Eastern Bankshares (EBC) closed out FY 2025 with Q4 revenue of US$278.6 million and basic EPS of US$0.46, alongside net income of US$99.5 million, setting a clear marker for how the year ended on both the top and bottom line. Over recent periods, revenue has ranged from US$156.4 million in Q3 2024 to US$278.6 million in Q4 2025, while basic EPS has moved between a loss of US$1.09 in Q1 2025 and a profit of US$0.53 in Q3 2025. This gives investors a broad view of how earnings power has shifted through the year. With a trailing net profit margin of 12.7% and a net interest margin of 3.51% on the latest twelve month view, the focus now is on how consistently the bank can convert that revenue into durable, steady margins.

See our full analysis for Eastern Bankshares.

With the latest numbers on the table, the next step is to see how this earnings profile lines up against the widely followed stories about Eastern Bankshares and where those narratives might need an update.

Cost Ratio Holds Near 50%

• The cost to income ratio sat at 50.1% in Q4 2025 and 51.7% on a trailing 12 month basis, compared with 52.82% in Q3 2025 and 60.34% on the prior year trailing view.
• What is interesting for the bullish argument is that forecasts call for earnings to grow about 56.3% per year while recent cost ratios have stayed close to the low 50% range, which means:
  • Trailing net margin at 12.7% is lower than last year's 18%, so bulls are leaning on future growth rather than current profitability strength.
  • Revenue on the latest trailing view is US$696.7 million versus US$664.1 million a year earlier, so the growth story is starting from a modest revenue base rather than a surge already in the numbers.

Over FY 2025, has Eastern really earned the optimistic growth story analysts are talking about, or is it still a work in progress for profitability and costs? 📊 Read the full Eastern Bankshares Consensus Narrative.

Loan Book Grows To US$23.6b

• Total loans moved from US$18.2b in Q1 2025 to US$23.6b by Q4 2025, while non performing loans increased from US$91.6 million to US$172.3 million over the same period.
• Bears focus on regional bank credit risk, and the recent data gives them mixed evidence to work with:
  • Compared with Q4 2024, non performing loans are higher in Q4 2025 at US$172.3 million versus US$135.8 million, so credit quality pressure is visible in the reported figures.
  • At the same time, the larger loan base supports more interest income potential, with net interest margin on the trailing 12 months at 3.51% versus 2.85% on the prior year trailing view.

Premium P/E Versus Mixed Profit Trend

• The stock trades at a trailing P/E of 51.3x against a peer average of 26.3x and US Banks at 12.1x, while trailing net margin is 12.7% compared with 18% last year and earnings over the past five years declined about 14.8% per year.
• Critics highlight that this premium valuation sits beside only moderate current profitability, and the numbers add some weight to that concern:
  • Trailing net income is US$88.2 million on revenue of US$696.7 million, which is meaningfully lower than the prior year trailing net income of US$119.6 million on US$664.1 million of revenue.
  • Against that, one DCF fair value estimate of US$46.85 compared with a share price of US$20.05 points to a large gap to that model, so bears are leaning on trailing metrics while DCF supporters focus on long term cash flows.

Next Steps

Don't just look at this quarter; the real story is in the long-term trend. We've done an in-depth analysis on Eastern Bankshares's growth and its valuation to see if today's price is a bargain. Add the company to your watchlist or portfolio now so you don't miss the next big move.

See What Else Is Out There

Eastern Bankshares pairs a premium 51.3x P/E and softer trailing net margins with net income that is lower than the prior year on only modestly higher revenue.

If that mix of rich pricing and mixed earnings gives you pause, steer toward these 864 undervalued stocks based on cash flows today to focus on companies where current cash flows better support the price you are paying.

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.