Gotianun-led EastWest Bank (EW) reported net income of P5.1 billion in 2017, 48% higher than the P3.4 billion booked in 2016. Return on Equity was at 13.8%, the highest reported among listed universal banks. Total assets went up by 8.8%.
The bank net interest margin (NIM) is at 7.8%, the highest in the banking industry mainly because of its consumer lending businesses. NIM, net of provisions for loan losses, a metric that makes comparison among banks more meaningful, was at an industry leading 5.9%. Return on Assets was at 1.7%.
The bankâ€™s net revenues reached P25.6 billion, 17.0% higher year on year. Core earnings, that exclude trading and non-recurring revenues, reached P24.2 billion, up 21.0%, as net interest income and fee-based income rose 19.8% and 29.2%, respectively. Trading income was at P760 million, lower by 16.6%. â€śWe thank our customers for our best year so far. Their continued patronage allowed us to make progress in improving productivity,â€ť EW President Bobby Reyes said.
Operating expenses reached P13.9 billion, 19.1% higher versus previous year as the bank invested in broadening and deepening the senior management bench, to prime the bank for further growth moving forward.
Total loans increased by 10.7% to P220.1 billion as consumer loans grew 17% to P160.3 billion. EastWest is the most consumer centric universal bank in the country. Consumer loans account for 71% of total loans. Total deposits were up 7.7% to PhP258.7 billion. Low cost deposits grew 11.1%.
â€śWe are pleased to see the 48% increase in net income after 2016â€™s 70% increase. We appreciate the efforts of EWBankers that made this possible. I am sure these results will only motivate our colleagues to continue to exert efforts to serve our customers better and show their deep appreciation for our customersâ€™ continued trust and confidence in EastWest,â€ť Tony Moncupa, EastWest CEO said.