EastWest Banking Corp. reported P3.5 billion in net income in the first half of 2024 on the back of consistent core revenue growth from a bigger asset base and higher yields.
Net revenue rounded the period at P20.3 billion, up 24 percent from the same period last year, largely driven by net interest income growth of 28 percent to P16.6 billion. Net interest margin (NIM) widened to 8.1 percent resulting from focused growth in consumer lending, which accounts for 82 percent of the bank’s total loan portfolio. Non-interest income, meanwhile, contributed P3.7 billion, up 12 percent despite lower trading income. This was primarily driven by fee income growth of 19 percent to P2.7 billion, from consumer lending-related fees and service charges.
The bank’s operating expenses grew slower than revenue, rising 22 percent to P11.6 billion driven by manpower, business-related, advertising, and marketing expenses in line with balance sheet growth initiatives to improve market share in target segments. Cost-to-income ratio improved to 57 percent in line with the industry, despite its predominantly-consumer loan portfolio.
EastWest’s total assets totaledP495.6 billion, growing 14 percent from the same period last year. The bank is on track to end the year with over P500 billion in assets. Total loans and receivables also grew 15 percent to P314.1 billion, driven by the 22 percent growth in consumer loans, led by personal loans (up 54 percent), credit cards (up 34 percent), and auto loans (up 22 percent).
This was supported by funding from deposits which grew by 11 percent to P371.4 billion, anchored on a CASA ratio of 77 percent. Capital ratios stand at a healthy 13.1 percent and 12.3 percent for capital adequacy ratio (CAR) and common equity tier 1 (CET1) ratio respectively, well above the regulatory requirements.
EastWest has also been recognized in the first half of 2024 by The Digital Banker’s Digital CX Awards – Outstanding Digital CX in Banking App Platform (Komo) and Outstanding Digital CX Transformation in Insurance (EastWest Ageas).
“Our 30th anniversary is not just a celebration of our past achievements, but also a reaffirmation of our commitment to continuous improvement and innovation. The launch of EasyWay and our upcoming initiatives for our channels, both physical and digital, are just the beginning of many developments to come,” said Jerry G. Ngo, EastWest CEO.
