East West Bancorp
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 48 days ago. More info.
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EWBC Share Price and Events
7 Day Returns
1 Year Returns
EWBC Shareholder Return
| 7 Day | 30 Day | 90 Day | 1 Year | 3 Year | 5 Year | |
|---|---|---|---|---|---|---|
| East West Bancorp (EWBC) | 0.4% | -2.3% | -5.8% | -34.2% | 36.7% | 25.4% |
| US Banks | 0.3% | -0.2% | 3.6% | -6.8% | 55.8% | 40% |
| US Market | 1.4% | 3.8% | 3.5% | 4.9% | 44.8% | 40.1% |
1 Year Return vs Industry and Market
- EWBC underperformed the Banks industry which returned -6.8% over the past year.
- EWBC underperformed the Market in United States of America which returned 4.9% over the past year.
EWBC Value
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.
Below are the data sources, inputs and calculation used to determine the intrinsic value for East West Bancorp.
| Data Point | Source | Value |
|---|---|---|
| Valuation Model | Excess Returns Model | |
| Stable EPS |
Weighted future Return on Equity estimates from 12 analysts.
= Stable Book Value * Return on Equity = $37.05 * 15.1% |
$5.58 |
| Book Value of Equity per Share | Weighted future Book Value estimates from 10 analysts. | $37.05 |
| Discount Rate (Cost of Equity) | See below | 7.5% |
| Perpetual Growth Rate | 10-Year US Government Bond Rate | 2.7% |
An important part of a discounted cash flow is the discount rate, below we explain how it has been calculated.
| Data Point | Calculation/ Source | Result |
|---|---|---|
| Risk-Free Rate | 10-Year US Govt Bond Rate | 2.7% |
| Equity Risk Premium | S&P Global | 6% |
| Banks Unlevered Beta | Simply Wall St/ S&P Global | 0.59 |
| Re-levered Beta | = Unlevered beta (1 + (1- tax rate) (Debt/Equity))
= 0.59 (1 + (1- 21%) (11.58%)) |
0.761 |
| 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)
= 2.73% + (0.8 * 5.96%) |
7.5% |
Discounted Cash Flow Calculation for NasdaqGS:EWBC 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.
| Calculation | Result | |
|---|---|---|
| Excess Returns |
= (Stable Return on equity – Cost of equity) (Book Value of
Equity per share)
= (15.1% – 7.5%) * $37.05) |
$2.80 |
| Terminal Value of Excess Returns |
= Excess Returns / (Cost of Equity -
Expected Growth Rate)
= $2.80 / (7.5% - 2.73%) |
$58.76 |
| Value of Equity |
= Book Value per share + Terminal Value of
Excess Returns
= $37.05 + $58.76 |
$95.81 |
| Calculation | Result | |
|---|---|---|
| Value per share (USD) | From above. | $95.81 |
| Current discount | Discount to share price of
$44.66
= -1 x ($44.66 - $95.81) / $95.81 |
53.4% |
Learn more about our DCF calculations in Simply Wall St’s analysis model .
Current Discount
Current Discount Checks
- 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?
| Data Point | Source | Value |
|---|---|---|
| Earnings Per Share * | Company Filings (2019-03-31) in USD | $4.69 |
| NasdaqGS:EWBC Share Price ** | NasdaqGS (2019-06-25) in USD | $44.66 |
| United States of America Banks Industry PE Ratio | Median Figure of 600 Publicly-Listed Banks Companies | 12.59x |
| United States of America Market PE Ratio | Median Figure of 3,095 Publicly-Listed Companies | 17.73x |
* Trailing twelve months (TTM) annual GAAP earnings per share excluding extraordinary items.
** Primary Listing of East West Bancorp.
| Calculation | Outcome | |
|---|---|---|
| PE Ratio | = NasdaqGS:EWBC Share Price ÷ EPS (both in USD) = 44.66 ÷ 4.69 |
9.51x |
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 US Banks industry average.
- East West Bancorp is good value based on earnings compared to the United States of America market.
Price based on expected Growth
Does
East West Bancorp's expected growth come at a high price?
| Data Point | Source | Value |
|---|---|---|
| PE Ratio | See PE Ratio Section | 9.51x |
| Net Income Annual Growth Rate | See Future Growth Section. Line of Best Fit* through Consensus Estimate Earnings of 12 Analysts |
6.5%per year |
| United States of America Banks Industry PEG Ratio | Median Figure of 271 Publicly-Listed Banks Companies | 1.33x |
| United States of America Market PEG Ratio | Median Figure of 2,133 Publicly-Listed Companies | 1.53x |
*Line of best fit is calculated by linear regression .
| Calculation | Outcome | |
|---|---|---|
| PEG Ratio | = PE Ratio ÷ Net Income Annual Growth Rate = 9.51x ÷ 6.5% |
1.46x |
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?
| Data Point | Source | Value |
|---|---|---|
| Book Value per Share | Company Filings (2019-03-31) in USD | $31.56 |
| NasdaqGS:EWBC Share Price * | NasdaqGS (2019-06-25) in USD | $44.66 |
| United States of America Banks Industry PB Ratio | Median Figure of 603 Publicly-Listed Banks Companies | 1.18x |
| United States of America Market PB Ratio | Median Figure of 5,255 Publicly-Listed Companies | 1.79x |
| Calculation | Outcome | |
|---|---|---|
| PB Ratio | = NasdaqGS:EWBC Share Price ÷ Book Value per Share (both in USD) = 44.66 ÷ 31.56 |
1.42x |
* 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 US Banks industry average.
Value checks
We assess East West Bancorp's value by looking at:- 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. )
- Is the PE ratio less than the market average, and/ or less than the Banks industry average (and greater than 0)? (2 checks)
- Is the PEG ratio within a reasonable range (0 to 1)? (1 check)
- Is the PB ratio less than the Banks industry average (and greater than 0)? (1 check) 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.
EWBC Future Performance
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!
Earnings growth vs Low Risk Savings
- East West Bancorp's earnings growth is expected to exceed the low risk savings rate of 2.7%.
Growth vs Market Checks
- East West Bancorp's earnings growth is positive but not above the United States of America market average.
- East West Bancorp's revenue growth is expected to exceed the United States of America market average.
Annual Growth Rates Comparison
| Data Point | Source | Value (per year) |
|---|---|---|
| NasdaqGS:EWBC Future Earnings Growth Rate | Line of Best Fit* through Consensus Estimate Earnings of 12 Analysts | 6.5% |
| NasdaqGS:EWBC Future Revenue Growth Rate | Line of Best Fit* through Consensus Estimate Revenue of 12 Analysts | 7.8% |
| United States of America Banks Industry Earnings Growth Rate | Market Cap Weighted Average | 3.8% |
| United States of America Banks Industry Revenue Growth Rate | Market Cap Weighted Average | 3.8% |
| United States of America Market Earnings Growth Rate | Market Cap Weighted Average | 13.9% |
| United States of America Market Revenue Growth Rate | Market Cap Weighted Average | 7.4% |
*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
| Data Point | Source | Value |
|---|---|---|
| Past Financials | Company Filings (2 months ago) | See Below |
| Future Estimates | Average of up to 12 Analyst Estimates (S&P Global) | See Below |
| 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 | 770 | 12 | |
| 2019-12-31 | 1,689 | 721 | 12 |
| Date (Data in USD Millions) | Revenue | Cash Flow | Net Income * |
|---|---|---|---|
| 2019-03-31 | 1,437 | 805 | 681 |
| 2018-12-31 | 1,412 | 883 | 704 |
| 2018-09-30 | 1,378 | 721 | 616 |
| 2018-06-30 | 1,326 | 749 | 577 |
| 2018-03-31 | 1,270 | 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.
Past and Future Earnings per Share
| Data Point | Source | Value |
|---|---|---|
| Past Financials | Company Filings (2 months ago) | See Below |
| Future Estimates | Average of up to 12 Analyst Estimates (S&P Global) | See Below |
All data from East West Bancorp Company Filings, last reported 2 months ago, and in Trailing twelve months (TTM) annual period rather than quarterly.
| 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 | 5.30 | 5.50 | 5.10 | 12.00 |
| 2019-12-31 | 4.94 | 5.01 | 4.85 | 12.00 |
| 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.
Future performance checks
We assess East West Bancorp's future performance by looking at:- Is the annual earnings growth rate expected to beat the low risk savings rate, plus a premium to keep pace with inflation?
- Is the annual earnings growth rate expected to beat the average growth rate in earnings of the United States of America market? (1 check)
- Is the annual revenue growth rate expected to beat the average growth rate in revenue of the United States of America market? (1 check)
- Is the annual earnings growth rate expected to be above 20%? (1 check)
- Is the annual revenue growth rate expected to be above 20%? (1 check)
- Is the Return on Equity in 3 years expected to be over 20%? (1 check)
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.
EWBC 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
Past Earnings growth analysis
- 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 not exceeded the US Banks industry average in the past year (30.2% vs 40.7%).
Earnings and Revenue History
All data from East West Bancorp Company Filings, last reported 2 months ago, and in Trailing twelve months (TTM) annual period rather than quarterly.
| Date (Data in USD Millions) | Revenue | Net Income * | G+A Expenses | R&D Expenses |
|---|---|---|---|---|
| 2019-03-31 | 1,437.12 | 680.69 | 512.30 | |
| 2018-12-31 | 1,412.06 | 703.70 | 504.34 | |
| 2018-09-30 | 1,378.03 | 615.58 | 501.16 | |
| 2018-06-30 | 1,326.13 | 576.94 | 485.16 | |
| 2018-03-31 | 1,270.32 | 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 US 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.
Past performance checks
We assess East West Bancorp's performance over the past 5 years by checking for:- Has earnings increased in past 5 years? (1 check)
- Has the earnings growth in the last year exceeded that of the Banks industry? (1 check)
- Is the recent earnings growth over the last year higher than the average annual growth over the past 5 years? (1 check)
- Is the Return on Equity (ROE) higher than 20%? (1 check)
- Is the Return on Assets (ROA) above industry average? (1 check)
- Has the Return on Capital Employed (ROCE) increased from 3 years ago? (1 check)
East West Bancorp has a total score of 3/6, 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.
EWBC Health
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.
Balance sheet
Assets
Liabilities and shares
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.
All data from East West Bancorp Company Filings, last reported 2 months ago.
| Date (Data in USD Millions) | Total Equity | Total Debt | Cash & Short Term Investments |
|---|---|---|---|
| 2019-03-31 | 4,591.93 | 634.59 | 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.
- 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%).
Financial health checks
We assess East West Bancorp's financial health by checking for:- Are short term assets greater than short term liabilities? (1 check)
- Are short term assets greater than long term liabilities? (1 check)
- Has the debt to equity ratio increased in the past 5 years? (1 check)
- Is the debt to equity ratio over 40%? (1 check)
- Is the debt covered by operating cash flow? (1 check)
- Are earnings greater than 5x the interest on debt (if company pays interest at all)? (1 check) East West Bancorp has a total score of 6/6, see the detailed checks below.
- Does cash and short term investments cover stable operating expenses (recurring G&A and R&D) for more than 3 years? (1 check)
- 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.
EWBC 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
If you bought
$2,000 of
East West Bancorp
shares you are expected to receive
$49
in your first year as a dividend.
Dividend Amount
- East West Bancorp's pays a higher dividend yield than the bottom 25% of dividend payers in United States of America (1.45%).
- East West Bancorp's dividend is below the markets top 25% of dividend payers in United States of America (3.73%).
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.
| 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 12 Analyst Estimates (S&P Global) | See Below |
| United States of America Banks Industry Average Dividend Yield | Market Cap Weighted Average of 479 Stocks | 2.9% |
| United States of America Market Average Dividend Yield | Market Cap Weighted Average of 2012 Stocks | 2.4% |
| United States of America Minimum Threshold Dividend Yield | 10th Percentile | 0.8% |
| United States of America Bottom 25% Dividend Yield | 25th Percentile | 1.4% |
| United States of America Top 25% Dividend Yield | 75th Percentile | 3.7% |
Industry and Market average data is calculated daily.
Note all dividend per share amounts are annualized and not quarterly or other period.
| 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 |
| Date (Data in $) | Dividend per share (annual) | Avg. Yield (%) |
|---|---|---|
| 2019-05-08 | 1.100 | 2.417 |
| 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).
- Dividends after 3 years are expected to be well covered by earnings (4.6x coverage).
Income/ dividend checks
We assess East West Bancorp's dividend by checking for:- Firstly is the company paying a notable dividend (greater than 0.8%) - if not then the rest of the checks are ignored.
- Is current dividend yield above the bottom 25% of dividend payers? (1 check)
- Is current dividend yield above the top 25% of dividend payers? (1 check)
- Have they paid a dividend for 10 years, and during this period has the dividend been volatile (drop of more than 25%)? (1 check)
- If they have paid a dividend for 10 years has it increased in this time? (1 check)
- 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) 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.
EWBC Management
CEO
| COMPENSATION | $7,587,684 |
| AGE | 59 |
| TENURE AS CEO | 27.4 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 about average for companies of similar size in United States of America.
Management Team Tenure
Average tenure and age of the East West Bancorp management team in years:
- 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
Chairman
$8M
59
27.4 yrs
Irene Oh
Executive VP & CFO
$2M
40
9.4 yrs
Doug Krause
Executive VP
$1M
61
23.4 yrs
Andy Yen
Executive VP and Head of International & Commercial Banking
$911K
60
14.4 yrs
Catherine Zhou
Executive VP
$2M
1.7 yrs
Emily Wang
Director of Marketing
Julianna Balicka
Director of Strategy & Corporate Development
Gary Teo
Head of HR
45
4.4 yrs
Bennett Pozil
Head of Corporate Banking - East West Bank and Executive Vice President of East West Bank
56
8.2 yrs
Robert Lo
Head of Commercial Real Estate Banking - East West Bank and Executive VP of East West Bank
53
5.4 yrs
Board of Directors Tenure
Average tenure and age of the East West Bancorp board of directors in years:
- The tenure for the East West Bancorp board of directors is about average.
Board of Directors
Dominic Ng
Chairman
$8M
59
27.4 yrs
Herman Li
Director
$212K
65
21.4 yrs
Jack Liu
Director
$215K
59
21.4 yrs
Rudolph Estrada
Lead Director
$381K
70
5.9 yrs
Iris Chan
Director
$200K
72
9.2 yrs
Les Sussman
Director
$214K
63
3.7 yrs
Paul Irving
Director
$200K
66
9.2 yrs
Molly Campbell
Director
$192K
57
4.8 yrs
Who owns this company?
Recent Insider Transactions
| Announced | Type | Name | Entity | Role | Start | End | Shares | Max Price ($) | Value ($) | |
|---|---|---|---|---|---|---|---|---|---|---|
| 04. Mar 19 | Sell | Chi Husan Liu | Individual | 04. Mar 19 | 04. Mar 19 | -2,108 | $55.20 | $-116,362 | ||
| 29. Jan 19 | Sell | Rudolph Estrada | Individual | 28. Jan 19 | 28. Jan 19 | -1,902 | $52.64 | $-100,114 | ||
Management checks
We assess East West Bancorp's management by checking for:- Is the CEO's compensation unreasonable compared to market cap? (1 check)
- Has the CEO's compensation increased more than 20% whilst the EPS is down more then 20%? (1 check)
- Is the average tenure of the management team less than 2 years? (1 check)
- Is the average tenure of the board of directors team less than 3 years? (1 check) 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.
EWBC News
Simply Wall St News
East West Bancorp, Inc. (NASDAQ:EWBC) Insiders Have Been Selling
So shareholders might well want to know whether insiders have been buying or selling shares in East West Bancorp, Inc. … As Peter Lynch said, 'insiders might sell their shares for any number of reasons, but they buy them for only one: they think the price will rise.' See our latest analysis for East West Bancorp East West Bancorp Insider Transactions Over The Last Year In the last twelve months, the biggest single sale by an insider was when the Director, Chi Husan Liu, sold US$116k worth of shares at a price of US$55.20 per share. … Insider Ownership of East West Bancorp Looking at the total insider shareholdings in a company can help to inform your view of whether they are well aligned with common shareholders.
Simply Wall St - – Full articleHow Much is East West Bancorp, Inc.'s (NASDAQ:EWBC) CEO Getting Paid?
Dominic Ng has been the CEO of East West Bancorp, Inc. … See our latest analysis for East West Bancorp How Does Dominic Ng's Compensation Compare With Similar Sized Companies? … With a total shareholder return of 19% over three years, East West Bancorp, Inc.
Simply Wall St - – Full articleRead This Before Considering East West Bancorp, Inc. (NASDAQ:EWBC) For Its Upcoming US$0.28 Dividend
(NASDAQ:EWBC): The dividend payment of US$0.28 per share will be distributed to shareholders on 15 May 2019, and the stock will begin trading ex-dividend at an earlier date, 30 April 2019. … Is this future income stream a compelling catalyst for dividend investors to think about the stock as an investment today? … Let's take a look at East West Bancorp's most recent financial data to examine its dividend characteristics in more detail.
Simply Wall St - – Full articleIf You Like EPS Growth Then Check Out East West Bancorp (NASDAQ:EWBC) Before It's Too Late
How Quickly Is East West Bancorp Increasing Earnings Per Share. … Impressively, East West Bancorp has grown EPS by 22% per year, compound, in the last three years. … While we note East West Bancorp's EBIT margins were flat over the last year, revenue grew by a solid 8.2% to US$1.4b.
Simply Wall St - – Full articleWill East West Bancorp, Inc.'s (NASDAQ:EWBC) Earnings Grow Over The Next Few Years?
East West Bancorp, Inc.'s (NASDAQ:EWBC) released its most recent earnings update in December 2018, whicha
Simply Wall St - – Full articleIf You Had Bought East West Bancorp Stock Three Years Ago, You Could Pocket A 83% Gain Today
(NASDAQ:EWBC) shareholders have seen the share price rise 83% over three years, well in excess of the market return (53%). … One flawed but reasonable way to assess how sentiment around a company has changed, is to compare the earnings per share (EPS) with the share price. … During three years of share price growth, East West Bancorp achieved compound earnings per share growth of 22% per year.
Simply Wall St - – Full articleDo You Like East West Bancorp, Inc. (NASDAQ:EWBC) At This P/E Ratio?
We'll look at East West Bancorp, Inc.'s (NASDAQ:EWBC) P/E ratio and reflect on what it tells us about the company's share price. … Based on the last twelve months, East West Bancorp's P/E ratio is 11.01. … Price to Earnings Ratio = Share Price ÷ Earnings per Share (EPS)
Simply Wall St - – Full articleHow Do Analysts See East West Bancorp, Inc. (NASDAQ:EWBC) Performing In The Next 12 Months?
Want to participate in a short research study? … Help shape the future of investing tools and you could win a $250 gift card! … (NASDAQ:EWBC) released its earnings announcement on 31 December 2018,
Simply Wall St - – Full articleUnderstated Factors To Consider Before Investing In East West Bancorp, Inc. (NASDAQ:EWBC)
East West Bancorp, Inc.’s (NASDAQ:EWBC) profitability and risk are largely affected by the underlying economic growth for the region it operates in US given it is a small-cap stock with a market capitalisation of US$7.3b. … We can gauge East West Bancorp’s risk-taking behaviour by analysing three metrics for leverage and liquidity which I will take you through now. … See our latest analysis for East West Bancorp
Simply Wall St - – Full articleShould You Be Pleased About The CEO Pay At East West Bancorp, Inc.'s (NASDAQ:EWBC)
In 1998 Dominic Ng was appointed CEO of East West Bancorp, Inc. … First, this article will compare CEO compensation with compensation at similar sized companies. … How Does Dominic Ng's Compensation Compare With Similar Sized Companies?
Simply Wall St - – Full articleEWBC 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. |
| EWBC | |
| Exchange: | NasdaqGS |
| Founded: | 1998 |
| $6,500,062,476 | |
| 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
Industry
| Regional Banks | |
| Banks |
Company Analysis and Financial Data Status
| Area | Date (UTC time) |
|---|---|
| Company Analysis updated: | 2019/06/25 23:37 |
| End of day share price update: | 2019/06/25 00:00 |
| Last estimates confirmation: | 2019/06/20 |
| 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.
