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EWBC (East West Bancorp) Return-on-Tangible-Equity : 15.77% (As of Mar. 2025)


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What is East West Bancorp Return-on-Tangible-Equity?

Return-on-Tangible-Equity is calculated as Net Income divided by its average total shareholder tangible equity. Total shareholder tangible equity equals to Total Stockholders Equity minus Intangible Assets. East West Bancorp's annualized net income for the quarter that ended in Mar. 2025 was $1,161 Mil. East West Bancorp's average shareholder tangible equity for the quarter that ended in Mar. 2025 was $7,361 Mil. Therefore, East West Bancorp's annualized Return-on-Tangible-Equity for the quarter that ended in Mar. 2025 was 15.77%.

The historical rank and industry rank for East West Bancorp's Return-on-Tangible-Equity or its related term are showing as below:

EWBC' s Return-on-Tangible-Equity Range Over the Past 10 Years
Min: 12.14   Med: 16.47   Max: 20.72
Current: 16.62

During the past 13 years, East West Bancorp's highest Return-on-Tangible-Equity was 20.72%. The lowest was 12.14%. And the median was 16.47%.

EWBC's Return-on-Tangible-Equity is ranked better than
81.08% of 1580 companies
in the Banks industry
Industry Median: 10.34 vs EWBC: 16.62

East West Bancorp Return-on-Tangible-Equity Historical Data

The historical data trend for East West Bancorp's Return-on-Tangible-Equity can be seen below:

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.

* Premium members only.

East West Bancorp Return-on-Tangible-Equity Chart

East West Bancorp Annual Data
Trend Dec15 Dec16 Dec17 Dec18 Dec19 Dec20 Dec21 Dec22 Dec23 Dec24
Return-on-Tangible-Equity
Get a 7-Day Free Trial Premium Member Only Premium Member Only 12.14 17.16 20.72 19.35 16.96

East West Bancorp Quarterly Data
Jun20 Sep20 Dec20 Mar21 Jun21 Sep21 Dec21 Mar22 Jun22 Sep22 Dec22 Mar23 Jun23 Sep23 Dec23 Mar24 Jun24 Sep24 Dec24 Mar25
Return-on-Tangible-Equity Get a 7-Day Free Trial Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only 17.49 17.33 17.16 16.22 15.77

Competitive Comparison of East West Bancorp's Return-on-Tangible-Equity

For the Banks - Regional subindustry, East West Bancorp's Return-on-Tangible-Equity, along with its competitors' market caps and Return-on-Tangible-Equity data, can be viewed below:

* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.


East West Bancorp's Return-on-Tangible-Equity Distribution in the Banks Industry

For the Banks industry and Financial Services sector, East West Bancorp's Return-on-Tangible-Equity distribution charts can be found below:

* The bar in red indicates where East West Bancorp's Return-on-Tangible-Equity falls into.


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East West Bancorp Return-on-Tangible-Equity Calculation

East West Bancorp's annualized Return-on-Tangible-Equity for the fiscal year that ended in Dec. 2024 is calculated as

Return-on-Tangible-Equity=Net Income/( (Total Tangible Equity+Total Tangible Equity)/ count )
(A: Dec. 2024 )  (A: Dec. 2023 )(A: Dec. 2024 )
=Net Income/( (Total Stockholders Equity - Intangible Assets+Total Stockholders Equity - Intangible Assets )/ count )
(A: Dec. 2024 )  (A: Dec. 2023 )(A: Dec. 2024 )
=1165.586/( (6485.137+7257.357 )/ 2 )
=1165.586/6871.247
=16.96 %

East West Bancorp's annualized Return-on-Tangible-Equity for the quarter that ended in Mar. 2025 is calculated as

Return-on-Tangible-Equity=Net Income/( (Total Tangible Equity+Total Tangible Equity)/ count )
(Q: Mar. 2025 )  (Q: Dec. 2024 )(Q: Mar. 2025 )
=Net Income/( (Total Stockholders Equity - Intangible Assets+Total Stockholders Equity - Intangible Assets)/ count )
(Q: Mar. 2025 )  (Q: Dec. 2024 )(Q: Mar. 2025 )
=1161.08/( (7257.357+7463.768)/ 2 )
=1161.08/7360.5625
=15.77 %

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.

In the calculation of annual Return-on-Tangible-Equity, the net income of the last fiscal year and the average total shareholder tangible equity over the fiscal year are used. In calculating the quarterly data, the net income data used here is four times the quarterly (Mar. 2025) net income data. Return-on-Tangible-Equity is displayed in the 10-year financial page.


East West Bancorp  (NAS:EWBC) Return-on-Tangible-Equity Explanation

Return-on-Tangible-Equity measures the rate of return on the ownership interest (shareholder's tangible equity) of the common stock owners. It measures a firm's efficiency at generating profits from every unit of shareholders' tangible equity (shareholders equity minus intangibles). Return-on-Tangible-Equity shows how well a company uses investment funds to generate earnings growth. Return-on-Tangible-Equitys between 15% and 20% are considered desirable.


Be Aware

Net Income is used.

Because a company can increase its Return-on-Tangible-Equity by having more financial leverage, it is important to watch the leverage ratio when investing in high Return-on-Tangible-Equity companies. Like Return-on-Tangible-Asset, Return-on-Tangible-Equity is calculated with only 12 months data. Fluctuations in company's earnings or business cycles can affect the ratio drastically. It is important to look at the ratio from a long term perspective.

Asset light businesses require very few assets to generate very high earnings. Their Return-on-Tangible-Equitys can be extremely high.


East West Bancorp Return-on-Tangible-Equity Related Terms

Thank you for viewing the detailed overview of East West Bancorp's Return-on-Tangible-Equity provided by GuruFocus.com. Please click on the following links to see related term pages.


East West Bancorp Business Description

Traded in Other Exchanges
Address
135 North Los Robles Avenue, 7th Floor, Pasadena, CA, USA, 91101
East West Bancorp Inc operates in U.S. and Asia. The Bank provides range of personal and commercial banking services to individuals and businesses. In addition to offering traditional deposit products that include personal and business checking and savings accounts, money market, and time deposits, the Bank also offers foreign exchange, treasury management and wealth management services. The Bank has three operating segments, (1) Consumer and Business Banking, (2) Commercial Banking and (3) Treasury and Other. The company generates the majority of its revenue from the Commercial banking segment.
Executives
Dominic Ng director, officer: Chief Executive Officer
Jack C Liu director 415 HUNTINGTON DRIVE, SAN MARINO CA 91108
Douglas Paul Krause officer: Executive Vice President 415 HUNTINGTON DRIVE, SAN MARINO CA 91108
Lisa L. Kim officer: Executive Vice President EAST WEST BANCORP INC, 135 N. LOS ROBLES AVE., 7TH FL, PASADENA CA 91101
Lester Sussman director C/O CU BANCORP, 15821 VENTURA BOULEVARD, SUITE 100, ENCINO CA 91436
Rudolph Estrada director 415 HUNTINGTON DR., SAN MARINO CA 91108
Molly Campbell director 135 N. LOS ROBLES AVE 7TH FLR, PASADENA CA 91101
Irene H Oh officer: Chief Financial Officer 135 N LOS ROBLES AVE. 7TH FL, PASADENA CA 91101
Gary Teo officer: Senior Vice President 135 N. LOS ROBLES AVE 7TH FLR, PASADENA CA 91101
Moral-niles Christopher Del officer: Chief Financial Officer ASSOCIATED BANC-CORP, 433 MAIN STREET, GREEN BAY WI 54301
Mark R Hutchins director 2454 MCMULLEN BOOTH RD, BUILDING C, CLEARWATER FL 33759
Manuel Pham Alvarez director 135 N. LOS ROBLES AVE., PASADENA CA 91101
Archana Deskus director 2929 ALLEN PARKWAY SUITE 2100, HOUSTON TX 77019
Sabrina Kay director 30930 RUSSELL RANCH ROAD, SUITE 300, WESTLAKE VILLAGE CA 91362
Parker Shi officer: Chief Operating Officer 135 N. LOS ROBLES AVE., PASADENA CA 91101