East West Bancorp, the California-based lender with significant Asian-American clientele, saw its shares climb to a record $136.00 (approx. £106) during trading on Thursday. The stock closed the session up 4.1%, surpassing its previous peak set in late 2025. The milestone comes as investors cheered the bank's second-quarter results, which showed a 12% jump in net interest income and lower provisions for credit losses.
The broader US regional banking sector also enjoyed a strong day, with the KBW Nasdaq Regional Banking Index advancing 2.3%. Positive sentiment spilled over to London-listed financials, where shares in HSBC and Barclays both rose around 1.5% in afternoon trade. The FTSE 100 added 0.4% to 8,245 points, supported by the financial sector.
Analysts attributed East West Bancorp's outperformance to its disciplined cost management and a diversified loan book that has weathered higher interest rates better than many peers. "The bank's focus on commercial and industrial lending, particularly to mid-market firms, has insulated it from the worst of the commercial real estate stress," said a banking analyst at a London-based research firm, who asked not to be named.
For UK investors, the rally highlights the ongoing divergence between US and European banking stocks. While UK lenders have benefited from rising rates, their US counterparts have seen more pronounced share price gains due to a stronger economy and less regulatory pressure on capital returns. Pension funds with exposure to global financial equities may see a modest boost, though currency fluctuations remain a risk for sterling-based holders.
The FTSE 250, which contains a higher proportion of domestically focused financial and property companies, closed flat at 20,110 points. Meanwhile, the yield on 10-year UK gilts edged up to 4.12% as markets priced in a slightly higher probability of a Bank of England rate hold at its August meeting.