EastWest Bank net profit rises to P6.6B

EAST WEST Banking Corp.’s (EastWest Bank) net income climbed by 14% year on year to P6.6 billion in the first nine months on higher revenues from its core businesses.

This translated to a return on equity of 11.6%, the bank said in a disclosure to the stock exchange on Monday.

Its financial statement was unavailable as of press time.

“Our core consumer banking business is thriving, aligning perfectly with the evolving needs of our customers. Our strategic funding initiatives are likewise effectively supporting our growth plans and fortifying our funding structure. These critical components have significantly contributed to our steady revenue generation. At the same time, we continue to manage risks actively and ensure that provisions are adequate. Combined with our operational efficiencies, these have resulted in robust and sustainable profitability,” EastWest Bank Chief Executive Officer Jerry G. Ngo said.

The bank’s revenues rose by 16% year on year to P37.3 billion in the nine-month period.

This was mainly driven by an 18% growth in net interest income to P29.7 billion, which was backed by the 17% growth of its consumer lending business.

It added that consumer credit now makes up 85% of its loan portfolio.

EastWest Bank’s fee income also jumped by 27% to P5.3 billion.

Its double-digit revenue growth more than offset the 7% increase in its operating expenses to P19.2 billion in the period, which it said went to “investments in people and business expansion.”

As a result, the bank’s cost-to-income ratio improved by 412 basis points to 51.4%, “supported by the faster growth of revenues, productivity gains, and digital efficiencies.”

On the funding side, total deposits rose by 12% to P415.8 billion at end-September, 81% of which are current account, savings account or CASA deposits.

EastWest Bank’s priority banking business also grew as its assets under management breached the P100-billion mark at end-September, it added.

These supported its asset base, which grew by 11% to P552.9 billion.

“Meanwhile, capital ratios remain strong and supportive of future growth, with capital adequacy ratio at 13.6% and common equity Tier 1 ratio at 12.7%, well above regulatory standards,” the bank said.

EastWest Bank’s shares went down by six centavos or 0.52% to close at P11.44 apiece on Monday. — A.M.C. Sy