EWBC

East West Bancorp is one of the most profitable and efficient regional banks in the US, and the FY2025 results extend that record. Net income grew 13.7% to $1.33B and diluted EPS rose 14.3% to $9.52, driven by net interest income before provisions climbing 12% to $2.6B and net interest margin expanding 14bps to 3.41%. The MD&A reports a 35.69% efficiency ratio (a 96bp improvement) — exceptional for the industry — alongside ROA of 1.70% and ROAE of 16.01%. ROATCE was 16.99%. These are top-tier returns that the XBRL ROE of 14.9% understates because it uses period-end equity.

The balance sheet is healthy and growing: total assets reached $80.4B (+5.9%), total loans $56.9B and deposits $67.1B, while stockholders' equity grew 15.2% to $8.90B with retained earnings of $8.30B. The provision for credit losses actually declined to $160M from $174M, indicating stable asset quality. Book value per share grew to $64.68 and tangible book to $61.27, so the stock at $126.81 trades around 2x tangible book — a premium that is well-earned given the mid-teens returns on tangible equity. The bank also returns capital, with $116M of buybacks and a dividend raised to $2.40/share (a low 25% payout).