EastWest earns 48% more in 2017, tops banks’ ROE

Earnings of Gotianun-led EastWest Banking Corp. jumped 48 percent last year, allowing it to book the highest return on equity (ROE) among listed universal banks at 13.8 percent.

EastWest said in a report to the Philippine Stock Exchange (PSE) it recorded a net income of P5.1 billion last year, P1.7 billion higher than the P3.4 billion registered in 2016.

Antonio Moncupa Jr., vice chairman and chief executive officer of EastWest, said the bank was pleased to see the 48 percent increase in net income after the 70 percent improvement in 2016.

“We appreciate the efforts of EWBankers that made this possible. I am sure these results will only motivate our colleagues to continue to exert efforts to serve our customers better and show their deep appreciation for our customers’ continued trust and confidence in EastWest,” he said.

The net revenue of the country’s 13th largest bank in terms of assets jumped 17 percent to P25.6 billion last year from P21.9 billion in 2016.

Core earnings, that exclude trading and non-recurring revenues, surged 21 percent to P24.2 billion as net interest income and fee-based income rose 19.8 percent and 29.2 percent, respectively.

EastWest said its trading income fell 16.6 percent to P760 million due to the volatile financial markets.

The bank’s investments in broadening and deepening the senior management bench resulted in a 19.1 percent increase in operating expenses to P13.9 billion.

“We thank our customers for our best year so far. Their continued patronage allowed us to make progress in improving productivity,” EastWest president Jesus Roberto Reyes said.

Its loan portfolio registered a double-digit 10.7 percent increase to P220.1 billion as consumer loans went up 17 percent to P160.3 billion and accounted for 71 percent of the total loan book.

“EastWest is the most consumer centric universal bank in the country,” Reyes said.