East West Bancorp (EWBC) Q1 2025 earnings summary

Executive summary

• Net income for Q1 2025 was $290 million, or $2.08 per diluted share, up 2% year-over-year, with record total revenue and fee income, driven by strong customer activity and balanced loan growth.

• Loans grew 1% quarter-over-quarter to $54.3 billion, with diversification across residential mortgage, commercial real estate, and C&I; deposits increased 8–9% year-over-year, with optimized mix reducing average deposit cost.

• Asset quality improved, with net charge-offs of $15 million (0.12% of loans), and nonperforming assets and nonaccrual loans both down 2 basis points quarter-over-quarter.

• Maintained strong capital and liquidity positions, with CET1 ratio at 14.3%, tangible common equity ratio at 9.9%, and all regulatory capital ratios well above required levels.

• Book value per share rose 3% quarter-over-quarter to $57.54, and tangible book value per share increased to $54.13.

Financial highlights

• Net interest income reached $600 million, up 2% quarter-over-quarter and 6% year-over-year; net interest margin expanded by 11 basis points to 3.35%.

• Record noninterest/fee income of $92 million, up 8% quarter-over-quarter and 17% year-over-year, led by wealth management, lending, and deposit-related fees.

• Total operating noninterest expense was $236–252 million, up 2–3% quarter-over-quarter, with an efficiency ratio of 36.4%.

• Return on average assets was 1.56%; return on average common equity was 14.96–15.0%; return on average tangible common equity was 15.92%.

• Basic and diluted EPS were $2.10 and $2.08, up 3% year-over-year.

Outlook and guidance

• FY25 guidance: loans and net interest income expected to grow 4–6% year-over-year; total revenue to grow 5–7%.

• Operating noninterest expense projected to rise 7–9% year-over-year; net charge-offs expected in the 25–35bps range.

• Effective tax rate for 2025 expected to remain below 23%.

• Management expects continued organic growth, disciplined expense management, and focus on risk management and capital strength.

• Assumes 50bps of Fed rate cuts in 2025; economic uncertainty from tariffs, inflation, and rates may impact performance.