East West BancorpSTU:EW2 -0.88%83 ROA % is 1.76% as of Mar. 2026, which is 11% above its 10-year median of 1.59. GuruFocus rates STU:EW2 with a GF Score™ of 83/100 and a GF Value™ of €90.06 (Modestly Overvalued). The stock has 6 warning signs investors should review. Among 1,529 Banks companies, East West Bancorp ranks better than 84.43% on this metric.
ROA % is calculated as Net Income divided by its average Total Assets over a certain period of time. East West Bancorp's annualizedNet Income for the quarter that ended in Mar. 2026 was €1,238 Mil.
East West Bancorp's average Total Assets over the quarter that ended in Mar. 2026 was €70,194 Mil. Therefore, East West Bancorp's annualized ROA % for the quarter that ended in Mar. 2026 was 1.76%.
The historical rank and industry rank for East West Bancorp's ROA % or its related term are showing as below:
STU:EW2'
s ROA % Range Over the Past 10 Years
Min: 1.18 Med: 1.59 Max: 1.81
Current: 1.75
During the past 13 years, East West Bancorp's highest ROA % was 1.81%. The lowest was 1.18%. And the median was 1.59%.
STU:EW2's ROA % is ranked better than 84.43% of 1529
companies
in the Banks industry
Industry Median: 0.98
vs STU:EW2: 1.75
East West Bancorp (STU:EW2) 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 Bancorp ROA % Related Terms
East West Bancorp ROA % Historical Data
* Premium members only.
The historical data trend for East West Bancorp'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 Bancorp'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 Bancorp ROA % vs Banks Industry
For the Banks industry and Financial Services sector, East West Bancorp's ROA % distribution charts can be found below:
* The bar in red indicates where East West Bancorp'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 Bancorp (STU:EW2) has a ROA % of 1.76% 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 Bancorp and its competitors. This is 11% above median its historical median of 1.59. Over the past decade, East West Bancorp's ROA % has ranged from 1.18 to 1.81. According to the industry distribution chart, East West Bancorp ranks #238 out of 1529 companies in the Banks industry, placing it in the top 15.6%.
Is East West Bancorp's ROA % too high?
East West Bancorp's current ROA % of 1.76% is 11% above median its 10-year median of 1.59. Over the past 10 years, this metric has ranged from a low of 1.18 to a high of 1.81. The Banks industry median ROA % is 0.98. East West Bancorp's value of 1.76% is 79.6% above this industry median. Based on the distribution chart, East West Bancorp ranks #238 out of 1529 companies in the Banks industry, which is in the top quartile — a strong position relative to peers. Overall, East West Bancorp has a GF Score™ of 83/100 and is considered Modestly Overvalued, reflecting its overall financial health beyond just this single metric.
How does East West Bancorp's ROA % compare to PNFP and WBS?
According to the Banks industry distribution chart, East West Bancorp ranks #238 out of 1529 companies for ROA %. This places East West Bancorp in the top 16% of its industry — outperforming the majority of peers. The industry median ROA % is 0.98. East West Bancorp's value of 1.76% is 79.6% above this benchmark. Historically, East West Bancorp's own ROA % has ranged from 1.18 to 1.81 over the past decade. While the company's 10-year median is 1.59 vs. the industry median of 0.98, East West Bancorp 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 Bancorp's current ROA % of 1.76% is 79.6% 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 Bancorp 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 Bancorp's current ROA % is 1.76%, which is 11% above median its own 10-year median of 1.59. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is East West Bancorp stock overvalued right now?
Based on GuruFocus' analysis, East West Bancorp (STU:EW2) is currently considered Modestly Overvalued. The stock's GF Value™ is €90.06, compared to a current price of €113.00 — trading 25.5% above its estimated fair value. The current ROA % is 1.76%, which is 11% above median its 10-year median of 1.59 and 79.6% above the Banks industry median of 0.98. East West Bancorp's overall GF Score™ is 83/100 with 6 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 Bancorp (STU:EW2), the current ROA % is 1.76% 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 Bancorp (STU:EW2) Overvalued in 2026?
Based on GuruFocus' analysis, East West Bancorp stock appears to be overvalued.
The current stock price of €113.00 is trading 25.5% above its estimated GF Value™ of €90.06.
GuruFocus considers East West Bancorp to be Modestly Overvalued.
Key valuation signals for STU:EW2:
ROA %: 1.76% (11% above median its 10-year median of 1.59)
GF Value™: €90.06 vs. price of €113.00 (25.5% above fair value)
Industry Position: 79.6% above the Banks median (#238 of 1529)
No single metric tells the full story. See the STU:EW2 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
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.
83GF Score
Get the complete analysis for STU:EW2
ROA % is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.
Quick Browse
Personalize
Premium Gurus 
Create New Portfolio
STU:EW2 has been successfully added to your 
