East West Bancorp (EWBC) Bank of America Securities Financial Services Conference summary

Macroeconomic and industry outlook

• Optimism has increased compared to a year ago, but focus remains on internal execution and outperforming peers.

• Challenging environments are seen as opportunities to excel relative to competitors.

• Lack of further rate cuts and a steepening yield curve could negatively impact CRE and curb C&I growth.

• Market resilience is tied to business revenue growth outpacing higher interest expenses.

• Lending demand is expected to pick up in the second half of the year as new administration policies take effect.

Loan growth and business strategy

• Loan growth guidance for the year is 4% to 6%, with C&I and residential mortgages as primary drivers.

• Entertainment, private equity, renewable energy, and digital media are key C&I growth sectors.

• High demand for residential mortgages in Southern California due to recent wildfires.

• CRE growth will be limited by internal concentration policies despite market demand.

• Geographic expansion continues in Chicago, Atlanta, Dallas, and Houston, with LA remaining a stronghold.

Regulatory and competitive landscape

• Limited client and talent acquisition from recent California bank failures due to different risk and pricing models.

• Anticipates a more balanced regulatory environment under the new administration, potentially easing compliance burdens.

• Prepared to capitalize on industry disruptions by maintaining strong capital and readiness for crisis opportunities.

• History of leveraging crises for growth and building customer loyalty.