• EastWest 2017 profit surges 48% to P5.1B


    GOTIANUN-LED EastWest Bank said its net income last year grew at a double-digit rate of 48 percent, driven mainly by its consumer lending business.

    EastWest said on Thursday that net profit increased to P5.1 billion from P3.4 billion in 2016.

    Return on equity was at 13.8 percent, the highest reported among listed universal banks, while its total assets went up by 8.8 percent, the bank said.

    Net interest margin (NIM) was at 7.8 percent, the highest in the banking industry mainly because of its consumer lending businesses.

    NIM, net of provisions for loan losses, a metric that makes comparison among banks more meaningful, was at an industry leading 5.9 percent, it said.

    EastWest’s return on assets was at 1.7 percent, while its net revenues reached P25.6 billion, 17 percent higher compared to the previous year.

    The lender also reported that core earnings, which exclude trading and non-recurring revenues, reached P24.2 billion, up 21 percent, while net interest income and fee-based income rose 19.8 percent and 29.2 percent, respectively.

    Trading income was at P760 million, lower by 16.6 percent.

    The bank said its operating expenses reached P13.9 billion, 19.1 percent higher versus the previous year, as the bank invested in management changes for further growth moving forward.

    Total loans increased by 10.7 percent to P220.1 billion as consumer loans grew 17 percent to P160.3 billion, it said.

    Total deposits were up 7.7 percent at P258.7 billion, while low cost deposits grew 11.1 percent, it added.


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