EAST West Banking Corp. (EastWest) is adopting a more cautious stance amid heightened uncertainty from external shocks including the war in the Middle East, inflation risks and supply side disruptions that could weigh on consumption and credit demand.
EastWest CEO Jerry Ngo told a media roundtable on Thursday following the bank’s annual stockholders’ meeting that the biggest risk for the financial system stemmed from “unknown unknowns.”
He said supply side shocks were expected to first show up in prices and market movements before filtering into affordability constraints and credit risk.
“We are basically recipients of extraneous decisions made outside the country,” Ngo said, adding that the bank had already been preparing since last year through stronger buffers and tighter risk discipline.
He said consumption was expected to remain subdued, with households and businesses shifting spending toward essentials amid a more uncertain global backdrop — a trend that is already emerging and will likely to persist in the near term.
EastWest said that in response, it was recalibrating strategy toward prudence and resilience with a greater focus on essential consumption, selective lending and continued strengthening of credit buffers.
The bank said it had been increasing provisioning levels over the past years to prepare for potential volatility in asset quality.
“We are a pro-cyclical business,” Ngo said. “The question is how we remain agile, prudent and responsive through cycles.”
He added that the bank’s approach was to make gradual refinements rather than abrupt shifts while maintaining consistency in its long-term direction.
EastWest also emphasized the importance of maintaining relevance to clients through different economic phases.
On strategy, the bank highlighted continued investment in ecosystem partnerships and digital channels, aimed at embedding financial services into essential daily transactions.
It cited partnerships with retail, fuel and delivery platforms as part of its effort to deepen engagement in nondiscretionary spending segments.
Ngo said this was in line with EastWest’s goal of becoming the primary operating account for customers, particularly as consumption patterns tilt toward essentials.
The bank also reiterated its continued push into small and medium enterprises (SME) banking through its business banking unit and early stage pilots, including embedded banking solutions using application programming interface-based systems.
He noted that the SME segment remained underserved and would be a key focus area moving forward.
EastWest also observed continued expansion in priority banking and wealth management, which it said was gaining momentum as clients increasingly seek diversification amid market uncertainty.
The bank added that more than half of its customers now transact digitally, supported by ongoing investments in its mobile platforms and operational efficiency initiatives aimed at improving unit costs and customer experience.
EastWest posted a net income of P9.2 billion in 2025, up 21 percent year on year, driven by growth in its consumer lending business, improved operating leverage and sustained expansion in its core banking franchises.
The bank also declared cash dividends of P1.8 billion, equivalent to P0.82 per share, payable on May 29 to shareholders on record as of May 11.
Net interest income rose 21 percent to P40.6 billion, while return on equity reached 11.9 percent.
Total assets grew 10 percent, supported by expansion in consumer loans and a 14-percent increase in current account savings account (CASA) deposits, bringing the CASA ratio to 82 percent.
EastWest said priority banking assets under management rose 40 percent, supported by a nationwide network of 13 priority centers.
It also reported continued improvement in efficiency, with its cost-to-income ratio falling to 49.7 percent.
EastWest shares added P0.50, or 3.70 percent, to close at P14.00 each on Thursday.
