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 achieved a net profit of $299 million for the quarter, translating to a diluted earnings per share of $2.14. The average total return on assets was 1.62%, while the average return on common equity stood at 16.0%, and the tangible common equity return reached 17.1%. The book value per share increased by 6% from the previous quarter and by 19% year-over-year.
Dominic Ng, Chairman and CEO of East West Bank, expressed his satisfaction with the bank’s performance in the third quarter, highlighting continued growth in deposits from both personal and commercial clients, alongside a more diversified loan portfolio that emphasizes residential and commercial lending. He noted significant acceleration in net interest income and fee income, demonstrating the advantages of the bank’s business model. Ng also emphasized the bank’s commitment to strict credit quality and expense management, as reflected in stable operating costs and consistent credit quality, which underscores the strength of its diversified business strategy. The bank managed to enhance shareholder book value while achieving a 17.1% return on tangible common equity, and it remains dedicated to delivering robust returns to shareholders moving forward.
In summary, as of September 30, 2024, East West Bank reported total assets of $74.5 billion, an increase of $2 billion from $72.5 billion at the end of the second quarter of 2024. Total cash, repurchase agreements, and debt securities rose by 10% from the previous quarter. Year-on-year, total assets increased by $6.2 billion or 9% compared to $68.3 billion at the end of September 2023.
The average earning assets for the third quarter totaled $70.3 billion, representing a quarter-to-quarter growth of $2.2 billion or 3%. This includes a $900 million increase in average earning cash and bank deposits, an $800 million rise in available-for-sale debt securities, and a $500 million increase in average total loans outstanding.
Total loans reached $53.3 billion, up $500 million from the prior quarter, while total deposits climbed to $61.7 billion, marking an increase of $1.7 billion or 3%, largely due to the growth in both personal and commercial deposits. Non-interest-bearing deposits accounted for 24% of total deposits, which increased by $6.6 billion compared to the same time last year.
For Q3 2024, the average deposits amounted to $60.6 billion, an increase of $1.9 billion over Q2 2024, reflecting growth in average time deposits, money market deposits, and interest-bearing checking accounts.
As of September 30, 2024, East West Bank reported shareholders’ equity of $7.7 billion, up 6% from the previous quarter, with an equity ratio of 10.29%. The book value per share was $55.30, reflecting a quartlerly increase of $3.24 or 6%, of which $1.56 was attributable to improvements in accumulated other comprehensive income (AOCI). Additionally, the tangible book value per share reached $51.90, a quarterly gain of $3.25 or 7%, with $1.57 stemming from the AOCI improvement.
East West Bank’s regulatory capital ratios are significantly above the required standards set by regulatory agencies and exceed the averages for regional banks. As of September 30, 2024, the bank achieved a net profit of $299 million for Q3 2024, with diluted earnings per share also increasing by 4% from the previous quarter. The pre-tax, pre-provision income totaled $432 million, reflecting a 7% increase from $402 million in Q2 2024. The board of directors announced a cash dividend of $0.55 per share for the fourth quarter of 2024, which will be distributed to shareholders based on their holdings as of November 4, 2024.
East West Bank is dedicated to helping its customers connect with opportunities and 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.
