- East West posted strong fourth quarter results, including a double-digit beat on pre-provision income, and guided for better loan growth in 2021.
- This California bank has an established track record of outperformance in loan growth, loan quality, and expense management, and I expect these trends to continue.
- Management raised the dividend, but is foregoing buybacks in favor of funding growth; M&A is a possibility, but it will have to offer more than just scale or cost-cutting opportunities.
- Having significantly upgraded my earnings expectations on better credit evolution and a faster return to meaningful growth, East West shares still appear priced for a good return.
For further details see:
East West Bancorp Still A Great Mid-Cap Bank, But Priced More Like It