EastWest Bank’s income up by 32% on growing consumer loan demand

EastWest Bank’s 2023 net income surged by 32% to reach P6.1 billion, driven by sustained growth in consumer loans and robust deposit generation.

The bank’s Return on Equity (ROE) stood at an impressive 9.5%. EW President Jackie S. Fernandez highlighted the significant growth in consumer loans, leading to a remarkable increase in net income and a renewed focus on becoming one of the top consumer banks in the country.

The bank’s net revenues soared by 26% to P35.7 billion, primarily fueled by a 25% growth in its consumer lending portfolio, which accounts for 80% of total loans.

EastWest Bank’s stable funding sources supported this growth, with total deposits rising by 8% to P356.5 billion, driven mainly by CASA deposits that grew by 12%. The bank’s emphasis on cash management services for the MSME sector contributed to sustaining a net interest margin (NIM) of 7.6%.

Non-interest income experienced a significant increase of 51% to P7.4 billion, with fees and commission rising by 26%. Operating expenses grew by 19% to P20.3 billion, attributed to investments in manpower, technology, and business-related expenses. Despite this, the bank improved its operating efficiency with a cost-to-income ratio of 56.9%.

EastWest Bank’s total assets reached P464.2 billion, growing by 10% from the previous year, while total loans and receivables increased by 15% to P296.6 billion. The bank maintained healthy capital ratios above regulatory requirements at 13.8% for Capital Adequacy Ratio (CAR) and 13.0% for Common Equity Tier 1 (CET1) ratio.

In addition to its financial success, EastWest Bank received prestigious accolades in 2023 for its commitment to excellence and customer service within the banking sector. The bank’s wealth banking service, EastWest Priority, was recognized as the Philippines’ Best Private Bank in 2024 for its comprehensive privileges and personalized services.

Looking ahead to 2024, CEO Jerry G. Ngo emphasized the bank’s commitment to further growth and improvement in its quest to become one of the top consumer banks in the Philippines.