East West Bancorp Reports Record Net Income for Full Year 2024 of $1.2 Billion and Diluted Earnings Per Share of $8.33; Increases Dividend and Repurchase Authorization

Rhea-AI Summary

East West Bancorp (EWBC) reported record financial results for 2024, with full-year net income reaching $1.2 billion, or $8.33 per diluted share. Fourth quarter 2024 net income was $293 million ($2.10 per diluted share). The company achieved strong performance metrics, including a 1.60% return on average assets and 15.9% return on average common equity.

Key highlights include deposit growth of over $7 billion and a 12% increase in fee income year-over-year, driven by wealth management, lending, and deposit account fees. Book value per share grew 12% year-over-year to $55.79. The company announced a $300 million share repurchase authorization and a 9% increase in common stock dividend.

Total revenue (FTE) for 2024 was $2,619 million, slightly up from $2,609 million in 2023. Total assets increased 9% to $75,976 million.

Positive

• Record net income of $1.2 billion for 2024
• Deposit growth of over $7 billion
• 12% increase in fee income year-over-year
• Book value per share grew 12% to $55.79
• 9% increase in common stock dividend
• $300 million share repurchase authorization
• 15.9% return on average common equity

Negative

• Return on average tangible common equity declined 230 basis points year-over-year
• Revenue growth was flat at 0.4% year-over-year

Insights

Financial Analyst

East West Bancorp's 2024 results showcase exceptional financial strength and operational efficiency. The 1.60% return on average assets significantly outperforms the banking industry average of approximately 1.2%, highlighting superior asset utilization. The 17.05% return on tangible common equity demonstrates robust profitability despite challenging market conditions.

The $7 billion deposit growth is particularly impressive as it was achieved without sacrificing profitability, indicating strong pricing power and customer loyalty. The 12% growth in fee income reflects successful diversification of revenue streams, reducing reliance on net interest income in a complex rate environment.

The bank's capital management strategy is notably shareholder-friendly. The 9% dividend increase and $300 million share repurchase authorization are supported by a strong tangible common equity ratio of 9.60%, well above regulatory requirements. This indicates significant capital buffer for growth opportunities while maintaining generous shareholder returns.

The 5% increase in pre-tax, pre-provision income to $1.66 billion reflects strong core earnings power, suggesting sustainable profitability even if credit conditions deteriorate. The 9% asset growth to $76 billion demonstrates disciplined expansion while maintaining strong credit quality.

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 full year and fourth quarter of 2024. Full year 2024 net income was $1.2 billion, or $8.33 per diluted share. Fourth quarter 2024 net income was $293 million, or $2.10 per diluted share. Full-year returns on average assets were 1.60%, returns on average common equity were 15.9%, and book value per share grew 12% year-over-year.

“Looking back on 2024, East West marked another year of record revenue, net income and EPS, generating a 17% return on average tangible common equity¹ for shareholders,” said Dominic Ng, Chairman and Chief Executive Officer. “We grew deposits by over $7 billion, reflecting the strength of our customer relationships. Fee income grew 12% year-over-year to a new record level, with notable strength in wealth management, lending, and deposit account fees,” said Ng.

“East West’s mission has always been to support the communities we serve. Our sympathy goes out to everyone affected by the devastating wildfires in Southern California, and our deep thanks goes out to the firefighters, public service workers, and volunteers on the front lines,” stated Ng. “During this unprecedented time, I am proud of the actions East West is taking to support our customers, our community, and our associates. I would like to extend special gratitude to East West’s associates for their continued dedication to our clients.”

“Given our strong capital base and industry-leading profitability, we are pleased to announce an incremental $300 million of share repurchase authorization. As we start a new year, we are also pleased to announce a 9% increase in our common stock dividend,” concluded Ng.

FINANCIAL HIGHLIGHTS

			Year Ended				Year-over-Year Change
	($ in millions, except per share data)		December 31, 2024		December 31, 2023		$		%
	Total Revenue (FTE)		$2,619		$2,609		$10		0 %
	Pre-tax, Pre-provision Income2		1,661		1,586		75		5
	Net Income		1,166		1,161		5		0
	Diluted Earnings per Share		$8.33		$8.18		$0.15		2
	Book Value per Share		$55.79		$49.64		$6.15		12
	Tangible Book Value per Share1		$52.39		$46.27		$6.12		13 %
	Return on Average Common Equity		15.93%		17.91%		—		-198 bps
	Return on Average Tangible Common Equity1		17.05%		19.35%		—		-230 bps
	Total Stockholders’ Equity to Assets Ratio		10.17%		9.98%		—		19 bps
	Tangible Common Equity Ratio1		9.60%		9.37%		—		23 bps
	Total Assets		$75,976		$69,613		$6,363		9 %

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 4Q24 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 4Q24 earnings release and financial tables, available at www.eastwestbank.com/investors.

Earnings Press Release and Financial Tables

East West’s fourth quarter and full year 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 fourth quarter and full year 2024 earnings with the public on Thursday, January 23, 2025, at 2:00 p.m. PT/5:00 p.m. ET. The public and investment community are invited to listen as management discusses fourth quarter and full year 2024 results and operating developments.

• The following dial-in information is provided for participation in the conference call: calls within the U.S. or Canada – (877) 506-6399; 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 $76.0 billion as of December 31, 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 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.

View source version on businesswire.com: https://www.businesswire.com/news/home/20250123735270/en/

For Investor Inquiries, Contact:

Adrienne Atkinson

Director of Investor Relations

T: (626) 788-7536

E: adrienne.atkinson@eastwestbank.com

Source: East West Bancorp, Inc.

FAQ

What was East West Bancorp's (EWBC) net income for full year 2024?

East West Bancorp reported a record net income of $1.2 billion for full year 2024.

How much did EWBC's deposits grow in 2024?

East West Bancorp grew deposits by over $7 billion in 2024.

What is the size of EWBC's new share repurchase authorization?

East West Bancorp announced a $300 million share repurchase authorization.

How much did EWBC increase its dividend in 2024?

East West Bancorp announced a 9% increase in its common stock dividend.

What was EWBC's book value per share growth in 2024?

East West Bancorp's book value per share grew 12% year-over-year to $55.79.

What was EWBC's return on average common equity for 2024?

East West Bancorp achieved a 15.9% return on average common equity in 2024.