East West Bancorp Has Proven Me Wrong (Upgrade)

East West Bancorp, Inc. is upgraded to a very soft Buy as fundamentals and profitability improve, outpacing the S&P 500 since last review. EWBC demonstrates robust balance sheet growth, expanding deposits, loans, and securities, with net interest margin rising to 3.49% in Q1 2026. Asset and credit quality remain strong, with return on assets at 1.79%, return on equity at 16.04%, and non-performing assets at only 0.26%. Despite trading at double book value and above a 10x P/E, EWBC stock is cheaper than peers on earnings and continues to deliver superior performance metrics.