EastWest eyes double-digit loan growth in 2024

MACTAN, Cebu — Gotianun-led East West Banking Corp. is looking to post double-digit loan growth in 2024 as it seeks to sustain the growth it recorded so far this year, the lender’s top official said.

According to East West chief executive officer Jerry Ngo, the bank is working to sustain growth as its interest income grew by 26% or P6.5 billion in the first six months of the year, with auto loans contributing P2.2 billion, and personal loans with P810.5 million. Credit cards accounted for P2.5 billion.

“We’ll try (double-digit loan growth) but ideally, it’s not just the loan growth itself but also around productivity gains — customers served, more digital capabilities, and so on, so when you’re growing your net income, it’s not just piling on your loans,” he said on the sidelines of the BSP-IMF System Risk Dialogue.

“Although loans are important, but you know, you need to get better as you go along improving productivity, improving your customer income ratio, and so on. Banking should be boring and should be focused on clients,” he added.

East West reported a 49% increase in its net income for the third quarter to P2.3 billion, bringing its year-to-date net income up 20% to P5.8 billion. Nine-month revenues grew 26% to P32.2 billion, while operating expenses grew 23% to P17.9 billion.

The bank ended September 2024 with 390 stores —  212 stores in Metro Manila, 100 in other parts of Luzon, 40 in the Visayas, and 38 in Mindanao, along with 575 automated teller machines (ATMs).

Asked if the bank is looking at 2024 as a banner year, Ngo responded by saying “Banner years dapat. It still has to be sustainable, so that’s what we’re looking for. Sustainable growth na (that is) in line with the objectives of the country.”

Moving forward, Ngo said the bank is waiting for interest rates to come down before it pushes through with its planned fundraising under a shelf registration it filed last year. He did not give out the amount of the planned issuance, but said that “it is not too big” in Filipino.

“We have a plan for fundraising exercises, particularly on the debt side... Just to bulk up lang para mas mabilis ‘yung (to hasten the) growth of our loan book,” he said.

“But in the meantime, our funding growth has been in line with our loan book growth, so tugma tugma naman (they match). That’s what you really want to do, to be able to have lockstep growth for both sides of the balance sheet, so so far so good,” he added.

--VAL, GMA Integrated News