East West Bancorp (EWBC) Q4 2024 earnings summary

Executive summary

• Achieved record 2024 net income of $1.2 billion and diluted EPS of $8.33, with Q4 net income of $293 million and EPS of $2.10.

• Deposits grew over $7 billion year-over-year, with 13% end-of-period growth and 9% average growth.

• Book value per share increased 12% to $55.79; tangible book value per share up 13% to $52.39.

• Board approved a 9% increase in the quarterly dividend to $0.60 per share and a $300 million share repurchase authorization.

• Asset quality remained stable, with full-year net charge-offs and nonperforming assets both at 0.26% of loans/assets.

Financial highlights

• Full-year revenue reached $2.6 billion, with fee income up 12% to a record $310 million, driven by wealth management, payments, and FX.

• Net interest margin for 2024 was 3.27%, with Q4 at 3.24%; interest rate spread widened by nine basis points quarter-over-quarter.

• End-of-period deposits were $63.2 billion, up 13%; average loans grew 6% year-over-year.

• Allowance for credit losses ended Q4 at $702 million, or 1.31% of loans; criticized loans at 2.18%.

• Efficiency ratio improved to 36.6% in 2024, with Q4 at 36.9%.

Outlook and guidance

• 2025 guidance: 4%-6% loan and net interest income growth, 5%-7% total revenue growth, and 7%-9% expense increase.

• Full-year 2025 net charge-offs projected at 25-35 basis points; effective tax rate expected at 21%-23%.

• Management highlighted strong capital base and industry-leading profitability supporting increased capital returns.