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Dec 31, 2020

East West Bancorp Q4 2020 Earnings Report

Reported net income of $164.1 million and diluted earnings per share of $1.15 for Q4 2020.

Key Takeaways

East West Bancorp reported a solid financial performance in Q4 2020, with net income reaching $164.1 million, or $1.15 per diluted share. Total loans reached a record $38.4 billion, growing by 10% annualized, and total deposits reached a record $44.9 billion, growing by 30% annualized. The company also saw improvement in asset quality metrics.

Net income for the fourth quarter of 2020 was $164.1 million, or $1.15 per diluted share.

Total loans reached a record $38.4 billion, a 10% annualized growth from the previous quarter.

Total deposits reached a record $44.9 billion, reflecting a 30% annualized increase from the previous quarter.

The company's common stock dividend was increased by 20%, resulting in a new quarterly dividend of $0.33 per share.

Total Revenue
$347M
Previous year: $368M
-5.9%
EPS
$1.13
Previous year: $1.28
-11.7%
Efficiency Ratio
42.9%
Previous year: 44.84%
-4.3%
Adjusted Efficiency Ratio
39.76%
Previous year: 38.33%
+3.7%
CET1 Capital Ratio
12.7%
Previous year: 12.9%
-1.6%
Cash and Equivalents
$4.02B
Previous year: $3.26B
+23.2%
Free Cash Flow
$262M
Previous year: $345M
-24.1%
Total Assets
$52.2B
Previous year: $44.2B
+18.0%

East West Bancorp

East West Bancorp

Forward Guidance

East West Bancorp is optimistic about an improving macroeconomic outlook, the broader distribution of COVID-19 vaccines, and expectations for increased government stimulus. The company looks forward to a strengthening economic recovery in the second half of the new year and is confident in its ability to continue growth and generate strong returns for shareholders in 2021.

Positive Outlook

  • Improving macroeconomic outlook
  • Broader distribution of COVID-19 vaccines
  • Expectations for increased government stimulus
  • Strengthening economic recovery expected in the second half of the new year
  • Confidence in continued growth and strong shareholder returns in 2021

Challenges Ahead

  • Potential impact of disease pandemics, such as resurgences and subsequent waves of the COVID-19 pandemic
  • Changes in governmental policy and regulation
  • Changes in the U.S. economy, including an economic slowdown or recession
  • Changes in laws or the regulatory environment
  • Other risks and uncertainties that could cause actual results to differ materially from those projected