Mactan, Cebu, Philippines — East West Banking Corp. is looking to sustain its current growth momentum in the fourth quarter and next year, focusing on long-term consistency, loan expansion and operational efficiency.
In an interview on the sidelines of the 2024 BSP-IMF Systemic Risk Dialogue in Cebu, EastWest CEO Jerry Ngo said the bank’s strategy is to prioritize sustainable performance across its operations.
“We want to keep the pace, keep it going,” Ngo told reporters. “It’s not just about up and down growth – what (we) want is a robust clip that (we) can sustain over a long period of time.”
He said he remains optimistic about the country’s economic outlook and growth prospects for next year, citing the Philippines’ demographic advantages as a vital growth driver.
“Macro-wise, the outlook continues to be positive. Our demographic window will sustain the country very well,” he said.
This favorable environment, coupled with EastWest’s strategic focus, positions the bank to continue delivering value to its clients while navigating the competitive financial landscape.
“I think we’re in a very good spot, particularly in our focus on consumer lending, consumer finance, consumer investment, and so on. That will hold us in good stead,” he said.
EastWest 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.
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.
According to Ngo, the bank “will try” to sustain its double-digit loan growth in the coming quarters.
But while loan demand remains robust, the bank prioritizes a balanced approach to growth by focusing on improving operational efficiency and customer service.
“Loan growth is important, but it’s not just about piling on loans,” he said. “You need to get better as you go along – improving productivity and improving cost-to-income ratios. Banking should be boring and should be focused on the clients.”
The bank is also planning out fundraising activities to support the growth of its loan book. The bank filed the plan with the Securities and Exchange Commission last year and is awaiting the right market conditions, particularly a drop in interest rates, before proceeding.
“It’s not a large amount – just enough to bulk up and accelerate the growth of our loan book,” Ngo said. “So far, our funding growth has been in line with our loan book 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.
Established in 1994, EastWest is a Filipino-owned universal bank and a subsidiary of Filinvest Development Corp., one of the country’s leading conglomerates.