Gotianun-led East West Banking Corp. (EastWest Bank) reported a 17-percent decline in net income to ₱3.4 billion in the first half of 2026 from the ₱4.1 billion posted in the same period last year.

In a disclosure to the Philippine Stock Exchange (PSE) on Friday, July 31, EastWest Bank said the decline was due to higher provisions for probable losses amid continued macroeconomic and geopolitical uncertainty, despite strong growth in revenues and pre-provision operating profit.

Net revenues rose 19 percent to ₱28.4 billion from ₱23.8 billion in the same period last year. Net interest income increased 21 percent to ₱23.1 billion, while non-interest income grew 14 percent to ₱5.3 billion.

Operating expenses (opex) increased 11 percent to ₱14 billion. With revenues growing faster than expenses, pre-provision operating profit rose 30 percent to ₱14.4 billion, translating to a cost-to-income ratio of 49.3 percent.

Provisions for probable losses amounted to ₱10.1 billion, reflecting the bank’s more prudent approach to recognizing and managing credit risk.

“Our core businesses continued to deliver strong growth, as reflected in the increase in net revenues and pre-provision operating profit,” EastWest President and Chief Executive Officer (CEO) Jerry G. Ngo said.

He noted, “At the same time, we maintained a disciplined approach to credit risk while preserving our capacity to support customers and pursue sound growth opportunities.”

EastWest Bank’s total assets increased by 16 percent to ₱623.9 billion, mainly due to measured lending expansion, with loans growing by 10 percent to ₱396.7 billion.

Funding remained robust, with deposits increasing by 15 percent to ₱472.9 billion while maintaining a current account and savings account (CASA) ratio of 76 percent, highlighting the bank’s stable funding base.

The bank maintained solid capital buffers, with a capital adequacy ratio (CAR) of 12.5 percent and a common equity tier 1 (CET1) ratio of 11.7 percent, well above regulatory standards even after the declaration of cash dividends last May.

During the first half, EastWest Bank strengthened its customer proposition across wealth management, payments, and digital banking. It also continued to invest in digital, data, innovation, and artificial intelligence (AI) capabilities to support future growth.

These investments are intended to simplify customer journeys, improve productivity, strengthen risk management, and enable more relevant customer engagement.

EastWest Bank applies AI with appropriate safeguards for data privacy, cybersecurity, governance, and human oversight.

“We remain focused on strengthening our core businesses while continuing to invest in capabilities that make banking easier and more relevant for our customers,” Ngo said.