East West Bank income drops 6% in 10 mos

MANILA, Philippines - East West Banking Corp. said its net income fell 6.1 percent to P1.5 billion in the first 10 months of 2011 due to lower trading income.

In a statement, the bank said net revenues also went down to P5.9 billion, or 5.1 percent lower compared to the P6.3 billion in the same period last year.

In 2010, net income was recorded at P1.81 billion or more than doubled from P800 million in 2009.

EastWest Bank president and chief executive officer Antonio C. Moncupa Jr., however, said the bank remained unperturbed by the slight drop in earnings.

“Our core banking businesses continue to grow and core productivity is improving. We are looking forward ending the year with above average returns for our shareholders,” he said.

Trading gains fell 52.6 percent to P673 million, tracking the results of the bank’s huge exposures in the securities market.

However, net interest income went up 11.4 percent to P3.9 billion as the bank registered gains in its lending businesses and management of its cost of funds. Likewise, non-interest income grew 1.5 percent to P1.4 billion.

Total loans jumped 21.6 percent to P43.7 billion from last year’s P35.9 billion. Consumer loans grew 18.3 percent to P23.4 billion on account of the strong performance of its auto loans and credit card businesses, while corporate loans ballooned to P22.9 billion or 20.8 percent higher than the previous year.

Total deposits stood at P67.3 billion, up 12.8 percent.

EastWest Bank has a nationwide branch network of 121. It opened eight new branches this year in Butuan City, 168 Mall, Ozamis City, General Trias, Magallanes, San Pablo City, Iloilo-Iznart and Burgos Circle. It acquired Green Bank of Caraga in August, boosting its existing network by 46 branches.

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