East West Bank’s third quarter results received a positive market reaction, driven by robust deposit growth and expanding fee revenues. Management attributed the quarter’s momentum to broad-based inflows from household, small business, and commercial clients, which supported loan growth and optimized funding costs. CEO Dominic Ng highlighted that “deposit-led growth funded our entire loan growth, allowing us to further optimize our funding mix and contributing to improved liquidity.” Notably, management cited strong performance in wealth management and fee-based businesses, alongside resilient asset quality and disciplined risk management, as key contributors to the bank’s results.
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East West Bank (EWBC) Q3 CY2025 Highlights:
- Revenue: $778 million vs analyst estimates of $726.7 million (18.4% year-on-year growth, 7.1% beat)
- Adjusted EPS: $2.62 vs analyst estimates of $2.37 (10.4% beat)
- Adjusted Operating Income: $458 million vs analyst estimates of $465.5 million (58.9% margin, 1.6% miss)
- Market Capitalization: $14.16 billion
While we enjoy listening to the management's commentary, our favorite part of earnings calls are the analyst questions. Those are unscripted and can often highlight topics that management teams would rather avoid or topics where the answer is complicated. Here is what has caught our attention.
Our Top 5 Analyst Questions From East West Bank’s Q3 Earnings Call
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Manan Gosalia (Morgan Stanley) asked about the bank’s liability sensitivity and the impact of Federal Reserve rate cuts. CFO Chris Del Moral-Niles detailed the near-immediate repricing of deposits, noting a modest short-term benefit that could reverse as loans catch up on repricing.
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Ebrahim Poonawala (Bank of America) questioned the drivers of noninterest-bearing deposit growth and whether the mix could increase further. Del Moral-Niles clarified that growth was broad-based, especially from consumer and retail banking, and expects the current mix to persist in the near term.
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David Rochester (Cantor) inquired about the bank’s fee income trends and expansion in wealth management. Del Moral-Niles described ongoing hiring and product development, plus integration of enhanced payments and FX capabilities expected to launch more broadly in 2026.
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Timur Braziler (Wells Fargo) asked about the potential impact of tariff-related clarity on loan growth. Del Moral-Niles emphasized customer resilience and adaptability, noting that clients have prepared for changing environments and are finding new business opportunities.
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Jared David Shaw (Barclays) sought details on the correlation between expense growth and fee income, specifically in wealth management. Del Moral-Niles explained that higher expenses are expected and acceptable when tied to the expansion of sustainable, recurring revenue streams.
Catalysts in Upcoming Quarters
In the coming quarters, the StockStory team will be monitoring (1) the pace and composition of deposit growth, particularly among consumer and business clients; (2) sustained expansion of wealth management and fee-based revenues; and (3) credit quality trends, especially in commercial real estate and multifamily segments. Additionally, we will track the timing and adoption of new payment and FX platform capabilities, as well as the impact of potential interest rate changes on both funding costs and loan demand.
East West Bank currently trades at $102.77, up from $98.83 just before the earnings. Is there an opportunity in the stock?See for yourself in our full research report (it’s free for active Edge members).
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