MANILA, Philippines - EastWest Bank, led by the Gotianun family, reported its net income grew 13% to P2.1 billion in 2013, as its core businesses registered strong revenue growth.
In a statement, EastWest said customer loans surged 32% to P95.6 billion in 2013, on the back of double-digit growth in credit cards, auto, mortgage and personal loans businesses. Corporate loans rose 35% to P46.7 billion, 35% higher from the previous year.
The banking subsidiary of Filinvest Development Corp. reported total deposits rose 22% to P111.2 billion, as it expanded its branch network in the country. Low-cost deposits went up 28%, while high-cost deposits jumped 14%.
EastWest said its fees, commissions and other non-interest income rose 29% to P4.77 billion, while revenue from fees, excluding trading income, increased by 39% to P3.1 billion year-on-year.
For 2013, the bank said total expenses was 40% higher at P10.9 billion as it continued to expand its branch store network and gained market share in consumer loans.
Last year, EastWest opened 55 new branches to close the year with 300. As of March 17, 2014, EastWest Unibank and EastWest Rural Bank had 369 branches.
"The year 2013 proved to be a challenging one for the banking industry in general because of the ultra low-interest rate environment. Other banks turned their focus on traditional income sources, which tightened competition. In spite of this, we are pleased with our core businesses growth as well as our overall financial results," EastWest Chief Finance Officer Rene K. de Borja, Jr. said.
De Borja said the bank is planning to open more branches this year.
"The cost of expansion will continue to impact on our short term results but we are confident on the long term benefits of our investments as we continue to execute our strategy and we will continue to ride on the momentum we have gained since we started our expansion program," he said.