NasdaqGS:EWBC

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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. More Details


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 is not significantly more volatile than the rest of US stocks over the past 3 months, typically moving +/- 9% a week.

Volatility Over Time: EWBC's weekly volatility (9%) has been stable over the past year.


Market Performance


7 Day Return

0.8%

EWBC

6.0%

US Banks

2.8%

US Market


1 Year Return

-4.5%

EWBC

-17.3%

US Banks

20.7%

US Market

Return vs Industry: EWBC exceeded the US Banks industry which returned -17.3% over the past year.

Return vs Market: EWBC underperformed the US Market which returned 20.7% over the past year.


Shareholder returns

EWBCIndustryMarket
7 Day0.8%6.0%2.8%
30 Day24.9%25.0%12.3%
90 Day15.8%17.7%6.4%
1 Year-1.7%-4.5%-14.3%-17.3%23.4%20.7%
3 Year-23.9%-28.7%-4.0%-12.0%47.2%37.4%
5 Year11.1%0.4%35.9%18.9%94.1%72.7%

Long-Term 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

Valuation

Is East West Bancorp undervalued compared to its fair value and its price relative to the market?

28.0%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: EWBC ($43.74) is trading below our estimate of fair value ($60.74)

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 (10.6x) compared to the US Banks industry average (11.4x).

PE vs Market: EWBC is good value based on its PE Ratio (10.6x) compared to the US market (19.7x).


Price to Earnings Growth Ratio

PEG Ratio: EWBC is poor value based on its PEG Ratio (3.1x)


Price to Book Ratio

PB vs Industry: EWBC is overvalued based on its PB Ratio (1.2x) compared to the US Banks industry average (0.9x).


Next Steps

Future Growth

How is East West Bancorp forecast to perform in the next 1 to 3 years based on estimates from 8 analysts?

3.4%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: EWBC's forecast earnings growth (3.4% per year) is above the savings rate (2.2%).

Earnings vs Market: EWBC's earnings (3.4% per year) are forecast to grow slower than the US market (22% per year).

High Growth Earnings: EWBC's earnings are forecast to grow, but not significantly.

Revenue vs Market: EWBC's revenue (1.3% per year) is forecast to grow slower than the US market (10.2% per year).

High Growth Revenue: EWBC's revenue (1.3% 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 (10.5%).


Next Steps

Past Performance

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

11.7%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: EWBC has high quality earnings.

Growing Profit Margin: EWBC's current net profit margins (44.2%) are lower than last year (44.8%).


Past Earnings Growth Analysis

Earnings Trend: EWBC's earnings have grown by 11.7% 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 (-10.2%) over the past year, making it difficult to compare to the Banks industry average (-4.3%).


Return on Equity

High ROE: EWBC's Return on Equity (11.5%) is considered low.


Next Steps

  • Explore strong past performing companies in the Banks industry.

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 Assets to Equity ratio (9.8x) is low.

Allowance for Bad Loans: EWBC has a sufficient allowance for bad loans (261%).

Low Risk Liabilities: 92% of EWBC's liabilities are made up of primarily low risk sources of funding.

Loan Level: EWBC has an appropriate level of Loans to Assets ratio (73%).

Low Risk Deposits: EWBC's Loans to Deposits ratio (88%) is appropriate.

Level of Bad Loans: EWBC has an appropriate level of bad loans (0.6%).


Next Steps

Dividend

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

2.51%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: EWBC's dividend (2.51%) is higher than the bottom 25% of dividend payers in the US market (1.47%).

High Dividend: EWBC's dividend (2.51%) is low compared to the top 25% of dividend payers in the US market (4.08%).


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 reasonably low payout ratio (26.6%), 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 (29.1% 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 (61 yo)

28.83yrs

Tenure

US$7,413,241

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 ($USD7.41M) is about average for companies of similar size in the US market ($USD6.90M).

Compensation vs Earnings: Dominic's compensation has been consistent with company performance over the past year.


Leadership Team

NamePositionTenureCompensationOwnership
Dominic Ng
Chairman28.83yrsUS$7.41m0.47%
$ 30.6m
Irene Oh
Executive VP & CFO10.83yrsUS$1.85m0.049%
$ 3.1m
Douglas Krause
Vice Chairman & Chief Corporate Officerno dataUS$1.47m0.049%
$ 3.2m
Andy Yen
Executive VP and Head of International & Commercial Banking15.83yrsUS$949.45k0.044%
$ 2.8m
Catherine Zhou
Executive VP3.08yrsUS$1.83m0.014%
$ 875.9k
Lisa Kim
Executive VPno datano datano data
Emily Wang
Director of Marketingno datano datano data
Julianna Balicka
Director of Strategy & Corporate Developmentno datano datano data
Gary Teo
Head of HR5.83yrsno datano data
Bennett Pozil
Head of Corporate Banking - East West Bank and Executive Vice President of East West Bank9.58yrsno datano data
Robert Lo
Head of Commercial Real Estate Banking - East West Bank and Executive VP of East West Bank6.83yrsno datano data

9.6yrs

Average Tenure

55yo

Average Age

Experienced Management: EWBC's management team is seasoned and experienced (9.6 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Dominic Ng
Chairman28.83yrsUS$7.41m0.47%
$ 30.6m
Rudolph Estrada
Independent Lead Director7.33yrsUS$393.00k0.013%
$ 861.0k
Chi Husan Liu
Independent Director22.83yrsUS$232.00k0.016%
$ 1.0m
Paul Irving
Independent Director10.58yrsUS$221.00k0.023%
$ 1.5m
Iris Chan
Independent Director10.58yrsUS$228.50k0.021%
$ 1.4m
Archana Deskus
Independent Director1.08yrsUS$151.50k0.0033%
$ 214.8k
Lester Sussman
Independent Director5.08yrsUS$233.50k0.012%
$ 752.0k
Molly Campbell
Independent Director6.25yrsUS$215.00k0.0078%
$ 505.0k

9.0yrs

Average Tenure

63yo

Average Age

Experienced Board: EWBC's board of directors are considered experienced (9 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 been diluted in the past year, with total shares outstanding growing by 29.1%.


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$6.450b
  • Shares outstanding: 141.56m
  • 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

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
EWBCNasdaqGS (Nasdaq Global Select)YesCommon StockUSUSDFeb 1999
EW2DB (Deutsche Boerse AG)YesCommon StockDEEURFeb 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

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/11/28 00:34
End of Day Share Price2020/11/27 00:00
Earnings2020/09/30
Annual Earnings2019/12/31


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.