East West Bancorp Inc. late Tuesday said its first quarter profit more than doubled as deposits grew and credit quality improved.
After the markets closed, Los Angeles County’s second largest local bank holding company reported net income of $54.4 million (37 cents per share), compared with $18.8 million (13 cents) a year earlier.
Total revenue rose 9 percent to $193 million, with net interest income after provision for loan losses down 1.6 percent to $182 million. Total non-interest income was $11 million, compared with a non-interest loss of $8.5 million a year earlier.
Analysts surveyed by Thomson Reuters on average expected per-share profit of 34 cents on revenue of more than $194 million.
The bank’s provision for loan losses fell 65 percent to $26.5 million, and net charge-offs dropped 46 percent to $34.2 million. Core deposits grew 3 percent to a record $9.1 billion.
“For the last several quarters, East West has posted strong growth in our non-covered commercial and trade finance loan portfolios, improved credit quality, and increased deposits while maintaining strong discipline on operating expenses,” said Chief Executive Dominic Ng in a statement. “As we look towards the future, there are many opportunities for East West to expand market share and grow our business.”
The company expects second quarter earnings to be in a range between 35 to 37 cents per share. The Wall Street consensus is for 36 cent per share.
Shares earlier closed up 26 cents, or 1 percent to $22.11 on the Nasdaq.
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