EastWest profit down 4% in H1

GOTIANUN-LED East West Bank posted a 4-percent decline in six-month net profit to P1 billion due to lower trading gains compared to year-ago level and higher provisions for loan losses.

For the second quarter alone, net profit attributable to equity holders of parent eased to P407.6 million from P590.9 million in the same period last year.

But EastWest Bank—which has focused on an aggressive branch expansion in the last few years—reached a new milestone as its total assets hit the P200 billion mark in the first semester. The balance sheet expanded by 31 percent year-on-year to P204.9 billion.

“We attribute this milestone to our strategic branch store expansion and focus in the consumer finance sector,” EastWest chief finance officer Rene de Borja Jr. said in a statement.

The growth in assets was propelled by the 23-percent year-on-year expansion in loans to P131 billion in the first six months. Deposits grew by 25 percent to P158.1 billion from P126.1 billion a year ago.

Consumer loans surged by 31 percent to P74.7 billion, driven by a 57-percent growth in auto loans. Corporate loans rose by 14 percent to P56.3 billion.

The higher loan booking resulted in a 22-percent rise in net interest income to P5.8 billion in the first semester. Doris Dumlao-Abadilla