EastWest posts 28% profit hike

MANILA, Philippines - EastWest Banking Corp.,the main banking unit of the Filinvest Group, posted a 28-percent increase in net income to P1.7 billion in the first nine months of the year.

The bank’s strong net income growth was bolstered by the healthy performance of its core businesses of loans and deposits. 

EastWest’s total loans registered a 40.6 percent increase to P89 billion.  Consumer lending activities remained strong as the bank posted a 35-percent growth to end the period at P47.5 billion. 

Its credit cards, auto and mortgage loans all posted-double digit growth.  Meanwhile, loans to corporates grew 47 percent to P41.5 billion at the end of the third quarter after the bank almost tripled its lending officer corps in 2012.

Total deposits grew 37.4 percent to P95.2 billion.  Low-cost deposits grew 56 percent, while high-cost deposits (inclusive of LTNCDs) increased  20 percent year-on-year to P43.08 billion. 

As a result, low-cost deposits improved to 55 percent of total deposits from 48 percent in the same period last year.

As of Oct. 31, 2013, EastWest’s total branch store network stands at 347 including that of its rural bank subsidiary.

Last year, EastWest started a major branch expansion program to bring its total network of branch stores to around 400 by the first quarter of 2014 from 122 in 2011. 

EastWest also announced plans to offer P10 billion of Basel 3 eligible securities in the form of Additional Tier 1 and/or Tier 2 capital, subject to regulatory approvals.

“Our core businesses continue to grow.  Clearly, we are feeling the cost of our branch store expansion.  We expect the full cost impact in 2014.  While this somehow depresses ROE and ROA this year and next, we remain convinced it will be value enhancing in the future and will put EastWest among the list of major Philippine banks. We are pleased with our current momentum.” said EastWest president and CEO Antonio C. Moncupa Jr.

EastWest is a subsidiary of Filinvest Development Corp. (FDC), one of the largest and well established business conglomerates in the Philippines. 

FDC, established in 1955, is identified with the Gotianun family. Aside from banking, its business interests, also include real estate, sugar, hospitality and tourism, and power generation.