BMO Capital analyst Lana Chan downgraded East West Bancorp to Market Perform, lowered her price target to $44 from $51, and also reduced her FY19 EPS view by 30c to $4.60. The analyst cites net interest margin pressure from her expected 4 total Fed rate hikes along with "slightly higher" net charge-offs given the rise in questionable loans over the past year. Chan adds that the escalation in trade tensions between U.S. and China and political uncertainty in Hong Kong could reduce overall lending growth for East West Bancorp.

Truist raised the firm's price target on East West Bancorp to $86 from $90 and keeps a Buy rating on the shares as part of a broader Q1 earnings recap research note on Regional and Community Banks. The firm now sees Fed funds rate forecast shifting to zero cuts in 2024 and four 25bps cuts in 2025, the analyst tells investors in a research note. Truist adds that its revisions for the bank forecast a trough in net interest income in Q2 of 2024, followed by growth through 2025 as balance sheet growth, loan yield improvement from higher origination yields, and more favorable swaps carry offsetting Fed rate cuts in 2025.

Reports Q1 revenue $644M, consensus $581.1M. "This quarter we grew deposits by $2.5 billion to a new record level and optimized funding to support prudent asset growth," said Dominic Ng, Chairman and Chief Executive Officer. "East West grew adjusted diluted earnings per share 3% and tangible book value per share 2% quarter-over-quarter. With continued confidence in our earnings generation, stable credit quality, and capital strength, we were pleased to repurchase 1.2 million shares of common stock," continued Ng. "Through the strength of our diversified business model, conservatively managed balance sheet, and industry-leading profitability, East West remains well-positioned to outperform the industry in 2024 and beyond." Book value per share was $50.48 as of March 31, 2024, up 2% quarter-over-quarter and 13% year-over-year. As of March 31, 2024, tangible book value per share was $47.09, up 2% quarter-over-quarter and 14% year-over-year.