| Factor | Score | Distribution | Value | Avg | Rank |
|---|---|---|---|---|---|
Valuation | 66 | 12.4x | 17.8x | Around median | |
Growth | 36 | 3.7% | 7.1% | Bottom tier | |
Quality | 87 | — | — | Top tier | |
Safety | 17 | — | — | Bottom tier | |
Capital Return | 48 | 1.86% | 2.12% | Around median | |
Momentum | 85 | 24.5% | 2.9% | Top tier | |
Sentiment | 64 | 12 | 3 | Around median |
Estimates — analyst targets and a simplified DCF, not investment advice.
Ten ratios that matter, each compared against its sector median and average — so you can see whether a number is rich or cheap relative to peers in the same sector.
East West Bancorp, Inc., listed under the ticker EWBC on NASDAQ, operates a banking business that primarily relies on net interest income generated from loans and securities, alongside wealth management fees and services related to loans, deposits, and foreign exchange. In Q2 FY2026, net interest income reached a record $685 million, while fee income totaled $96 million, up 19% year over year, and wealth management income increased 71% year over year during the first half. The bank continued to diversify its loan portfolio through residential mortgages and C&I loans, while commercial real estate remained at 37% of total loans and C&I at 34%.
The latest available EDGAR statements for Q1 FY2026 showed revenue of $1.2 billion, net income of $357.8 million, and earnings per share of $2.57, compared with net income of $290.3 million and earnings per share of $2.08 in Q1 FY2025. In Q2 FY2026, the bank recorded all-time highs in total revenue, net interest income, and noninterest income, while the net interest margin reached 3.43%, up eight basis points year over year. Noninterest operating expenses totaled $268 million, with an efficiency ratio of 36.7% and an operating expense-to-average-assets ratio of 1.29%.
Record loan and deposit growth supported Q2 FY2026 results; period-end deposits increased 8% year over year, noninterest-bearing deposits rose 19%, and period-end loans grew 7%. During the quarter, the bank added $1.2 billion in deposits across more than 700 thousand customer accounts, including $875 million in demand deposits, while net growth in both residential mortgages and C&I loans exceeded $300 million. In terms of financial strength, the common equity tier 1 capital ratio reached 15.4% and the tangible equity ratio was 10.4%, with a 17% return on tangible equity.
The average analyst price target is $142.75, within a wide range of $123 to $155, while the consensus rates the stock a “Buy.” The average target is approximately 3.8% above the 52-week range high of $137.47, while the highest target exceeds that high by approximately 12.8%; however, the wide spread between the lowest and highest targets reflects meaningful differences in assessments of the impact of loan and fee growth versus credit risks and deposit costs.
Figures in the text are as of 2026-08-29; the live price is shown at the top of the page.
East West recorded all-time highs in total revenue, net interest income, and noninterest income during Q2 FY2026. Net interest income totaled $685 million, and the net interest margin reached 3.43%, up eight basis points year over year. Fee income also rose 19% to $96 million, alongside period-end loan and deposit growth of 7% and 8%, respectively.
Management raised its period-end loan growth guidance for FY2026 to a range of 6%–8% after achieving 7% growth during the first half. It also raised net interest income growth guidance to 7%–9% from a previous range of 6%–8%. Management expects double-digit growth in fee income, while narrowing the expense growth range to 8%–9%, assuming the federal funds rate remains unchanged through the end of FY2026.
Period-end deposits increased by $1.2 billion in Q2 FY2026, with $875 million of the increase coming from demand deposits. DDA deposits reached 26% of total deposits, and noninterest-bearing deposits grew 19% year over year, driven by small-business account campaigns and growth in core relationships. The shift away from certificates of deposit, wholesale deposits, and public funds helped reduce the cost of interest-bearing deposits by 49 basis points over the year.
Automated analysis for informational purposes only — not investment advice.
Commercial real estate represented 37% of total loans in Q2 FY2026, and four loans in this category moved into nonperforming assets. Nonperforming assets increased to 29 basis points, while net charge-offs totaled $27 million or 19 basis points, compared with $12 million or nine basis points in the previous quarter. By contrast, the allowance for credit losses totaled $842 million or 1.43% of total loans, and management maintained its FY2026 net charge-off guidance at 15–25 basis points.
Wealth management fees increased 71% year over year during the first half of FY2026, making them one of the main contributors to noninterest income growth. East West supported this business with new hires and investments in platforms and operating capabilities. Management is not targeting continued growth of 70%, but it expects these investments to contribute to double-digit growth in total fees during FY2026.
The common equity tier 1 capital ratio reached 15.4%, and the tangible equity ratio was 10.4% in Q2 FY2026. The bank generated a 17% return on tangible equity, while management affirmed that organic growth remains the priority in capital allocation. In addition, $117 million remained under the share repurchase authorization, and the bank distributed approximately $111 million through quarterly dividends.
