2023 was a particularly tough year for California's regional banks. Repeated interest rate hikes by the Federal Reserve exposed the foolish bets and arrogance of large regional banks like Silicon Valley Bank and First Republic Bank, which collapsed, sparked bank runs and wiped out shareholders.
But one regional bank has held on well: East West Bank. Led by Dominic Ng for more than three decades, the bank has focused on the sustainability of steady growth. “We're careful and cautious, but also very entrepreneurial,” he said in his office at East West's Pasadena headquarters. “You don't take shortcuts to win in banking. You play the long game.”
“His leadership transformed banking, it transformed philanthropy and it transformed business leadership in Los Angeles.”
— Elise Buik, CEO of United Way of Greater Los Angeles
Its results have been lauded, with the bank being ranked number one among its peer banks last year by S&P Global Market Intelligence and the industry publication Bank Director naming it the top-performing bank for 2023. It has also been recognized for the diversity of its board of directors, which includes Latino, Asian, Black, female and LGBTQ+ representation.
Steady profits have made East West one of Los Angeles' leading civic advocacy groups, and Ng has worked there for more than 25 years, particularly with United Way of Greater Los Angeles, where he is credited with driving a strategic reorientation to more effectively serve the city's very poor while also encouraging many of the city's most affluent residents to join in.
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“His leadership has transformed banking, it has transformed philanthropy and it has transformed the way business leadership works in Los Angeles,” said Elise Buik, CEO of the United Way chapter.
Born in Hong Kong in 1959 to Chinese parents, the youngest of six children, Ng has served as CEO of East West Bank since 1992, expanding the bank's original mission of lending to Chinese immigrants who had difficulty obtaining credit through conventional lending channels in the 1970s. The bank is now the largest publicly traded independent bank based in Southern California, serving an economically and ethnically diverse clientele. On the global stage, Ng serves as co-chair of the Asia-Pacific Economic Cooperation Business Advisory Council.
Mr. Ng, 65, worries about the future of philanthropy in Los Angeles. He misses the “good old days” when business leaders didn't hesitate to come together to help the city's less fortunate.
“Today, the pressure is [immediate] Companies tend to place emphasis on “returning profits to shareholders,” and corporate executives must deal with shareholders who “are increasingly neglecting their social responsibilities with each passing year.”
Younger, more affluent powerhouses in technology and finance would be wise to take some cues from business leaders like Ng.
