East West Bancorp Reports Net Income for Second Quarter of 2024 of $288 Million and Diluted Earnings Per Share of $2.06

PASADENA, Calif.--(BUSINESS WIRE)-- East West Bancorp, Inc. (“East West” or the “Company”) (Nasdaq: EWBC), parent company of East West Bank, reported its financial results for the second quarter of 2024. Second quarter 2024 net income was $288 million, or $2.06 per diluted share. Return on average assets was 1.63%, return on average common equity was 16.4%, and return on average tangible common equity¹ was 17.5%. Book value per share grew 3% quarter-over-quarter and 14% year-over-year.

“The strength of East West’s diversified business model continued to deliver for our shareholders in the second quarter,” said Dominic Ng, Chairman and Chief Executive Officer. “Total loans and deposits each grew by 2% quarter-over-quarter, complemented by record fee income which grew 8%. We strategically grew loans in C&I and residential mortgage, and experienced solid growth in business and consumer deposit balances. East West posted growth in all fee categories quarter-over-quarter, with notable continued strength in foreign exchange income and wealth management.”

“Our net charge-offs remained broadly stable quarter-over-quarter at 0.18% of average loans, while criticized loans decreased 10%,” continued Ng. “We are confident that our diversified lending approach and disciplined underwriting and monitoring standards will serve us well through the cycle. East West continues to operate from a position of capital strength and remains committed to delivering top-tier shareholder returns.”

“East West was selected again as the best performing bank above $50 billion in assets by Bank Director, marking our second consecutive year and third title in the past four years,” stated Ng. “This recognition is a testament to the steady execution of our colleagues and underscores our industry-leading profitability and conservatively managed balance sheet.”

FINANCIAL HIGHLIGHTS

			Three Months Ended				Quarter-over-Quarter Change
	($ in millions, except per share data)		June 30, 2024		March 31, 2024		$		%
	Revenue		$638		$644		$(6)		(1)%
	Pre-tax, Pre-provision Income2		401		397		4		1
	Net Income		288		285		3		1
	Diluted Earnings per Share		$2.06		$2.03		$0.03		1
	Book Value per Share		$52.06		$50.48		$1.58		3
	Tangible Book Value per Share1		$48.65		$47.09		$1.56		3%
	Return on Average Common Equity		16.36%		16.40%		-4 bps		—
	Return on Average Tangible Common Equity1		17.54%		17.60%		-6 bps		—
	Tangible Common Equity Ratio1		9.37%		9.31%		6 bps		—
	Total Assets		$72,468		$70,876		$1,592		2%
1	Return on average tangible common equity, tangible book value per share, and tangible common equity ratio are non-GAAP financial measures. See reconciliation of GAAP to non-GAAP measures in Table 13 of East West’s detailed 2Q24 earnings release and financial tables, available at www.eastwestbank.com/investors.
2	Pre-tax, pre-provision income is a non-GAAP financial measure. See reconciliation of GAAP to non-GAAP financial measures in Table 12 of East West’s detailed 2Q24 earnings release and financial tables, available at www.eastwestbank.com/investors.

Earnings Press Release and Financial Tables

East West’s second quarter 2024 earnings press release with accompanying financial tables can be accessed at www.eastwestbank.com/investors.

Conference Call

East West will host a conference call to discuss second quarter 2024 earnings with the public on Tuesday, July 23, 2024, at 2:00 p.m. PT/5:00 p.m. ET. The public and investment community are invited to listen as management discusses second quarter 2024 results and operating developments.

• The following dial-in information is provided for participation in the conference call: calls within the U.S. – (877) 506-6399; calls within Canada – (855) 669-9657; international calls – (412) 902-6699.
• A presentation to accompany the earnings call, a listen-only live broadcast of the call, and information to access a replay one hour after the call will all be available on the Investor Relations page of the Company’s website at www.eastwestbank.com/investors.

About East West

East West provides financial services that help customers reach further and connect to new opportunities. East West Bancorp, Inc. is a public company (Nasdaq: “EWBC”) with total assets of $72.5 billion as of June 30, 2024. The Company’s wholly-owned subsidiary, East West Bank, is the largest independent bank headquartered in Southern California, and operates over 110 locations in the United States and Asia. The Bank’s markets in the United States include California, Georgia, Illinois, Massachusetts, Nevada, New York, Texas, and Washington. For more information on East West, visit www.eastwestbank.com.

Forward-Looking Statements

Certain matters set forth herein (including any exhibits hereto) contain “forward-looking statements” that are intended to be covered by the safe harbor for such statements provided by the Private Securities Litigation Reform Act of 1995. East West Bancorp, Inc. (referred to herein on an unconsolidated basis as “East West” and on a consolidated basis as the “Company,” “we,” “us,” “our” or “EWBC”) may make forward-looking statements in other documents that it files with, or furnishes to, the United States (“U.S.”) Securities and Exchange Commission (“SEC”) and management may make forward-looking statements to analysts, investors, media members and others. Forward-looking statements are those that do not relate to historical facts and that are based on current assumptions, beliefs, estimates, expectations and projections, many of which, by their nature, are inherently uncertain and beyond the Company’s control. Forward-looking statements may relate to various matters, including the Company’s financial condition, results of operations, plans, objectives, future performance, business or industry, and usually can be identified by the use of forward-looking words, such as “anticipates,” “assumes,” “believes,” “can,” “continues,” “could,” “estimates,” “expects,” “forecasts,” “goal,” “intends,” “likely,” “may,” “might,” “objective,” “plans,” “potential,” “projects,” “remains,” “should,” “target,” “trend,” “will,” “would,” or similar expressions or variations thereof, and the negative thereof, but these terms are not the exclusive means of identifying such statements. You should not place undue reliance on forward-looking statements, as they are subject to risks and uncertainties.

Factors that might cause future results to differ materially from historical performance and any forward-looking statements include, but are not limited to: changes in local, regional and global business, economic and political conditions and natural or geopolitical events; the soundness of other financial institutions and the impacts related to or resulting from bank failures and other industry volatility, including potential increased regulatory requirements, FDIC insurance premiums and assessments, and deposit withdrawals; changes in laws or the regulatory environment, including trade, monetary and fiscal policies and laws and current or potential disputes between the U.S. and the People’s Republic of China; changes in the commercial and consumer real estate markets; changes in consumer or commercial spending, savings and borrowing habits, and patterns and behaviors; the Company’s ability to compete effectively against financial institutions and other entities, including as a result of emerging technologies; the success and timing of the Company’s business strategies; the Company’s ability to retain key officers and employees; changes in key variable market interest rates, competition, regulatory requirements and product mix; changes in the Company’s costs of operation, compliance and expansion; disruption, failure in, or breach of, the Company’s operational or security systems or infrastructure, or those of third party vendors with which the Company does business, including as a result of cyber-attacks, and the disclosure or misuse of confidential information; the adequacy of the Company’s risk management framework; future credit quality and performance, including expectations regarding future credit losses and allowance levels; adverse changes to the Company’s credit ratings; legal proceedings, regulatory investigations and their resolution; the Company’s capital requirements and its ability to generate capital internally or raise capital on favorable terms; the impact on the Company’s liquidity due to changes in the Company’s ability to receive dividends from its subsidiaries; any strategic acquisitions or divestitures and the introduction of new or expanded products and services or other events that may directly or indirectly result in a negative impact on the financial performance of the Company and its customers.

For a more detailed discussion of some of the factors that might cause such differences, see the Company’s Annual Report on Form 10-K for the year ended December 31, 2023 filed with the SEC on February 29, 2024 (the “Company’s 2023 Form 10-K”) under the heading Item 1A. Risk Factors. You should treat forward-looking statements as speaking only as of the date they are made and based only on information then actually known to the Company. The Company does not undertake, and specifically disclaims any obligation to update or revise any forward-looking statements to reflect the occurrence of events or circumstances after the date of such statements except as required by law.

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FOR INVESTOR INQUIRIES, CONTACT:

Christopher Del Moral-Niles, CFA

Chief Financial Officer

T: (626) 768-6860

E: chris.delmoralniles@eastwestbank.com

Adrienne Atkinson

Director of Investor Relations

T: (626) 788-7536

E: adrienne.atkinson@eastwestbank.com

Source: East West Bancorp, Inc.