Gotianun-led EastWest Bank (EW) reported that its net income inched up six percent to P1.7 billion in the first quarter of 2024 from the P1.6 billion registered in the same period last year.
In a disclosure to the Philippine Stock Exchange, the bank said the growth is backed by its consistent consumer lending expansion and strategic digital initiatives.
EastWest said it has reinforced its commitment to providing personalized and accessible financial solutions which now underpin its consumer lending services.
The consistent consumer lending expansion to start the year greatly contributed to a robust Return on Equity (ROE) of 10.0 percent, 52 basis points higher than end-2023.
Net revenues stood at P10.0 billion, up by 28 percent from the same period last year, driven by net interest income growth of 34 percent to P8.2 billion.
This growth is largely attributed to the Bank’s strategic emphasis on refined consumer lending strategies, which enhanced its lending processes, accounting for 81 percent of total loans and contributing to a net interest margin (NIM) of 8.1 percent.
Meanwhile, non-interest income was at P1.8 billion, up 9 percent in line with banking transaction growth.
“Our robust start to the year is a clear indicator of the strategic direction we’ve set — to be one of the top consumer banks in the country,” said EastWest Bank President Jacqueline S. Fernandez.
She noted that, “By focusing on the needs of our customers, we are not just responding to the market — we’re shaping it. This positions EastWest as a formidable contender in the Philippine banking industry, ready to meet future challenges with agility and confidence.”
The Bank’s operating expenses rose by 22 percent to P5.8 billion driven by manpower and business-related expenses to expand the Bank’s balance sheet as well as investments in technology to allow for a more efficient delivery of services.
Cost-to-income ratio of the Bank improved to 58 percent in line with the industry, despite its predominantly-consumer portfolio.
EastWest’s total assets ended at P480.4 billion, growing by 19 percent from the same period last year. Total loans and receivables also grew by 19 percent to P306.1 billion largely driven by the growth of consumer loans such as credit cards, auto, personal, and salary loans.
Meanwhile, total deposits grew 12 percent to P356.6 billion.
EastWest Bank Chief Executive Officer Jerry G. Ngo said “We entered 2024 with strong momentum and a clear focus on enhancing our capabilities to better serve our customers. As we celebrate our 30th anniversary, we are driven by our commitment to exceed our customers’ evolving expectations, uniquely combining the warmth of Eastern hospitality with Western innovation to maintain our leadership in the competitive banking landscape.”