EastWest profit down 17% to P3.4B
East West Banking Corp. saw its earnings drop by 17 percent in the first half of 2026 as the lender set aside more funds to cover potential credit losses despite posting double-digit growth in revenues.
The Gotianun-led bank on Friday reported a net income of P3.4 billion for the January-to-June period, down from P4.1 billion a year earlier.
The bank said higher provisions for probable losses, amid persistent macroeconomic and geopolitical uncertainties, weighed on its bottom line.
The lender, however, delivered stronger operating performance during the period.
Net revenues climbed 19 percent to P28.4 billion from P23.8 billion a year ago. This was driven by a 21-percent increase in net interest income to P23.1 billion and a 14-percent rise in non-interest income to P5.3 billion.
Operating expenses increased at a slower pace of 11 percent to P14 billion. This allowed pre-provision operating profit to jump 30 percent to P14.4 billion. EastWest’s cost-to-income ratio improved to 49.3 percent.
Still, the bank booked P10.1 billion in provisions for probable losses as it adopted what it described as a more prudent approach to recognizing and managing credit risk.
“Our core businesses continued to deliver strong growth, as reflected in the increase in net revenues and pre-provision operating profit,” EastWest CEO Jerry Ngo said.
“At the same time, we maintained a disciplined approach to credit risk while preserving our capacity to support customers and pursue sound growth opportunities,” Ngo added.
Total assets grew 16 percent to P623.9 billion, supported by a 10-percent increase in loans to P396.7 billion.
