Gotianun-led EastWest Bank (EW) made remarkable progress once again, announcing its financial results for 2023 and highlighting a strong performance with a net income of P6.1 billion, representing a 32 percent increase from the previous year.
This growth has been driven primarily by robust consumer loan growth and strong deposit generation, with the bank’s return on equity (ROE) reaching 9.5 percent.
“Our strategic focus onconsumer lending has paid off with significant asset growth leading to a notable increase in our net income. We have effectively reversed the decline from the past two years and are resuming our trajectory towards becoming a top consumer bank in the Philippines,” Jackie S. Fernandez, President of EastWest, said.
In recognition of the strong financial results and to share the success with its shareholders, EastWest is pleased to announce a cash dividend of P0.54 per share, totaling P1.2 billion.
This dividend will be distributed to stockholders of record as of May 17, 2024, with the payout scheduled for May 31, 2024.
This decision reflects the bank’s commitment to delivering value to its shareholders and its confidence in the bank’s continued financial health.
The bank’s net revenues surged by 26 percent to P35.7 billion, propelled by a 25 percent increase in its consumer lending portfolio, which now constitutes 80 percent of total loans, the highest proportion among its peers. Total deposits grew by 8 percent to P356.5 billion, largely due to a 12 percent increase in CASA deposits.
Non-interest income saw a remarkable increase of 51 percent, amounting to P7.4 billion.
This includes a significant contribution from fees and commission, which rose by 26 percent to P4.8 billion, aligning with the growth in banking transactions tied to lending activities.
EastWest became more aggressive in investing in manpower and technology to expand capacity and enhance efficiency. This led to a 19 percent increase in its operating expenses, totaling P20.3 billion. This strategic spending has improved the bank’s cost-to-income ratio to 56.9 percent, down from 60.2 percent the previous year.
Total assets have grown by 10 percent toP464.2 billion, and total loans and receivables have expanded by15 percent to P296.6 billion, supported by strong consumer demand.
Capital adequacy remains robust with Capital Adequacy Ratio (CAR) and Common Equity Tier 1 (CET1) ratio at 13.8 percent and 13.0 percent respectively, well above regulatory requirements.
