By hannover-web.com East West Bancorp, Inc. (NASDAQ: EWBC), the parent company of East West Bank, recently released its financial report for the third quarter of 2024. The bank reported a net profit of $299 million for Q3, translating to a diluted earnings per share of $2.14. The average return on total assets stood at 1.62%, while the average return on common equity was 16.0%, and the average return on tangible common equity was 17.1%. Additionally, the book value per share increased by 6% compared to the previous quarter and by 19% year-over-year.
Dominic Ng, Chairman and CEO of East West Bank, shared that the bank had another strong quarter, balancing customer service with sustainable growth. Ng noted that both personal and commercial customer deposits continued to grow, while the loan portfolio diversified, focusing more on mortgages and commercial loans. There was a notable acceleration in net interest income and fee income this quarter, showcasing the advantages of the bank’s business model. This quarter, East West Bank benefited from its stringent management approach regarding credit quality and expense controls. Operating expenses remained stable compared to the previous quarter, with consistent credit quality reflecting the strengths of the bank’s diversified business strategy. The bank also enhanced shareholder book value, achieving a 17.1% return on tangible common equity. Looking ahead, Ng emphasized the bank’s ongoing commitment to delivering substantial returns to shareholders.
As of September 30, 2024, East West Bank’s total assets reached $74.5 billion, an increase of $2 billion from $72.5 billion as of June 30, 2024. The combined total of cash, repurchase agreements, and debt securities increased by 10% from the second quarter. Year-over-year, total assets rose by $6.2 billion or 9%, up from $68.3 billion as of September 30, 2023.
The average earning assets for Q3 stood at $70.3 billion, an increase of $2.2 billion or 3% from the second quarter. This included an increase of $900 million in average earning cash and bank deposits, an $800 million rise in available-for-sale debt securities, and a $500 million boost in average total outstanding loans.
Total loans amounted to $53.3 billion, growing by $500 million compared to the previous quarter, while total deposits reached $61.7 billion, an increase of $1.7 billion or 3%. This growth was primarily driven by deposits from personal and commercial customers. Non-interest deposits accounted for 24% of total deposits. Overall, total deposits increased by $6.6 billion year-over-year.
For the third quarter of 2024, average deposits amounted to $60.6 billion, up by $1.9 billion from the second quarter, with growth seen in average time deposits, money market deposits, and interest-bearing checking accounts.
As of September 30, 2024, East West Bank’s shareholder equity was $7.7 billion, a 6% increase from the second quarter. The equity ratio stood at 10.29%. The book value per share reached $55.30, marking a $3.24 or 6% increase from the second quarter, with $1.56 per share attributable to the improvement in accumulated other comprehensive income (AOCI). The tangible book value per share was $51.90, reflecting a $3.25 or 7% rise, driven largely by a $1.57 increase in AOCI.
East West Bank’s capital ratios are well above regulatory standards and surpass the average levels seen in regional banks. As of September 30, 2024, the net profit for Q3 reached $299 million, with diluted earnings per share up 4% from the second quarter. Pre-tax, pre-provision income totaled $432 million, representing a 7% increase from $402 million in the previous quarter. The bank’s board announced a cash dividend of $0.55 per share for the fourth quarter of 2024, payable on November 15, 2024, to shareholders recorded as of November 4, 2024.
East West Bank is dedicated to connecting its customers with business opportunities and helping them move forward. As the largest independent commercial bank headquartered in Southern California, it currently holds total assets of $74.5 billion and operates over 110 locations across California, Georgia, Illinois, Massachusetts, Nevada, New York, Texas, Washington, and Asia. For more information about East West Bank, please visit their website at www.eastwestbank.com.
