EastWest net income jumps to record P6.2 billion on consumer loans
MANILA — EastWest Bank on Friday said it posted last year its highest net income on record, on the back of growth in its consumer loan and low cost deposit portfolios.
The Gotianun-led lender posted net income of P6.2 billion in 2019 with a 14-percent return on equity, according to a stock exchange filing.
Net revenues rose 13 percent to P28.7 billion. Net interest income accounted for P2.2 billion of the total P3.2 billion increase in net revenues, EastWest said.
Consumer loans grew 14 percent, accounting for 73 percent of total loans. Net interest margin declined to 6.9 percent from 7.4 percent in 2018, the bank said, citing record high deposit costs.
“We are pleased to report our highest recorded income ever even as the bank faced a margin squeeze in 2019. We expect a reversal in 2020 and recover a good part of the lost margins,” EastWest CEO Tony Moncupa said.
“We also expect our balance sheet to post decent growth as the country is expected to be among the more resilient economies even with COVID-19 and the resulting slowdown in the advanced economies and China,” he said.