EastWest Banking Corporation (EW) recorded a strong 20 percent increase in net income, reaching P5.8 billion for the first nine months of 2024.
This growth was driven by the bank’s higher income-generating capacity, boosted by favorable securities trading in the third quarter.
Net income for the three months of the third quarter was P2.3 billion, jumping by 49 percent vs. the same quarter last year.
“Our September results reflect our sustained momentum across key segments. While we benefitted from the trading environment, it’s the strength of our core businesses that continues to drive our overall performance,” said Jerry G. Ngo, EastWest Chief Executive Officer.
EastWest’s net revenues surged 26 percent to P32.2 billion for the period, compared to the same period last year. Net interest income grew 23 percent to P25.1 billion, bolstered by the bank’s focus on consumer lending, which now accounts for 83 percent of its total loan portfolio. This focus helped maintain a strong net interest margin (NIM) of 8.1 percent, well above the industry average.
Non-interest income jumped 39 percent to P7.1 billion, driven by fees related to consumer lending and other sources.
Securities trading income, which amounted to P1.4 billion, also benefitted from the easing interest rate environment. Excluding trading income, revenues still grew by a healthy 23 percent, reaching P30.8 billion.
Operating expenses increased by 23 percent to P17.9 billion, aligned with the bank’s growing business. Despite this rise, the cost-to-income ratio improved to 55 percent, demonstrating the bank’s operational efficiency amidst revenue growth. EastWest’s total assets rose by 12 percent to P497.0 billion, with loans and receivables increasing by 13 percent to P321.3 billion, led by a strong 17 percent growth in consumer loans. Personal loans grew by 52 percent, credit card loans by 35 percent, and auto loans by 11 percent.
Deposit growth, particularly from CASA deposits, also saw a 10 percent rise to P371.0 billion, with a CASA ratio improvement to 79 percent. Capital ratios, meanwhile, remain at a healthy 13.7 percent and 12.9 percent for Capital Adequacy Ratio (CAR) and Common Equity Tier 1 (CET1) ratio respectively, well above the regulatory requirements.
EastWest is a Filipino-owned universal bank. EastWest is a subsidiary of Filinvest Development Corporation (FDC), one of the country’s leading conglomerates with a diverse range of interests including real estate, banking, hospitality& tourism, infrastructure power generation, and sugar.
