Manila Bulletin

EastWest Bank earns ₱4.6 billion, up 43%

- By JAMES A. LOYOLA

EastWest Bank (EW) reported a 43 percent spike in net income to ₱4.6 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 ₱21.0 billion from ₱18.9 billion in the same period last year.

Net Interest Income grew by ₱714.0 million to ₱15.2 billion while fees and commission­s went up by 15 percent to ₱3.9 billion.

Securities and foreign exchange trading gains on the other hand was ₱952.8 million higher at P1.4 billion for the first nine months of the year.

Total loans grew by 13 percent to end at ₱261.5 billion, driven by consumer loans which comprise 73 percent of total loans. Total Deposits grew by 10 percent to ₱291.6 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 consumerle­d 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.”

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