Consumer-focused EastWest Bank sees double-digit income growth
East West Banking Corp. (EastWest) has set its sights on further widening the reach of its consumer business after the segment boosted its first-quarter earnings.
Jerry Ngo, EastWest CEO, said in a statement on Tuesday they were “committed to scaling our consumer banking business, deepening customer relationships and accelerating digital transformation.“
“We will continue investing in technology, expanding our customer base and strengthening our product offerings to sustain our momentum in the years ahead,” Ngo added.
This comes as the Gotianun-led bank booked a 6-percent rise in its bottom line to P1.8 billion during the January to March period, buoyed by strong consumer lending.
This year, EastWest expects to achieve a double-digit growth rate in its overall net income.
Net interest income climbed by 13 percent to P9.3 billion, with consumer loans growing by 15 percent. The segment now accounts for 84 percent of EastWest’s entire loan portfolio.
Meanwhile, operating expenses rose by 8.6 percent to P6.3 billion during the quarter, mostly due to manpower- and business-related costs.
10% return on equity
As of end-March, EastWest’s assets stood at P531.2 billion, up by 11 percent.
This financial performance resulted in a return on equity of 10 percent, or the same level as the first quarter of last year.
“Our first quarter performance reflects the solid momentum we’ve built in expanding our consumer franchise,” EastWest president Jackie Fernandez said in their disclosure.
“We remain focused on driving profitability through disciplined growth and operational efficiency,” Fernandez added.
EastWest has recently launched new credit card products part of efforts to boost its consumer lending.
Earlier this year, the bank launched its EastWest Puregold Visa credit card to lure more clients and expand its network.
The card offers cash-back and exclusive benefits for grocery shoppers and “sari-sari” store owners through a reward system.
Ngo earlier told reporters they had “a good strategy in place” that could improve efficiency and result in a 25- to 32-percent growth in the bank’s bottom line for the year.
