QUOTE AND NEWS
Market Intelligence Center  May 13  Comment 
The patented option-trade picking algorithms that power MarketIntelligenceCenter.com's Artificial Intelligence Center have selected a covered-call trade on East West Bancorp Inc (EWBC) that includes 8.65% downside protection. Sell one contract of...
Market Intelligence Center  May 11  Comment 
A covered call identified by MarketIntelligececenter.com's patented algorithm on East West Bancorp Inc (EWBC) could yield about 4.11% (9.50% annualized, for comparison purposes only) in 158 days. Pair a long position in the stock with the Oct. '15...
Market Intelligence Center  Apr 29  Comment 
For a hedged play on East West Bancorp Inc (EWBC), MarketIntelligenceCenter.com’s option-trade picking algorithms recommend the Jul. '15 $40.00 covered call for a net debit in the $39.04 area. That is also the break-even stock price for the...
Market Intelligence Center  Apr 27  Comment 
East West Bancorp Inc (EWBC) presents a trading opportunity that offers a 2.67% return in just 81 days. A covered call on East West Bancorp at the $40.00 level expiring on Jul. '15 offers an assigned return rate of 2.67% or 12.03% annualized....
Market Intelligence Center  Apr 13  Comment 
For a hedged play on East West Bancorp Inc (EWBC) MarketIntelligenceCenter.com’s patented trade-picking algorithms recommend the Jul. '15 $40.00 covered call for a net debit in the $38.95 area. That is also the break-even stock price for the...
Market Intelligence Center  Apr 2  Comment 
The patented option-trade picking algorithms that power MarketIntelligenceCenter.com's Artificial Intelligence Center have selected a covered-call trade on East West Bancorp Inc (EWBC) that includes 4.70% downside protection. Sell one contract of...
Market Intelligence Center  Mar 24  Comment 
The patented option-trade picking algorithms that power MarketIntelligenceCenter.com's Artificial Intelligence Center have selected a covered-call trade on East West Bancorp Inc (EWBC) that includes 5.50% downside protection. Sell one contract of...
Forbes  Mar 3  Comment 
Looking at the universe of stocks we cover at Dividend Channel, in trading on Tuesday, shares of East West Bancorp, Inc (NASD: EWBC) were yielding above the 2% mark based on its quarterly dividend (annualized to $0.80), with the stock changing...




 
TOP CONTRIBUTORS

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.

Competition

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.

References

  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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