EastWest Bank posted flat profit growth in Æ14
PROFITS of Gotianun-led EastWest Bank were flat in 2014 amid a drop in trading and securities gains, which offset gains in the firm’s lending business.
Even as profits were flat, the company said investments made in the last two years would allow the firm to perform significantly better in the coming months.
‘‘Now is the time to consolidate, optimize our investments and reap returns,’’ chief financial officer Renato de Borja Jr. said.
In a statement, the bank said it earned P2.07 billion last year, up by less than 1 percent from P2.05 billion the year before.
Despite this, the company’s assets rose by nearly a third to P188.26 billion from P142.30 billion the year before.
‘‘The expansion was successful in strengthening our core banking business and it shows,’’ de Borja said.
‘‘This will support and ensure the sustainability of our business going forward,’’ he added.
The company said its total operating income grew by 13 percent to P14.89 billion and total operating expenses grew by 12 percent to P12.25 billion last year.
‘‘This is a welcome surprise considering the huge investments we have put in the expansion of our branch network and the upgrading of our core banking system,’’ de Borja said.
In 2014, the bank exceeded the 350 branch-network target that was set during its initial public offering in 2013.
The Gotianun-led bank opened 58 new branch stores last year, bringing its network to 405 and making it the fifth largest bank in terms of branches.
‘‘More importantly, it shows strength in our core banking business that will balance out the effects of market fluctuations in a volatile environment,’’ he added.
Last year, the bank’s trading and securities gain dropped by 50 percent to P499.53 million from P1.01 billion in 2013 but foreign exchange gains surged by 60 percent to P193.52 billion from P121.24 billion.
EastWest’s net interest income surged by 19 percent to P10.03 billion last year from P8.39 billion in 2013, with interest income growing by 18 percent to P11.67 billion from a year ago and interest expenses growing by only 12 percent to P1.64 billion from P1.46 billion in 2013.
