EastWest profit soars, hits P6B for last year

EW president Jackie S. Fernandez attributed the bank’s increased net income and significant asset growth to their strategic focus on consumer lending.

The robust growth in consumer loans and strong deposit generation led the EastWest Bank (EW) to reach a net income of P6.1 billion in 2023, equivalent to a 32 percent increase from the previous year.

In a report to the Philippine Stock Exchange on Friday, the Gotianun family-owned bank said it had acquired a return on equity (ROE) of 9.5 percent.

EW president Jackie S. Fernandez attributed the bank’s increased net income and significant asset growth to their strategic focus on consumer lending.

“We have effectively reversed the decline from the past two years and are resuming our trajectory towards becoming a top consumer bank in the Philippines,” Fernandez added.

It also announced its cash dividend of P0.54 per share, totaling P1.2 billion, which will be distributed to stockholders of record as of 17 May 2024, with the payout scheduled for 31 May 2024.

Net revenues rose by 26 percent to P35.7 billion, driven by a 25 percent growth in consumer lending portfolio accounting for 80 percent of total loans. It is said to have the highest proportion among its peers.

Deposits swing higher

Total deposits climbed by 8 percent to P356.5 billion due to a 12 percent increase in current account savings account deposits.

Meanwhile, non-interest income had a 51 percent value to be P7.4 billion.

“This includes a significant contribution from fees and commission, which rose by 26 percent to P4.8 billion, aligning with the growth in banking transactions tied to lending activities,” EW said, further noting that they have invested more in manpower and technology to expand the bank’s capacity and enhance its efficiency resulting to a 19 percent surge in its operating expenses, totaling P20.3 billion.

This approach has led the bank’s cost-to-income ratio to 56.9 percent from 60.2 percent the previous year.

“Total assets have grown by 10 percent to P464.2 billion, and total loans and receivables have expanded by 15 percent to P296.6 billion, supported by strong consumer demand,” the EW report read.

“Capital adequacy remains robust, with the capital adequacy ratio and common equity Tier 1 ratio at 13.8 percent and 13.0 percent, respectively, well above regulatory requirements,” it added.