THE East West Banking Corp. (EastWest) considered ‘consistent’ core revenue generation as having propelled its net income in the first nine months of the year.
In a statement on Tuesday, EastWest reported posting a net income of P6.6 billion, up 14 percent from the net earnings posted in the same period last year.
Revenues increased by 16 percent year-on-year to P37.3 billion, from the ‘continuous growth’ in net interest income of 18 percent to P29.7 billion.
‘This was fueled by its consumer lending business, which expanded by 17 percent and now makes up 85 percent of the bank’s total loan portfolio,’ EastWest said.
The performance of the bank’s core businesses was ‘bolstered’ by a 27 percent rise in fee income, amounting to P5.3 billion, EastWest noted.
Meanwhile, EastWest said its operating expenses inched up much slower than revenues, increasing by only 7 percent to P19.2 billion.
The growth in this area was attributed to investments in people and business expansion.
EastWest’s cost-to-income ratio improved by 412 basis points to 51.4 percent, backed by the faster growth of revenues, productivity gains, and digital efficiencies.
On the retail side, EastWest said it recently entered into a partnership with The Sirqo Group, which operates the AutoDeal online automotive marketplace to ‘streamline’ auto financing for car buyers in the Philippines.
The bank said the collaboration aims to provide customers with easier access to loan options directly through Sirqo’s platform, ‘enhancing convenience and transparency in the car purchasing process.’
To expand its digital capabilities, the bank said it also introduced new features on EasyWay, including personal loan and credit card applications, digital CASA (current and savings accounts) opening for both peso and foreign currency deposits.
Just last October, EastWest said InstaPay has already started doing transfers via QR.
According to the lender, it successfully launched a debit card, the latest feature of its SME banking ecosystem designed to ‘simplify cash management for business clients.’
Meanwhile, the total assets of the country’s 11th-largest lender rose by 11 percent to P552.9 billion, funded largely by deposits that grew by 12 percent to P415.8 billion, maintaining a CASA ratio of 81 percent.
EastWest CEO Jerry G. Ngo was quoted in the statement as saying that the bank’s core consumer banking business is ‘thriving, aligning perfectly with the evolving needs of our customers.’
‘Our strategic funding initiatives are likewise effectively supporting our growth plans and fortifying our funding structure. These critical components have significantly contributed to our steady revenue generation,’ added Ngo.
At the same time, the chief of EastWest said the bank continues to manage risks ‘actively’ and ensure that provisions are ‘adequate.’
‘Combined with our operational efficiencies, these have resulted in robust and sustainable profitability,’ Ngo also noted.