EAST WEST Banking Corp. (EastWest Bank) is targeting to set aside loan loss provisions worth P10 billion this year as the pandemic continues to hit the economy.

“The bank reported to its shareholders that as of April 2020, it is almost halfway to its target with total provisions at P4.5 billion,” the bank said in a filing with the local bourse on Thursday.

“This year is supposed to be even much better, but it was not to be due to the pandemic. We are nevertheless happy that our balance sheet is resilient and could churn good profits that we can face this pandemic squarely,” said EastWest Bank Chairman Jonathan T. Gotianun.

EastWest Bank’s income hit P2.7 billion from January to April, the bank said in its filing.

EastWest Bank President Antonio C. Moncupa, Jr. said it was originally eyeing record profits of P12 billion this year, supported by the expansion in its core deposits and loan businesses, better economies of scale and trading gains from government bonds.

However, with the coronavirus disease 2019, the bank opted to set aside higher provisions amid a possible increase in soured loans due to the worsening economic fallout from the pandemic.

“We stand ready to assist our borrowers to get through these challenging times,” Mr. Moncupa said.

The lender’s net income ballooned by 75% year on year to P2.3 billion in the first quarter, despite allotting provisions worth P2.4 billion which is 2.8 times higher than last year.

Its shares ended trading at P7.68 apiece on Thursday, up by a centavo or by 0.13% from its previous close. — L.W.T. Noble

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