East West Banking Corp, a subsidiary of Filinvest Development Corp of the Gotianum family, has reported a 32-percent increase in its net income in the first three months of the year because of strong recurring revenue base.
EastWest Chief Financial Officer Rene de Borja Jr said first quarter income went up to P600 million from P456 million and net revenues increased by 20 percent to P4.1 billion from P3.4 billion for the same period last year.
“Our first quarter results show a good start to the year and we look forward to sustaining our growth momentum in our core banking business,” De Borja Jr. said.
“Our major expansion phase has been completed and we now have the branch store footprint and IT infrastructure to better service our existing and new customers. Our just concluded stock rights offering raised our capital position by P8 billion, which will allow us to continue our robust organic growth as we optimize our expansion related investments,” he said.
EastWest’s total assets rose by 20 percent to P184.7 billion from P153.8 billion. The bank strengthened its core business as its net interest income grew by 18 percent to P2.7 billion from P2.3 billion because of better loans and deposits.
Its loan books increased by 21 percent to P123.8 billion from P102.0 billion mainly on the 33-percent rise in consumer loans, amounting to P70.1 billion from P52.7 billion a year ago.
Consumer loans were fueled by the outstanding performance of auto loans that surged 59 percent to P25.6 billion from P16.1 billion a year ago. Corporate loans grew by 9 percent to P53.7 billion from last year.
The bank’s deposits totaled to P146.9 billion, which is a 19-percent increase from P122.9 billion a year ago mostly on the gains from fee-based income.
Fee-based income advanced by 39 percent to P1.1 billion from P800 million, which offset the 8-percent decrease in trading gains to P297 million from P321 million for the same period last year.
Expenses climbed 14 percent to P2.4 billion from P2.1 billion. Credit provisions also went up 33 percent to P985 million from P741 million on growth in consumer loan portfolio.
EastWest successfully listed its P8-billion stock rights offer at the Philippine Stock Exchange on Friday. The proceeds from the stock offer will fund the bank’s expansion this year.
The bank is putting up an additional 20 to 30 branches this year on top of the 405 overall branches as of last year.
EastWest, which started in 1994, holds 100 percent of East West Rural Bank Inc. and 99.84 percent of Green Bank (A Rural Bank) Inc.