East West Bancorp (EWBC) Is Up 6.8% After Record Q3 Earnings and Deposit Growth – What’s Next?

• East West Bancorp reported record third-quarter 2025 financial results, with US$368.4 million in net income and US$778 million in revenue, surpassing analyst expectations, and announced a quarterly dividend of US$0.60 per share payable in November.
• The company also continued its share buyback program and saw robust deposit growth, which funded all loan growth, while posting record fee income and maintaining a strong capital position despite a slight increase in net charge-offs.
• We’ll explore how the record-breaking quarterly results and deposit growth influence East West Bancorp’s longer-term investment narrative.

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East West Bancorp Investment Narrative Recap

To be a shareholder in East West Bancorp, an investor typically needs confidence in the company’s ability to grow deposits and diversify revenue, especially amid a shifting regulatory and lending environment. The latest record-breaking quarterly results, driven by strong deposit inflows and fee income, reinforce the bank’s position on its core catalyst, consistent deposit growth, while the largest near-term risk still stems from its commercial real estate concentration, though the recent news does not materially alter this risk for now.

The latest dividend declaration of US$0.60 per share stands out, reaffirming East West Bancorp’s commitment to returning capital to shareholders as part of its ongoing value proposition. Steady dividends and buybacks provide a cushion for returns amid headline financial performance, yet short-term investor sentiment remains sensitive to ongoing changes in credit quality, including recent upticks in net charge-offs.

But even with robust earnings, investors should be mindful of growing exposure to commercial real estate risks...

Read the full narrative on East West Bancorp (it's free!)

East West Bancorp's narrative projects $3.3 billion in revenue and $1.4 billion in earnings by 2028. This requires 10.8% yearly revenue growth and a $0.2 billion earnings increase from $1.2 billion today.

Uncover how East West Bancorp's forecasts yield a $125.40 fair value, a 22% upside to its current price.

Exploring Other Perspectives

Four community-sourced fair value estimates for East West Bancorp range from US$65 to US$232.58, spotlighting significant differences among Simply Wall St Community members. As many weigh the bank’s dependence on commercial real estate lending, keeping an eye on both risk and opportunity is key, reviewing these varied perspectives may offer valuable context for your decisions.

Explore 4 other fair value estimates on East West Bancorp - why the stock might be worth 37% less than the current price!

Build Your Own East West Bancorp Narrative

Disagree with existing narratives? Create your own in under 3 minutes - extraordinary investment returns rarely come from following the herd.

• A great starting point for your East West Bancorp research is our analysis highlighting 5 key rewards and 1 important warning sign that could impact your investment decision.
• Our free East West Bancorp research report provides a comprehensive fundamental analysis summarized in a single visual - the Snowflake - making it easy to evaluate East West Bancorp's overall financial health at a glance.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.

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