EastWest bank net profit surges 43% to P4.6 billion

Published November 11, 2019, 12:00 AM

by manilabulletin_admin

By James A. Loyola

EastWest Bank (EW) reported a 43 percent spike in net income to P4.6 billion for the first nine-months of 2019 due to higher fees, improving margins, higher trading gains, and lower credit costs.

In a disclosure to the Philippine Stock Exchange, the bank said its revenues rose 11 percent to P21.0 billion from P18.9 billion in the same period last year.

Net Interest Income grew by P714.0 million to P15.2 billion while fees and commissions went up by 15 percent to P3.9 billion.

Securities and foreign exchange trading gains on the other hand was P952.8 million higher at P1.4 billion for the first nine months of the year.

Total loans grew by 13 percent to end at P261.5 billion, driven by consumer loans which comprise 73 percent of total loans. Total Deposits grew by 10 percent to P291.6 billion, with CASA deposits growing by 16 percent from the previous year.

“In the first half of the year, we faced a margin squeezed. Our asset yields went up by 73 bps while our interest expenses doubled from the tight liquidity,” EW President and Deputy CEO Bobby S. Reyes said.
He noted that, “market liquidity had started to normalize in the 3rd quarter and funding cost went lower. We are proud to see our consumer-led business model works.”

“While EastWest has yet to realize its full potential from its past investments, we are on track to have our most profitable year,” said EW Chief Executive Tony C. Moncupa.

He added that, “We are grateful for the continued support of our customers and the hard work of EWBankers. With their backing, we are confident that EastWest will continue to grow and maintain its position among the most profitable banks in the industry.”