EastWest Bank's first half income up 40%

Publicly-held East West Banking Corporation's (EastWest) first half income increased by two-fifths on the back of hefty trading gains and lending growth.

Robust earnings prompted its top official to remain bullish over the Gotiantun-led bank's growth target and expansion plans for this year and the next.

In a statement, the EastWest reported a 40-percent year-on-year increase in net income for the first semester to P1.28 billion.

“Clearly, we have the momentum. We remain confident that we will meet this year's 25 percent net income growth guidance we announced early this year,” said Antonio Moncupa Jr., EastWest president and chief operationg officer.

Easwest's revenues surged 59 percent to P7.1 billion in the January to June period, while its assets grew by 41 percent to P130.9 billion.

“The strong revenue growth was achieved as a result of the 51.5-percent year-on-year increase in Loan Receivables,” the statement read.

Total loans to businesses—mostly to mid-size corporates—went up 60 percent annually, while consumer loans increased by 45 percent to P44.6 Billion.

All consumer loan segments—credit card receivables, personal loans, auto, and mortgages—registered “high double digit growth,” the statement read.

The bank's deposit base for the first half, meanwhile, increased by 50 percent annually to P101.5 billion on the back of branch expansions.

After opening 32 branches in the last seven months of the year, EastWest has a total branch network of 324. It is targeting to expand its branches to 350 by early 2014.

EastWest, meanwhile, registered an 87.4 percent increase in its non-interest revenues from fees, commissions and trading.

Fixed Income and Foreign Exchange trading revenues, on the other hand, went up by 121.9 percent.  

Total fees, excluding trading, was up by 62.7 percent by end-June 2013 to P1.6 billion versus the same period in 2012.  

Total expenses rose by 51.7 percent to P4.2 billion.

EastWest’s capital adequacy ratio—the ratio of its capital to risk—remains was at16.8 percent, above the central bank's 10 percent requirement.  

“So far, we are doing better than initially thought. We expected that growth in operating expenses will outstrip revenue growth this year and next although revenues appear to be contesting that expectations,” Moncupa said. — Siegfrid O. Alegado/BM, GMA News