UBS Still Neutral on East West Bank (EWBC)

East West Bancorp Inc. (NASDAQ:EWBC) is 1 of the 10 Best Bank Stocks to Buy successful 2026.

UBS, connected February 4, marginally trimmed its people terms connected East West Bancorp (EWBC) to $125 (from $126). Despite the people terms cut, the steadfast retained its Neutral telephone connected the stock, arsenic it updated its slope models pursuing the merchandise of Q4 2025 results. The steadfast noted that mid-cap banks arsenic a full performed powerfully successful the erstwhile quarter, avoiding recognition hazard concerns. It besides noted that capitalist sentiment connected determination banks is apt to stay high, supported by a steepening output curve, accelerating indebtedness growth, and accrued M&A activity, specified arsenic Santander’s (SAN) acquisition of Webster (WBS).

EWBC reported its net connected January 22. The institution grew its Q4 nett income by 21.5% YoY to $356.3 cardinal (from $293.1 million), which led to a 103-basis constituent YoY betterment successful the bank’s instrumentality connected mean communal equity (from 15.08% points to 16.11% points). This beardown effect allowed EWBC to rise its quarterly dividend by 33% to $0.80 (from $0.60) and translated into a 15.9% YoY maturation successful its publication worth per stock (from $55.79 to $64.68).

The net maturation was driven chiefly by an 11.9% YoY maturation successful nett involvement income (NII) (from $588 cardinal to $658 million), which successful crook was driven by some nett involvement borderline (NIM) enlargement and indebtedness growth. NIMs roseate 17 ground points to 3.41% (from 3.24%), arsenic the bank’s outgo of deposits fell 43 ground points to 2.16% (from 2.59%). The little outgo of funds from deposits much than offset the ~31-basis constituent diminution successful mean indebtedness yields (from 6.51% to 6.20%).

Loan book, meanwhile, grew 6.0% YoY to $56.9 cardinal (from $53.7 billion). For 2026, the bank’s absorption is expecting a 5% to 7% YoY summation successful some loans and nett involvement income.

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East West Bancorp Inc. (NASDAQ:EWBC) is simply a holding institution that operates East West Bank. The institution has 2 main operating segments: Consumer Banking and Commercial Banking. It is based successful Pasadena, California, and was founded successful August 1998.

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Disclosure: None. This nonfiction is primitively published astatine Insider Monkey.