East West Banking Corporation Reported P1.7 Billion in Net Income in Q12024

EastWest Bank (EW), led by Gotianun, maintained its momentum in the first three months of 2024, with a net income of P1.7 billion, owing to continued consumer lending expansion and innovative digital efforts. In its 30th year, EastWest has reaffirmed its commitment to provide tailored and accessible financial solutions, which now underpin its consumer loan services. The sustained increase in consumer credit to start the year considerably contributed to a strong Return on Equity (ROE) of 10.0%, 52 basis points better than at the end of 2023.

Revenues from sales were P10.0 billion, up 28% from the same period last year, with net interest income rising 34% to P8.2 billion. This expansion is largely due to the bank's strategic focus on refined consumer lending techniques, which improved its lending procedures, accounting for 81% of total loans and leading to an 8.1% net interest margin (NIM). Meanwhile, non-interest revenue increased by 8% to P1.2 billion, in line with rising banking transaction volumes.

In reflecting on these achievements, Jacqueline S. Fernandez, President of EastWest Bank, stated, “Our robust start to the year is a clear indicator of the strategic direction we’ve set — to be one of the top consumer banks in the country. By focusing on the needs of our customers, we are not just responding to the market — we’re shaping it. This positions EastWest as a formidable contender in the Philippine banking industry, ready to meet future challenges with agility and confidence.” 
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The bank's operational expenses increased by 22% to P5.8 billion, driven by manpower and business-related expenses to expand the bank's balance sheet, as well as technological improvements to enable more effective service delivery. The bank's cost-to-income ratio improved to 58%, in line with the industry, despite its largely consumer business.
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EastWest's total assets concluded at P480.4 billion, up 19% from the same quarter last year. Total loans and receivables increased by 19% to P306.1 billion, owing primarily to increased demand for consumer loans such as credit cards, auto, personal, and salary loans. Meanwhile, total deposits increased by 12% to P356.6 billion. Capital ratios are a healthy 13.5% and 12.7% for the Capital Adequacy Ratio (CAR) and Common Equity Tier 1 (CET1) ratios, respectively, far exceeding regulatory norms. 

EastWest Bank recently declared cash dividends of P0.54 per share, payable on May 31, 2024, to stockholders of record as of May 17, 2024. The overall cash dividend sum of around P1.2 billion is comparable to 20% of the previous year's net income and marks the third consecutive year that EastWest has distributed cash dividends.

“This reflects the Bank’s commitment to delivering value to its shareholders and driving continued growth,” EastWest Bank’s Chief Executive Officer (CEO) Jerry G. Ngo said. “We entered 2024 with strong momentum and a clear focus on enhancing our capabilities to better serve our customers. As we celebrate our 30th anniversary, we are driven by our commitment to exceed our customers’ evolving expectations, uniquely combining the warmth of Eastern hospitality with Western innovation to maintain our leadership in the competitive banking landscape.” 

​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.