Consumer loans boost EastWest Bank income
Gotianun family-led EastWest Banking Corp. posted higher earnings in the first nine months as more customers booked loans during the period.
The bank on Monday said its net income had gone up by 14 percent to P6.6 billion.
Revenues also improved by 16 percent to P37.3 billion, driven mainly by its robust net interest income that reached P29.7 billion.
This, as EastWest’s high-margin consumer lending business grew by 17 percent, accounting for 85 percent of the group’s total loan portfolio.
“Our core consumer banking business is thriving, aligning perfectly with the evolving needs of our customers. Our strategic funding initiatives are likewise effectively supporting our growth plans and fortifying our funding structure,” said EastWest chief executive officer Jerry Ngo.
“These critical components have significantly contributed to our steady revenue generation,” he added.
Fee income, which covers service charges, likewise jumped 27 percent to P5.3 billion.
Operating costs reached P19.2 billion, up 7 percent, as the bank continued its expansion.
On the funding side, total deposits rose by 12 percent to P415.8 billion.
Total assets as of end-September stood at P552.9 billion.
Capital adequacy ratio and common equity tier 1 ratio stood at 13.6 percent and 12.7 percent, respectively, both of which were above the regulatory requirements.
“We continue to manage risks actively and ensure that provisions are adequate. Combined with our operational efficiencies, these have resulted in robust and sustainable profitability,” Ngo said.
The group earlier teamed up with AutoDeal, an online automotive marketplace, to provide Filipinos with greater access to auto financing.
It has also upgraded its mobile banking platform “EasyWay,” allowing customers to access personal loan, credit card applications and digital account opening for both peso and foreign currency deposits.
