Taguig—(PHStocks)—East West Banking Corp. (PSE: EW), one of the country’s fastest growing banks, reached a new milestone as its total assets reached the PhP200 billion mark in the first half of the year. Its total assets grew 31 percent to PhP204.9 billion from the PhP155.9 billion reported in the same period last year.
The growth in assets was propelled by the 26-percent expansion in loans to PhP130.3 billion. Deposits, on the other hand, grew by 25 percent to PhP158.1 billion from PhP126.1 billion a year ago.
“We attribute this milestone to our strategic branch store expansion and focus in the consumer finance sector,” said EastWest chief finance officer Rene de Borja Jr.
Consumer loans surged by 31 percent to PhP74.7 billion from PhP56.8 billion a year ago, driven by a 57-percent growth in auto loans. Corporate loans grew by 14 percent to PhP56.3 billion.
The higher loan booking resulted in a 22-percent rise in net interest income to PhP5.8 billion from PhP4.8 billion a year ago. Market uncertainties pulled trading gains by 28 percent to PhP537.9 million from PhP749.9 million, trimming down the increase in net revenues to 11 percent to PhP7.9 billion from PhP7.1 billion a year ago. The bank set aside PhP2 billion in credit provisioning, bringing its total expenses to PhP6.8 billion from PhP5.9 billion a year ago. Net income fell slightly by 4% to PhP1.01 billion as a result of lower trading gains and higher provisions for loan losses.
“We remain bullish on the Philippine economy. The unparalleled strategic branch store expansion we embarked in the last three years is starting to gain traction but is yet to reach its full potential. We are positive that revenues will continue to grow above industry average and we expect to see better cost efficiencies in the coming quarters,” de Borja added.