East-West Bancorp (EWBC) Tops Q1 EPS by 42c

East-West Bancorp (NASDAQ: EWBC) reported Q1 EPS of $1.16, $0.42 better than the analyst estimate of $0.74.

"East West had a strong start to the year. In the first quarter of 2017, total loans grew $1.0 billion or 15% annualized to a record $26.5 billion from $25.5 billion as of December 31, 2016. Total deposits grew $652 million or 9% annualized to a record $30.5 billion as of March 31, 2017 from $29.9 billion at the end of 2016,” stated Dominic Ng, Chairman and Chief Executive Officer of East West. “Noninterest-bearing demand deposits grew to a record $10.7 billion, comprising 35% of East West’s deposit mix.”

“Our strong financial results for the first quarter of 2017 were driven by solid balance sheet expansion. Strong loan and deposit growth drove adjusted2 net interest income growth of 12% linked quarter annualized, to $269 million. Recent rising interest rates supported adjusted2 net interest margin expansion of 12 basis points to 3.29%. Disciplined oversight of our operating expenses delivered an industry-leading adjusted3 efficiency ratio of 43.3%. Finally, along with our strong operating performance, credit quality continues to be stable with an annualized net charge-off ratio of eight basis points this quarter,” continued Ng.

“In summary, East West delivered strong financial performance in the first quarter. Quarter after quarter, year after year, our results illustrate the key strengths of our bank. These key strengths are: consistent organic loan and deposit growth, favorable asset sensitivity, and prudent expense management,” concluded Ng.

For earnings history and earnings-related data on East-West Bancorp (EWBC) click here.

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