EastWest Banking Corp. posted a first-half net income of P3.4 billion as robust lending and revenue growth were tempered by a sharp increase in provisions for potential loan losses. This underscores the banking sector’s increasingly cautious stance amid persistent macroeconomic and geopolitical uncertainties.
The Filinvest-led lender grew net revenues 19 percent year on year to P28.4 billion, powered by a 21 percent increase in net interest income to P23.1 billion and a 14 percent rise in non-interest income to P5.3 billion.
Operating expenses increased 11 percent to P14 billion, allowing pre-provision operating profit to jump 30 percent to P14.4 billion. The bank’s cost-to-income ratio improved to 49.3 percent, reflecting stronger operating efficiency.
The stronger core earnings, however, were partly offset by P10.1 billion in provisions for probable losses as EastWest adopted a more conservative approach to recognizing and managing credit risk. The move mirrors a broader industry trend, with banks choosing to build larger buffers even as credit demand remains healthy.
“Our core businesses continued to deliver strong growth, as reflected in the increase in net revenues and pre-provision operating profit,” EastWest Chief Executive Officer Jerry G. Ngo said. “At the same time, we maintained a disciplined approach to credit risk while preserving our capacity to support customers and pursue sound growth opportunities.”
EastWest’s balance sheet remained solid. Total assets expanded 16 percent to P623.9 billion, while loans grew 10 percent to P396.7 billion. Deposits rose 15 percent to P472.9 billion, anchored by a high 76 percent current and savings account (CASA) ratio that continued to provide a stable, low-cost funding base.
The bank also maintained healthy capital levels, with a capital adequacy ratio of 12.5 percent and a Common Equity Tier 1 ratio of 11.7 percent, comfortably above regulatory requirements.
Beyond the numbers, EastWest continued investing in digital banking and artificial intelligence, rolling out Garmin Pay, enhancing its EastWest Priority platform, and strengthening AI-driven customer services through ESTA, its award-winning virtual assistant. It also waived InstaPay transfer fees starting July 15 in support of the Bangko Sentral ng Pilipinas’ push for wider adoption of digital payments and greater financial inclusion.
“We remain focused on strengthening our core businesses while continuing to invest in capabilities that make banking easier and more relevant for our customers,” Ngo said.
