EAST WEST Banking Corp.’s net income rose by 32% to P6.1 billion last year due to sustained consumer loan and deposit growth, the lender said in a statement on Thursday.
“We witnessed significant growth in our major assets, our consumer loan portfolio,” EastWest President Jackie S. Fernandez said in a stock exchange filing. “This translated to a remarkable jump in our net income as we doubled down on our strength in consumer lending.”
The bank reversed two years of continuous decline, it added. It did not provide a financial statement and fourth-quarter financial figures.
The Gotaniun-led bank’s 2023 performance translated to a return on equity of 9.5%.
Net revenue rose by 26% to P35.7 billion last year due to consumer loan growth. Net interest margin stood at 7.6%, while noninterest income went up by 51% to P7.4 billion.
“Fees and commissions increased by 26% to P4.8 billion as banking transactions grew in line with lending growth,” EastWest said.
Trading income grew more than five times to P993.6 million.
Operating expenses rose by 19% to 20.3 billion due to higher manpower and information technology costs, as well as business-related expenses associated with lending initiatives.
Loans rose by 15% to P296.6 billion, with consumer loans growing by 25%. Deposits rose by 8% to P356.5 billion.
The bank’s shares shed 0.22% or two centavos to close at P9.10 each. — Aaron Michael C. Sy