EASTWEST Banking Corp. on Thursday reported a net income of P1.9 billion for the first quarter, slightly higher than the P1.8 billion booked a year earlier and driven by stronger core earnings.
In a disclosure, the bank said that despite a challenging macroeconomic and geopolitical environment, revenues rose 15 percent year on year to P13.3 billion from P11.6 billion, reflecting continued expansion in its core businesses.
Net interest income increased 20 percent to P11.1 billion from P9.3 billion, supported by higher loan volumes and improved funding cost management.
Non-interest income reached P2.2 billion, easing slightly from P2.3 billion, as softer trading performance weighed on results amid volatile markets. Fee income grew eight percent to P1.9 billion, signaling steady customer activity.
“The bank’s revenue generation capacity remains strong despite market volatility impacting trading-related revenues across the industry. This highlights the stability of our earnings base even in an uncertain operating environment,” EastWest CEO Jerry Ngo said.
Excluding the impact of trading volatility, core income grew 19 percent to P13.6 billion, underscoring the strength of recurring earnings.
EastWest said operating expenses increased by one percent to P6.4 billion due mainly to volume-related costs even as the bank maintained “disciplined” investments in people and technology.
Pre-provision operating profit rose 32 percent from a year ago to P6.9 billion, with cost-to-income ratio improving to 47.9 percent.
Provisions for credit losses amounted to P4.7 billion, reflecting a conservative and forward-looking approach to credit risk management amid macroeconomic uncertainty, while nonperforming loan coverage stood at 85 percent.
Total assets expanded 11 percent to P588.9 billion, driven by a 14-percent increase in loans to P390.4 billion.
Deposits also rose 14 percent to P455.3 billion, with the bank’s current account and savings account ratio remaining strong at 78 percent, supporting a stable funding base.
Capital buffers remained solid, with a capital adequacy ratio of 12.8 percent and common equity tier-1 ratio of 12.0 percent, both well above regulatory requirements.
“We strive to remain steady through changing market conditions. By remaining disciplined, we preserve our flexibility and resilience, allowing us to support customers and capture growth opportunities as conditions become more favorable,” Ngo said.
EastWest shares added P0.02, or 0.14 percent, to close at P13.98 each on Thursday. NAZYLEN JOY MABANGLO
