Recent guidance from East West Bancorp (EWBC) leadership has put 2026 loan growth and a reset in business mix in focus, as the bank leans into commercial and industrial lending and existing client relationships.

At a share price of US$117.83, East West Bancorp has seen a 14.6% 90 day share price return and a 22.7% 1 year total shareholder return. This suggests improving momentum around the loan growth reset and business mix commentary.

If this focus on lending quality has your attention, it may be a good time to broaden your watchlist and check out 23 top founder-led companies as potential long term compounders.

With East West Bancorp trading at US$117.83 and an implied discount to both analyst targets and intrinsic value, the real question is whether there is still upside remaining or if the market is already pricing in future growth.

Most Popular Narrative: 10.9% Undervalued

With East West Bancorp at $117.83 against a narrative fair value of $132.20, the current setup centers on how durable earnings power supports that gap.

Sustained investments in digital banking, automation, and technology in areas such as mobile, cybersecurity, and operational efficiency allow for scalable growth and improve the efficiency ratio, supporting higher net margins and long-term cost containment.

Read the complete narrative. Read the complete narrative.

It is worth examining what kind of revenue expansion, margin profile, and future P/E multiple this narrative reflects. The earnings path behind that fair value is anything but basic.

Result: Fair Value of $132.20 (UNDERVALUED)

However, this depends on commercial real estate concentration and higher compliance costs not eating into margins or altering the earnings path analysts have in mind.

Build Your Own East West Bancorp Narrative

If you see the numbers differently or just prefer to rely on your own work, you can quickly build a tailored story for East West Bancorp, Do it your way

A great starting point for your East West Bancorp research is our analysis highlighting 4 key rewards and 1 important warning sign that could impact your investment decision.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.