East West Bancorp, Inc. (EWBC) reported first‑quarter 2026 results that included a net income of $358 million and diluted earnings per share of $2.57, a 23% year‑over‑year increase from $290 million and $2.08 in Q1 2025. Total revenue reached $774 million, up 12% from $688 million in the prior year, while the loan portfolio expanded to $58.1 billion, a 7% rise, and the deposit base grew to $68.9 billion, a 9% increase. Return on average assets was 1.79% and return on average tangible common equity rose to 17%, reflecting the bank’s efficient cost structure and strong fee income. Book value per share climbed 14% year‑over‑year, underscoring solid capital growth.
Net interest income totaled $671 million, and the net interest margin improved to 3.49%, a lift driven by higher rates and a 12% year‑over‑year rise in fee income to $99 million. Fee income growth was largely supported by wealth‑management and deposit‑account fee streams. Net charge‑offs remained stable, and the allowance for loan losses was 1.44% of loans. Capital ratios stayed robust, with a CET1 ratio of 15.13% and a tangible common‑equity ratio of 10.35%. The bank also declared a $0.80 per share dividend for Q2 2026 and repurchased $98 million of shares in Q1 2026, reinforcing its commitment to shareholder returns.
Management updated its full‑year 2026 guidance, raising the managed‑income outlook to 6%–8% from the prior 5%–7% range and projecting net charge‑offs to fall between 15 and 25 basis points. The bank also expects the net interest margin to remain flat to modestly positive, reflecting confidence in a higher‑for‑longer rate environment. These adjustments signal management’s optimism about sustained fee‑income growth and a stable credit profile amid a favorable interest‑rate trajectory.
"East West reported record loans, deposits, and fee income in the first quarter, generating a 17% return on average tangible common equity. Our balance‑sheet growth reflects the strength of our customer relationships and the success of the clients we serve. This performance was complemented by 12% year‑over‑year growth in fee income, driven by notable strength in wealth management and deposit account fees," said CEO Dominic Ng. "Credit performance remained resilient, with net charge‑offs and non‑performing asset levels stable, while we bolstered our allowance for loan losses to 1.44% of loans. We continued to operate from a position of capital strength, which enabled us to support our customers with confidence while also returning capital to our shareholders. Looking ahead, we are well positioned to deliver top‑tier shareholder returns through industry‑leading profitability, strong balance‑sheet growth, and prudent risk management," added Ng. CFO Christopher J. Del Moral‑Niles noted, "We’ve assumed the forward curve as of March 31st, which models no rate cuts. Therefore, we’re updating our full‑year 2026 managed‑income guidance to grow between 6%–8%, up from our prior expectations of growth between 5% and 7%. We’re also updating our net charge‑offs and now projected to fall between 15 and 25 basis points for the full year."
The bank’s performance is underpinned by its China‑licensed network, which continues to drive premium trade‑finance fees and support granular loan expansion. Wealth‑management and deposit‑account fee streams have become increasingly significant contributors to fee income, offsetting headwinds from deposit‑pricing pressure and higher non‑interest expenses related to cyber‑security and AI investments. While deposit pricing remains a challenge, the bank’s strong capital position and disciplined credit growth provide a buffer against potential asset‑quality deterioration. The combination of robust fee income, a stable net interest margin, and a resilient credit portfolio positions East West Bancorp to sustain its growth trajectory and deliver shareholder value in the coming quarters.
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