EastWest’s 2023 net income grows 32% to P6.1 billion

Gotianun-led EastWest Bank (EW) delivered P6.1 billion net income in 2023, 32% higher from last year, on the back of sustained consumer loan growth and strong deposit generation. Return on equity (ROE) stood at 9.5%.

“We witnessed significant growth in our major assets, our consumer loans portfolio. This translated to a remarkable jump in our net income as we doubled down on our strength in consumer lending. We reversed our 2 years of continuous decline and resumed our quest to be one of the top consumer banks in the country,” EW President, Jackie S. Fernandez, said.

Net revenues increased by 26% to P35.7 billion, driven largely by its consumer lending portfolio which grew by 25%. The consumer lending portfolio of EW accounts for 80% of total loans, the highest proportion among its peer banks. This was supported by stable funding sources as total deposits grew by 8% to P356.5 billion, accounted for mainly by CASA deposits, which grew by 12% or P31.5 billion to P292.4 billion. The remarkable increase in CASA, surpassing industry growth of 3%, can be attributed to the Bank’s renewed focus on cash management services, specifically geared towards the MSME sector.  This allowed the Bank to sustain its net interest margin (NIM) of 7.6%.

Meanwhile, non-interest income, grew by 51% to P7.4 billion. Fees and commission increased by 26% to P4.8 billion as banking transactions grew in line with lending growth. Trading income also contributed P993.6 million to non-interest income growth, growing more than five times from 2022.

Operating expenses stood at P20.3 billion, growing by 19%, driven largely by higher manpower and information technology costs to expand capacity and improve efficiency, and business-related expenses associated with lending initiatives. The faster revenue growth resulted to improved operating efficiency or cost-to-income ratio of 56.9%, from 60.2% the previous year.

Total assets ended at P464.2 billion, growing by 10% from the same period last year, while total loans and receivables grew by 15% to P296.6 billion, as the Bank benefited from the strong demand for consumer loans. Meanwhile, total deposits grew 8% to P356.5 billion. Capital ratios continue to stand at a healthy 13.8% and 13.0% for Capital Adequacy Ratio (CAR) and Common Equity Tier 1 (CET1) ratio, respectively, well above the regulatory requirements.

In 2023, EastWest Bank achieved significant recognition from esteemed publications and organizations within the banking and financial services sector, affirming its commitment to excellence and customer service. These accolades highlight EastWest’s position as a leading universal bank dedicated to delivering superior financial solutions and experiences, contributing to the nation’s prosperity.

EastWest Priority, the bank’s wealth banking service, garnered acclaim for its comprehensive suite of privileges, including personalized assistance from dedicated Relationship Managers, tailored wealth management solutions, and exclusive lifestyle benefits through premium debit and credit cards. Global Finance Magazine honored EastWest Priority as the Philippines’ Best Private Bank in 2024, highlighting its adaptive approach during the pandemic and sustained client engagement efforts. Further recognition came from International Finance Magazine, which bestowed the title of Best Priority Banking Experience on EastWest Priority, reinforcing its reputation for delivering exceptional service and value to affluent clients.

Meanwhile, EastWest’s innovative digital banking service, Komo, was celebrated as the Most Innovative Smart Banking Services Provider by International Finance, acknowledging its role in providing accessible and user-friendly financial solutions, particularly during the pandemic. Additionally, EastWest’s partnership with JCB resulted in the EastWest JCB Credit Card being named the Best Credit Card in the Philippines by the Asian Banker, recognizing its unique benefits and value-added features for cardholders. These awards collectively reflect EastWest’s ongoing dedication to innovation, customer-centricity, and excellence in the financial industry.

“We entered 2024 with good momentum, but much work still needs to be done in growing and improving the Bank.  We need to rise further, face the challenges and potential headwinds.  Our goal is clear, to become one of the top consumer banks in the Philippines.” EW Chief Executive Officer (CEO), Jerry G. Ngo said.