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EWBC (East West Bancorp) ROE % : 14.84% (As of Mar. 2025)


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What is East West Bancorp ROE %?

ROE % is calculated as Net Income divided by its average Total Stockholders Equity over a certain period of time. East West Bancorp's annualized net income for the quarter that ended in Mar. 2025 was $1,161 Mil. East West Bancorp's average Total Stockholders Equity over the quarter that ended in Mar. 2025 was $7,826 Mil. Therefore, East West Bancorp's annualized ROE % for the quarter that ended in Mar. 2025 was 14.84%.

The historical rank and industry rank for East West Bancorp's ROE % or its related term are showing as below:

EWBC' s ROE % Range Over the Past 10 Years
Min: 11.04   Med: 15   Max: 19.08
Current: 15.59

During the past 13 years, East West Bancorp's highest ROE % was 19.08%. The lowest was 11.04%. And the median was 15.00%.

EWBC's ROE % is ranked better than
81.81% of 1589 companies
in the Banks industry
Industry Median: 9.3 vs EWBC: 15.59

East West Bancorp ROE % Historical Data

The historical data trend for East West Bancorp's ROE % 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 ROE % Chart

East West Bancorp Annual Data
Trend Dec15 Dec16 Dec17 Dec18 Dec19 Dec20 Dec21 Dec22 Dec23 Dec24
ROE %
Get a 7-Day Free Trial Premium Member Only Premium Member Only 11.04 15.72 19.08 17.95 15.89

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
ROE % 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 16.32 16.19 16.08 15.24 14.84

Competitive Comparison of East West Bancorp's ROE %

For the Banks - Regional subindustry, East West Bancorp's ROE %, along with its competitors' market caps and ROE % 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 ROE % Distribution in the Banks Industry

For the Banks industry and Financial Services sector, East West Bancorp's ROE % distribution charts can be found below:

* The bar in red indicates where East West Bancorp's ROE % falls into.


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East West Bancorp ROE % Calculation

East West Bancorp's annualized ROE % for the fiscal year that ended in Dec. 2024 is calculated as

ROE %=Net Income (A: Dec. 2024 )/( (Total Stockholders Equity (A: Dec. 2023 )+Total Stockholders Equity (A: Dec. 2024 ))/ count )
=1165.586/( (6950.834+7723.054)/ 2 )
=1165.586/7336.944
=15.89 %

East West Bancorp's annualized ROE % for the quarter that ended in Mar. 2025 is calculated as

ROE %=Net Income (Q: Mar. 2025 )/( (Total Stockholders Equity (Q: Dec. 2024 )+Total Stockholders Equity (Q: Mar. 2025 ))/ count )
=1161.08/( (7723.054+7929.465)/ 2 )
=1161.08/7826.2595
=14.84 %

* 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 ROE %, the net income of the last fiscal year and the average total shareholder 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. ROE % is displayed in the 30-year financial page.


East West Bancorp  (NAS:EWBC) ROE % Explanation

ROE % measures the rate of return on the ownership interest (shareholder's equity) of the common stock owners. It measures a firm's efficiency at generating profits from every unit of shareholders' equity (also known as net assets or assets minus liabilities). ROE % shows how well a company uses investment funds to generate earnings growth. ROE %s between 15% and 20% are considered desirable.

The factors that affect a company's ROE % can be illustrated with the three-step DuPont Analysis:

ROE %(Q: Mar. 2025 )
=Net Income/Total Stockholders Equity
=1161.08/7826.2595
=(Net Income / Revenue )*(Revenue / Total Assets)*(Total Assets / Total Stockholders Equity)
=(1161.08 / 2733.044)*(2733.044 / 76070.744)*(76070.744 / 7826.2595)
=Net Margin %*Asset Turnover*Equity Multiplier
=42.48 %*0.0359*9.7199
=ROA %*Equity Multiplier
=1.53 %*9.7199
=14.84 %

With this breakdown, it is clear that if a company grows its Net Profit Margin, its Asset Turnover, or its Leverage, it can grow its ROE %.

The factors that affect a company's ROE % can also be illustrated with the five-step DuPont Analysis:

ROE %(Q: Mar. 2025 )
=Net Income/Total Stockholders Equity
=1161.08/7826.2595
=(Net Income / Pre-Tax Income) * (Pre-Tax Income / Revenue) * (Revenue / Total Assets) * (Total Assets / Total Stockholders Equity)
= (1161.08 / 1564.62) * (1564.62 / 2733.044) * (2733.044 / 76070.744) * (76070.744 / 7826.2595)
= Tax Burden * Pretax Margin % * Asset Turnover * Equity Multiplier
= 0.7421 * 57.25 % * 0.0359 * 9.7199
=14.84 %

Note: The net income data used here is four times the quarterly (Mar. 2025) net income data. The Revenue data used here is four times the quarterly (Mar. 2025) revenue data. The same rule applies to Pre-Tax Income and Operating Income.
* In the five-step DuPont Analysis, Operating Income is only available for non-financial companies. Thus, for Insurance companies, we use EBIT as a substitution of Operating Income. For Banks, both Operating Income and EBIT is unavailable. Thus we combined Interest Burden and Operating Margin % into Pretax Margin %, and the DuPont Analysis is divided into four components instead.

* 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

Net Income is used.

Because a company can increase its ROE % by having more financial leverage, it is important to watch the equity multiplier when investing in high ROE % companies. Like ROA %, ROE % 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 ROE %s can be extremely high.


East West Bancorp ROE % Related Terms

Thank you for viewing the detailed overview of East West Bancorp's ROE % 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
Lisa L. Kim officer: Executive Vice President EAST WEST BANCORP INC, 135 N. LOS ROBLES AVE., 7TH FL, PASADENA CA 91101
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
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