EastWest Bank Posts 32% Asset Growth in 2014

The bank’s strategic expansion program resulted in a 29-percent jump in loans to PhP121.42 billion from a year ago and a 33-percent hike in deposits to PhP147.69 billion.

“The expansion was successful in strengthening our core banking business and it shows. This will support and ensure the sustainability of our business going forward,” EastWest senior vice president and CFO Renato K. de Borja Jr. said.

EastWest’s net interest income surged by 19 percent to PhP10.03 billion last year from PhP8.39 billion in 2013, with interest income growing by 18 percent to PhP11.67 billion from a year ago and interest expenses growing by only 12 percent to PhP1.64 billion from PhP1.46 billion in 2013.

Despite the flat growth in profit, return on assets was still at 1.3 percent and return on equity was at 10.2 percent.

EastWest reported a less than one-percent growth in net revenues for 2014 to PhP2.07 billion from PhP2.05 billion in 2013, with total operating income growing by 13 percent to PhP14.89 billion and total operating expenses growing by 12 percent to PhP12.25 billion.

“This is a welcome surprise considering the huge investments we have put in the expansion of our branch network and the upgrading of our core banking system. More importantly, it shows strength in our core banking business that will balance out the effects of market fluctuations in a volatile environment,” de Borja said.

Last year, the bank’s trading and securities gain dropped by 50 percent to PhP499.53 million from PhP1.01 billion in 2013 but foreign exchange gains surged by 60 percent to PhP193.52 billion from PhP121.24 billion.

“We have exceeded the 350 branch-network target we set during our IPO. Now is the time to consolidate, optimize our investments and reap its returns,” de Borja added.

The Gotianun-led bank opened 58 new branch stores last year, bringing its network to 405 and making it the fifth largest bank in terms of branches.