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EastWest Books 78% Net Income Growth

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MANILA, Philippines – East West Banking Corporation (PSE:EW) registered a net profit growth of 78 percent at P2.33 billion during the past three quarters of 2016.

The net profit increase of the financial firm is driven by its loan portfolio expansion. Net interest returns increased by 24 percent to P11.21 billion against last year. Alternatively, income from non-interest items climbed by 42 percent. The growth in non-interest earnings is due to commissions driven by deposits and consumer lending businesses. The measure basically excludes trading.

Net revenues rose by 32 percent, which is equivalent to P15.70 billion. This is supported by 27 percent core recurring earnings growth at P14.59 billion.

Tony Moncupa, Jr., EastWest President and Chief Executive Officer, stated that the highest risk brought by 2012 expansion program led to growth of its branches to 443 from 168. The assets measure at present increased to P268.78 billion from P96 billion. However, income stood at about P2 billion.

According to Mancupa, the expansion fruits are now being harvested by the company. The year-end income is expected to reach an estimated P3 billion, which is 50 percent improvement from 2015 record.  The President also stated that the management is glad to see the unbendable growth of the company irrespective of the company’s infrastructure’s complete realization.

The growth of EastWest’s market share and customer base drove total assets to increase by 26 percent to P268.78 billion. This is in line with the store network expansion. To date, the financial firm has 443 stores, which is triple its network of 168 branches five years ago.

The consumer loan portfolio grew to P122.6 billion, an expansion by 50 percent. The consumer loans status of the company has been substantiated by the award it has received from The Asian Banker Philippine Country Awards 2016. EastWest was granted with the “Best Consumer Finance Product” award due to its path-breaking and diverse multi-purpose personal loans.

The 31 percent growth of low-cost checking and savings deposits supported the increase of total deposits by 30 percent to P216 billion.

Moncupa added that the company has a lot to anticipate as it continues to grow and branch out its sources of profit. The firm’s non-life insurance, wealth management, and bancassurance are now in full operating mode. Very soon, the leasing will also be offered to its clients. From these recent happenings, the bank was able to complete its product menu.

The financial firm’s new subsidiary, EastWest Leasing and Finance Corporation, is expected to take part in the growth of the company. EastWest was recently granted with regulatory approvals for its new acquirement.

Here’s some additional pieces of information about EW’s top 10 players’ sentiment, foreign fund flow, volatility, and volume.

Top 10 Players’ Sentiment

Participants with a 100% Buying and Selling Activity from Nov-02-2016 to Nov-15-2016 at 03:30PM:

  • 13 out of 43 participants or 30.23% of all participants registered a 100% BUYING activity
  • 9 out of 43 participants or 20.93% of all participants registered a 100% SELLING activity
  • Top 10 Players’ Buying Average: 19.2101
  • Top 10 Players’ Selling Average: 19.3074

EW - EAST WEST BANKING CORPORATION - Top 10 Players' Sentiment - November 15, 2016

Foreign Fund Flow

On a 30-day trading period, EW is on a Net Foreign Selling worth PHP27,653,251.00.

EW - EAST WEST BANKING CORPORATION - Foreign Fund Flow - November 15, 2016

Risk Level

EW has a low risk level based on our proprietary risk level indicator.

EW - EAST WEST BANKING CORPORATION - Volatility - November 15, 2016

Volume

EW is showing some patterns on its  volume spikes. Once it registers a tall volume bar, the volume on the next trading day is almost always flimsy.

EW - EAST WEST BANKING CORPORATION - Volume - November 15, 2016

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