East West Bancorp (EWBC) Q1 2026 earnings summary

Executive summary

• Net income for Q1 2026 was $358 million, up 23% year-over-year, with diluted EPS of $2.57, driven by higher net interest income, lower provision for credit losses, and increased noninterest income.

• Achieved record levels in loans ($58.1 billion) and deposits ($68.9 billion) as of March 31, 2026, with deposits up 9% and loans up 7% year-over-year.

• Fee income grew 12% year-over-year, led by wealth management and deposit account fees.

• Return on average assets was 1.79%, and return on average common equity was 16.0%.

• Book value per share increased 14% year-over-year to $65.70.

Financial highlights

• Net interest income was $671 million, up 12% year-over-year, with net interest margin improving to 3.49%.

• Noninterest income reached a record $103 million, up 11% year-over-year.

• Total noninterest expense was $280 million, up 11% year-over-year, mainly due to higher compensation and tax credit investment amortization.

• Efficiency ratio was 36.2%, reflecting strong cost control.

• Allowance for credit losses on loans and unfunded commitments was $883 million, or 1.44% of total loans.

Outlook and guidance

• Full-year 2026 managed income guidance raised to 6%-8% growth, with loan growth expected at 5%-7%.

• Net charge-offs projected to be 15-25 basis points for the full year; effective tax rate between 22% and 23%.

• Operating noninterest expense expected to rise 7%-9% year-over-year.

• Management expects to deliver top-tier shareholder returns through strong profitability, balance sheet growth, and prudent risk management.

• The company is monitoring proposed regulatory capital changes and assessing potential impacts.