EastWest Bank books higher profit at end- Sept.

EAST WEST Banking Corp. (EastWest Bank) booked a 78% growth in its net income in the first nine months of the year, primarily driven by the bank’s robust lending activities and a spike in trading gains.

The Gotianun- led bank said in a disclosure to the Philippine Stock Exchange that its net income soared to P2.33 billion in the January- September period from P1.3 billion in the same months last year.

“We believe the worst of the pain from the expansion program that started in 2012 that saw our branch stores grow from 168 to 443, assets from P96 billion to P268.78 billion, but kept income flat at around P2 billion is behind us now,” EastWest President and CEO Antonio C. Moncupa, Jr. was quoted as saying in a statement.

“We are starting to harvest the fruits of the expansion. We expect income for the year to reach around P3 billion for at least a 50% improvement from last year. While we are yet to realize the full potential of our infrastructure and organization, we are happy to see the steady progress,” Mr. Moncupa added.

The bank’s net interest income came in at P11.21 billion in the first nine months, jumping from the P9.07 billion posted in the same period last year, boosted by gains from bank’s lending business and trading and investment securities, among others. EastWest Bank reported a 50% expansion in its consumer loan portfolio to P122.6 billion in the first nine months of the year.

Driven by the bank’s fees and commissions, its non- interest income grew 42% year-on-year. Total deposits booked a 30% increase to P216 billion in the period driven by a 31% growth in its low-cost checking and savings deposits.

This pushed the EastWest Bank’s total operating income higher to P15.7 billion from last year’s P11.91 billion.

The bank’s net profit also increased despite a rise in its total operating expenses to P12.66 billion in the period from the previous year’s P10.25 billion.

Meanwhile, in the third quarter alone, the bank’s net income jumped to P763.32 million from the P298.14 million it booked in the same period a year ago, according to its financial report filed with the bourse. Net interest income stood at P3.87 billion in the quarter, rising from 2015’s P3.23 billion. Total operating income grew to P5.3 billion from the year-ago quarter’s P3.99 billion, while total operating expenses also widened to P4.2 billion the the same three months from P3.47 billion in 2015.

As of Sept. 30, EastWest Bank has a total of 383 branches. Meanwhile, the bank’s subsidiaries have a total of 59 branches, bringing the group network total to 442.

“We have a lot to look forward to as we further grow and diversify our income sources. We now have completed our product menu as our bancassurance, non-life insurance, and wealth management are in full operating mode, while leasing will be offered as well very soon,” Mr. Moncupa said.

Shares in EastWest Bank gained four centavos or 0.21% to close at P19 apiece on Monday. —