EastWest earnings rise 60% to P735 M in Q1

MANILA, Philippines - Gotianun-led East West Banking Corp. posted a net income of P735 million income in the first quarter of 2013, 60 percent higher than the P460 million income in the same period last year due to a higher lending portfolio and deposit base.

In a report to the Philippine Stock Exchange (PSE), the bank said its consumer loans grew 44 percent year-on-year while corporate loans grew 70 percent, as it expanded its corporate lending organization three fold.

Consumer loans still take up more than half of the loan portfolio at 55 percent of total customer loans.

Deposits stood at P86.7 billion, up 32 percent from a year earlier due largely to the expanded branch store network. Low cost deposits (CASA) increased 51 percent and accounted for 54 percent of total deposits.

Total assets likewise went up 34 percent to P118.6 billion, higher from a year ago, affirming the universal bank’s posture as one of the fastest-growing banks in the industry.

The increase in assets was due mainly to the 54 percent growth of its loan portfolio, comprised mostly of loans to consumers followed by exposure to mid-market corporate borrowers.

 â€œThe EastWest engine is running on all cylinders. We have the momentum and we plan to take advantage of the country’s favorable economic climate. We will continue our aggressive infrastructure build-up and business development efforts and further strengthen our governance practices,” said Antonio Moncupa, EastWest president and CEO.

Fee-based income grew 27 percent, driven mainly by consumer loans and branch related transactional fees and charges. The bank took advantage of market opportunities as interest rates continued to drop and posted strong trading results from fixed income securities trading.

EastWest Bank opened 123 branch stores in 2012 and had already opened 19 new branches this year to bring its total network to 264, on track to complete its target 350 branch stores by early next year. Including its rural bank subsidiary, Green Bank, which has 47 branches, it will have a total of close to 400 branches after its expansion program.