After challenges and uncertainty buffeted the U.S. banking industry over the past four days, Pasadena-headquartered East West Bank Chairman and Chief Executive Officer Dominic Ng issued a clear message for his customers: “Your money is safe with us.”
In a statement released late Sunday, Ng explained how East West Bank differs from other banks that have been hit by the recent market turmoil and regulatory actions.
Ng also highlighted East West bank’s diversified business model, conservative balance sheet, and strong capital and liquidity position.
Here are the remarks by Ng sent to Pasadena Now:
Dear Valued Partners,
In light of recent industry events, I want to assure you that your money is safe with East West Bank. Our business model is diversified, our balance sheet is managed conservatively, and our capital and liquidity are very strong. U.S. banking regulators announced on Sunday that all deposits, including uninsured deposits, of Silicon Valley Bank (SVB) and Signature Bank would be made whole. These actions signal that the U.S. banking system remains resilient and on a solid foundation, with the full support of the FDIC, the Federal banking regulators and the U.S. Treasury.
East West is a very different bank from both SVB and Signature, which had substantial concentrations in volatile venture capital and crypto deposits.
- Traditional Banking Model: With a diverse base of consumer, small business, and commercial customers, we have prioritized the diversification of our $64 billion balance sheet, including loans and deposits to many sectors to reduce any concentration risks. We have no exposure to crypto.
- Granular Deposit Base: East West’s 500,000+ deposit accounts with average size of under $100,000 are well spread by geography and diversified by industry and depositor type. Our deposits from the venture capital industry are approximately $1 billion, or less than 2% of our total deposit base.
- Robust Capital Levels: As of December 31, 2022, East West’s tangible common equity ratio was 8.7%, far exceeding the median of 6.3% for large banks or 6.7% for regional and smaller banks. Our capital is solely comprised of common stock equity, the highest quality capital. East West has continued to grow its capital levels through outstanding profitability, earnings growth, and prudent balance sheet management. East West Bank earned a record $1.1 billion of net income in 2022.
- Strong Liquidity: East West has a highly liquid balance sheet with ample access to additional liquidity through its available, unused borrowing facilities of $28 billion, equivalent to over 50% of our total deposits.
East West Bank has the business model, balance sheet, capital, profitability, and liquidity to continue to serve you. Even in the turbulence that the banking industry is going through, we are open for business to make loans, accept deposits and meet all your other banking needs. We are here to help you.
Thank you for choosing us as your trusted partner.
Chairman and CEO