East West Bancorp (NASDAQ: EWBC) reported record third-quarter 2026 revenue of $823 million and record net interest income of $719 million, with net income of $382 million and diluted EPS of $2.76, each up 5% from the prior quarter. Net interest margin widened 6 basis points to 3.49% as deposit costs fell, while total deposits reached $71.5 billion and total loans $59.7 billion, led by residential mortgage and multifamily growth. Management raised its full-year net interest income growth outlook to 9% to 10% and narrowed its net charge-off guidance to 15 to 20 basis points, citing solid year-to-date performance. Criticized C&I loans rose slightly, and management warned that higher rates could prompt customers to reassess how much they pay in opportunity costs, potentially reducing noninterest-bearing deposits.
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- East West Bancorp ( EWBC ) Q3 2026 Earnings Call Transcript
East West Bancorp reported record third-quarter 2026 results, with net income of $382 million, up 5% from the prior quarter, and diluted EPS of $2.76. Total revenue rose 4% to $823 million, led by a 5% increase in net interest income to $719 million and a net interest margin of 3.49%. Total deposits grew $1.4 billion to $71.5 billion, while total loans rose 1% to $59.7 billion, driven by residential mortgage and multifamily lending. Net charge-offs were $22 million, and management raised its full-year net interest income growth guidance to 9% to 10% and narrowed its net charge-off guidance to 15 to 20 basis points. The bank also flagged a slight rise in criticized C&I loans and warned that higher rates could push customers to shift away from noninterest-bearing deposits.
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HSBC cut some selected fixed rates by up to 0.14 percentage points, with two-year deals from 4.96% and five-year deals at 4.99%, while NatWest cut by up to 0.17 points, bringing five-year deals to 4.95%. These reductions follow sharp increases in early October, when some lenders raised rates by 0.15% to 0.30% and Moneyfacts reported average five-year fixed rates hitting 6%. Some analysts say the cuts mainly reverse those earlier hikes rather than signal a sustained downward trend, as rates can reverse quickly amid geopolitical events or surprising inflation data. Borrowers are advised not to delay decisions in hope of a sharp drop before Christmas, and instead to compare total costs, including fees and exit charges.
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VIB is cutting deposit and lending rates to support businesses and individual customers, in line with directives from the government and the State Bank. It has lowered deposit rates by up to 0.5 percentage points a year, mainly for terms over 6 months, and launched a VND 15,000 billion credit package for priority-sector businesses, with rates up to 1.5% a year lower subject to program conditions. For home loans, VIB offers fixed rates for up to 5 years and an extra 1% per year reduction for loans fixed for 12 or 24 months in certain areas. Car loans carry a fixed rate of 12.5% a year for the first 24 months, then capped at 15% a year, with a total quota of VND 5,000 billion.
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NatWest has cut some fixed-rate mortgage deals, including a two-year fix at 5.04% and a five-year fix at 4.98%, while HSBC, which currently offers a 5.01% two-year and 5.03% five-year fix, looks set to start offering sub-5% fixes. NatWest's largest reductions, up to 0.17 percentage points, are on five-year remortgage deals at 85% and 90% LTV, and HSBC has cut across its purchase and remortgage ranges from 60% to 90% LTV. Industry commentators said the cuts reflect lenders competing for business rather than cheaper funding, as five-year swap rates rose from 4.619% to 4.723% over the past month. Other lenders could come under pressure to review their own pricing.
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