Taguig—(PHStocks)—East West Banking Corp. (EastWest, PSE: EW) registered a 78% growth in net profits in the first nine months of the year to PhP2.33 billion, driven mainly by the increase in its loan portfolio.
Net interest income grew 24% year-on-year to PhP11.21 billion, while non-interest income, excluding trading went up by 42% mostly from fees and commissions related to its consumer lending and deposits businesses. Net revenues reached PhP15.7 billion, up 32%, underpinned by the 27% increase in core recurring earnings, which reached PhP14.59 billion.
“We believe the worst of the pain from the expansion program that started in 2012 that saw our branch stores grow from 168 to 443, assets from PhP96 billion to PhP268.78 billion, but kept income flat at around PhP2 billion is behind us now. We are starting to harvest the fruits of the expansion. We expect income for the year to reach around PhP3 billion for at least a 50% improvement from last year. While we are yet to realize the full potential of our infrastructure and organization, we are happy to see the steady progress,” said EastWest President & CEO Tony Moncupa Jr.
Total assets reached PhP268.78 billion, up 26% year-on-year as the bank’s customer base and market share grew with the expansion of its store network. EastWest has 443 stores to date, almost triple its 168 consolidated nationwide network five years ago.
The bank’s consumer loan portfolio expanded 50% to PhP122.6 billion. EastWest’s strong position in consumer loans is affirmed by the “Best Consumer Finance Product” award it recently received from The Asian Banker Philippine Country Awards 2016 for its innovative and versatile multi-purpose personal loans.
Deposits grew 30% to PhP216 billion, supported by a 31% growth in low-cost checking and savings deposits.
“We have a lot to look forward to as we further grow and diversify our income sources. We now have completed our product menu as our bancassurance, non-life insurance, and wealth management are in full operating mode, while leasing will be offered as well very soon,” said Moncupa.
The bank has just received regulatory approvals for its new subsidiary, EastWest Leasing and Finance Corp. (EastWest Leasing), which is expected to contribute further to the bank’s growth.
The bank’s joint venture with Belgium-based Ageas Insurance, now branded ‘Troo’, has begun its bancassurance operations last April. EastWest also formed an insurance brokerage, EastWest Insurance Brokerage Inc.
Last May, EastWest Bank entered into an agreement with Standard Chartered Bank Philippines (SCB PH) to migrate to EastWest the retail banking business of SCB PH, which includes credit cards, personal loans, wealth management, and retail deposits. Migration of SCB accounts is ongoing and the transfer will be completed before the year ends.