East West Bancorp (EWBC) Q3 2024 earnings summary

Executive summary

• Net income for Q3 2024 was $299 million, or $2.14 per diluted share, up 4% year-over-year, with book value per share rising to $55.30 and tangible book value per share to $51.90.

• Average loans grew 1% quarter-over-quarter to $53.3 billion, and average deposits increased 3% to $61.7 billion, marking the fifth consecutive quarter of $1B+ deposit growth.

• Record fee income reached $81 million, up 6% quarter-over-quarter, driven by lending, wealth management, and deposit fees.

• Asset quality remained strong with nonperforming assets at 0.26% of total assets and allowance for loan losses at 1.31% of loans.

• Return on average assets was 1.62%, return on average common equity was 16.0%, and return on average tangible common equity exceeded 17%.

Financial highlights

• Net interest income was $573 million, up 4% quarter-over-quarter, with net interest margin at 3.24%, down 3 basis points sequentially.

• Noninterest income for Q3 2024 was $85 million, up 10% year-over-year, and noninterest expense was $221 million, flat sequentially.

• Efficiency ratio improved to 34.4% from 37.0% in the prior quarter.

• Total assets reached $74.5 billion, up 7% year-to-date and 9% year-over-year.

• Book value per share increased 6% quarter-over-quarter and 11% year-to-date.

Outlook and guidance

• Full-year 2024 loan growth expected in the 2%-4% range; net interest income projected to decline 2%-4% year-over-year.

• Net charge-offs for Q4 and full year expected in the 15-25 basis points range; effective tax rate forecasted at 21%-23%.

• The Federal Reserve cut rates by 50 bps in September 2024, with further gradual cuts expected; risks remain from inflation and economic slowdown.

• The company expects to maintain strong capital and liquidity positions, focusing on organic growth and risk management.

• Management remains focused on delivering top-tier returns and disciplined credit and expense management.