The decision last year of the Gotianun Group’s EastWest Bank to focus on consumer lending and growing its deposit base paid handsome dividends as this helped lift net income by 32 percent to P6.1 billion.
And its shareholders will get a good piece of the profits as EastWest Bank declared total cash dividend of P1.2 billion, or P0.54 a share for stockholders on record May 17. At its share price close of P9.10 on Friday, the dividend yield would be 5.9 percent. It will be paid on May 31.
Return on equity for 2023 stood at 9.5 percent.
“Our strategic focus on consumer lending has paid off with significant asset growth leading to a notable increase in our net income. We have effectively reversed the decline from the past two years and are resuming our trajectory towards becoming a top consumer bank in the Philippines,” said Jackie Fernandez, president of EastWest Bank.
The bank reported 26 percent surge in net revenue to P35.7 billion. Topline growth was fueled by a 25 percent increase in consumer lending portfolio, which comprise 80 percent of total loans, the highest proportion among its peers.
Total deposits grew 8 percent to P356.5 billion, largely due to a 12 percent increase in current account/savings account deposits—a low-cost source of funds for lending.
Non-interest income soared 51 percent, amounting to P7.4 billion. Income from fees and commission rose by 26 percent to P4.8 billion.
EastWest Bank said operating expense increased 19 percent to P20.3 as it aggressively invested in manpower and technology to expand capacity and improve efficiency.
The bank saw double-digit growth in total assets to P464.2 billion as well as in total loans and receivables to P296.6 billion.
Capital adequacy remains robust with capital adequacy ratio and common equity Tier 1 ratio at 13.8 percent and 13.0 percent, respectively, well above regulatory requirements.
