EWBC

East West Bancorp, Inc.

Halal Rating :
Uncomfortable
Last Price $100
Market Cap $13.89b
1D Change

-1.83 %

1 Year Change

30.47 %

Next Earnings Date

Yet to be announced

Company Overview

East West Bancorp, Inc. operates through three segments: Consumer and Business Banking, Commercial Banking, and Other. As of January 27, 2022, it operated approximately 120 locations in the United States and China. The company also provides wealth management, treasury management, foreign exchange, interest rate and commodity risk hedging services.

Revenue Sources

Fail

As a banking institution, East West Bancorp's primary business model revolves around interest-based lending and banking services. This is evident from their financial statements, where interest income constitutes the majority of their total revenue across all quarters analyzed.

Reliance on Interest

Reporting Date Total Revenue Total Expense Interest Income Interest Expense Interest Income Ratio Interest Expense Ratio
Sept. 30, 2024 $657.48m $503.18m $572.72m $503.18m 87.11% 100.00%
June 30, 2024 $637.9m $481.19m $553.23m $481.19m 86.73% 100.00%
March 31, 2024 $644.13m $458.48m $565.14m $458.48m 87.74% 100.00%
Dec. 31, 2023 $654.74m $415.54m $574.83m $415.54m 87.80% 100.00%

Analysis of the last four quarters shows that interest income and expense are central to East West Bancorp's business model. Interest income represents over 85% of total revenue in each quarter, while interest expense constitutes a significant portion of total expenses. This clearly indicates that interest-based operations are material to the company's business model.

Operational Ethics

Pass

While East West Bank operates in both the United States and Greater China markets, there is no clear evidence of direct material associations with the Chinese Communist Party that would constitute a violation of this criterion.

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