East West Bancorp, Inc. (EWBC) Business Profile

What it does

East West Bancorp is a bank holding company whose principal asset is East West Bank. The company was incorporated in 1998, and the bank’s headquarters and main administrative offices are in California. Dominic Ng is chairman and chief executive officer of both the company and the bank.

The bank serves individuals and businesses with checking and savings accounts, loans and other financial services. Its lending ranges from residential and commercial real estate loans to business credit lines, equipment financing and trade finance. It also offers foreign exchange, treasury management and wealth management services. Treasury management helps business customers manage payments and other banking activity.

A focus of the business is banking for customers with ties to both the U.S. and Asia. East West helps U.S. businesses expand in Asia and assists Asian companies pursuing opportunities in the U.S. Its China subsidiary has a commercial banking license that permits it to make loans and accept deposits there. The bank also serves the Asian American community.

Customers can use branches as well as mobile and online banking. East West organizes its operations into consumer and business banking, commercial banking, and a treasury and other segment that includes centralized functions. As of December 31, 2025, the company had $80.4 billion in total assets, $56.1 billion in total net loans and $67.1 billion in deposits.

How it makes money

East West’s primary revenue source is net interest income: the interest it earns on loans and other interest-earning assets, less the interest it pays on deposits and other interest-bearing funding. Deposits fund its lending, while the bank also holds debt securities and uses other sources of financing. Interest rates, the mix of loans and deposits, and the timing of rate changes affect how much net interest income it earns.

The Consumer and Business Banking segment provides products through domestic branches and digital platforms. Commercial Banking primarily generates commercial loans and deposits. Treasury and Other includes corporate treasury, tax credit investments and centrally managed departments.

The bank earns noninterest income from services including deposit accounts, lending and loan servicing, foreign exchange and wealth management. Some business account fees reflect customer activity, while lending fees include trade finance and credit enhancement fees. Wealth management fees reflect demand for products such as fixed-rate corporate bonds and fixed annuities. These activities can generate fees as customers use the bank’s services, although the amount varies with activity and demand.

In 2025, net interest income was $2.6 billion and noninterest income was $379 million; in the second quarter of 2026, net interest income was $685 million and fee income was $96 million.

Noninterest income comprised 13% of total revenue in 2025. Average noninterest-bearing deposits made up 24% of average deposits that year. East West has continued to seek checking deposits and shift away from certificates of deposit, wholesale and public funds deposits.

Customers and how it sells

East West serves consumers, small businesses and commercial customers. Its services include personal and business deposit accounts, residential mortgages, commercial loans, trade finance and wealth management. It also finances business transactions between the U.S. and Asia and offers customers service in English, Spanish and various Asian languages and dialects.

As of December 31, 2025, the company operated in over 110 locations in the U.S. and Asia. Its 96 U.S. branches were in California, Texas, New York, Washington, Georgia, Massachusetts and Nevada. In Asia, the bank had branches in China and Hong Kong and representative offices in China and Singapore.

The overseas offices help the bank serve existing clients and develop new relationships, including through letters of credit and trade financing. Its China subsidiary’s banking license also allows it to accept deposits and make loans in China. Customers can use mobile and online banking alongside the branch network.

In the second quarter of 2026, East West had more than 700,000 customer accounts. It has promoted small business checking accounts through its retail bankers while continuing to serve individual customers.

Suppliers and costs

East West’s funding costs include interest paid on deposits, short-term borrowings, Federal Home Loan Bank advances, repurchase agreements and long-term debt. Deposits are its primary funding source. The average cost of deposits was 2.46% in 2025, and the average cost of funds was 2.56% in 2025.

East West also pays for employees, technology, facilities and other operating needs. It had 3,350 full-time equivalent employees as of December 31, 2025. Employee compensation can include salaries and performance-based cash or stock incentives, and the bank provides benefits. It has invested in digital banking and commercial payment and treasury management technology.

Total operating non-interest expenses were $268 million for the second quarter of 2026. East West expects full-year 2026 expense growth of 8%-9% versus last year. The bank also pays deposit insurance assessments, and compliance obligations apply to its U.S. and foreign operations.

Competitive position

East West competes with domestic and foreign lending institutions, other financial services providers and technology-driven products and services. Competition varies by customer type and location and includes customer service, convenience, product range, fees, interest rates and lending limits. No competing company is identified by name in the available business descriptions.

The bank focuses on the Asian American community and on customers doing business across the U.S. and Asia. Its China subsidiary’s commercial banking license permits branches, lending and deposit-taking in China. Its overseas offices support trade finance and help it develop business relationships, while its U.S. branches and digital platforms serve domestic customers.

Our reading: The cross-border network and China license provide a meaningful specialization because they let East West serve customers on both sides of the relationship. Their protection is limited by competition from domestic and foreign lenders and other financial providers.

The bank offers services in English, Spanish and various Asian languages and dialects. East West believes its regional presence, business ties and international banking products give it a competitive advantage. Our reading: Language capabilities and community relationships can help the bank retain customers, but competitors can still challenge it on service, fees and deposit rates.

East West has said that some smaller and larger banks offer deposit rates above its own. It has sought to retain certificate-of-deposit customers while managing the rates it pays.

Growth opportunities

East West’s growth priorities include expanding its cross-border customer base, helping U.S. businesses expand in Asia and assisting Asian businesses pursuing U.S. opportunities. Its overseas offices support both existing clients and new relationships. The bank has also invested in mobile and online banking, commercial payments and treasury management.

In the second quarter of 2026, end-of-period deposits grew by 8% year-over-year and end-of-period loans were up 7% year-over-year. Residential mortgages and commercial and industrial lending contributed to loan growth. East West has also emphasized small business checking accounts and noninterest-bearing deposits, while shifting away from certificates of deposit and other funding categories.

The company sees further growth opportunities in wealth management and has been building that business. It also aims over time to diversify its loan portfolio across residential mortgages, commercial and industrial loans, and commercial real estate. East West does not intend to shrink its commercial real estate portfolios; it plans to grow its portfolios in a balanced manner.

East West expects 2026 full-year loan growth of 6%-8% by year end and full-year net interest income growth of 7%-9%. The company’s guidance assumes flat Federal funds rates through the end of the year. It has identified organic growth as its primary driver, while recognizing potential opportunities for acquisitions.

Structural risks

• Credit and real estate: A significant portion of East West’s loan portfolio is secured by real estate and is exposed to a downturn in real estate markets. Borrowers may fail to repay, collateral values may decline, and the allowance for credit losses may not cover actual losses.
• Economic and political conditions: Unfavorable domestic or international economic, market, political or industry conditions may affect the bank’s business. Such conditions could lead to credit losses, lower deposit balances or reduced demand for loans and other services.
• Funding and liquidity: Deposit withdrawals or difficulty obtaining funding at a reasonable cost could affect the company’s ability to meet obligations. Financial market and economic conditions can also affect its access to external financing.
• Technology and security: A cyberattack, security breach or failure of East West’s systems or those of third-party vendors could disrupt operations and affect its financial condition, liquidity and reputation.
• Regulation and capital: East West is subject to capital requirements and regulation in its operating jurisdictions. Changes in regulation may increase costs, require changes in business practices or limit investments and revenue generation; failure to meet capital standards could adversely affect its financial condition.

Bottom line

Our reading

East West is a deposit-funded bank with a cross-border U.S.–Asia specialization and a business built primarily on net interest income. Its China license, overseas offices and customer relationships support that specialization, while loan quality, deposit costs and funding availability remain central exposures. Its efforts to grow checking deposits, diversify lending and expand fee businesses operate alongside competition from other lenders and financial services providers.