EASTWEST Bank is confident its net income for the full year will be more than 25 percent higher than last year’s after its earnings surged in the first half by 60 percent
“We will be sad if our 2017 income is less than P4.25 billion, or 25 percent better versus the P3.4 billion we booked in 2016. It now appears that we will not be sad. Income growth will likely be higher than 25 percent,” EastWest Vice Chairman and Chief Executive Officer Antonio Moncupa Jr. said in a disclosure to Philippine Stock Exchange on Wednesday.
“Based on the first half 2017 results and the trajectory of our businesses, we have a chance to end 2017 with above industry average return on equity. We are now looking at 2017 full year income of at least P4.8 billion,” he said.
The bank reported P2.5 billion net income for the first six months of the year, up 60 percent from the P1.56 billion profit recorded in the same period in 2016.
For the second quarter alone, the lender netted P1.92 billion, or 66 percent higher than the P776 million booked in the same quarter last year.
Total assets in the first half grew 20 percent to P310 billion driven by growth in the bank’s loan portfolio.
EastWest said its total loans increased 19 percent to P212 billion, led by the 34 percent growth in consumer loans. Consumer loans account for 71 percent of the bank’s total loans. The consumer-focused universal bank maintained its industry leading net interest margin of 7.8 percent.
The bank also reported that its net interest margin net of provisions for loan losses, a metric that makes comparison among banks more meaningful, was at 6.1 percent, noting that net interest margin net of provisions for loan losses of listed universal and commercial banks was at 3.3 percent in 2016.
Deposits stood at P255 billion, 24 percent higher versus the same period in 2016, it added.
“The bank’s operating leverage continues to improve as we complete our store expansion program. Our businesses, particularly consumer loans and deposits, continue to post robust growth. On the other hand, credit costs tapered off as asset expansion were more on secured and lower credit cost sectors,” said EastWest President and Deputy Chief Executive Officer Bobby Reyes.