EastWest Net Income Surged 48% in 2017

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 bank’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%. “We thank our customers for our best year so far. Their continued patronage allowed us to make progress in improving productivity,” 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%.

“We are pleased to see the 48% increase in net income after 2016’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 customers’ continued trust and confidence in EastWest,” Tony Moncupa, EastWest CEO said.