What does retail banking — charge for funds used mean?

The internal cost charged to the retail banking division for the capital it uses to generate loans.

How do you interpret retail banking — charge for funds used?

An increase suggests higher internal funding costs, which may compress segment margins.

How does retail banking — charge for funds used compare across companies?

Standard internal transfer pricing mechanism used by most commercial banks to allocate funding costs.

East-West Bancorp EWBC Retail Banking — Charge For Funds Used

Discontinued — last reported Q3 '18

Similar metrics at other companies

WALConsumer Related Segment — Interest Expense, Funds Transfer Pricing

-$305.4M-13.1%

WALCorporate & Other — Interest Expense, Funds Transfer Pricing

$183.23M+113%

WALInterest Expense, Funds Transfer Pricing

$0—

WALCorporate And Other Segment — Interest Expense, Funds Transfer Pricing

$235.7M+70.3%

WALCommercial Segment — Interest Expense, Funds Transfer Pricing

$69.7M-47.1%

PNCCorporate & Institutional Banking — Segment allocations

$424M+10.7%

Other financials

Income statement

See full

Revenue$773.7M+11.8%

Net income$357.8M+23.3%

EPS (diluted)$2.57+23.6%

Balance sheet

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Cash & equivalents$4.4B+28.7%

Total debt$184.3M+49.8%

Total equity$9.0B+13.5%

Total assets$82.9B+8.8%

Cash flow

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Operating cash flow$428.6M+54.2%

CapEx$99.0M+3,852%

Free cash flow$329.6M+19.7%

Valuation

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Market cap$17.37B+18.2%

Enterprise value$13.12B+14.7%

P/E12.5×-0.1×

P/S5.8×+0.2×

Profitability

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Net margin46.2%+2.2pp

FCF margin58%—

Returns & leverage

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Return on equity16.5%+0.8pp

Debt / equity0×0.0×

Where this comes from

Reported directly by East-West Bancorp in its filing.

Tagged under the XBRL concept ewbc:ChargeForFundsUsed.

The official record: East-West Bancorp’s 10-Q, filed November 7, 2018, on SEC EDGAR. View the filing →

Questions, answered.

What does retail banking — charge for funds used mean?: The internal cost charged to the retail banking division for the capital it uses to generate loans.
How do you interpret retail banking — charge for funds used?: An increase suggests higher internal funding costs, which may compress segment margins.
How does retail banking — charge for funds used compare across companies?: Standard internal transfer pricing mechanism used by most commercial banks to allocate funding costs.