East West Bancorp (EWBC) investor relations material

Business performance and outlook

• Core deposit growth remains strong, driven by consumer and small business segments, supporting increased lending and investments.

• Net interest income (NII) guidance was raised from over 7% to nearly 10% year-over-year, trending toward a $2.5 billion run rate.

• Deposit inflows are primarily from a successful liquid CD program and small business initiatives, with cross-border business also contributing.

• Margin dynamics benefit from lower CD pricing and asset sensitivity, with positive short-term NII outlook despite competitive loan markets.

• Spreads are being maintained, especially in CRE, while CNI lending remains competitive but disciplined.

Growth strategy and capital deployment

• Organic loan growth is targeted at 7–9% by 2026, with a focus on expanding in underpenetrated markets like Texas and New York.

• Fee income is a strategic priority, with strong organic growth and plans to fill product gaps through acquisitions or partnerships.

• Efficiency ratio may rise modestly as investments are made, but focus remains on delivering top quartile ROTCE.

• Capital deployment prioritizes customer growth, with ongoing buybacks and a commitment to annual dividend increases.

• Whole bank acquisitions are less attractive due to efficiency challenges; focus is on fee and wealth management opportunities.

Regulatory and operational environment

• Regulatory tone has improved, with constructive dialogue and optimism for growth strategies.

• Investments in cybersecurity, payments, and risk management are ongoing to support growth and regulatory readiness.

• Internal team building is preferred over outsourcing for regulatory preparedness, aiming for cost efficiency.

• A potential increase in regulatory asset thresholds would provide more flexibility but current investments will continue.