East West BankingPHS:EW -0.16%77 ROA % is 1.27% as of Mar. 2026, which is 13% below its 10-year median of 1.46. GuruFocus rates PHS:EW with a GF Score™ of 77/100 and a GF Value™ of ₱13.63 (Modestly Undervalued). The stock has 2 warning signs investors should review. Among 1,529 Banks companies, East West Banking ranks better than 82.01% on this metric.
ROA % is calculated as Net Income divided by its average Total Assets over a certain period of time. East West Banking's annualizedNet Income for the quarter that ended in Mar. 2026 was ₱7,422 Mil.
East West Banking's average Total Assets over the quarter that ended in Mar. 2026 was ₱583,027 Mil. Therefore, East West Banking's annualized ROA % for the quarter that ended in Mar. 2026 was 1.27%.
The historical rank and industry rank for East West Banking's ROA % or its related term are showing as below:
PHS:EW'
s ROA % Range Over the Past 10 Years
Min: 1.11 Med: 1.46 Max: 1.67
Current: 1.66
During the past 13 years, East West Banking's highest ROA % was 1.67%. The lowest was 1.11%. And the median was 1.46%.
PHS:EW's ROA % is ranked better than 82.01% of 1529
companies
in the Banks industry
Industry Median: 0.98
vs PHS:EW: 1.66
East West Banking (PHS:EW) ROA % Explanation
ROA % measures the rate of return on the total assets (shareholder equity plus liabilities). It measures a firm's efficiency at generating profits from shareholders' equity plus its liabilities. ROA % shows how well a company uses what it has to generate earnings. ROA %s can vary drastically across industries. Therefore, ROA % should not be used to compare companies in different industries. For retailers, a ROA % of higher than 5% is expected. For example, Wal-Mart (WMT) has a ROA % of about 8% as of 2012. For banks, ROA % is close to their interest spread. A banks ROA % is typically well under 2%.
Similar to ROE, ROA % is affected by profit margins and asset turnover. This can be seen from the Du Pont Formula:
Note:
The Net Income data used here is four times the quarterly (Mar. 2026) net income data. The Revenue data used here is four times the quarterly (Mar. 2026) revenue data.
* 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.
Be Aware
Like ROE, ROA % is calculated with only 12 months data. Fluctuations in the company's earnings or business cycles can affect the ratio drastically. It is important to look at the ratio from a long term perspective. ROA % can be affected by events such as stock buyback or issuance, and by goodwill, a company's tax rate and its interest payment. ROA % may not reflect the true earning power of the assets. A more accurate measurement is ROC % (ROC).
Many analysts argue the higher return the better. Buffett states that really high ROA % may indicate vulnerability in the durability of the competitive advantage.
E.g. Raising $43b to take on KO is impossible, but $1.7b to take on Moody's is. Although Moody's ROA % and underlying economics is far superior to Coca Cola, the durability is far weaker because of lower entry cost.
East West Banking ROA % Related Terms
East West Banking ROA % Historical Data
* Premium members only.
The historical data trend for East West Banking's ROA % 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.
For the Banks - Regional subindustry, East West Banking's ROA %, along with its competitors' market caps and ROA % 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 Banking ROA % vs Banks Industry
For the Banks industry and Financial Services sector, East West Banking's ROA % distribution charts can be found below:
* The bar in red indicates where East West Banking's ROA % falls into.
* 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 ROA %, the net income of the last fiscal year and the average total assets over the fiscal year are used. In calculating the quarterly data,
the Net Income data used here is four times the quarterly (Mar. 2026) net income data.
ROA % is displayed in the 30-year financial page.
East West Banking (PHS:EW) has a ROA % of 1.27% as of Mar. 2026. Return on assets is the ratio of current-period net income to average two-period total assets. View historical data on East West Banking and its competitors. This is 13% below median its historical median of 1.46. Over the past decade, East West Banking's ROA % has ranged from 1.11 to 1.67. According to the industry distribution chart, East West Banking ranks #275 out of 1529 companies in the Banks industry, placing it in the top 18%.
Is East West Banking's ROA % too high?
East West Banking's current ROA % of 1.27% is 13% below median its 10-year median of 1.46. Over the past 10 years, this metric has ranged from a low of 1.11 to a high of 1.67. The Banks industry median ROA % is 0.98. East West Banking's value of 1.27% is 29.6% above this industry median. Based on the distribution chart, East West Banking ranks #275 out of 1529 companies in the Banks industry, which is in the top quartile — a strong position relative to peers. Overall, East West Banking has a GF Score™ of 77/100 and is considered Modestly Undervalued, reflecting its overall financial health beyond just this single metric.
How does East West Banking's ROA % compare to competitors?
According to the Banks industry distribution chart, East West Banking ranks #275 out of 1529 companies for ROA %. This places East West Banking in the top 18% of its industry — outperforming the majority of peers. The industry median ROA % is 0.98. East West Banking's value of 1.27% is 29.6% above this benchmark. Historically, East West Banking's own ROA % has ranged from 1.11 to 1.67 over the past decade. While the company's 10-year median is 1.46 vs. the industry median of 0.98, East West Banking has consistently been above the industry average. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good ROA % for a Banks company?
The median ROA % among Banks companies is 0.98, based on 1,529 companies in the industry. Companies in the top quartile (top 25%) have a ROA % significantly above this median, while those in the bottom quartile fall well below. However, ROA % should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. East West Banking's current ROA % of 1.27% is 29.6% above the industry median. Use the industry distribution chart on this page to see where any company falls relative to its peers.
What does a high ROA % mean?
A high ROA % can signal that a stock is expensive relative to its fundamentals. Return on assets is the ratio of current-period net income to average two-period total assets. View historical data on East West Banking and its competitors. For the Banks industry, the median ROA % is 0.98 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. East West Banking's current ROA % is 1.27%, which is 13% below median its own 10-year median of 1.46. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is East West Banking stock overvalued right now?
Based on GuruFocus' analysis, East West Banking (PHS:EW) is currently considered Modestly Undervalued. The stock's GF Value™ is ₱13.63, compared to a current price of ₱12.26 — trading 10.1% below its estimated fair value. The current ROA % is 1.27%, which is 13% below median its 10-year median of 1.46 and 29.6% above the Banks industry median of 0.98. East West Banking's overall GF Score™ is 77/100 with 2 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is ROA % calculated?
ROA % is calculated from a company's financial statements. For East West Banking (PHS:EW), the current ROA % is 1.27% as of Mar. 2026. GuruFocus calculates this using data sourced from SEC filings and annual reports. See the calculation section and 30-year financial data on this page for the full breakdown.
Is East West Banking (PHS:EW) Overvalued in 2026?
Based on GuruFocus' analysis, East West Banking stock appears to be undervalued.
The current stock price of ₱12.26 is trading 10.1% below its estimated GF Value™ of ₱13.63.
GuruFocus considers East West Banking to be Modestly Undervalued.
Key valuation signals for PHS:EW:
ROA %: 1.27% (13% below median its 10-year median of 1.46)
GF Value™: ₱13.63 vs. price of ₱12.26 (10.1% below fair value)
Industry Position: 29.6% above the Banks median (#275 of 1529)
No single metric tells the full story. See the PHS:EW stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
East West Banking Corporation is a commercial bank providing financial services in the Philippines. The bank generates all revenue domestically. The bank operates through four segments: the Retail banking segment offers traditional branch banking products and services such as deposits, back-to-back/emerging market loans, and other over-the-counter (OTC) transactions, the Corporate banking segment handles lending and trade financing for both large corporations and middle-market clients, the Consumer banking segment caters to loans for individuals, and Treasury and Trust segment consists of treasury and trust operations of the Group. The company derives a majority of its revenue from the Consumer banking segment.
77GF Score
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