EAST WEST Banking Corp. (EastWest Bank) saw its net income grow by 49% year on year to P2.3 billion in the third quarter, it said on Wednesday.

In the first nine months, EastWest Bank’s net profit climbed by 20% to P5.8 billion on the back of “higher income-generating capacity, boosted by favorable securities trading in the third quarter,” it said in a disclosure to the stock exchange,

“Our September results reflect our sustained momentum across key segments. While we benefited from the trading environment, it’s the strength of our core businesses that continues to drive our overall performance,” EastWest Bank Chief Executive Officer Jerry G. Ngo said.

Its quarterly report was unavailable as of press time.

The Gotaniun-led bank’s net interest income rose by 23% year on year to P25.1 billion in the first nine months boosted by its consumer lending business, which it said now accounts for 83% of its credit portfolio.

“This focus helped maintain a strong net interest margin of 8.1%, well above the industry average,” it said.

Its non-interest income likewise increased by 39% to P7.1 billion at end-September on the back of fee earnings related to consumer lending and other sources.

“Securities trading income, which amounted to P1.4 billion, also benefitted from the easing interest rate environment,” EastWest Bank said.

As a result, the lender’s net revenues jumped by 26% to P32.2 billion in the period. Excluding trading income, its topline increased by 23%.

Meanwhile, EastWest Bank’s operating expenses went up by 23% to P17.9 billion.

This resulted in a cost-to-income ratio of 55%.

The bank’s loans and receivables expanded by 13% year on year to P321.3 billion at end-September following a 17% growth in consumer loans.

“Personal loans grew by 52%, credit card loans by 35%, and auto loans by 11%,” it added.

On the funding side, deposits with the bank rose by 10% to P371 billion, with current and savings account or CASA deposits making up 79% of the total.

EastWest Bank assets expanded by 12% year on year to P497 billion at end-September.

Its capital adequacy ratio was at 13.7%, while common equity Tier 1 ratio was at 12.9%.

EastWest Bank shares closed at P10.24 apiece on Wednesday, up by 37 centavos or 3.75% from the previous day’s finish. — A.M.C. Sy