The stock of East West Bancorp Inc. slid in early trading Wednesday even though the Pasadena holding company late Tuesday reported earnings that beat expectations.
Net income for the second quarter was $36.3 million or 21 cents a share, compared to a loss of $92.1 million in the same quarter last year. Analysts had forecast earnings of 18 cents a share.
However, management guidance for the third quarter indicated “flat balance sheet growth,” meaning the bank company won’t expand its loan portfolio. The company expects earnings for the third quarter of 19 to 22 cents per share.
“For the remainder of 2010, East West will focus on growing our revenue and profitability and reinvesting in our business while remaining disciplined on expenses,” Chief Executive Dominic Ng said in a statement.
The share price of East West Bank declined $1.67, or more than 9 percent, to $16.04 in late morning trading on the Nasdaq.
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