- East West didn't post a blowout second quarter, but the bank did see a solid balance between core pre-provision earnings outperformance and ongoing reserve release benefits.
- Loan activity appears to be picking up; East West saw better-than-average loan growth this quarter and the commercial loan pipeline is improving, leading management to raise its growth target.
- East West's affinity-based banking relationships have driven above-average growth and should continue to do so, with multiple opportunities to drive above-average lending growth with better-than-average credit quality.
- High single-digit core earnings growth can support a long-term double-digit return from today's level, and shorter-term metrics likewise point to an $80-plus fair value.
For further details see:
East West Bancorp Undervalued On Above-Average Loan Growth And Core Earnings Growth Potential