EAST West Banking Corp. (EastWest) reported net income of P5.0 billion in the first nine months of 2026, down 24.2 percent from P6.6 billion in the same period last year, as higher provisions weighed on its bottom line.
The bank said it set aside P15.9 billion in provisions for expected credit losses in the nine months ended September as it navigated heightened credit risks while expanding its lending business.
Pre-provision operating profit was up 24 percent year on year at P22.4 billion, reflecting continued strength and improving efficiency of the bank’s underlying operations, it said in a statement over the weekend.
EastWest said the higher provisions reflected heightened credit risks amid a more challenging and uncertain economic environment, adding that its nonperforming loan coverage stood at 90 percent during the period.
Despite the challenging macroeconomic environment, the bank saw its loan portfolio grow 11 percent to P399.9 billion, while total assets increased 14 percent year-on-year to P631.8 billion.
Net revenues in the nine months climbed 16 percent to P43.4 billion, backed by continued growth in its core businesses.
Net interest income rose 22 percent to P36.2 billion while service charges, fees and commissions increased 10 percent to P5.8 billion.
Operating expenses, meanwhile, rose at a slower 10 percent to P21 billion, bringing the bank’s cost-to-income ratio down to 48.4 percent from 51.4 percent a year earlier.
“Our underlying businesses remain healthy, with strong revenue growth and improving operating efficiency allowing the Bank to remain profitable,” EastWest CEO Jerry Ngo said.
“The current environment requires us to maintain discipline in managing risk while continuing to strengthen the franchise for the long term,” he added.
On the funding side, deposits expanded 12 percent to P466.4 billion, with the bank maintaining a current and savings account ratio of 77 percent.
Assets under management under EastWest Priority grew 35 percent to P145 billion, reflecting expansion in its wealth management business.
The bank’s capital adequacy ratio stood at 12.2 percent while common equity Tier 1 ratio was at 11.4 percent, both above regulatory minimum requirements.
EastWest is also planning a P9-billion stock rights offering to further strengthen its capital base and support future growth.
“Our priority is to navigate the current environment with financial and risk discipline without losing sight of the Bank’s longer-term opportunities,” Ngo said.
The bank’s shares edged up P0.01, or 0.10 percent, closing at P9.61 each on Friday.
