Profits at East West, Cathay Jump

San Marino’s East West Bancorp reported 23% higher second-quarter earnings Thursday, reflecting strong growth in loans. Its Los Angeles-based rival, Cathay General Bancorp, reported a 67% jump in profit as an acquisition lifted its lending income.

East West, which focuses on the Chinese American community and business loans, earned $18.03 million, or 35 cents a share, compared with $14.69 million, or 30 cents, during the same period in 2003.

Commercial real estate loans, which account for half of all lending at the company’s East West Bank, totaled $2.04 billion on June 30, up 31% from $1.56 billion at the end of 2003.

East West shares fell 16 cents to $29.99 on Nasdaq.

Cathay General, whose Cathay Bank also has a core clientele of Chinese Americans, earned $22.1 million, or 88 cents a share, up from $13.2 million, or 73 cents, during the second quarter of 2003.

Cathay General was formed in October when Cathay Bancorp completed its $478-million cash-and-stock purchase of GBC Bancorp, creating a bank twice the size of either predecessor. The union, along with a strong growth in loans, sent Cathay’s second-quarter net interest income up from $26.8 million in the second quarter of 2003 to $52.2 million in the latest quarter, a 95% increase.

Cathay General announced its results after the close of trading on Nasdaq, where its shares rose 48 cents to $65.20.