East West Bank said its net income last year slipped 3 percent from the previous year due to lower trading gains, higher credit provisions, and higher tax expense.
In a disclosure to Philippine Stock Exchange (PSE) on Thursday, the bank said net income in 2015 dipped to P2 billion from P2.073 billion in 2014.
Operating income grew 10 percent to P16.3 billion, as a P2.3 billion increase in net interest income (NII) was partially offset by higher credit provisions amounting to P587.7 million and lower trading gains of P616.7 million.
It said its NII, driven by an above-industry net interest margin (NIM) of 8 percent, grew by 23 percent to P12.3 billion from P10 billion previously as its loan portfolio expanded.
Total loans grew 29 percent while deposits increased by 25 percent. Of the total loans, consumer loans grew 38 percent to P90.8 billion led by auto loans and personal loans, while corporate loans grew 18 percent to P66.4 billion.
“Consumer loans accounted for 58 percent of total customer loans, making EastWest still the most consumer loan-focused universal bank,” the bank said.
Deposits stood at P184.1 billion in 2015, up by 25 percent from 2014 as it expanded its branch store network.
The rest of the operating income declined by 56 percent to P690 million due to lower trading income, it said.
Total operating expenses including provision for credit losses increased by 11 percent to P13.7 billion.
Total assets stood at P232.9 billion, 24 percent higher than at end-2014.
Overall nonperforming loan (NPL) ratio improved to 3.6 percent in 2015 from 4.2 percent in 2014, while its capital adequacy ratio under Basel III remained more than adequate at 15.6 percent as of end 2015. Tier-1 ratio stood at 12.4 percent. Its Tier 1 capital is composed entirely of common equity.
East West Bank said it is also starting to benefit from its expansion program, noting that it had put up 141 branch stores and also expanded its lending organization to deploy the expected increase in deposits from its expanding customer base in the last three years.
“We will continue to focus on the consumer and middle market sectors. We will complement our current line-up of products and services with new offerings, starting with bancassurance products through our newly formed joint venture with Ageas,” said Rene de Borja Jr., senior vice president and chief finance officer at East West Bank.
East West Bank has a combined nationwide network of 433 stores and 579 ATMs.