EastWest posted a net income of P4.9 billion in the first nine months of 2023, exceeding the full year net income of 2022. Strong loan growth pushed EastWest’s financial performance further, past pandemic levels. Return on equity stood at 10.3%.
Comparing against the same period last year, net income was higher by 60% from P3.0 billion, as revenues increased by 26% to P25.6 billion, driven mostly by the growth of its consumer lending portfolio. Its consumer lending portfolio accounts for 79% of total loans, grew by 26% led by credit cards, auto, salary and personal loan segments. This was supported by stable funding sources as total deposits grew by 6% to P338.0 billion, almost entirely from CASA deposits. This allowed the Bank to sustain its net interest margin (NIM) expansion to 7.7%.
Meanwhile, non-interest income, grew by 59% to P5.1 billion. Fees and commission increased 35% to P3.5 billion as banking transactions grew in line with lending growth. Trading income also contributed P453.5 million to non-interest income growth, despite the volatile macroeconomic environment.
Operating expenses stood at P14.6 billion, growing by 16%, still driven largely by manpower, IT and business-related expenses. “We continue to invest heavily on our people and technology to enhance customer experience as their needs continuously evolve and our processes become more efficient. This aligns with our goal of becoming a consumer bank of choice, providing easier access to credit to those who need it,” EastWest CEO, Jerry G. Ngo said.
Total assets ended at P444.7 billion, growing by 10% from the same period last year, while total loans and receivables grew by 18% or P44.1 billion to P283.7 billion, as the Bank continued to benefit from the sustained demand for consumer loans. Meanwhile, total deposits grew 6% to P338.0 billion, with CASA deposits growing by 7%.
Capital ratios continue to stand at a healthy 13.7% and 12.9% for Capital Adequacy Ratio (CAR) and Common Equity Tier 1 (CET1) ratio, respectively, well above the regulatory requirements.
“Our nine-month results that surpassed last year’s net income came from the steady growth in our core recurring income. Our asset base continues to expand as we focus our efforts on higher-yielding loans and low-cost deposits. Profitability however, is still far from where it used to be but with our growth momentum, we’ll get there soon”, Jerry added.
The Bank’s accolades this year reflect its unwavering commitment to providing exceptional customer experiences and maintaining its clients’ trust, notably securing places in The Asian Banker's “Top 500 Strongest Banks” and “Top 500 Largest Banks in Asia Pacific”, and receiving “Best Credit Card in the Philippines” award for the recently launched EastWest JCB credit card.
EastWest’s excellence extends to corporate governance with the prestigious ACGS Golden Arrow Award from the Institute of Corporate Directors (ICD), solidifying its position as a beacon of success and reliability. The recent recognition of EastWest Priority as the “Best Private Bank” by Global Finance, following its earlier win as “Best Priority Banking Experience” at the IFM awards further highlights its dedication to excellence and the enduring trust its clients have.
Moreover, the Bank has taken a pioneering step with its recent milestone, EastWest Pay, the first-in-market in-store mobile payment application powered by EastWest Visa credit cards. This cutting-edge platform ensures secure, hassle-free transactions through NFC-capable Android devices, redefining convenience and safety for its customers. “We take immense pride in introducing EastWest Pay, a testament to our unwavering commitment to enhancing our product and service offerings for the benefit of our valued customers. This initiative represents our dedication to ‘Your dream, our focus,’” concluded Ngo, as EastWest continues to set the bar high in the financial industry through its customer-centric solutions.