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%.

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

• Full-year returns: 1.70% on average assets, 16% on average common equity, and 17% on average tangible common equity.

Financial highlights

• Record full-year net interest income of $2.6 billion and fee income up 12% year-over-year, with strong contributions from wealth management and derivatives.

• 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%.

• Total operating noninterest expense grew 7.5% in 2025 to $972 million.

• Allowance for loan losses ratio held at 1.42%, with reserves at $810 million.

Outlook and guidance

• 2026 guidance: loan and net interest income growth of 5%-7%, fee income to outpace balance sheet growth.

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

• Net charge-offs projected at 20-30 bps for 2026; effective tax rate between 22%-23%.

• Assumes three 25 bps rate cuts in 2026 and a gradually steepening yield curve.

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