The following is a summary of the East West Bancorp, Inc. (EWBC) Q1 2024 Earnings Call Transcript:
Financial Performance:
East West Bancorp reported a net income of $285 million, or $2.03 per diluted share in the first quarter of 2024.
The bank's net interest margin was 3.34% in Q1, with the expectation of further NIM compression in Q2 but bottoming out later in the second half of the year.
The total allowance for loan losses increased to 1.29%, primarily reflecting increased allowance for commercial real estate loans.
East West Bancorp repurchased about 1.2 million shares of common stock during the first quarter.
The bank saw average loans increase by 1% in Q1, with growth primarily from residential mortgages.
Business Progress:
Deposits grew to a record level, averaging an increase of $2 billion due to the successful Lunar New Year CD campaign.
East West Bancorp expects a strengthening residential and home equity pipelines going into the second quarter and anticipates C&I growth pickup in Q2.
The bank is focusing on adding granular consumer and business deposits and managing credit risks proactively.
East West Bancorp continues to grow its fixed rate portfolio, and customers have locked in stable interest rates with derivative contracts for the term of their loans.
The bank maintains an active interest in attracting new talent in the disrupted market but is highly selective, emphasizing the East West Bank culture and balance between risk management and growth.
More details: East West Bancorp IR
Tips: This article is generated by AI. The accuracy of the content can not be fully guaranteed. For more comprehensive details, please refer to the IR website. The article is only for investors' reference without any guidance or recommendation suggestions.