East West Bancorp
Market Cap
US$4.5b
Last Updated
2020/04/09 23:36 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
Earnings are forecast to decline by an average of -13.4% per year for the next 3 years
Snowflake Analysis
Flawless balance sheet established dividend payer.
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's share price has been volatile over the past 3 months.
Market Performance
7 Day Return
28.4%
EWBC
14.6%
US Banks
9.4%
US Market
1 Year Return
-38.7%
EWBC
-24.3%
US Banks
-6.8%
US Market
Return vs Industry: EWBC underperformed the US Banks industry which returned -24.3% over the past year.
Return vs Market: EWBC underperformed the US Market which returned -6.8% over the past year.
Shareholder returns
| EWBC | Industry | Market | |
|---|---|---|---|
| 7 Day | 28.4% | 14.6% | 9.4% |
| 30 Day | -10.0% | -4.4% | -3.9% |
| 90 Day | -34.2% | -33.9% | -16.5% |
| 1 Year | -37.3%-38.7% | -22.0%-24.3% | -4.8%-6.8% |
| 3 Year | -33.7%-37.1% | -8.3%-15.1% | 23.4%15.2% |
| 5 Year | -18.7%-25.8% | 16.7%3.3% | 41.3%25.7% |
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
2 weeks ago | Simply Wall St
The Independent Director of East West Bancorp, Inc. (NASDAQ:EWBC), Herman Li, Just Sold 28% Of Their Holding2 weeks ago | Simply Wall St
How Does East West Bancorp, Inc. (NASDAQ:EWBC) Stand Up To These Simple Dividend Safety Checks?1 month ago | Simply Wall St
Read This Before You Buy East West Bancorp, Inc. (NASDAQ:EWBC) Because Of Its P/E RatioValuation
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 ($31.11) is trading below our estimate of fair value ($71.34)
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 (6.7x) compared to the Banks industry average (8.9x).
PE vs Market: EWBC is good value based on its PE Ratio (6.7x) compared to the US market (13.6x).
Price to Earnings Growth Ratio
PEG Ratio: EWBC's earnings are forecast to decline next year, so we can't calculate its PEG ratio.
Price to Book Ratio
PB vs Industry: EWBC is overvalued based on its PB Ratio (0.9x) compared to the US Banks industry average (0.8x).
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?
-13.4%
Forecasted annual earnings growth
Earnings and Revenue Growth Forecasts
Analyst Future Growth Forecasts
Earnings vs Savings Rate: EWBC's earnings are forecast to decline over the next 3 years (-13.4% per year).
Earnings vs Market: EWBC's earnings are forecast to decline over the next 3 years (-13.4% per year).
High Growth Earnings: EWBC's earnings are forecast to decline over the next 3 years.
Revenue vs Market: EWBC's revenue (2.5% per year) is forecast to grow slower than the US market (6.9% per year).
High Growth Revenue: EWBC's revenue (2.5% 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 (11.4%).
Next Steps
Past Performance
How has East West Bancorp performed over the past 5 years?
14.7%
Historical annual earnings growth
Earnings and Revenue History
Quality Earnings: EWBC has high quality earnings.
Growing Profit Margin: EWBC's current net profit margins (45.1%) are lower than last year (49.8%).
Past Earnings Growth Analysis
Earnings Trend: EWBC's earnings have grown by 14.7% per year over the past 5 years.
Accelerating Growth: EWBC's has had negative earnings growth over the past year, so it can't be compared to its 5-year average.
Earnings vs Industry: EWBC had negative earnings growth (-4.2%) over the past year, making it difficult to compare to the Banks industry average (10.8%).
Return on Equity
High ROE: EWBC's Return on Equity (13.4%) is considered low.
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
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 (0.35%)
Next Steps
Dividend
What is East West Bancorp's current dividend yield, its reliability and sustainability?
3.54%
Current Dividend Yield
Dividend Yield vs Market
Notable Dividend: EWBC's dividend (3.54%) is higher than the bottom 25% of dividend payers in the US market (1.87%).
High Dividend: EWBC's dividend (3.54%) is low compared to the top 25% of dividend payers in the US market (5.12%).
Stability and Growth of Payments
Stable Dividend: EWBC's dividends per share have been stable 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 (22.8%), 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 (30.5% payout ratio).
Next Steps
Management
How experienced are the management team and are they aligned to shareholders interests?
9.6yrs
Average management tenure
CEO
Dominic Ng (60yo)
28.25s
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 above average for companies of similar size in the US market ($USD5.53M).
Compensation vs Earnings: Dominic's compensation has been consistent with company performance over the past year.
Leadership Team
| Name | Position | Tenure | Compensation | Ownership |
|---|---|---|---|---|
| Chairman | 28.25yrs | US$7.59m | 0.43% $19.3m | |
| Executive VP & CFO | 10.25yrs | US$2.00m | 0.047% $2.1m | |
| Executive VP | 24.25yrs | US$1.45m | 0.048% $2.2m | |
| Executive VP and Head of International & Commercial Banking | 15.25yrs | US$911.03k | 0.042% $1.9m | |
| Executive VP | 2.5yrs | US$1.89m | 0.0017% $77.9k | |
| Director of Marketing | no data | no data | no data | |
| Director of Strategy & Corporate Development | no data | no data | no data | |
| Head of HR | 5.25yrs | no data | no data | |
| Head of Corporate Banking - East West Bank and Executive Vice President of East West Bank | 9yrs | no data | no data | |
| Head of Commercial Real Estate Banking - East West Bank and Executive VP of East West Bank | 6.25yrs | no data | no data |
9.6yrs
Average Tenure
55.5yo
Average Age
Experienced Management: EWBC's management team is seasoned and experienced (9.6 years average tenure).
Board Members
| Name | Position | Tenure | Compensation | Ownership |
|---|---|---|---|---|
| Chairman | 28.25yrs | US$7.59m | 0.43% $19.3m | |
| Lead Director | 6.75yrs | US$380.50k | 0.011% $497.9k | |
| Independent Director | 22.25yrs | US$211.50k | 0.018% $802.3k | |
| Independent Director | 22.25yrs | US$215.00k | 0.015% $667.8k | |
| Independent Director | 10yrs | US$199.50k | 0.021% $941.4k | |
| Independent Director | 10yrs | US$199.50k | 0.018% $837.7k | |
| Independent Director | 0.50yr | no data | 0.0013% $58.9k | |
| Independent Director | 4.5yrs | US$213.50k | 0.0094% $425.4k | |
| Independent Director | 5.67yrs | US$192.00k | 0.0057% $256.9k |
10.0yrs
Average Tenure
64yo
Average Age
Experienced Board: EWBC's board of directors are seasoned and experienced ( 10 years average tenure).
Ownership
Who are the major shareholders and have insiders been buying or selling?
Insider Trading Volume
Insider Buying: EWBC insiders have only sold shares in the past 3 months.
Recent Insider Transactions
Ownership Breakdown
Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.
Top Shareholders
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$4.530b
- 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 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.
Company Analysis and Financial Data Status
| Data | Last Updated (UTC time) |
|---|---|
| Company Analysis | 2020/04/09 23:36 |
| End of Day Share Price | 2020/04/09 00:00 |
| Earnings | 2019/12/31 |
| Annual Earnings | 2019/12/31 |
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.