East West Bancorp Q3 revenue beats estimates on loan and deposit growth
East West Bancorp Q3 revenue beats estimates on loan and deposit growth
Overview
US regional bank's Q3 revenue grew 6% yr/yr, beating analyst expectations
Diluted EPS for Q3 reached a record $2.76
Company cites loan and deposit growth, strong fee income, and credit discipline for results
Outlook
Company said it has bolstered its allowance for loan losses due to continued uncertainty in the economic outlook
Result Drivers
DEPOSIT GROWTH - Co said noninterest-bearing demand deposits rose nearly 15% yr/yr, citing success of small business checking strategy
FEE INCOME - Co said fee income remained strong, with 11% yr/yr growth in first nine months, supported by commercial deposit account fees
CREDIT AND EXPENSE MANAGEMENT - Co attributed results to disciplined approach to credit and expense management, with asset quality remaining resilient
Company press release: ID:nBw2vShv8a
Key Details
Metric | Beat/Miss | Actual | Consensus Estimate |
Q3 Revenue | Beat | $823 mln | $713.59 mln (11 Analysts) |
Q3 EPS |
| $2.76 |
|
Q3 Net Income |
| $382 mln |
|
Analyst Coverage
The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 14 "strong buy" or "buy", 3 "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 $150.00, about 19.5% above its October 19 closing price of $125.50
The stock recently traded at 11 times the next 12-month earnings vs. a P/E of 12 three months ago
Reuters Recommended Reads
Oct 20 - KeyCorp Q3 revenue rises 8% to record, profit up 24%
Oct 19 - Zions Bancorp Q3 EPS rises 20% on improved credit quality
Oct 19 - Western Alliance Bancorp Q3 revenue slightly beats estimates, profit rises on wider interest margin
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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.)