East West Banking Corporation (EastWest) Reported a PHP 6.1 Billion Net Income, Up 32%

Gotianun-led EastWest Bank generated P6.1 billion in net income in 2023, 32% more than the previous year, because of continued consumer loan growth and robust deposit production. ROE stood at 9.5%.

“We witnessed significant growth in our major assets, our consumer loans portfolio. This translated to a remarkable jump in our net income as we doubled down on our strength in consumer lending. We reversed our 2 years of continuous decline and resumed our quest to be one of the top consumer banks in the country,” EW President, Jackie S. Fernandez, said.
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Net revenues rose 26% to P35.7 billion, owing primarily to a 25% increase in the company's consumer lending portfolio. EW's consumer lending portfolio accounts for approximately 80% of total loans, the highest among its peer banks. This was aided by stable funding sources, as total deposits increased by 8% to P356.5 billion, driven mostly by CASA deposits, which increased by 12%, or P31.5 billion, to P292.4 billion. The exceptional gain in CASA, which outperformed industry growth by 3%, can be credited to the bank's renewed focus on cash management services, particularly for the MSME sector. This enabled the bank to maintain its net interest margin (NIM) of 7.6%.

Meanwhile, non-interest revenue increased by 51%, reaching P7.4 billion. Fees and commissions rose 26% to P4.8 billion as banking transactions climbed in tandem with loan growth. Trading income also contributed P993.6 million to non-interest income growth, increasing more than fivefold since 2022.

Operating expenses increased by 19% to P20.3 billion, driven mostly by greater labor and information technology costs to expand capacity and enhance efficiency, as well as business-related expenses linked with lending activities. The quicker revenue increase resulted in an improved operating efficiency or cost-to-income ratio of 56.9%, up from 60.2% last year.
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Total assets ended at P464.2 billion, up 10% from the same quarter last year, while total loans and receivables increased 15% to P296.6 billion as the bank benefited from high demand for consumer loans. Meanwhile, total deposits increased by 8% to P356.5 billion. Capital ratios remain at a strong 13.8% and 13.0% for the Capital Adequacy Ratio (CAR) and Common Equity Tier 1 (CET1) ratios, respectively, far exceeding regulatory standards.

In 2023, EastWest Bank received considerable recognition from prestigious publications and organizations in the banking and financial services industry, confirming its dedication to excellence and client service. These recognitions underline EastWest's position as a leading universal bank committed to providing excellent financial solutions and experiences that contribute to the country's prosperity.

EastWest Priority, the bank's wealth banking service, has received praise for its extensive range of advantages, which include customized help from dedicated Relationship Managers, tailored wealth management solutions, and exclusive lifestyle benefits via premium debit and credit cards. Global Finance Magazine named EastWest Priority the Philippines' Best Private Bank in 2024, citing its adaptability throughout the pandemic and ongoing client engagement activities. International Finance Magazine also recognized EastWest Priority as the Best Priority Banking Experience, supporting the company's reputation for providing great service and value to affluent clientele.

Meanwhile, International Finance named EastWest's breakthrough digital banking service, Komo, the Most Innovative Smart Banking Services Provider, recognizing its contribution to making financial solutions more accessible and user-friendly, especially during the epidemic. Furthermore, EastWest's collaboration with JCB led to the EastWest JCB Credit Card being named the Best Credit Card in the Philippines by Asian Banker, which recognized its unique advantages and value-added features for cardholders. These honors demonstrate EastWest's continued commitment to innovation, customer-centricity, and financial industry excellence.

“We entered 2024 with good momentum, but much work still needs to be done in growing and improving the Bank. We need to rise further, face the challenges and potential headwinds. Our goal is clear, to become one of the top consumer banks in the Philippines.” EW Chief Executive Officer (CEO), Jerry G. Ngo said.

East West Banking Corporation (EastWest) is a Filipino-owned universal bank. EastWest is a subsidiary of Filinvest Development Corporation (FDC), one of the country’s leading conglomerates with a diverse range of interests including real estate, banking, hospitality & tourism, infrastructure power generation, and sugar. It is not affiliated with any foreign financial institution which may bear the same name.