banks
- Sector: Banks
- Market Cap: US$6.725b
- Shares outstanding: 145.63m
- Website: https://www.eastwestbank.com
Number of Employees
Location
- East West Bancorp, Inc.
- 135 North Los Robles Avenue
- 7th Floor
- Pasadena
- California
- 91101
- United States
Listings
| Ticker | Exchange | Primary Security | Security Type | Country | Currency | Listed on |
|---|---|---|---|---|---|---|
| EWBC | NasdaqGS (Nasdaq Global Select) | Yes | Common Stock | US | USD | Feb 1999 |
| EW2 | DB (Deutsche Boerse AG) | Yes | Common Stock | DE | EUR | Feb 1999 |
Biography
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 Grea ...
Company Analysis and Financial Data Status
| Data | Last Updated (UTC time) |
|---|---|
| Company Analysis | 2019/12/11 23:34 |
| End of Day Share Price | 2019/12/11 00:00 |
| Earnings | 2019/09/30 |
| Annual Earnings | 2018/12/31 |
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.