The full impact of the Gotianun-led EastWest Bank (EWB) 2022 asset build-up has started to bear fruit in the first three months of the year as the Bank posted a net income of P1.6 billion, three times higher than the same period last year of P508 million. Return on Equity stood at 10.2 percent.
Net revenues were 34 percent higher at P7.8 billion on the back of lending expansion that brought net interest income (NII) to P6.1 billion, 17 percent or P900 million higher from last year. Broken down, interest income grew by P1.8 billion, coming largely from loans, while interest expense grew by P870 million as the higher interest rate environment manifested in higher funding costs. Nonetheless, the Bank’s net interest margin (NIM) ended at 7.4 percent.
Complementing revenues were higher non-interest income which grew by 2.8x to P1.7 billion. Fees and commissions surged by 71 percent as banking transactions continued to improve. In contrast to last year’s trading losses, gains on trading also contributed to the revenue growth this year.
“The bank is fortunate to ride the tailwinds of the country’s economic recovery and we are already seeing the results of our decision to accelerate lending activities last year. This resulted to core revenues growing by 26 percent. We expect this momentum to continue moving forward.” EW President Jackie Fernandez said.
Meanwhile, operating expenses were at P4.8 billion, driven largely by investing in manpower, IT development and business-related expenses. The bank continues to invest on IT systems meant to improve its digital services to customers and employees. Cost-to-income ratio improved to 61 percent.
Total assets ended at ₱403 billion as the bank deployed its excess liquidity towards high-yielding consumer loans and long-term securities. Loans of ₱260.8 billion grew by 19 percent, driven by credit cards, auto and key salary loan segments.
