EastWest earnings drop 24% to P5 billion

MANILA, Philippines — East West Banking Corp. saw its net income fall by 24.2 percent to P5 billion in the first nine months of 2026, from P6.6 billion a year ago, as the lender booked higher provisions for potential credit losses amid a tougher economic environment.

The decline came despite double-digit revenue growth, reflecting the impact of heightened credit risks on the consumer-focused bank’s earnings.

Provisions for expected credit losses reached P15.9 billion during the nine-month period as EastWest responded to a more challenging and uncertain macroeconomic environment. Its non-performing loan coverage ratio stood at 90 percent.

“Our underlying businesses remain healthy, with strong revenue growth and improving operating efficiency allowing the bank to remain profitable,” EastWest CEO Jerry Ngo said.

“The current environment requires us to maintain discipline in managing risk while continuing to strengthen the franchise for the long term,” he added.

Net revenues climbed by 16.4 percent to P43.4 billion from P37.3 billion in the same period last year. Net interest income jumped by 22 percent to P36.2 billion from P29.7 billion.

Service charges, fees and commissions likewise increased by 10 percent to P5.8 billion.

Expenses grew at a slower pace than revenues, rising by 10 percent to P21 billion from P19.2 billion a year ago. This helped improve EastWest’s cost-to-income ratio to 48.4 percent from 51.4 percent.

Pre-provision operating profit, which measures earnings before setting aside funds for potential loan losses, expanded by 24 percent to P22.4 billion.

EastWest’s balance sheet also continued to grow, with total assets rising by 14 percent to P631.8 billion from P552.9 billion a year earlier.

Loans increased by 11 percent to P399.9 billion, while deposits climbed by 12 percent to P466.4 billion. Current account and savings account deposits accounted for 77 percent of the lender’s deposit base.

Meanwhile, assets under management at EastWest Priority surged by 35 percent to P145 billion as the bank continued to expand its wealth management business.

Capital buffers remained above regulatory minimums, although key ratios were lower than year-ago levels. EastWest’s capital adequacy ratio stood at 12.2 percent from 13.6 percent a year ago, while its common equity tier 1 ratio eased to 11.4 percent from 12.7 percent.

The bank is planning a P9-billion stock rights offering, which is expected to reinforce its capital base and provide additional room for future growth.

“Our priority is to navigate the current environment with financial and risk discipline without losing sight of the bank’s longer-term opportunities,” Ngo said.

“By maintaining a strong operating franchise while actively managing risks, we are positioning EastWest to weather near-term uncertainties while building the capabilities needed for sustainable growth,” he added.