East West Bancorp, Inc. (EWBC) has reported a 20.62 percent rise in profit for the quarter ended Dec. 31, 2016. The company has earned $110.73 million, or $0.76 a share in the quarter, compared with $91.80 million, or $0.63 a share for the same period last year.
Revenue during the quarter grew 6 percent to $311.04 million from $293.42 million in the previous year period. Net interest income for the quarter rose 10.43 percent over the prior year period to $272.70 million. Non-interest income for the quarter rose 9.70 percent over the last year period to $48.80 million.
East West Bancorp, Inc. has made provision of $10.46 million for loan losses during the quarter, compared with a negative provision of $2 million in the same period last year.
Net interest margin improved 5 basis points to 3.31 percent in the quarter from 3.26 percent in the last year period. Efficiency ratio for the quarter improved to 43.16 percent from 43.99 percent in the previous year period. A decline in efficiency ratio indicates a rise in profitability.
"East West is pleased to report record earnings of $431.7 million or $2.97 per diluted share for the full year 2016, an increase in diluted earnings per share of 12% from 2015. We delivered attractive returns of 1.30% on average assets and 13.1% on average equity," stated Dominic Ng, chairman and chief executive officer of East West. "2016 marks the seventh consecutive year that East West has achieved record earnings. Our strength in providing cross-border expertise to clients across a number of industry specializations continues to drive growth and reinforces our niche as the financial bridge between the East and the West. Further, we continue to benefit from a strong footprint in some of the most dynamic metropolitan markets in the United States."
Assets outpace liabilities growth
Total assets stood at $34,788.84 million as on Dec. 31, 2016, up 7.54 percent compared with $32,350.92 million on Dec. 31, 2015. On the other hand, total liabilities stood at $31,361.10 million as on Dec. 31, 2016, up 7.30 percent from $29,227.97 million on Dec. 31, 2015.
Deposits stood at $29,890.98 million as on Dec. 31, 2016, up 8.79 percent compared with $27,475.98 million on Dec. 31, 2015.
Investments stood at $3,802.91 million as on Dec. 31, 2016, down 6.63 percent or $270.23 million from year-ago. Shareholders equity stood at $3,427.74 million as on Dec. 31, 2016, up 9.76 percent or $304.79 million from year-ago.
Return on average assets moved up 13 basis points to 1.27 percent in the quarter from 1.14 percent in the last year period. At the same time, return on average equity increased 120 basis points to 12.87 percent in the quarter from 11.67 percent in the last year period.
Nonperforming assets moved up 0.64 percent or $0.83 million to $129.56 million on Dec. 31, 2016 from $128.73 million on Dec. 31, 2015. Meanwhile, nonperforming assets to total assets was 0.37 percent in the quarter, down from 0.40 percent in the last year period.
Tier-1 leverage ratio stood at 8.70 percent for the quarter, up from 8.50 percent for the previous year quarter. Book value per share was $23.78 for the quarter, up 9.59 percent or $2.08 compared to $21.70 for the same period last year.
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