The Market Monitor Minding the Nation's Business
East West Banking Corp. (EastWest) reported a net profit of P2.33 billion for the first nine months which was 78 percent higher from a year ago with net interest income delivering a 24 percent growth in the period to P11.21 billion.
Non-interest income excluding trading ballooned by 42 percent mostly from fees and commissions.
The bank’s net revenues at P15.70 billion registered a 32 percent improvement with core recurring earnings growth of 27 percent reaching P14.59 billion during the period.
East West has set its income for the year to reach around P3 billion or a 50 percent increase from last year.
“We believe the worst of the pain from the expansion program that started in 2012 that saw our branch stores grow from 168 to 443, assets from P96 billion to P268.78 billion, but kept income flat at around P2 billion is behind us now. We are starting to harvest the fruits of the expansion. We expect income for the year to reach around P3 billion for at least a 50 percent improvement from last year. While we are yet to realize the full potential of our infrastructure and organization, we are happy to see the steady progress,” EastWest President and CEO Tony Moncupa Jr said.
Total assets of P268.78 billion expanded by 26 percent from a year ago which was attributed to expansion in customer base and market share with EastWest network of 443 stores to date growing almost triple its 168 consolidated nationwide network five years ago.
The consumer loan portfolio expanded 50 percent to P122.6 billion as the bank continues to perform its strong position in this segment, and is affirmed by the “Best Consumer Finance Product” award it recently received from The Asian Banker Philippine Country Awards 2016 for its innovative and versatile multipurpose personal loans.
Deposits grew 30 percent to P216 billion, supported by a 31 percent growth in low-cost checking and savings deposits.
“We have a lot to look forward to as we further grow and diversify our income sources. We now have completed our product menu as our bancassurance, non-life insurance, and wealth management are in full operating mode, while leasing will be offered as well very soon,” Moncupa said.
He said the bank’s unit EastWest Leasing and Finance Corp (EastWest Leasing) is expected to contribute further to the bank’s growth.
The bank’s joint venture with Belgium-based Ageas Insurance, now branded ‘Troo’, has begun its bancassurance operations last April. EastWest also formed the EastWest Insurance Brokerage Inc.
Last May, EastWest Bank entered into an agreement with Standard Chartered Bank Philippines (SCB PH) to migrate to EastWest the retail banking business of SCB PH, which includes credit cards, personal loans, wealth management, and retail deposits. Migration of SCB accounts is ongoing and the transfer will be completed before the year ends. RIZA LOZADA