East West Bancorp Inc (NASDAQ:EWBC) closed out its 2025 fiscal year with a strong fourth quarter, posting revenue and earnings that exceeded Wall Street's expectations. The bank's performance caps a record year, though the initial market reaction in after-hours trading was slightly negative.
Quarterly Earnings vs. Estimates
The bank's fourth-quarter results demonstrated robust top-line growth and profitability. Revenue for the quarter came in at $758.3 million, a significant 12.2% increase compared to the same period last year. This figure comfortably surpassed analyst estimates, which had projected revenue of approximately $690.6 million.
On the bottom line, East West reported non-GAAP earnings per share (EPS) of $2.52. This also edged out the consensus estimate of $2.50 per share, representing a modest beat of 0.8%.
The key figures from the quarter are summarized below:
- Reported Revenue: $758.3 million
- Vs. Estimate: Beat by ~9.8%
- Year-over-Year Growth: 12.2%
- Reported Non-GAAP EPS: $2.52
- Vs. Estimate: Beat by 0.8%
Market Reaction and Price Action
Despite the earnings beat, shares of East West Bancorp traded down approximately 2.0% in after-hours activity following the report. This muted reaction suggests that while the results were solid, they may have already been priced into the stock or that investors are focusing on forward-looking concerns such as the interest rate environment and economic outlook. Over the past month, the stock's performance has been essentially flat, indicating a period of consolidation as the market awaited these results.
Full-Year 2025 Highlights and Dividend Increase
The fourth-quarter performance contributed to a landmark full year for the bank. For 2025, East West reported record net income of $1.3 billion, or $9.52 per diluted share, representing a 14% increase in EPS over 2024. Other full-year milestones include:
- Return on Average Assets (ROAA): 1.70%, up 10 basis points from 2024.
- Return on Average Common Equity (ROACE): 16.01%.
- Book Value Per Share: Increased 15.9% year-over-year to $64.68.
- Total Assets: Grew to $80.4 billion.
A major announcement accompanying the earnings was a substantial 33% increase in the quarterly common stock dividend. The board declared a new dividend of $0.80 per share, up from $0.60 previously. Chairman and CEO Dominic Ng highlighted the bank's "strong capital and profitability" as the foundation for this decision, underscoring a commitment to returning capital to shareholders.
Looking Ahead
The press release did not provide specific financial guidance for the coming year. However, current analyst estimates project continued growth. For the full year 2026, the consensus sales estimate stands at $2.85 billion. For the upcoming first quarter of 2026, analysts are forecasting revenue of approximately $684.8 million and earnings per share of $2.48.
The bank will host a conference call to discuss these results in greater detail, which may provide further color on management's outlook for loan growth, net interest margin, and credit quality in the current economic climate.
For a detailed look at East West Bancorp's historical earnings, future estimates, and analyst projections, visit the earnings and estimates page.
Disclaimer: This article is for informational purposes only and does not constitute financial advice, an endorsement, or a recommendation to buy, sell, or hold any security. Investors should conduct their own research and consult with a qualified financial advisor before making any investment decisions.
