RankingBanking 25 - Flipbook - Page 8
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Chinese goods in 2024, according to the Office of
by moving manufacturing facilities or building up
the U.S. Trade Representative, and exported $144
inventory in the U.S. Tariff exposure was limited
billion in goods to China.
to around 500 commercial customers as of April,
When Trump introduced tariffs during his first
term, “it was quite a shock to importers,” says
or 1% of East West’s C&I book.
East West’s direct exposure to China remains
Ng. East West saw an opportunity to help clients.
more of a “headline risk,” says Terrell. “It’s
“We started talking to each and every one of
around 5% of total loans in mainland China.
our importer/exporter clients, and assessed the
There’s some trade finance exposure that’s rela-
risk and helped them out,” he says. That included
tively nominal.” East West also has a well-capi-
talking some clients out of aggressive growth
talized cushion to protect against losses, he adds,
plans, and lending conservatively. “We don’t know
which helps assuage investor concerns. With a
whether Walmart [or] Target will be able to pass
9.61% tangible common equity ratio at the end of
on the additional tariff cost to the consumers or
2024, it’s the most highly capitalized bank among
[if] you’re going to have to eat the difference,” he
those above $50 billion in assets in the Ranking-
explains. “We ended up taking not one penny of
Banking analysis and the top-ranked bank in that
losses from our importer/exporter customers.” The
asset class. Terrell adds that the recent economic
bank gained clients, as well.
volatility has benefited some areas of the business, driving foreign exchange income and wealth
management fees. East West recorded fee income
of $310 million in 2024, a high for the bank,
according to the bank’s investor presentation in
January.
Terrell adds that East West — due to its size
“There are a lot of commercial real estate
developers, investors, in the state of
California, and we don’t necessarily like
to do business with every one of them. We
pick and choose the ones that we want.”
and reputation with Asian Americans — has
generally enjoyed a price advantage versus peers.
Yet, they’re willing to increase deposit rates to
boost growth as needed. East West runs an annual
Lunar New Year certificate of deposit special;
in 2024, the bank increased the interest rate to
around 5.25%, leading to $2 billion in deposits,
according to earnings transcripts. That deposit
growth, Terrell explains, helped fund asset growth
through the rest of 2024. Over 2024, average
Dominic Ng, East West Bancorp
deposits grew 9%, and the bank’s net interest
margin declined slightly, from 3.48% to 3.24%.
In 2025, East West dropped the Lunar New Year
special to 4.18% for a six-month CD and 4.08%
for a nine-month CD; its NIM improved to 3.35%
in the first quarter.
Fast forward to 2024. Many of East West’s
A high level of service builds loyalty and pricing
clients began preparing during the presidential
power, which helped the bank’s net interest margin
campaign in anticipation of a bigger tariff fight,
and cost of funds as interest rates began rising.
