EastWest Bank profit hits P6.1 billion

MANILA, Philippines — Gotianun-led EastWest Banking Corp. saw its net income jump by 32 percent to P6.1 billion in 2023 from P4.6 billion in 2022 on the back of  double-digit growth in  loan portfolio and stable funding sources.

The lender said its net revenues increased by 26 percent to P35.7 billion, driven by the 25 percent rise in consumer lending portfolio. The consumer lending portfolio of EastWest accounts for 80 percent of total loans, the highest among its peer banks.

The bank’s total loans and receivables grew by 15 percent to P296.6 billion, amid the strong demand for consumer loans.

“We witnessed significant growth in our major assets, our consumer loans portfolio. This translated to a remarkable jump in our net income as we doubled down on our strength in consumer lending,” EastWest president Jacqueline Fernandez said.

“We reversed our two years of continuous decline and resumed our quest to be one of the top consumer banks in the country,” she said.

The bank’s total deposits also expanded by eight percent to P356.5 billion. Current account savings account (CASA) deposits grew by 12 percent to P292.4 billion.

EastWest attributed the CASA deposit growth, which surpassed the industry growth of three percent, to the lender’s focus on cash management services that is specifically geared toward small and medium-sized enterprises.

The lender’s net interest margin was sustained at 7.6 percent, while return on equity stood at 9.5 percent.

“We entered 2024 with good momentum, but much work still needs to be done in growing and improving the bank. We need to rise further, face the challenges and potential headwinds. Our goal is clear, to become one of the top consumer banks in the Philippines,” EastWest CEO Jerry Ngo said.

Meanwhile, the bank’s non-interest income climbed by 51 percent to P7.4 billion last year. Fees and commission rose by 26 percent to P4.8 billion as banking transactions grew in line with lending growth.

Trading income also stood at P993.6 million in 2023, growing more than five times from 2022.

Operating expenses increased by 19 percent to P20.3 billion due to higher manpower and information technology costs to expand the bank’s capacity and improve efficiency. Operating efficiency or cost-to-income ratio was at 56.9 percent, down from 60.2 percent a year ago.

The bank’s total assets   expanded by 10 percent to P464.2 billion in 2023.