Shares of East West Bancorp Inc. rose more than 6 percent on Thursday after the Pasadena bank holding company reported 14 percent higher third-quarter net income, boosted by growth in commercial loans.
East West, which owns Los Angeles County’s second largest local bank by assets, late Wednesday reported net income to $71.1 million (48 cents a share), compared with $62 million (41 cents) in the same period a year earlier. That beat the Wall Street consensus of 47 cents a share.
Net interest income fell nearly 7 percent to $222 million. Non-interest income was down 79 percent to $2.8 million, compared with $13.5 million a year earlier.
Loans, excluding those from failed-bank acquisitions, increased 13 percent as the bank made more commercial and trade finance loans, commercial real estate and single family loans.
Net interest income rose 1 percent to $196 million. Noninterest income was $2.8 million, compared with a loss of $13.5 million a year earlier. The adjusted provision for loan losses fell 41 percent to $13 million.
For the full year, the company now expects per share profit of $1.87 to $1.89, compared with prior guidance of $1.84 to $1.86. The Wall Street consensus has been $1.87 a share.
Shares on Thursday closed up $1.27 or 6 percent, to $21.51 on the Nasdaq.
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