EAST WEST BANCORP INC

The following table presents the components of noninterest income for the periods indicated:

NM — Not meaningful.

Noninterest income comprised 13% and 11% of total revenue in 2024 and 2023, respectively. Noninterest income for 2024 was $335 million, an increase of $40 million compared with 2023. The increase was primarily due to higher lending, wealth management, and deposit account fees, net gains on AFS debt securities, and foreign exchange income, partially offset by lower customer derivative, other investment income and net gains on sales of loans.

Deposit account fees were $104 million in 2024, an increase of $10 million or 11%, compared with 2023. The year-over-year increase was primarily due to analysis service fees, which reflected fee increases and customer growth.

Lending fees were $98 million in 2024, an increase of $15 million or 17%, compared with 2023. The year-over-year increase was primarily due to higher trade finance and commitment fees driven by customer growth, and higher credit enhancement fee income.

Foreign exchange income was $55 million, an increase of $6 million or 13%, compared with 2023. The year-over-year increase was primarily due to the favorable valuation of certain foreign currency denominated balance sheet items.

Wealth management fees were $39 million in 2024, an increase of $12 million or 43%, compared with 2023. The year-over-year increase primarily reflected customer demand for higher-yielding products in response to the interest rate environment.

Customer derivative income was $16 million, a decrease of $4 million or 19% compared with 2023. The year-over-year decrease primarily reflected lower fee income due to decreased customer activity, partially offset by favorable credit valuation adjustments.

Net gains on sales of loans were $44 thousand, a decrease of $4 million, or 99%, compared with 2023. The 2023 net gain on sales of loans primarily reflected CRE loan sales.

Net gains on AFS debt securities of $2 million in 2024 were due to sales of U.S. government agency residential mortgage-backed securities. In comparison, net losses on AFS debt securities of $7 million in 2023, was due to a $10 million write-off of an impaired subordinated AFS debt security, partially offset by a $3 million gain when the security was subsequently sold.

Other investment income was $6 million in 2024, a decrease of $4 million or 40% compared with 2023. The year-over-year decrease primarily reflected lower earnings from the Company’s equity method CRA investments.