EastWest Bank said Friday it posted a net income of P3.8 billion in the first semester, normalizing from last year’s P4.5 billion.
It said the lower income was mainly due to lower loan revenues and trading gains. Return on equity was at 13.3 percent.
Revenues in the first half declined by 19 percent to P15.0 billion, pulled down by lower net interest income and lower trading gains. NII or the difference between interest income and interest expense, was down 14 percent to P11.5 billion, on lower loan levels and yields on both loans and fixed income securities.
This was partly cushioned by the decline in funding costs as the Bangko Sentral ng Pilipinas maintained its accommodative monetary policy.
Net interest margin was at 7.3 percent, as its consumer-heavy loan portfolio allowed the bank to maintain industry-leading margins. Trading gains were at a more normal P1.6 billion, from the P3.1 billion it booked last year.
The BSP’s decisive monetary actions to loosen financial conditions last year created opportunities for higher than normal trading gains. Fee income grew by 22 percent to P2.2 billion as the economy and banking transactions started to improve.
