Pasadena-based East West Bancorp, Inc., the parent company of East West Bank, achieved a record $1.1 billion in 2022 full-year net income, according to financial reports for the full year and the fourth quarter of 2022.
For the fourth quarter, net income was $336.8 million, or $2.37 per diluted share, which grew 56 percent year-over-year. In 2021, fourth quarter income was $217.80 million, or $1.52 per share.
Total loans reached a record $48.2 billion as of December 31, 2022, up 16 percent year-over-year, and total deposits grew to a record $56 billion, up five percent from a year ago.
“2023 marks the 50th anniversary of East West. I am very proud of the milestones and growth that East West has achieved throughout its history,” Dominic Ng, East West Chairman and CEO, said. “We have distinguished ourselves with a long, well-established track record of strong financial performance.”
On Thursday, East West Bancorp reported fourth quarter EPS (earnings per share) of $2.37, $0.12 better than analyst estimates of $2.25. The company’s stock price closed at $68.90, down -3.82 percent in the last three months and down -16.60 percent in the last 12 months.
According to InvestingPro, East West Bancorp’s Financial Health Score is “great performance.”
East West Federal Savings Bank was founded in 1973 with a mission to serve the financial needs of Asian immigrants in Los Angeles, who were overlooked by mainstream banks. The company said as customers grew and prospered, so did East West. It now has over $60 billion in total assets and annual earnings over $1 billion, growing to be the largest independent bank headquartered in Southern California.
“Today, we provide a seamless banking experience for clients on both sides of the Pacific, executing on our vision to be the bridge between the East and the West,” Ng said. “We are positive about 2023 and expect to continue our track record of outstanding profitability, achieved through solid revenue growth and disciplined expense management, while maintaining healthy capital levels.”
East West Bancorp also announced a 20-percent increase in their common stock dividend, or eight cents per share. The new quarterly dividend is $0.48 per share, up from $0.40 per share. The new annual dividend is $1.92 per share, compared with $1.60 per share previously.
The common stock cash dividend of $0.48 per share is payable on Feb. 21 to stockholders of record as of Feb. 2023. On March 3, 2020, East West’s Board of Directors authorized the repurchase of up to $500 million of East West’s common stock, of which $254 million remains available. East West did not repurchase any shares during the fourth quarter of 2022.
East West Bancorp was to host a conference call Thursday morning, Jan. 26, to discuss fourth quarter and full year 2022 earnings with the public. A replay of the conference call will be available afterwards.
East West Bank operates over 120 locations in the United States and in Asia. In the U.S., the company’s markets include California, Georgia, Illinois, Massachusetts, Nevada, New York, Texas and Washington. In China, East West’s presence includes full-service branches in Hong Kong, Shanghai, Shantou and Shenzhen, and representative offices in Beijing, Chongqing, Guangzhou, Xiamen. East West also has a representative office in Singapore.
For more information, visit www.eastwestbank.com.