EAST WEST Banking Corp. (EastWest Bank)’s net profit rose by 25% year on year to an all-time high of P7.6 billion in 2024 on the back of its core businesses.
The bank’s earnings performance last year was driven by “strong consumer loan expansion and robust deposit generation,” it said in a disclosure to the stock exchange on Thursday.
This translated to a return on equity of 10.8%, “marking a return to double-digit levels as the bank continued to expand its core income base,” it added.
In the fourth quarter alone, its net income surged by 47% year on year on strong revenues, it added.
Its financial statement was unavailable as of press time.
“EastWest’s strong financial performance is a result of our consistent drive for operational efficiency and customer-centric banking,” EastWest Bank President Jackie S. Fernandez said. “We have optimized our cost structure, enhanced our digital capabilities, and expanded our lending operations to better serve our customers. Our disciplined approach to managing risk and costs has allowed us to maintain a strong balance sheet while continuously improving the quality of service we provide.”
“Our strategic direction is clear — we are committed to scaling our consumer banking business, deepening customer relationships, and accelerating digital transformation,” EastWest Bank Chief Executive Officer Jerry G. Ngo said. “With a strong foundation, robust capital position, and market-leading margins, we are well-positioned to capitalize on growth opportunities. We will continue investing in technology, expanding our customer base, and strengthening our product offerings to sustain our momentum in the years ahead. The future is bright, and we are ready to go further.”
EastWest Bank’s total revenues increased by 19% to P42.4 billion in 2024.
Broken down, its net interest income went up by 19% to P33.5 billion last year.
This came on the back of a 16% expansion in consumer loans, which made up 82% of its loan portfolio last year.
Loans and receivables went up by 13% year on year to P336 billion as it saw a 38% growth in credit cards, a 17% rise in personal and salary loans, and a 5% increase in auto loans.
Deposits also grew by 8% to P385.4 billion, with its current and savings account or CASA deposits up making up 81% of the total.
“This solid funding base enabled EastWest to achieve an industry-leading net interest margin of 7.8%,” the bank said.
Meanwhile, non-interest income increased by 20% to P8.9 billion on higher transaction fees and trading gains.
On the other hand, EastWest Bank’s operating expenses rose by 16% to P23.5 billion due to higher manpower and IT costs, as well as lending-related expenses.
Its cost-to-income ratio improved by 160 basis points to 55.3% last year.
The bank’s assets grew by 13% to P523.7 billion at end-2024.
Its capital adequacy ratio was at 13.4%, while its common equity Tier 1 ratio stood at 12.7%.
“Capital ratios remain strong and supportive of future growth,” the bank said.
EastWest Bank expects its loans to continue growing by double digits this year, driven by demand for consumer products, officials earlier said.
It expects its consumer lending business to remain strong as it is bullish on the Philippine economy’s prospects, expecting robust demand for credit driven by the younger demographic.
The bank is also eyeing to issue peso bonds within the first semester as it seeks to diversify its funding sources.
EastWest Bank’s shares rose by eight centavos or 0.77% to end at P10.50 each on Thursday. — BVR
