Q3 2024 East West Bancorp Inc Earnings Call Transcript
Key Points
- East West Bancorp Inc (EWBC) reported a strong third-quarter net income of $299 million, or $2.14 per diluted share.
- The company achieved a 3% quarter-over-quarter growth in average deposits, reaching a record $61.7 billion.
- Net interest income increased by $20 million, or 4%, from the second quarter, driven by higher income from loans.
- The company reported a record fee income level of $81 million, up 6% quarter over quarter, driven by strong syndications activity and commercial cash management solutions.
- East West Bancorp Inc (EWBC) improved its credit quality metrics, with nonperforming assets falling to 26 basis points of total assets.
- The net interest margin declined by three basis points to 3.24% from the prior quarter, partially due to Fed rate cuts.
- Provision for credit losses increased by $5 million from the second quarter to $42 million.
- The special mention loans ratio rose slightly to 0.88%, indicating some increase in potential credit risk.
- Despite strong deposit growth, the company experienced slower loan growth than desired, with only a 1% increase in average loans quarter over quarter.
- East West Bancorp Inc (EWBC) faces challenges in maintaining its net interest income levels due to potential further rate cuts by the Fed.
Good afternoon and welcome to the East West Bancorp third quarter 2024 earnings conference call.
(Operator Instructions)
Please note this event is being recorded.
I would now like to turn the conference over to Adrienne Atkinson, Director of Investor Relations. Please go ahead.
Thank you, operator. Good afternoon and thank you everyone for joining us to review East West Bancorp's third-quarter 2024 financial results.
With me are Dominic Ng, Chairman and Chief Executive Officer; Christopher Del Moral-Niles, Chief Financial Officer; and Irene Oh, Chief Risk Officer. This call is being recorded and will be available for replay on our Investor Relations website.
The slide deck reference during this call is available on our investor relations site. Management may make projections or other forward-looking statements which may differ materially from the actual results due to a number of risks and uncertainties. Management may discuss non-GAAP
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