East West Bancorp Q2 revenue beats, EPS up

Overview

• U.S. regional bank's Q2 revenue rose 12% yr/yr, beating analyst expectations

• Diluted EPS for Q2 increased 18% yr/yr

• Company cites balanced growth in loans and deposits, record net interest income

Outlook

• Company did not provide specific guidance or forecasts for the current or future periods

Result Drivers

• LOAN AND DEPOSIT GROWTH - Co said record loans and deposits drove results, supported by its relationship-focused strategy

• NONINTEREST DEPOSIT GROWTH - Significant increase in noninterest-bearing deposits contributed to performance, per CEO Dominic Ng

• DISCIPLINED EXECUTION - Disciplined execution and stable credit performance supported above-peer returns, according to CEO Dominic Ng

Company press release: ID:nBwnkLGRa

Key Details

Analyst Coverage

• The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 13 "strong buy" or "buy", 4 "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 $147.50, about 10.1% above its July 20 closing price of $133.92

• The stock recently traded at 12 times the next 12-month earnings vs. a P/E of 10 three months ago

Reuters Recommended Reads

• July 21 - KeyCorp quarterly profit rises on interest income strength

• July 20 - ServisFirst Bancshares Q2 EPS rises 40% on loan growth, higher net interest margin

• July 21 - OFG Bancorp Q2 EPS rises on loan growth, deposit strength

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(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)