UPDATE 2-East West Bancorp posts Q2 loss on bad-loan provision

(Recasts; adds details from conference call, analysts' comments; updates share movement)

By Anurag Kotoky

BANGALORE, July 25 (Reuters) - East West Bancorp (EWBC.O: Quote, Profile, Research, Stock Buzz) preliminarily reported a huge loss for the second quarter as the bank holding company's provision for bad loans soared, and forecast a weak second half.

The company said the loss for the second quarter could increase due to a goodwill impairment charge, which it was currently reviewing.

East West might buy one or two small banks in the second half of 2009, that will increase assets in low-double digits year-over-year, a company executive said in a conference call with analysts.

Looking ahead, the company said it expects bad loan provision for the first quarter of 2009 to be $20 million, and that is expected to come down to $10 million to $15 million by the fourth quarter of 2009.

FTN Midwest analyst Brett Rabatin said by phone that the results are not hurting the company immediately as the market appreciated its attempt to raise capital in an otherwise weak economy.

The company said in the call that it raised $200 million during April.

Morgan Stanley analyst Ken Zerbe, however, said credit problem is likely to hurt the company in future as well.