Balance sheet growth boosts East West's quarterly profit

Balance sheet growth boosted quarterly profit at East West Bancorp in Pasadena, Calif.

The $39 billion-asset company said in a press release Thursday that its third-quarter earnings rose by 29% from a year earlier, to $171.3 million, or $1.17 a share.

Net interest income increased by 15%, to $349 million. The net interest margin widened by 24 basis points, to 3.76%.

Total loans rose by 9.4%, to $30.9 billion. Commercial and industrial lending increased by 8%, while single-family residential lending rose by 30.5%.

Total deposits increased by 7.4%, to $33.6 billion.

Dominic Ng, chairman and CEO of East West Bancorp.
Dominic Ng, chairman and CEO of East West Bancorp.

Noninterest income declined by 6%, to $46.5 million, largely because of a decrease in branch-related fees. Noninterest expenses increased by 9.4%, to $180 million, because of higher compensation and employee benefit costs.

East West’s efficiency ratio improved to 45.5% from 46.61% a year earlier.

“With year-to-date results of strong loan growth and an expanding net interest margin, we are on track for another year of record earnings for 2018,” Dominic Ng, East West's chairman and CEO, said in the release. “Our net interest income continues to reach higher levels quarter after quarter, and our attractive profitability remains a valued proposition for shareholders.”

For reprint and licensing requests for this article, click here.
Earnings Community banking Net interest margin California
MORE FROM AMERICAN BANKER