EastWest Bank bullish on performance
EAST WEST Banking Corp. (EastWest Bank) is bullish on its outlook for this year despite a higher interest rate environment, its chief executive said.
EastWest Bank President and Chief Executive Officer Antonio C. Moncupa, Jr. said they remain to have a positive outlook for the bank’s performance for 2017 even amid expectations of two to three more interest rate hikes by the US Federal Reserve within the year.
Aligned with market expectations, the US central bank, at the close of its two-day Federal Open Market Committee ( FOMC) meeting last week, announced it hiked policy rates by 25 basis points to 0.75-1% for the second time in three months.
Global markets were however disappointed after the Fed only reiterated pronouncements of least three interest rate increases this 2017 and retained most of its economic projections for the United States.
Asked if he has a positive outlook for the bank this year, Mr. Moncupa said, “Oo ( Yes), positive.”
“We’re bullish. If we don’t grow by 20%, we will be very
sad,” he told reporters on the sidelines of Anvil Business Club’s Exchange Forum last Wednesday night.
Asked how the bank would be affected by the US central bank’s rate hike, Mr. Moncupa said, “It depends on the local economy. I think we’re a very strong economy.”
“Kapag pataas interest rates, ( When interest rates increase,) walang (there’s no) impact [on] trading gains. We’re expanding our loans, the industry. I think we’ll be fine. The loans are expanding that means more money,” he said.
The Gotianun-led bank saw its bottomline surge by 70% last year to reach P3.4 billion, soaring from the P2 billion it earned in 2015 on the back of robust growth in consumer loans as the bank widened its branch network.
The listed lender’s total loans stood at P202 billion by end-2016, 29% higher from the P157 billion raked in 2015.
At end-2016 it had a nationwide network of 445 branches.
Shares in EastWest Bank gained 12 centavos or 0.60% to close at P20 apiece on Thursday.