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Saturday, May 25, 2024

EastWest booked 32% profit growth to P6.1b in 2023

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EASTWEST Bank (EW) of the Gotianun family said over the weekend it booked a net income of P6.1 billion in 2023, up by 32 percent from the 2022 level on robust consumer loan growth and strong deposit generation.

It said this translated into a return on equity (ROE) 9.5 percent in 2023.

“Our strategic focus on consumer lending has paid off with significant asset growth leading to a notable increase in our net income. We have effectively reversed the decline from the past two years and are resuming our trajectory towards becoming a top consumer bank in the Philippines,” said EastWest president Jackie Fernandez.

EastWest also announced a cash dividend of P0.54 per share, totaling P1.2 billion, to be distributed to stockholders of record as of May 17, 2024, with the payout scheduled for May 31, 2024.

EastWest said the decision reflects the bank’s commitment to delivering value to its shareholders and its confidence in the bank’s continued financial health.

Net revenues surged 26 percent in 2023 to P35.7 billion, propelled by a 25-percent growth in consumer lending portfolio, which now constitutes 80 percent of total loans, the highest proportion among its peers.

Total deposits also rose 8 percent to P356.5 billion on the back of a 12-percent increase in CASA deposits.

Non-interest income saw a 51-percent growth to P7.4 billion, including a significant contribution from fees and commission which climbed 26 percent to P4.8 billion.

EastWest said it became more aggressive in investing in manpower and technology to expand capacity and enhance efficiency. This led to a 19-percent increase in its operating expenses to P20.3 billion.

This strategic spending has improved the bank’s cost-to-income ratio to 56.9 percent, down from 60.2 percent the previous year, it said.

EastWest said its total assets went up by 10 percent to P464.2 billion, while loans and receivables expanded 15 percent to P296.6 billion, supported by strong consumer demand.

Capital adequacy ratio (CAR) and common equity tier 1 (CET1) ratio were at 13.8 percent and 13.0 percent respectively, above regulatory requirements.

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