R945

East­West Bank profit falls 22% to M

Manila Bulletin - - Business News -

East­West Bank­ing Corp.’s (East­West Bank) net in­come fell 22 per­cent year-on-year in the first quar­ter to R945.4 mil­lion be­cause of trad­ing losses and the dis­con­tin­ued teach­ers’ loan of­fered by its ru­ral bank unit.

Bank pres­i­dent and deputy CEO, Bobby Reyes, said they “re­main hope­ful" that they could "con­tinue our track record of not los­ing for a whole year” de­spite trea­sury-re­lated losses of R136.5 mil­lion as of end-March.

EW Ru­ral Bank (EWRB)’s lower con­tri­bu­tion to over­all net in­come was also cited for the de­cline in net in­come. With­out these is­sues, the Go­tia­nunowned bank would have re­ported an in­come in­crease of 45 per­cent for the quar­ter, ac­cord­ing to the bank.

It ex­plained in a state­ment that the De­part­ment of Ed­u­ca­tion (DepEd) sus­pended new loans to teach­ers pend­ing the re­newal of the terms of the De­part­ment’s Au­to­matic Pay­roll De­duc­tion Sys­tem (APDS) last Novem­ber, 2017. “This heav­ily im­pacted EWRB given loans to pub­lic school teach­ers com­prise its main busi­ness.” (LCC)

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