EastWest Bank profit falls 22% to M
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)