EastWest Bank earnings up 20% to P5.8 billion

MANILA, Philippines — EastWest Banking Corp. saw its net income jump by 20 percent to P5.8 billion in the first nine months  on the back of higher income-generating capacity amid favorable securities trading in the third quarter.

The bank’s net income also surged by 49 percent to P2.3 billion in the third quarter from the same period last year.

“Our September results reflect our sustained momentum across key segments. While we benefited from the trading environment, it’s the strength of our core businesses that continues to drive our overall performance,” EastWest CEO Jerry Ngo said in a statement.

Net revenues of the bank grew by 26 percent to P32.2 billion from January to September. The bank’s net interest income rose by 23 percent to P25.1 billion, driven by the focus on consumer lending.

The consumer lending portfolio of EastWest now accounts for 83 percent of its total loan portfolio, the highest among its peer banks. The focus on consumer lending also helped maintain a strong net interest margin of 8.1 percent, well above the industry average.

Non-interest income also increased by 39 percent to P7.1 billion during the nine-month period, driven by fees related to consumer lending and other sources.

Securities trading income stood at P1.4 billion amid the easing interest rate environment. Excluding trading income, the bank said that revenues still grew by a healthy 23 percent to P30.8 billion.

Meanwhile, operating expenses of EastWest went up by 23 percent to P17.9 billion. But despite the increase, the cost-to-income ratio improved to 55 percent, which shows the bank’s operational efficiency amid revenue growth.

EastWest’s total assets rose by 12 percent to P497 billion as of September. Loans and receivables increased by 13 percent to P321.3 billion, led by a strong 17-percent growth in consumer loans.

Personal loans also surged by 52 percent, while credit card loans grew by 35 percent and auto loans went up by 11 percent.

Deposit growth, particularly from current and savings account deposits, also saw a 10-percent increase to P371.0 billion, with a CASA ratio improvement to 79 percent.

Capital ratios remained healthy as the bank’s capital adequacy ratio stood at 13.7 percent while its common equity tier 1 ration was at 12.9 percent, well above the regulatory requirements.

“With three decades in the industry, we remain focused on innovation and continuous improvement to provide exceptional service to our customers,” Ngo added.

Established in 1994, EastWest is a Filipino-owned universal bank and a subsidiary of Filinvest Development Corp., one of the country’s leading conglomerates.