East West Bancorp (EWBC) Barclays 22nd Annual Global Financial Services Conference summary

Growth strategy and market outlook

• Emphasis on sustainable, top-quartile financial performance with a shift to a more balanced approach across C&I, CRE, and residential sectors for 2024 and beyond.

• Loan growth is expected to remain moderate in 2024 due to high interest rates and cautious client behavior, with C&I and single-family likely to outpace CRE in 2025.

• Expansion into new industry sectors and cross-border business has been a key growth engine, with ongoing exploration for future opportunities.

• Strong capital base and balance sheet position the bank to capitalize on opportunities during economic slowdowns.

• Clients are in a wait-and-see mode due to anticipated Fed rate cuts and the upcoming presidential election, impacting investment decisions.

Credit quality and risk management

• Intensive, ongoing credit portfolio reviews since 2015 have resulted in lower charge-offs and better asset quality than peers.

• Credit performance remains benign, with expectations for continued stability over the next year.

• Growth decisions are influenced by economic conditions, rate movements, and customer behavior, with a focus on execution and risk discipline.

• No significant losses in single-family mortgages, supported by low loan-to-value ratios.

Fee income and differentiated capabilities

• Focus on expanding fee income, especially in foreign exchange and treasury management, leveraging cross-border expertise.

• Investment in technology and talent to enhance fee-based services and maintain a differentiated market position.

• Preference for niche areas where competition is limited, avoiding commoditized segments.