- Worries about credit risk/exposure have also impacted East West, as the company is exposed to oil/gas, movie production, retail and hotel CRE, and China-U.S. trade relations.
- Weak spreads are a challenge for all banks, but East West does at least have a low-cost deposit franchise and a modest skew toward higher-yielding smaller business lending.
- A long run of double-digit ROTCE and above-average growth and margin prospects post-COVID-19 argues for more than a tiny premium to tangible book.
For further details see:
East West Bancorp Not Getting Much Appreciation For Above-Average Margins And Growth Potential