EastWest net up 28%

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    Gotianun-led EastWest Bank (EW) posted a 28 percent increase in Net Income to P5.9 billion in the first 9 months of the year from last year’s P4.6 billion due to higher Net Interest Margins and higher Trading Gains.

    The bank further reported that its Net Revenues rose by 27 percent to P26.7 billion from the previous year. Net Interest Income which accounts for 75 percent of its revenues, was at P20.1 billion, 33 percent higher than 2019, mostly due to lower funding costs.

    “We now revise our net income estimate for the year to at least P7.0 billion. While we expect Net Interest Margins to hold and income before Loan Loss Provisions to trend higher, there are still epidemiological uncertainties from the virus and its full economic impact is still playing out. While we certainly hope that we can soon return to normal life, we want to be prepared to increase provisions for losses as the pandemic damage unfold and ensure the continued resilience of our balance sheet”, EW CEO Tony Moncupa said.

    The bank sustained its industry leading margins, with Net Interest Margin at 8.3 percent.

    Non-interest Income, on the other hand, increased by 13 percent to P6.6 billion mostly accounted for by the three-fold increase in fixed income securities Trading Gains.

    Fees and Commissions were 25 percent lower at P3.0 billion due to the general slowdown in business activities as a result of the lockdowns, the Bayanihan Act, and assistance to customers.

    Meanwhile, Operating Expenses, excluding Provisions for Losses, decreased by 3 percent to P12.0 billion. Cost-to-income ratio improved to 45 percent from last year’s 59 percent.

    The bank continued to book higher Loan Loss Provisions, with P2.2 billion for the third quarter.