East West Banking Corp. (EW), the financial arm of the Filinvest Group, saw its first-quarter net income rise 6.25 percent to P1.7 billion from a year ago, driven by consumer lending expansion and strategic digital initiatives.
Return on equity reached 10 percent, or 52 basis points higher than end-2023, EW said in a disclosure to the stock exchange Tuesday.
“Our robust start to the year is a clear indicator of the strategic direction we’ve set — to be one of the top consumer banks in the country. By focusing on the needs of our customers, we are not just responding to the market — we’re shaping it. This positions EastWest as a formidable contender in the Philippine banking industry, ready to meet future challenges with agility and confidence,” said EW president Jacqueline Fernandez.
Net revenues climbed 28 percent year-on-year to P10 billion, boosted by net interest income growth of 34 percent to P8.2 billion.
The bank attributed the growth to its strategic emphasis on refined consumer lending strategies, which enhanced its lending processes, accounting for 81 percent of total loans and contributing to a net interest margin (NIM) of 8.1 percent
Non-interest income reached P1.2 billion, up 8 percent in line with banking transaction growth.
Operating expenses rose 22 percent to P5.8 billion, led by manpower and business-related expenses to expand the bank’s balance sheet and investments in technology to allow for a more efficient delivery of services.
Cost-to-income ratio also improved to 58 percent in line with the industry, despite its predominantly-consumer portfolio.
By end March 2024, its total assets ended at P480.4 billion, up by 19 percent from the same period last year.
Total loans and receivables expanded 19 percent to P306.1 billion on the growth of consumer loans such as credit cards, auto, personal and salary loans.
Total deposit grew 12 percent to P356.6 billion.
The bank in April declared cash dividends amounting P1.2 billion, which translates to P0.54 per share, payable on May 31, 2024, for stockholders on record as of May 17, 2024.