EastWest nets P6.6 billion on strong lending

MANILA, Philippines — East West Banking Corp. sustained its growth momentum from January to September, posting a 14-percent increase in net income to P6.6 billion on the back of stronger lending and higher fee-based revenues.

“Our core consumer banking business is thriving, aligning perfectly with the evolving needs of our customers,” EastWest CEO Jerry Ngo said.

“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,” Ngo said.

The Gotianun-led bank’s return on equity stood at 11.6 percent as total revenues climbed 16 percent year-on-year to P37.3 billion.

Net interest income grew by 18 percent to P29.7 billion, fueled by the continued expansion of its consumer lending business, which rose by 17 percent and now accounts for 85 percent of total loans.

Fee income surged by 27 percent to P5.3 billion, reinforcing the performance of EastWest’s core operations.

Operating expenses rose at a slower pace of seven percent to P19.2 billion, driven by investments in personnel and business expansion. The bank’s cost-to-income ratio improved by 412 basis points to 51.4 percent, reflecting gains from productivity and digital efficiencies.

Total assets grew by 11 percent to P552.9 billion, supported by a 12 percent rise in deposits to P415.8 billion. The bank maintained a high current and savings account ratio of 81 percent, while assets under management through its priority banking business surpassed the P100-billion mark.

Capital levels remained solid, with a capital adequacy ratio of 13.6 percent and a common equity tier 1 ratio of 12.7 percent, both well above regulatory requirements.

“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,” Ngo said.

EastWest is a Filipino-owned universal bank and a subsidiary of Filinvest Development Corp.