Money

What COVID crisis? Moncupa steers EastWest Bank 65% profit hike in H1

Profits of EastWest Bank remain northbound course even as the pandemic drags the economy to virtual halt.

The banking arm of the Gotianuns reported a 65 percent increase in net income to P4.5 billion in the first half of 2020.

Revenus surged 39 percent to P18.4 billion in the first six months this year.

EastWest CEO Tony Moncupa is hitting on all cylinders despite booking P5.5 billion in loan loss provisions during the period, or more than triple last year’s level in anticipation of higher defaults arising from the pandemic.

“We continue to build our reserves for loan losses, so we can move past this pandemic sooner and assure our depositors, concentrate in assisting our borrowers and prepare to participate in the economic recovery efforts after the pandemic,” said Moncupa in a statement.

“We are positive we can meet, if not exceed, the ₱5 to 6 billion income guidance we gave earlier while building our reserves for loan losses,” he added.

EastWest’s net interest income, which accounts for 73% of revenues, jumped by 38 percent to ₱13.4 billion as it sustained its industry-leading margins.

Net interest margin widened by 142 bps to 8.3 percent while mon-interest income climbed 42 percent or ₱1.5 billion due to gains from fixed income securities.

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