EAST WEST BANCORP INC Q3 FY2025 earnings call

Financial Results - Record quarterly revenue, net income, earnings per share; record deposits; deposit-led loan growth; strong net interest income. ### Deposits - Grew over $1.5 billion in Q3, noninterest-bearing deposits outpaced time deposits, driven by branch-based consumer and business banking customers. ### Loans - Steady growth with over $800 million of fundings in Q3; commercial real estate, residential mortgage, and C&I had specific trends. ### Net Interest Income - Driven by low-cost deposit growth, adjusted NII at $645 million as an all-time quarterly record. ### Fee Income - All fee businesses grew, with wealth management fees up 36% year-over-year. ### Asset Quality - Resilient, with low net charge-offs and nonperforming assets. ### Capital - Strong capital levels, 10% tangible common equity, share repurchases, and a dividend declared for Q4 2025.

East West Bancorp reported record-breaking financial results for the third quarter. Deposits grew by over $1.5 billion in Q3, with noninterest-bearing deposits outpacing time deposits. Loans had over $800 million of fundings, with commercial real estate, residential mortgage, and C&I showing specific growth. Net interest income (NII) was a record, with adjusted NII at $645 million as an all-time quarterly record. Fee income was $92 million, a record quarter, with wealth management fees up 36% year-over-year. Total operating expenses were $261 million, with an efficiency ratio of 35.6%. Asset quality remained resilient, with net charge-offs at 13 basis points and nonperforming assets at 25 basis points.

Full year outlook updated with 2 additional rate cuts assumed in Q4; net interest income and revenue trending to over 10% growth; full year net charge-offs expected 10-20 basis points, a reduction from prior guidance.

Impact of Fed rate cuts on loan yields and deposit costs; uncertainty in economic outlook affecting credit risk; potential repricing effects when Fed stops cutting rates.

Q: Manan Gosalia asks about loan yields, deposit costs, and Fed rate cuts.

A: Christopher Del Moral-Niles explains deposit repricing vs loan repricing lag Q: Ebrahim Poonawala asks about deposit growth verticals and credit metrics A: Christopher Del Moral-Niles and Irene Oh discuss deposit growth drivers and credit quality Q: David Rochester asks about fee-based lines and FX platform A: Christopher Del Moral-Niles talks about wealth management investment and FX platform development Q: Timur Braziler asks about deposit repricing base and credit in California A: Christopher Del Moral-Niles and Irene Oh discuss deposit repricing and California multifamily credit Q: Jared Shaw asks about credit thought process and NPL sales A: Christopher Del Moral-Niles and Irene Oh explain credit recovery and NPL situation Q: Chris McGratty asks about operating leverage and loan demand A: Christopher Del Moral-Niles discusses operating leverage and loan demand drivers Q: Benjamin Gerlinger asks about time deposit repricing and NII guidance A: Christopher Del Moral-Niles talks about time deposit rollovers and NII outlook Q: David Smith asks about guidance inclusion and expense timing A: Christopher Del Moral-Niles addresses guidance inclusion and expense timing Q: Sun Young Lee asks about NIM trajectory and credit allowance A: Christopher Del Moral-Niles and Irene Oh discuss NIM trajectory and credit allowance rationale