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The Filinvest Group's banking arm recorded net revenues of P43.4 billion, up 16 percent year-on-year, as its core lending and fee-generating businesses continued to expand.
Net interest income increased 22 percent to P36.2 billion, driven by a larger interest-earning asset base. Service charges, fees and commissions grew 10 percent to P5.8 billion.
Operating expenses rose 10 percent to P21 billion, slower than revenue growth. This improved the bank's cost-to-income ratio to 48.4 percent from 51.4 percent a year earlier.
Stronger earnings from core operations
Pre-provision operating profit climbed 24 percent to P22.4 billion, reflecting stronger earnings from core operations.
Despite improving operating performance, EastWest continued to face elevated credit risks amid economic uncertainty.
Provisions for expected credit losses reached P15.9 billion, while its non-performing loan coverage ratio stood at 90 percent.
“Our underlying businesses remain healthy, with strong revenue growth and improving operating efficiency allowing the Bank to remain profitable,” EastWest CEO Jerry G. Ngo said in a press statement.
“The current environment requires us to maintain discipline in managing risk while continuing to strengthen the franchise for the long term,” he added.
Loan portfolio, deposit base up
EastWest's total assets expanded 14 percent to P631.8 billion, while its loan portfolio grew 11 percent to P399.9 billion.
Deposits increased 12 percent to P466.4 billion, with the bank maintaining a current and savings account ratio of 77 percent.
Assets under management under EastWest Priority rose 35 percent to P145 billion.
Stock rights offering
EastWest plans to raise P9 billion through a stock rights offering to strengthen its capital base and support future expansion.
The bank maintained a capital adequacy ratio of 12.2 percent and a Common Equity Tier 1 ratio of 11.4 percent, both above regulatory minimums. —Vanessa Hidalgo | Ed: Corrie S. Narisma
