Profits Rise at East WestThursday, October 17, 2013
Pasadena’s East West Bancorp Inc. on Wednesday reported earnings just shy of Wall Street expectations.
The bank holding company posted net income of $73.2 million (53 cents a share) for the quarter ended Sept. 30, up from $71.1 million (48 cents a share) for the same period last year. Profits were driven by growth in loans and deposits as well as a slightly higher net interest margin compared with last year.
Analysts surveyed by Bloomberg expected earnings of 54 cents a share East West announced earnings after markets closed Wednesday. Shares were down 34 cents, or 1 percent, to $33.97 in after-hours trading.
Though net income rose just 2 percent, income per share increased 10 percent. The per-share increase was greater because East West retired a set of dividend-paying preferred shares earlier this year. This was the first quarter in which East West did not have to pay a dividend on those shares.