Stalled DepEd loans hurt EastWest’s Q1 income
This bank’s profits were significantly slashed with the suspension of the Department of Education’s teacher loans program.
Loans to teachers account for a sizable portion of the portfolio of subsidiary EW Rural Bank.
East West Banking Corp’s net income fell 22 percent to P945.4 million.
The decline in profit was also due to trading losses amounting to P136.5 million.
“For 2018, the biggest challenge for the Bank is the settlement of the DepEd loans. The bank believes that eventually, this will get settled and the bank will be paid on its existing portfolio, said EastWest CEO and vixe chairman Tony Moncupa.
The Gotianun-led bank, however, is ” still evaluating if it can continue lending under the revised terms of the program.”
Despite the drop in earnings, the bank reported an 8 percent increase in net interest income to P4.2 billion. Consumer loans went up 11 percent despite the absence of teacher loans.