East West Banking Corporation Reported Significant Growth with P6.1 Billion in Net Income in FY23, Up 32%

Gotianun-led EastWest Bank (EW) made exceptional development once more, reporting its financial results for 2023 and highlighting a good performance with a net income of P6.1 billion, a 32% increase over the previous year. This expansion has been fueled primarily by significant consumer loan growth and good deposit generation, with the bank's return on equity (ROE) reaching 9.5%.

Jackie S. Fernandez, President of EastWest, commented on the results, "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."

In recognition of its good financial achievements and to share the success with its shareholders, EastWest is happy to announce a cash dividend of Php0.54 per share, totaling Php1.2 billion. This dividend will be paid to stockholders of record as of May 17, 2024, with the payout date set for May 31, 2024. This decision underscores the bank's commitment to providing value to its shareholders, as well as its confidence in the bank's long-term financial stability.

The bank's net revenues increased by 26% to P35.7 billion, driven by a 25% increase in its consumer lending portfolio, which now accounts for 80% of total loans, the biggest share among its peers. Total deposits increased by 8% to P356.5 billion, mostly due to a 12% growth in CASA deposits.
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Non-interest income soared 51% to P7.4 billion. This includes a major contribution from fees and commissions, which increased by 26% to P4.8 billion in line with the expansion in banking transactions related to lending activities.
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EastWest became more proactive in investing in labor and technology to increase capacity and efficiency. This resulted in a 19% increase in operational expenses, reaching P20.3 billion. This targeted spending has reduced the bank's cost-to-income ratio to 56.9%, up from 60.2% the previous year.
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Total assets increased by 10% to P464.2 billion, while total loans and receivables increased by 15% to P296.6 billion, driven by robust consumer demand. Capital adequacy remained strong, with the Capital Adequacy Ratio (CAR) and Common Equity Tier 1 (CET1) ratios at 13.8% and 13.0%, respectively, much higher than regulatory standards.
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EastWest has also garnered numerous distinctions from respected industry magazines and organizations, demonstrating its dedication to excellence and exceptional customer service. EastWest Priority received prizes for Best Private Bank and Best Priority Banking Experience, while Komo was recognized for innovative digital banking services. The bank has won the Asian Banker Best Credit Card Award for its EastWest JCB Card, as well as the International Finance Magazine Best Foreign Exchange Broker Award.

Jerry G. Ngo, CEO of EastWest, reflects on the year's achievements and the path ahead, "We have started 2024 with strong momentum, but our journey towards becoming a top consumer bank in the Philippines is ongoing. We are committed to face upcoming challenges and seize opportunities for further growth with constant determination."

"As we prepare to celebrate our 30th anniversary, EastWest remains steadfast in our journey, striving to go even further for our customers in order for them to achieve their dreams. This milestone, symbolized by the pearl, represents the wisdom and resilience we have cultivated over three decades," added Jonathan T. Gotianun, Chairman of EastWest.

"Our unique blend of Eastern values of collaboration and Western innovation has propelled us into a future where we continue to serve and grow with our customers. As we honor our past, we embrace the promise of evolution for excellence, ensuring that EastWest remains a pillar of strength and reliability for all our stakeholders. This anniversary is not just about looking back at our achievements but also forward to the new opportunities that lie ahead, as we continue to prioritize our customers’ goals and aspirations as our main motivation, embodying our dedication to “Your dream, our focus.”

​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.