East West Bancorp, Inc. 10-Q filed Aug 7, 2026

Modified · Economic Developments

Evolving geopolitical uncertainties, including armed conflict involving Iran or heightened tensions recent developments in other regions, as well as changesthe Middle East and ongoing shifts in global trade policies and tariffs, continue to raise concerns aboutcreate uncertainty regarding inflation, oilprices and energy price volatility, and potential supply chain disruptions. At its March and April 2026 meetingsmost recent meeting, the Federal Reserve maintained the target rate of the federal funds target rate, reflecting a cautious stance as it manages continues to balance economic uncertainty, persistent inflationary pressures and a gradually cooling continued strength in the labor market amid an increasingly uncertain global environment. These conditions may contribute to market volatility and influence the pace of inflation and economic growth. These factors may create volatility that could affect both The U.S. economy continues to expand at a moderate pace, with Federal Reserve projections indicating GDP growth of 2% and inflation expected to gradually moderate. Commercial and overall economic growthconsumer loan demand remains solid, supported by healthy consumer spending and business investment. The Company monitors continues to monitor changes in the economic , regulatory and industry conditionsbanking environment and their potential impacts on the Company’s its business, customers, employees, communities and marketscustomers.