By James A. Loyola
Gotianun-led EastWest Bank (EW) reported a 48 percent jump in net income to P5.1 billion last year from the P3.4 billion booked in 2016.
“We are pleased to see the 48 percent increase in net income after 2016’s 70 percent increase. We appreciate the efforts of EWBankers that made this possible,” said EastWest CEO Tony Moncupa.
The bank’s net revenues reached P25.6 billion, 17.0 percent higher year on year. Core earnings, that exclude trading and non-recurring revenues, reached P24.2 billion, up 21.0 percent, as net interest income and fee-based income rose 19.8 percent and 29.2 percent, respectively. Trading income was at P760 million, lower by 16.6 percent.
“We thank our customers for our best year so far. Their continued patronage allowed us to make progress in improving productivity,” EW President Bobby Reyes said.
Return on Equity was at 13.8 percent, the highest reported among listed universal banks. Total assets went up by 8.8 percent.
The bank’s net interest margin (NIM) is at 7.8 percent, the highest in the banking industry mainly because of its consumer lending businesses.
NIM, net of provisions for loan losses, a metric that makes comparison among banks more meaningful, was at an industry leading 5.9 percent.
Total loans increased by 10.7 percent to P220.1 billion as consumer loans grew 17 percent to P160.3 billion. Consumer loans accounted for 71 percent of total loans.
Total deposits were up 7.7 percent to P258.7 billion. Low cost deposits grew 11.1 percent.
Operating expenses reached P13.9 billion, 19.1 percent higher versus previous year as the bank invested in broadening and deepening the senior management bench, to prime the bank for further growth moving forward.