Los Angeles Business Journal

Top Three L.A. Banks Report Strong Earnings

By James Rufus Koren Thursday, January 23, 2014

Last year was a good one for Los Angeles County’s big banks, as the three biggest local lenders all reported solid earnings for 2013. All announced growing profits, assets and loan volumes.

City National Corp., parent of local bank leader City National Bank, reported net income of $55.1 million (95 cents a share) for the fourth quarter, up 17 percent from the same period in 2012. For the year, the downtown Los Angeles company reported net income of $230 million ($3.99 a share), up 11 percent over 2012.

The results, posted after markets closed Thursday, fell short of analysts’ estimates. Analysts expected quarterly earnings of $1.06, according to Bloomberg. Shares closed at $79.62 Thursday, down $1.45 or 1.8 percent.

East West Bancorp Inc., parent of the county’s No. 2 lender, reported net income of $75.8 million (55 cents a share) for the quarter ended Dec. 31, a 5 percent increase over the same period a year earlier. For the year, the Pasadena bank holding company’s net income was $295 million ($2.10 a share), 5 percent above 2012.

The East West results, released after markets closed Wednesday, were in line with analysts’ estimates. Shares closed at $36.65 Thursday, up 24 cents or two-thirds of a percent.

Cathay General Bancorp, parent of No. 3 Cathay Bank, reported net income of $31.9 million (40 cents a share) for the fourth quarter, up 13 percent from the same period a year earlier. For the year, Cathay’s net income was $123 million ($1.43 a share), up 5 percent over 2012.