East West nets P2.1B in 2013

Screengrab from https://www.eastwestbanker.com/

MANILA, Philippines – East West Bank expanded its net profit last year by 13.2 percent to P2.1 billion on above-industry loan growth and margins as well as growth in other core businesses.

This translated to a return on equity of 11.1 percent and return on assets of 1.6 percent, the bank disclosed to the Philippine Stock Exchange on Monday.

The bank increased its loan book by 32.1 percent to P95.6 billion for the year. Consumer loans grew by 29.4 percent to end the period at P48.9 Billion as credit cards, auto, mortgage and personal loans businesses all expanded at a double-digit pace from the previous year. Lending to top-tier corporations also jumped by 35.1 percent to end the year at P46.7 billion.

The expansion in loan book was supported by a 21.9-percent increase in total deposits to P111.2 billion, driven by the expansion in its branch network.

In 2013, East West opened a total of 55 new branches to end the year with 300. As of March 17 this year, the consolidated branch store network of EastWest Unibank and EastWest Rural Bank stood at 369.

Low-cost current account and savings account deposits grew by 27.9 percent, outpacing the 14.4 percent rise in high-cost deposits. The improved ratio of low-cost to total deposits resulted a 15.3 percent decline in the bank’s interest expense.

While the bank grew its loan book at a faster pace than its peers, it also posted an above-industry net interest margin (NIM) of 8.4 percent, the highest in the bank’s history. This NIM increased by 37.9 percent year-on-year.