The Market Monitor Minding the Nation's Business
EastWest Banking Corp. reported a 32-percent jump in net income in the first quarter to P600 million from P456 million a year ago, driven by strong growth in recurring revenue base.
The bank’s total assets increased by 20 percent to P184.7 billion from P153.8 billion in the same period last year.
With a broader branch store footprint across the country, EastWest grew its loans by 21 percent to P123.8 billion in the first quarter from P102 billion in the same period last year, propelled by the robust 33 percent growth in consumer loans.
EastWest’s consumer loans totaled P70.1 billion in the first quarter of the year from P52.7 billion a year ago, buoyed by the 59-percent growth in auto loans to P25.6 billion from P16.1 billion a year ago.
Corporate loans grew by 9 percent to P53.7 billion from last year. EastWest’s deposits, meanwhile, expanded by 19 percent to P146.9 billion from P122.9 billion.
The strategic expansion of the Gotianun family-led bank significantly strengthened its core business, with net interest income growing by 18 percent year-on-year to P2.7 billion from P2.3 billion.
“Our first-quarter results show a good start to the year and we look forward to sustaining our growth momentum in our core banking business,” EastWest CFO Rene de Borja Jr. said.
“Our major expansion phase has been completed and we now have the branch store footprint and IT infrastructure to better service our existing and new customers. Our just-concluded stock rights offering raised our capital position by P8 billion, which will allow us to continue our robust organic growth as we optimize our expansion related investments,” he added.
EastWest’s revenues from fees increased by 39 percent to P1.1 billion in the first quarter of the year from P800 million a year ago, more than offsetting the eight-percent drop in its trading gains to P297 million from P321 million in the same period last year.
EastWest generated P4.1 billion in net revenues, a 20 percent expansion from the P3.4 billion in the same period last year. Expenses, meanwhile, amounted to P2.4 billion in the first quarter, a 14 percent growth from the P2.1 billion reported a year ago.
Credit provisions went up by 33 percent to P985 million from P741 million, driven by the growth in consumer loan portfolio.