East West Bancorp, Inc.

East West said Q2 2026 was a record quarter for total revenue, net interest income, and non-interest income, but the call did not provide the specific total revenue figure or EPS. Net interest income was a record $685 million; fee income was $96 million, up 19% year over year; operating non-interest expense was $268 million; NIM was 3.43%, up 8 bps year over year; non-performing assets were 29 bps, up 3 bps quarter over quarter; net charge-offs were 19 bps, or $27 million, versus 9 bps, or $12 million, in Q1; and provision for credit losses was $33 million versus $36 million in Q1. For the full year, management raised loan growth guidance to 6%-8% and NII growth guidance to 7%-9%, and narrowed expense growth guidance to 8%-9%; they also reaffirmed full-year net charge-off guidance of 15-25 bps.

Dominic Ng emphasized that the quarter reflected disciplined execution across the balance sheet, with record revenue, NII and fees powered by record loans and deposits. He highlighted growth in non-interest-bearing deposits, diversification in residential mortgage and C&I, and continued momentum in wealth management. His tone was confident and steady, with repeated focus on customer relationships, strong credit quality and the bank’s capital strength as the basis for sustainable shareholder value.

Chris Del Moral-Niles walked through the drivers of the quarter in detail: end-of-period deposits increased $1.2 billion, demand deposits rose $875 million, average DDA was up 15% year over year, and the DDA mix reached 26% of total deposits. He said residential mortgage grew by over $300 million and C&I balances were also up over $300 million, helping support the increase in full-year loan growth guidance to 6%-8%. He also noted the bank reduced period-end deposit cost by 6 bps, lowered interest-bearing deposit costs by 49 bps over the past year, and now expects full-year NII growth of 7%-9% while keeping expense growth to 8%-9% and maintaining a 36.7% efficiency ratio.

Analysts focused on margin pressure, deposit repricing, the sustainability of tariff-related DDA inflows, expense trends, credit migration, and M&A/capital priorities. Management said NIM should hold relatively stable in a flat Fed funds environment, while acknowledging some loan-yield compression and the need to manage CD repricing, including a $13 billion CD roll-off in Q3. On deposits, they said much of the quarter-end tariff-related excess had already flowed out, though some ongoing refund-related deposits should continue into August. On credit, Irene Oh said C&I criticized loans reflected a few cash flow reductions and CRE non-performing loans included about four loans, but she did not expect significant loss content.