Stock Track | East West Bancorp Soars 12.03% on Strong Q1 Earnings Beat and Positive Analyst Sentiment

Stock Track
23 Apr

East West Bancorp (EWBC) saw its stock price surge 12.03% in Wednesday's trading session following the release of its impressive first-quarter 2025 earnings report and positive analyst actions. The regional bank's strong performance and optimistic outlook have instilled confidence in investors amid ongoing economic uncertainties.

The company reported record revenue for the first quarter, with several key metrics exceeding expectations. Notably, East West Bancorp's net interest income increased by $12 million from the previous quarter to $600 million, while the net interest margin expanded by 11 basis points to 3.35%. End-of-period loans grew by 1% quarter-over-quarter to $54 billion, and fee income rose by 8% compared to the previous quarter.

East West Bancorp's financial strength was further underscored by its robust capital position, with a CET1 capital ratio of 14.3% and a tangible common equity ratio of 9.9%. The bank also reported a solid return on tangible common equity of nearly 16% for the quarter, demonstrating its ability to generate strong returns for shareholders even in a challenging economic environment.

Adding to the positive sentiment, several analysts adjusted their outlook on East West Bancorp following the earnings release. Barclays raised its target price for EWBC from $105 to $110, while other firms such as KBW and D.A. Davidson also updated their price targets. These actions likely contributed to the stock's significant upward movement as investors reassessed the bank's value in light of its strong performance.

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