MANILA, Philippines — Sustained by the strength of its consumer lending franchise, East West Banking Corp. (EastWest Bank) reported a net income of ₱1.9 billion for the first quarter of 2026. The result represents a modest 5.6% increase from the ₱1.8 billion posted in the same period last year, reflecting a steady performance despite a volatile global market.
The Gotianun-led lender disclosed that its revenue generation remains robust, even as it takes a conservative stance on potential credit risks.
EastWest’s performance was characterized by double-digit growth in its core recurring income, which helped offset weaker trading gains.
- Total Revenues: Rose 15% to ₱13.3 billion.
- Net Interest Income: Climbed 20% to ₱11.1 billion, fueled by higher loan volumes and effective funding cost management.
- Core Income: Excluding the impact of volatile trading-related figures, core income grew by 19% to ₱13.6 billion.
- Non-Interest Income: Dipped slightly to ₱2.2 billion (down 4.3%), as fee-based growth was tempered by softer trading performance amid geopolitical uncertainties.
EastWest continues to lead the industry in terms of consumer asset concentration. Loans grew by 14% to ₱390.4 billion, with consumer loans now making up approximately 84% of the bank’s total loan book—one of the highest ratios among Philippine peers.
- Credit Cards: Saw a massive 36% surge in volume.
- Personal Loans: Grew by 18%, reflecting high demand for retail credit.
Despite the profit growth, EastWest significantly increased its safety buffers in anticipation of potential economic headwinds from the ongoing Middle East conflict and high inflation.
- Provisions for Credit Losses: The bank set aside ₱4.7 billion in provisions, a move described by CEO Jerry Ngo as a “conservative and forward-looking approach.”
- NPL Coverage: The non-performing loan coverage ratio stood at 85%.
- Cost Efficiency: The bank maintained a cost-to-income ratio of 47.9%, as operating expenses grew by only 1% to ₱6.4 billion.
CEO Jerry Ngo emphasized that the bank’s stability comes from its focus on recurring retail earnings. “Our revenue generation capacity remains strong despite market volatility impacting trading-related revenues across the industry,” Ngo stated. “By remaining disciplined, we preserve our flexibility to support customers and capture growth opportunities.”
The bank also recently declared ₱1.8 billion in cash dividends (₱0.82 per share), following its record-breaking full-year profit of ₱9.2 billion in 2025. Dividends are payable on May 29 to shareholders of record as of May 11, 2026.
