EastWest Bank records P1.9-B net income in Q1

EAST WEST Banking Corp. (EastWest Bank) booked a net income of P1.9 billion in the first three months of the year, supported by the strength of its core businesses despite a challenging macroeconomic and geopolitical environment.

“The bank’s revenue generation capacity remains strong despite market volatility impacting trading-related revenues across the industry. This highlights the stability of our earnings base even in an uncertain operating environment,” EastWest Bank Chief Executive Officer Jerry G. Ngo said.

The bank’s financial statement was unavailable as of press time.

Net interest income grew by 20% year on year to P11.1 billion in the first quarter amid higher loan volumes and as it managed its funding costs.

Meanwhile, non-interest income was at P2.2 billion. EastWest Bank said its trading performance was tempered by volatile markets, while sustained customer activity led its fee income to grow by 8% to P1.9 billion.

Overall, the bank’s revenues increased by 15% to P13.3 billion in the first three months from the year-ago level.

“Excluding the impact of market volatility on trading-related income, core income grew by 19% to P13.6 billion, underscoring the strength of the bank’s recurring earnings base,” it added.

Meanwhile, the bank’s operating expenses inched up by 1% to P6.4 billion in the three-month period, driven mainly by volume-related costs and “disciplined” investments in people and technology.

This resulted in a cost-to-income ratio of 47.9%.

EastWest Bank also set aside provisions for credit losses amounting to P4.7 billion, which it said reflects its “conservative and forward-looking approach to credit risk management should macroeconomic challenges persist.”

This translated to a nonperforming loan coverage ratio of 85%.

Pre-provision operating profit was at P6.9 billion, up 32% year on year.

EastWest Bank’s loan book expanded by 14% to P390.4 billion as of March.

On the funding side, total deposits increased by 14% to P455.3 billion, 78% of which were low-cost current account, savings account deposits.

Total assets grew by 11% year on year to P588.9 billion at end-March.

The bank’s capital adequacy ratio was at 12.8% while common equity Tier 1 ratio was at 12%, both well above regulatory standards, “providing sufficient capacity to navigate uncertainty and support growth.”

“We strive to remain steady through changing market conditions. By remaining disciplined, we preserve our flexibility and resilience, allowing us to support customers and capture growth opportunities as conditions become more favorable,” Mr. Ngo said.

EastWest Bank’s shares closed at P13.98 apiece on Thursday, up by two centavos or 0.14% from the previous day. — Aaron Michael C. Sy