GOTIANUM-LED EastWest Bank (EW) sustained its momentum, posting a P1.7 billion net income in the first three months of 2024, backed by its consistent consumer lending expansion and strategic digital initiatives. Celebrating its 30th year, EastWest has reinforced its commitment to providing personalized and accessible financial solutions, which now underpin its consumer lending services. The consistent consumer lending expansion to start the year greatly contributed to a robust Return on Equity (ROE) of 10.0%, 52 basis points higher than end-2023.
Net revenues stood at P10.0 billion, up by 28% from the same period last year, driven by net interest income growth of 34% to P8.2 billion. This growth is largely attributed to the Bank’s strategic emphasis on refined consumer lending strategies, which enhanced its lending processes, accounting for 81% of total loans and contributing to a net interest margin (NIM) of 8.1%. Meanwhile, non-interest income was at P1.8 billion, up 9% in line with banking transaction growth.
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.”
The Bank’s operating expenses rose by 22% to P5.8 billion driven by manpower and business-related expenses to expand the Bank’s balance sheet as well as investments in technology to allow for a more efficient delivery of services. Cost-to-income ratio of the Bank improved to 58% in line with the industry, despite its predominantly- consumer portfolio.
EastWest’s total assets ended at P480.4 billion, growing by 19% from the same period last year. Total loans and receivables also grew by 19% to P306.1 billion largely driven by the growth of consumer loans such as credit cards, auto, personal, and salary loans. Meanwhile, total deposits grew 12% to P356.6 billion. Capital ratios stand at a healthy 13.5% and 12.7% for capital adequacy ratio (CAR) and common equity tier 1 (CET1) ratio respectively, well above the regulatory requirements.
EastWest Bank recently declared cash dividends amounting to P0.54 per share, payable on May 31, 2024, for stockholders on record as of May 17, 2024. The total cash dividend amount of around P1.2 billion is equivalent to 20% of the previous year’s net income and the third consecutive year EastWest has declared cash dividends.
“This reflects the Bank’s commitment to delivering value to its shareholders and driving continued growth,” EastWest Bank’s 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.”
