Market Intelligence Center  Aug 12  Comment 
The patented algorithms that power MarketIntelligenceCenter.com's Artificial Intelligence Center found a trading opportunity with East West Bancorp Inc (EWBC) that should provide a 2.30% return in just 65 days. Sell one Oct. '15 call at the $45.00...
Market Intelligence Center  Aug 6  Comment 
East West Bancorp Inc (EWBC) presents a trading opportunity that offers a 2.44% return in just 71 days. A covered call on East West Bancorp at the $45.00 level expiring on Oct. '15 offers an assigned return rate of 2.44% or 12.52% annualized....
TheStreet.com  Jul 17  Comment 
NEW YORK (TheStreet) -- East West Bancorp  had its price target lowered to $47 from $48 at BMO Capital while reiterating its "market perform" rating. The firm also reduced 2016 earnings estimates to $2.85 from $2.90 on the stock. Shares of...
newratings.com  Jul 15  Comment 
WASHINGTON (dpa-AFX) - East West Bancorp, Inc. (EWBC), parent company of East West Bank, reported net income for the second quarter of $98.7 million or $0.68 per share, compared to $84.31 million or $0.59 per share for the...
Market Intelligence Center  Jul 14  Comment 
MarketIntelligenceCenter.com's patented trade-picking algorithms have identified an attractive covered-call trade on East West Bancorp Inc (EWBC). Look at the Oct. '15 $45.00 covered call for a net debit in the $43.43 area. This trade has a...
newratings.com  Jul 1  Comment 
WASHINGTON (dpa-AFX) - East West Bancorp, Inc. (EWBC), parent company of East West Bank, reported net income for the second quarter of $98.7 million or $0.68 per share, compared to $84.31 million or $0.59 per share for the...


East West Bancorp (NASDAQ: EWBC) is a full-service commercial bank serving consumers and businesses throughout California. Its bank and other subsidiaries are divided into four operating segments: retail banking, commercial lending, treasury, and residential lending.[1] In the wake of the 2008 financial crisis, East West faces unfamiliar challenges as the credit market remains uncertain and the Dodd-Frank Act changes the financial sector.

Business Growth

In 2010, net income more than doubled to $164.6 million from $76.6 million in 2009.[2] The company increased its loan volume and net interest margin from 2009 to 2010 and increased its profitability during each quarter of 2010.[3]

Trends & Forces

Uncertainty in credit market affects lending revenues

EWBC's primary source of revenue is its lending practice - like any commercial bank, East West pays customers interest on their deposits so that it can lend out their money at a higher rate. The net interest margin metric acts as proxy for the bank's ability to earn interest on its assets. In the midst of credit market uncertainty following the 2008 financial crisis, EWBC's ability to lend profitably may be reduced and its net interest margin may decrease.

Dodd-Frank regulation may change investor sentiment

The Dodd-Frank Wall Street Reform and Consumer Protection Act, the government's response to the 2008 Financial crisis, significantly impacts the way the financial sector operates. Its allowance for government support of institutions identified as "too big to fail" may increase the value of identified financial institutions while decreasing the prospects and equity value of smaller financial institutions like East West. In addition, the Act increases financial regulation which may restrict East West's operations and increase back office expenses related to compliance.


EWBC competes with other commercial banks in California including competing regional banks and national competitors:

East West and its competitors increase revenues and income by increasing their deposit and loan volume. The industry is competitive as companies increase their deposit interest rates while decreasing their loan rates and fees to attract customers.


  1. EWBC 2010 10-K pg. 44  
  2. EWBC 2010 10-K pg. 134  
  3. EWBC 2010 10-K pg. 37  
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