East West Bancorp (EWBC) Q4 2025 earnings summary

Executive summary

• Achieved record net income of $1.325 billion for 2025, with diluted EPS of $9.52 and a 33% increase in the quarterly dividend to $0.80 per share.

• End-of-period loans and deposits both grew about 6% year-over-year, led by C&I and residential mortgage lending.

• Tangible book value per share increased 17% year-over-year; book value per share rose 16%.

• Return on tangible common equity reached 17% for 2025.

• Asset quality remained resilient, with nonperforming assets stable at 0.26% of total assets and net charge-offs at 0.11% for 2025.

Financial highlights

• Record full-year net interest income of $2.6 billion and fee income up 12% year-over-year, driven by wealth management and lending fees.

• Fourth quarter net interest income was $658 million; net interest margin for Q4 was 3.41%.

• Efficiency ratio for Q4 was 34.5%; full-year efficiency ratio improved to 35.7%.

• Allowance for credit losses increased to $810 million, maintaining a 1.42% reserve ratio.

• Net charge-offs were $12 million (8 bps) in Q4 and $60 million (11 bps) for the full year.

Outlook and guidance

• 2026 loan and net interest income growth expected in the 5%-7% range, led by C&I and residential mortgage.

• Fee income growth targeted to outpace balance sheet growth, aiming for double-digit increases.

• Operating expenses expected to rise 7%-9% in 2026, mainly from hiring and technology investments.

• Net charge-offs for 2026 guided to 20-30 bps; effective tax rate expected at 22%-23%.

• Management remains committed to prudent balance sheet growth, industry-leading efficiency, and sound risk management.