EASTWEST Bank is confident that its net income will hit over P4 billion this year with the completion of its network expansion program that started in 2011.
In a statement on Friday, EastWest Vice Chairman and Chief Executive Officer Antonio Moncupa Jr. said the bank has now almost tripled its branches, from 168 at the end of 2011 to 446 currently.
“As we have said previously, we expect to see steady increase in productivity after we have completed our expansion and as our stores mature,” he said.
Moncupa said the store network expansion initially resulted in a flat income of P2 billion from 2013 to 2015 for the bank.
This year, he said business has been good and the bank expects revenue growth to continue besting increases in costs.
“At the rate we are going, a 25 percent increase in income this year to around P4.25 billion is doable,” he said.
EastWest reported a 54 percent increase in first-quarter net income this year to P1.2 billion on account of robust loan growth and improving productivity.
Its total assets were up 22 percent from last year, underpinned by a 25 percent increase in total loans.
The bank’s total revenues in the first quarter increased 18 percent from a year ago to P6 billion.
Core revenues, or income after taking out volatile trading profits, grew 26 percent to P5.9 billion, while operating expenses increased by 13 percent to P3.2 billion.
EastWest’s total deposits increased by 26 percent year-on-year, led by the 32 percent growth in low-cost current account/savings account deposits.