Moncupa says Gotianuns will be ‘sad’ if Eastwest fails to meet 30% profit growth in 2016
East West Banking Corp. of the late Bilyonaryo Andrew Gotianun is looking at a 30 percent growth in earnings this year on the back of the bank’s robust core business.
EastWest president and chief executive officer Antonio Moncupa Jr. said during the bank hopes to reverse the three percent decline in profits last year.
“If we don’t grow by 30 percent, we will be sad,” Moncupa said.
He pointed out the strong growth in earnings would be fueled by the 20 percent growth of both loans and deposits due to the country’s improving economy.
The bank’s total loan portfolio surged 29 percent while its deposit base jumped 25 percent last year.
Lower trading gains, higher credit provisioning, and higher taxes slashed the bank’s earnings to P2 billion last year.
Moncupa revealed the bank is looking at more than doubling its asset base to P500 billion in the next couple of years.
Total assets of the Gotianun-led bank jumped 24 percent to P232.9 billion last year.
According to him, EastWest is planning to launch another round of capital-raising initiative for the sustainability.
“At the rate we are going, we see another round of capital-raising initiative, we just don’t know when. Maybe this year, next year,” Moncupa said.
The bank ended 2015 with total branch network of 433 stores, the fifth largest in the industry, including its rural bank.
The current network size of the bank, he added, is enough to compete fairly with other big universal and commercial banks.
“This year we will put up around ten branches, mostly in Metro Manila, including the restricted areas. But in 2017 and 2018, we will resume our aggressive store expansion program,” he added.