EAST WEST Banking Corp. booked a net income of P1.8 billion in the first quarter, backed by strong revenue growth amid the expansion of its consumer lending business.

This first-quarter performance translated to a “healthy” return on equity of 10%, EastWest Bank said in a disclosure to the stock exchange on Tuesday.

The bank’s financial statement was unavailable as of press time.

“Our first-quarter performance reflects the solid momentum we’ve built in expanding our consumer franchise. We remain focused on driving profitability through disciplined growth and operational efficiency,” EastWest Bank President Jackie S. Fernandez said.

The bank’s revenues increased by 16% year on year to P11.6 billion in the three months ended March.

This was mainly driven by the 13% growth in its net interest income to P9.3 billion.

Loans and receivables climbed by 11% year on year to P339 billion at end-March, driven by the 36% growth in its credit cards segment and the 18% increase in personal loans.

“The bank’s consumer lending portfolio grew by 15% and now accounts for 84% of total loans — the highest among peer banks,” it said. “Deposits also expanded by 12% to P399.2 billion, with a CASA (current account and savings account) ratio of 74%, placing EastWest among the industry’s top performers.”

“This strong balance sheet performance translated to a net interest margin of 8.1%, one of the highest in the sector.”

Meanwhile, the bank’s non-interest income likewise rose by 25% to P2.3 billion in the quarter, driven by a 31% increase in fee income from its lending business to P1.7 billion.

On the other hand, operating expenses went up by 8% to P6.3 billion due to manpower and business-related expenses.

As a result, its cost-to-income ratio stood at 54.3%.

EastWest Bank’s total assets expanded by 11% to P531.2 billion at end-March.

Its capital adequacy ratio stood at 13.7%, while its common equity Tier 1 ratio was at 12.8%.

“Our strategic direction is clear — we are committed to scaling our consumer banking business, deepening customer relationships, and accelerating digital transformation. With a strong foundation, robust capital position, and market-leading margins, we are well-positioned to capitalize on growth opportunities,” EastWest Bank Chief Executive Officer Jerry G. Ngo said.

“We will continue investing in technology, expanding our customer base, and strengthening our product offerings to sustain our momentum in the years ahead. The future is bright, and we are ready to go further,” he added.

EastWest Bank shares inched down by two centavos or 0.18% to end at P11 each. — Aaron Michael C. Sy

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