The banking arm of Filinvest Development Corp., East West Banking Corp., posted a 40-percent increase in its first-half profit after it saw a hefty increase in its revenues as well as its assets.
A disclosure in the Philippine Stock Exchange on Tuesday showed that EastWest registered a 40-percent year-on-year increase in its net income for the first semester of 2013 to almost P1.3 billion.
This, according to the bank, was on the back of a 59-percent increase in its revenues as well as the 41-percent increase in its assets, which grew to P131 billion. The firm’s revenue stood at P7.1 billion.
EastWest explained that the strong revenue growth was achieved as a result of the 51.5-percent year-on-year increase in loan receivables, of which total loans to businesses, mostly to mid-size corporates, went up 60 percent from last year.
Consumer loans of the bank also climbed 45 percent to P44.6 billion. Moreover, EastWest’s total deposits for the period was P101.5 billion, higher by 50 percent as compared to the same period last year. The bank’s expanded branch network contributed to the increase in deposits.
“Clearly, we have the momentum. We remain confident that we will meet this year’s 25-percent net income growth guidance we announced early this year,” said Antonio Moncupa Jr., EastWest president and chief executive officer.
“We expected that growth in operating expenses will outstrip revenue growth this year and next, although revenues appear to be contesting that expectations. There is still a lot of work to be done,” he added.
To date, the bank has a total branch network of 324 and 386 ATMs, after opening 32 branches in the last seven months. Last year, it put up 123 branches.
EastWest is targeting to expand its branches to 350 by early 2014.
EastWest’s capital adequacy ratio remains adequate at 16.8 percent with Tier 1 ratio at 13.5 percent. The bank’s Tier 1 capital is composed entirely of common equity.