East West Bancorp Inc (EWBC.O): 2Q26 Model Update – Modest NIM Headwind, Solid NII Outlook

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East West Bancorp Inc (EWBC.O): 2Q26 Model Update – Modest NIM Headwind, Solid NII Outlook

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24 Jun 2026 16:00:00 ET │ 12 pages

East West Bancorp Inc (EWBC.O)

2Q26 Model Update – Modest NIM Headwind, Solid NII Outlook

CITI’S TAKE

Commentary this quarter seemed to suggest healthy loan growth,

Buy however, higher funding costs and a day count adj likely impacts 2Q NIM a

Price (23 Jun 26 16:00) US$130.89 little (LQ). Our estimates changes mainly reflect lower NIM levels as we

update for forward curve and loan growth projections were also tweaked Target price US$154.00↑

modestly in 2027. Other key metrics including fee income, operating and from US$145.00

provision expenses remain largely unchanged. Our target price goes up to Expected share price return 17.7%

$154 from $145 mainly on lower beta than previously used in our residual Expected dividend yield 1.8%

income valuation model. Expected total return 19.5%

Market Cap US$17,931M

Estimate Changes — We updated our model to account for a higher Fed funds levels.

Our 2026E EPS moved down to $10.53 from $10.82 (vs. FactSet consensus of

$10.70). 2027E EPS moved down to $11.54 from $11.75 (vs. FactSet consensus of

$11.34). The estimates change mainly reflect lower NIM levels as we update for Benjamin GerlingerAC

forward curve and loan growth projections were also revised modestly down. Other +1-212-816-3538

key metrics including fee income, operating and provision expenses remain largely benjamin.gerlinger@citi.com

unchanged. Our target price goes up to $154 from $145 mainly on lower beta than

previously used in our residual income valuation model. Kaili Wang, CFA

+1-716-730-7408

kaili.wang@citi.com

Mikhail Mrotchek

+1-212-816-2345

misha.mrotchek@citi.com

EPS (US$) Q1 Q2 Q3 Q4 FY FC Cons VA Cons