East West Bancorp reports rise in 2025 net income

Overview

• U.S. bank's Q4 net income was $356 mln, with diluted EPS of $2.55

• Full year 2025 net income reached $1.3 bln, with EPS of $9.52

• Company increased quarterly dividend by 33% to $0.80 per share

Outlook

• Company did not provide specific guidance for future quarters or years

Result Drivers

• BUSINESS ACCOUNT GROWTH - Co added thousands of new business accounts in 2025, contributing to growth in noninterest-bearing deposit balances

• RESILIENT CREDIT TRENDS - Co reported declining net charge-offs and criticized loans, indicating resilient credit trends

• DIVIDEND INCREASE - Co increased quarterly dividend by 33% to $0.80 per share, reflecting strong capital and profitability

Key Details

Analyst Coverage

• The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 12 "strong buy" or "buy", 5 "hold" and no "sell" or "strong sell"

• The average consensus recommendation for the banks peer group is "buy"

• Wall Street's median 12-month price target for East West Bancorp Inc is $125.50, about 8.7% above its January 21 closing price of $115.50

• The stock recently traded at 11 times the next 12-month earnings vs. a P/E of 11 three months ago

Press Release: ID:nBw68jGVFa

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