East West Bank has followed the market’s trajectory closely, rising in tandem with the S&P 500 over the past six months. The stock has climbed by 17.7% to $125.64 per share while the index has gained 16.9%.
Is now the time to buy EWBC? Find out in our full research report, it’s free.
Why Does EWBC Stock Spark Debate?
As the largest independent bank in the U.S. focused on bridging financial services between America and Asia, East West Bancorp (NASDAQ: EWBC) operates a commercial bank that provides personal and business banking services with a unique focus on facilitating U.S.-Asia cross-border transactions.
Two Positive Attributes:
1. Net Interest Income Drives Additional Growth Opportunities
Markets consistently prioritize net interest income over non-recurring fees, recognizing its superior quality compared to the more unpredictable revenue streams.
East West Bank’s net interest income has grown at a 13.9% annualized rate over the last five years, a step above the broader banking industry and in line with its total revenue. Its growth was driven by both an increase in its outstanding loans and net interest margin, which represents how much a bank earns in relation to its outstanding loan book.
2. Growing TBVPS Reflects Strong Asset Base
We consider tangible book value per share (TBVPS) the most important metric to track for banks. TBVPS represents the real, liquid net worth per share of a bank, excluding intangible assets that have debatable value upon liquidation.
East West Bank’s TBVPS increased by 12.3% annually over the last five years, and growth has recently accelerated as TBVPS grew at an impressive 14.7% annual clip over the past two years (from $48.70 to $64.08 per share).
One Reason to Be Careful:
Projected Net Interest Income Growth Is Slim
Forecasted net interest income by Wall Street analysts signals a company’s potential. Predictions may not always be accurate, but accelerating growth typically boosts valuation multiples and stock prices while slowing growth does the opposite.
Over the next 12 months, sell-side analysts expect East West Bank’s net interest income to rise by 6.5%, a slight deceleration versus its 9% annualized growth for the past two years. This projection is slightly below its 9% annualized growth rate for the past two years.
Final Judgment
East West Bank’s merits more than compensate for its flaws. At $125.64 per share (or 1.7× forward P/B), is now the right time to buy the stock? See for yourself in our comprehensive research report, it’s free.
High-Quality Stocks for All Market Conditions
ONE MORE THING: Top 5 Growth Stocks. The biggest stock winners almost always had one thing in common before they ran. Revenue growing like crazy. Meta. CrowdStrike. Broadcom. Our AI flagged all three. They returned 315%, 314%, and 455%, respectively.
Find out which 5 stocks it’s flagging this month — FREE. Get Our Top 5 Growth Stocks for Free HERE.
Stocks that have made our list include now familiar names such as Nvidia (+1,460% between June 2020 and June 2025) as well as under-the-radar businesses like the once-micro-cap company Kadant (+214% between June 2020 and June 2025). Find your next big winner with StockStory today.
